Exploring the Impact of Green Organizational Culture and Entrepreneurial Orientation on Firm Performance: The Mediating Role of Green Business Models

Abstract

The research that supports this study investigates the relationship between green organizational culture, green entrepreneurial orientation, green business model, and entrepreneurial firm performance. By using Partial Least Squares Structural Equation Modeling, data from 342 firms across various industries in Shanghai, China that were analyzed to investigate how green organizational culture and green entrepreneurial orientation influence green business model and entrepreneurial firm performance. The findings present that green organizational culture and green entrepreneurial orientation significantly contribute to the development of green business model, and in turn, green business model contributes positively to entrepreneurial firm performance. In addition, green organizational culture and green entrepreneurial orientation have positive direct effects on firm performance, showing that sustainability practice, organizational culture, and entrepreneurial orientation play an important role in enhancing competitive advantage and profitability. The findings indicate that firms having strong green cultures and entrepreneurial orientations are those best placed in developing innovative business models leading to superior performance. For this study, practical implications to managers and policymakers look toward stimulating sustainability and innovation. This study contributes to the inauspicious pool of theoretical literature concerning green business practices and firm performance.