Impact of Managerial Environmental Concerns on Environmental Performance: Mediating Role of Green Entrepreneurship Orientation

This study examines the impact of Green Entrepreneurial Orientation (GEO), Managerial Environmental Concerns (MECs), and Green Absorptive Capacity (GAC) on the environmental performance of Pakistani SMEs. The Dynamic Capabilities View (DCV) and Natural Resource-Based View (NRBV) demonstrate that innovation focused on sustainability and competitive advantage is enhanced by managerial engagement, knowledge capability, and environmental awareness. A cross-sectional survey involving 350 managers of SMEs in Pakistan utilized covariance-based structural equation modeling (CB-SEM). The MEC-to-GEO direction was insignificant, and this implies that the issue of managerial concern is not a driving force towards the initiation of green entrepreneurial endeavors. The confirmatory factor analysis model for the 350 SMEs demonstrates a satisfactory fit (CFI = 0.947; RMSEA = 0.073), along with reliability and validity. GEO and EP are positively influenced by GAC and MECs, with R 2 values of 0.204 and 0.526, respectively. The findings indicate that the absorptive and managerial capabilities of SMEs can integrate environmental responsibility into strategic decision-making, exceeding regulatory criteria to foster proactive environmental innovation. The study emphasizes ethical leadership, environmental competitiveness, and social responsibility through green information management and cooperative networks. The sustainability ideas and GEO are enhanced in developing nations by linking global green initiatives with local institutions and cultural contexts. Organizational management and policymakers should promote environmental education, ecological innovations, and sustainable practices within sectors. The limitations of the study include the use of self-reported data and cross-sectoral replication utilizing objective environmental indicators.