The role of green process innovation translating green entrepreneurial orientation and proactive sustainability strategy into environmental performance

Abstract

Purpose This paper analyzes the mediating role of green process innovation in the relationships of green entrepreneurial orientation and proactive sustainability strategy with environmental performance. Design/methodology/approach The authors analyze data from 81 Brazilian agriculture technology startups (AgTechs) using partial least squares–structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA). Findings The results show that the green process innovation assumes an important role in AgTechs, promoting full mediations between green entrepreneurial orientation and proactive sustainability strategy with environmental performance. There are two ways for AgTechs to achieve high environmental performance. In both, green process innovation is a central condition, while green entrepreneurial orientation or proactive sustainability strategy is a complementary condition. Research limitations/implications This study demonstrates how internal elements (green entrepreneurial orientation, proactive sustainability strategy and green process innovation) improve environmental performance. This answers calls to explore which elements translate green entrepreneurial orientation and proactive sustainability strategies into environmental performance, by highlighting the mediating role of green process innovation. Practical implications The findings are useful for founders and managers of AgTechs to find ways to manage sustainable technological advancement and cleaner production in agribusiness. Originality/value This study analyses the interface between sustainable entrepreneurship, strategy and innovation in promoting environmental performance of AgTechs from an emerging economy country.