JEFMS Journal

ABSTRACT:

This study aims to investigate the effects of green entrepreneurial orientation (GEO) on the environmental performance of small and medium-sized enterprises (SMEs). Building onSocial Capital Theory (SCT), emphasizing corporate social responsibility and green innovation as mediating variables to improve this relationship, to achieve this, a study was conducted with 120 industrial SMEs distributed according to different sectors of activity. Activity and data were collected from a survey, and the validity and reliability of the measurement model were well reported. . The results provided empirical evidence supporting the hypotheses of the study and they showed that the orientation of green entrepreneurship hasan effect on environmental performance and that social responsibility and green innovation can play a mediating role in influencing the relationship between GEO and the EP of SMEs inTunisia.

KEYWORDS:

Corporate Social Responsibility (CSR), Green innovation, Environmental performance, green entrepreneurial orientation, SMES

REFERENCES:

1) Ghazilla, R. A. R., Sakundarini, N., Abdul-Rashid, S. H., Ayub, N. S., Olugu, E. U., & Musa,

2) S. N. (2015). Drivers and barriers analysis for green manufacturing practices in Malaysian SMEs: A preliminary findings. Procedia Cirp, 26, 658–663. https://doi.org/10.1016/j.procir.2015.02.085.

3) Adomako, S., & Nguyen, N. P. (2020). Interfirm collaboration and corporate social responsibility expenditure in turbulent environments: The moderating role of entrepreneurial orientation. Corporate Social Responsibility and Environmental Management.

4) Amankwah-Amoah, J., Danso, A., & Adomako, S. (2019). Entrepreneurial orientation, environmental sustainability and new venture performance: Does stakeholder integration matter.Business Strategy and the Environment, 28(1), 79–87. https://doi.org/10.1002/bse.2191

5) Amjad, F., Abbas,W., Zia-Ur-Rehman, M., Baig, S. A., Hashim, M., et Khan, A.,. (2021). Effect of green human resource management practices on organizational sustainability: the mediating role of environmental and employee performance. Environ. Sci. Pollut. Res. 28, 28191–28206.

6) Anser,M. K., Yousaf, Z., Majid, A., and Yasir, M. (2020). Does corporate social responsibility commitment and participation predict environmental and social performance? Corp. Soc. Responsib. Environ. 27, 2578–2587.

7) Asadi, S, Seyedeh OmSalameh P, Mehrbakhsh N, Rusli A, Sarminah S, Elaheh Y, Nahla A, and Nor Shahidayah R. (2020).Investigating Influence of Green Innovation on Sustainability Performance: A Case on Malaysian Hotel Industry. Journal of Cleaner Production 258: 120860

8) Aykol, B., & Leonidou, L. C. (2015).Researching the green practices of smaller service firms:A theoretical, methodological, and empirical assessment. Journal of Small Business Management, 53(4), 1264–1288. https://doi.org/10.1111/jsbm.12118

9) Baeshen, Y., Soomro, Y. A., & Bhutto, M. Y.(2021). Determinants of Green Innovation to Achieve Sustainable Business Performance: Evidence from SMEs. Frontiers in Psychology, 12, [767-968]

10) Bos-Brouwers, Hilke Elke Jacke. 2009. Corporate sustainability and innovation in SMEs: Evidence of themes and activities in practice. Business Strategy and the Environment.

11) Bresciani, S., Puertas, R., Ferraris, A., & Santoro, G. (2021).Innovation, environmental sustainability and economic development: DEA-bootstrap and multilevel analysis to compare two regions Technological Forecasting and Social Change, 172,121040. https://doi.org/10.1016/j.techfore. 2021.121040.

12) Broccardo, L., Culasso, F., Dhir, A., & Truant, E.(2022). Corporate social responsibility: Does it really matter in the luxury context? Corporate Social Responsibility and Environmental Management,1–14. https://doi. org/10.1002/csr.234114

13) Bux, H.; Zhang, Z.; Ahmad, N. (2020), Promoting Sustainability through Corporate Social Responsibility Implementation in the Manufacturing Industry: An Empirical Analysis ofBarriers Using the ISM-MICMAC Approach. Corp. Soc. Responsib. Environ. Manag., 27, 1729–1748.

14) Chen, Y. and Chang, C. (2013), "Towards green trust: The influences of green perceived quality, green perceived risk, and green satisfaction", Management Decision, Vol. 51 No. 1, pp. 63-82. https://doi.org/10.1108/00251741311291319

15) Chuang, S.P.; Huang, S.J. (2018), the Effect of Environmental Corporate Social Responsibility on Environmental Performance and Business Competitiveness: The Mediatio Green Information Technology Capital. J. Bus.Ethics., 150, 991–1009.

16) Dangelico, Rosa M, and Devashish P, (2010), Mainstreaming Green Product Innovation: Why and How Companies Integrate Environmental Sustainability. Journal of Business Ethics 95: 471–86

17) Demirel, P., Li, Q. C., Rentocchini, F., & Tamvada, J. P.(2019). Born to be green:New insights into the economics and management of green entrepreneurship.Small Business Economics, 52(4), 759–771.

18) DiPietro, Robin B., Yang C, and Charles P. (2013), Green Practices in Upscale Foodservice Operations. International Journal of Contemporary Hospitality Management 25: 779–96

19) Elshaer, I.A.; Azazz, A.M.S.; Fayyad, S. (2023), Green Management and Sustainable Performance of Small- and Medium- Sized Hospitality Businesses: Moderating the Role of an Employee’s Pro-Environmental Behaviour. Int. J. Environ. Res. Public Health, 20, 22-44

20) Erlinda N. Yunus and Michael D. Michalisin, (2016), Sustained competitive advantage through green supply chain management practices: a natural-resource-based view approach, International Journal of Services and Operations Management, 25, (2), 135-154

21) Ernst, J., and Jensen Schleiter, A. (2021).Organizational identity struggles and reconstruction During organizational change: narratives as symbolic, emotional and practical glue.Organ. Stud. 42, 891–910

22) Fawcett, T., & Hampton, S. (2020). Why & how energy efficiency policy should address SMEs. Energy Policy, 140, 111- 337. https://doi.org/10. 1016/j.enpol.2020.111337

23) Gaudencio, P.,Coelho, A., and Ribeiro, N. (2017).The role of trust in corporate social responsibility and worker relationships. J. Manag. Dev. 36, 478–492.

24) Ge, B., Jiang, D., Gao, Y., Tsai, S. (2016). The Influence of Legitimacy on a Proactive Green Orientation and Green Performance: A Study Based on Transitional Economy Scenarios in China. Sustainability, 1-20. https://doi.org/10.3390/su8121344.

25) Getele, G. K., Li, T., & Arrive, T. J. (2020). Corporate culture in small and medium enterprises: Application of corporate social responsibility theory. Corporate Social Responsibility and Environmental Management, 27 (2), 897–908.

26) Guo, Ying, Lifang, W, and Yanyu, C. 2020. Green Entrepreneurial Orientation and Green Innovation: The Mediating Effect of Supply Chain Learning. SAGE Open 10: 215824401989879.

27) Hernández, Ó. S., Martín-Brufau, R., Carrillo, F. X. M., Berna, F. J. C., & Gras, R. M. L.(2010). Relación entre optimismo, creatividad y síntomas psicopatológicos, en estudiantes universitarios. Electronic Journal of Research in Educational Psychology, 8(3), 1151–1178.

28) Ho, C.-W. (2017).Does practicing CSR makes consumers like your shop more? Consumer- retailer love mediates CSR and behavioral intentions. Int. J. Environ. Res. Public Health 14:1558. doi: 10.3390/ijerph14121558

29) Huang,C.-J.(2010).Corporate governance, corporate social responsibility and corporate performance. J. Manag. Organ.16, 641–655.doi: 10.5172/jmo.2010. 16.5.641

30) Iqbal, Z., & Malik ,M, (2019). Entrepreneurial orientation and engagement of Pakistani smalland medium enterprises in sustainable development practices: Mediating role of knowledge management. Business Strategy and Development, 2(3), 192–203. https://doi.org/10.1002/bsd2.53

31) Jiang, W., Chai, H., Shao, J., & Feng, T.(2018). Green entrepreneurial orientation for enhancing firm performance: A dynamic capability perspective. Journal of CleanerProduction, 198, 1311–1323. https://doi. org/10.1016/j.jclepro.2018.07.104

32) Jin, K. G., Drozdenko, R., & DeLoughy, S. (2013), the role of corporate value clusters in ethics, social responsibility, and performance: A study of financial professionals and implications for the financial meltdown. Journal of business ethics, 112(1), 15–24

33) Jing-Wen H &Yong-Hui L, (2017). "Green Innovation and Performance: The View of Organizational Capability and Social Reciprocity," Journal of Business Ethics, Springer, vol. 145(2), pages 309-324, October

34) Kim, Y., Li, H., & Li, S. (2014). Corporate social responsibility and stock price crash risk. Journal of Banking & Finance, 43, 1–13.

35) Kozubíková, L, Gabriela S,Vladimír K, and Ladislav T, (2017). Differences in innovativeness, proactiveness and competitive aggressiveness in relation to entrepreneurial motives. Journal of International Studies 10: 207–18.

36) Kraus, S and Rehman, S and Sendra G, Javier, F. (2020) 'Corporate social responsibility and environmental performance: the mediating role of environmental strategy and green innovation', Technological forecasting social change. 160 . p. 120- 262.

37) Kraus, S., Rehman, S.-U., & García, F. J. S. (2020). Corporate social responsibility and environmental performance: The mediating role of environmental strategy and green innovation. Technological Forecasting and Social Change, 160, 120262.https://doi.org/10.1016/j.techfore.2020. 120262

38) Kuckertz, A., Wagner, M.,(2010).The influence of sustainability orientation onentrepreneurial intentions - investigating the role of business experience.journal of Business Venturing 25 (5), 524-539.

39) Leonidou, L. C., Christodoulides, P., Kyrgidou, L. P., & Palihawadana, D.(2017). Internal drivers and performance consequences of small firm green business strategy: The moderating role of external forces. Journal of Business Ethics, 140(3), 585–606.

40) Malik A, Khan N, Faisal S, Javed S, Faridi M, rashad. (2020) , An investigation on leadership styles for the business productivity and sustainability of small medium enterprises (SME’S). Int J Entrepreneurship 24(5):1–10

41) Meng, X.; Zeng, S.; Xie, X.; Zou, H. (2019), Beyond symbolic and substantive: Strategic disclosure of corporate environmental information in China. Bus. Strat. Environ., 28, 403– 417.

42) Montabon,F, Robert S, and Ram N.(2007).An examination of corporate reporting, environmental management practices and firm performance. Journal of Operations Management 25: 998–1014.

43) Orazalin, N., and Baydauletov,M. (2020). Corporate social responsibility strategy and corporate environmental and social performance: the moderating role of board gender diversity. Corp. Soc. Responsib. Environ. 27, 1664–1676.doi: 10.1002/csr.1915

44) Pakurár, M; Muhammad Asif ,K; Attila, B, and Judit O. (2020).The impact of green practices,cooperation and innovation on the performance of supply chains using statistical method of meta-analysis. Journal of International Studies 13: 111– 28.

45) Pratono AH, Darmasetiawan NK, Yudiarso A, et al. (2019) Achieving sustainable competitiveadvantage through green entrepreneurial orientation and market orientation: The role of inter- organizational learning. Bottom Line 31(1): 2–15. https://doi.org/10.1108/BL-10-2018-0045

46) Pucheta- Martínez, M.C.; Gallego-Á lvarez, I.(2019), An international approach of the relationship between board attributes and the disclosure of corporate social responsibility issues. Corp. Soc. Responsib. Environ. Manag., 26, 612– 627.

47) Qi, G., Zou, h., & Xie, X.(2020). Governmental inspection and green innovation: Examining the role of environmental capability and institutional development. Corporate Social Responsibility and Environmental Management, 27(4), 1774– 1785.

48) Rodríguez-A, José M, María delMar Alonso-A, María Soledad C, and Luis R. 2012.Use of different sustainability management systems in the hospitality industry .The case of Spanish hotels. Journal of Cleaner Production 22: 76–84.

49) Shabbir, M.S.; Wisdom, O. (2020), the relationship between corporate social responsibility, environmental investments and financial performance: Evidence from manufacturing companies. Environ. Sci. Pollut. Res. Int., 27, 39946–39957.

50) Shahzad, M.; Qu, Y.; Javed, S.A.; Zafar, A.U.; Rehman, S.U. (2020) Relation of environment sustainability to CSR and green innovation: A case of Pakistani manufacturing industry. J. Clean. Prod., 253, 119-938.

51) Sharma, E. (2019), A review of corporate social responsibility in developed and developingnations. Corporate Social Responsibility and Environmental Management, 26(4), 712–720. https://doi.org/10.1002/csr.1739

52) Sila, I, and Cek, K.(2017).The impact of environmental, social and governance dimensions of corporate social responsibility on economic performance: australian evidence. Proc. Comput. Sci. 120, 797–804.

53) Sine, W. D., & Lee, B. H. (2009). Tilting at windmills? The environmental movement and theemergence of the US wind energy sector. Administrative Science Quarterly, 54(1), 123–155.

54) Soomro, B.A., Almahdi, H.K.; Shah,N. (2021), Perceptions of young entrepreneurial aspirantstowards sustainable entrepreneurship in Pakistan. Kybernetes, 50, 2134–2154

55) Suganthi, L.(2020), Investigating the relationship between corporate social responsibility and market, cost and environmental performance for sustainable business. S. Afr. J. Bus. Manag., 51, 1–13.

56) Turker, D. (2009) ‘Measuring corporate social responsibility: A scale development study’, 57) Journal of Business Ethics, 85, pp. 411–427. doi: 10.1007/s10551-008-9780-6.

58) Weng, H.-H.; Chen,J.-S.; Chen, P.-C. (2015), Effects of Green Innovation on Environmental and Corporate Performance: A Stakeholder Perspective. Sustainability, 7, 4997-5026. https://doi.org/10.3390/su7054997.

59) Woldesenbet, K, Monder R, and Trevor J.(2012). Supplying large firms: The role of entrepreneurial and dynamic capabilities in small businesses. International Small Business Journal: Researching Entrepreneurship 30: 493–512.

60) Xu, B., Gao, X., Cai, W., and Jiang, L. (2022). How environmental leadership boosts Employees’ green innovation behavior?,A Moderated Mediation Model. Front. Psychol. 12:689671

61) Yoshino, N., Taghizadeh-Hesary, F., Charoensivakorn, P.,& Niraula, B. (2016).Small and medium-sized enterprise (SME) credit risk analysis using bank lending data: An analysis of Thai SMEs. Journal of Comparative Asian Development, 15(3), 383–406.https://doi.org/10.1080/ 15339114.2016.1233821

62) Zhai, Y.-M., Sun, W.-Q.,Tsai, S.-B., Wang, Z., Zhao, Y., & Chen, Q. (2018). An empirical study on entrepreneurial orientation, absorptive capacity, and SMEs' innovation performance: A sustainable perspective Sustainability, 10(2), 314. https://doi.org/10.3390/su10020314

63) Zhu, S.,Wu, Y., and Shen, Q. (2021). How environmental knowledge and green values affect the relationship between green human resource management and Employees’ green behavior: From the perspective of emission reduction. PRO 10:38.