IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i2p593-d1566449.html
   My bibliography  Save this article

Effect of Green Entrepreneurial Orientation and Absorptive Capacity on Green Innovation and Environmental Orientation Among Educated Gen Z’s in Europe

Author

Listed:
  • Adam Figiel

    (College of Management and Quality Sciences, Management Institute, Krakow University of Economics, ul. Rakowicka 27, 31-510 Krakow, Poland)

  • Ayesha Badar

    (Hailey College of Banking & Finance, University of the Punjab, Lahore 54000, Pakistan)

Abstract

The study evaluates the interest of business-educated Gen Z in pursuing careers in various industries and their potential to accelerate Green Innovation (GI). It specifically focuses on Gen Z in Europe, who are business-educated and pursuing their career in different industry sectors, and aiming to address climate change and sustainable practices. By adopting Green Entrepreneurial Orientation (GEO) and building Absorptive Capacity (AC), companies can significantly contribute to improving Environmental Orientation (EO) by appealing to Gen Z—their future employees and customers. The study aims to survey 280 business-educated Gen Z people in Europe. The findings of the study show that the relationship between absorptive capacity and environmental orientation is not always significant, and the impact can be negligible, specifically when the firms have a low commitment to environmental strategies and have a limited strategic emphasis on sustainable practices. The study aims to encourage innovation and sustainable growth among firms, opening the door to a more sustainable future and attracting goodwill from environmentally oriented Generation Z. The publication/article presents the results of the project financed from the subsidy granted to the Krakow University of Economics.

Suggested Citation

  • Adam Figiel & Ayesha Badar, 2025. "Effect of Green Entrepreneurial Orientation and Absorptive Capacity on Green Innovation and Environmental Orientation Among Educated Gen Z’s in Europe," Sustainability, MDPI, vol. 17(2), pages 1-21, January.
  • Handle: RePEc:gam:jsusta:v:17:y:2025:i:2:p:593-:d:1566449
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/2/593/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/17/2/593/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Flor, M. Luisa & Cooper, Sarah Y. & Oltra, María J., 2018. "External knowledge search, absorptive capacity and radical innovation in high-technology firms," European Management Journal, Elsevier, vol. 36(2), pages 183-194.
    2. Sohail Ahmad Javeed & Boon Heng Teh & Tze San Ong & Nguyen Thi Phuong Lan & Saravanan Muthaiyah & Rashid Latief, 2023. "The Connection between Absorptive Capacity and Green Innovation: The Function of Board Capital and Environmental Regulation," IJERPH, MDPI, vol. 20(4), pages 1-20, February.
    3. Tulin Dzhengiz & Eva Niesten, 2020. "Competences for Environmental Sustainability: A Systematic Review on the Impact of Absorptive Capacity and Capabilities," Journal of Business Ethics, Springer, vol. 162(4), pages 881-906, April.
    4. Teece, David J., 2016. "Dynamic capabilities and entrepreneurial management in large organizations: Toward a theory of the (entrepreneurial) firm," European Economic Review, Elsevier, vol. 86(C), pages 202-216.
    5. Yu-Shan Chen & Shyh-Bao Lai & Chao-Tung Wen, 2006. "The Influence of Green Innovation Performance on Corporate Advantage in Taiwan," Journal of Business Ethics, Springer, vol. 67(4), pages 331-339, September.
    6. Müller, Julian M. & Buliga, Oana & Voigt, Kai-Ingo, 2021. "The role of absorptive capacity and innovation strategy in the design of industry 4.0 business Models - A comparison between SMEs and large enterprises," European Management Journal, Elsevier, vol. 39(3), pages 333-343.
    7. Banerjee, Subhabrata Bobby, 2002. "Corporate environmentalism: the construct and its measurement," Journal of Business Research, Elsevier, vol. 55(3), pages 177-191, March.
    8. Bitencourt, Claudia Cristina & de Oliveira Santini, Fernando & Ladeira, Wagner Junior & Santos, Ana Clarissa & Teixeira, Eduardo Kunzel, 2020. "The extended dynamic capabilities model: A meta-analysis," European Management Journal, Elsevier, vol. 38(1), pages 108-120.
    9. Sascha Kraus & Janina Burtscher & Christine Vallaster & Martin Angerer, 2018. "Sustainable Entrepreneurship Orientation: A Reflection on Status-Quo Research on Factors Facilitating Responsible Managerial Practices," Sustainability, MDPI, vol. 10(2), pages 1-21, February.
    10. Nathalia Suchek & Cristina I. Fernandes & Sascha Kraus & Matthias Filser & Helena Sjögrén, 2021. "Innovation and the circular economy: A systematic literature review," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 3686-3702, December.
    11. Rodrigo-Alarcón, Job & García-Villaverde, Pedro M. & Ruiz-Ortega, María J. & Parra-Requena, Gloria, 2018. "From social capital to entrepreneurial orientation: The mediating role of dynamic capabilities," European Management Journal, Elsevier, vol. 36(2), pages 195-209.
    12. Lahcene Makhloufi & Abderrazak Ahmed Laghouag & Alhussain Ali Sahli & Fateh Belaid, 2021. "Impact of Entrepreneurial Orientation on Innovation Capability: The Mediating Role of Absorptive Capability and Organizational Learning Capabilities," Sustainability, MDPI, vol. 13(10), pages 1-20, May.
    13. Yang Chen & Guiyao Tang & Jiafei Jin & Ji Li & Pascal Paillé, 2015. "Linking Market Orientation and Environmental Performance: The Influence of Environmental Strategy, Employee’s Environmental Involvement, and Environmental Product Quality," Journal of Business Ethics, Springer, vol. 127(2), pages 479-500, March.
    14. Jeffrey G. Covin & Danny Miller, 2014. "International Entrepreneurial Orientation: Conceptual Considerations, Research Themes, Measurement Issues, and Future Research Directions," Entrepreneurship Theory and Practice, , vol. 38(1), pages 11-44, January.
    15. Claudia Dias & Ricardo Gouveia Rodrigues & João J. Ferreira, 2021. "Small agricultural businesses' performance—What is the role of dynamic capabilities, entrepreneurial orientation, and environmental sustainability commitment?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1898-1912, May.
    16. Jansen, J.J.P. & van den Bosch, F.A.J. & Volberda, H.W., 2005. "Managing Potential and Realized Absorptive Capacity: How do Organizational Antecedents matter?," ERIM Report Series Research in Management ERS-2005-025-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ameer, Farah & Khan, Naveed R., 2023. "Green entrepreneurial orientation and corporate environmental performance: A systematic literature review," European Management Journal, Elsevier, vol. 41(5), pages 755-778.
    2. Kraus, Sascha & Rehman, Shafique Ur & García, F. Javier Sendra, 2020. "Corporate social responsibility and environmental performance: The mediating role of environmental strategy and green innovation," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    3. Wenbo Jiang & Francesco Rosati & Huaqi Chai & Taiwen Feng, 2020. "Market orientation practices enhancing corporate environmental performance via knowledge creation: Does environmental management system implementation matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 1899-1924, July.
    4. Asri Pertiwi & Tirta Nugraha Mursitama & Jap Tji Beng & Elidjen, 2024. "The Under-Developed Social Integration Mechanism as Moderating Factor of Two-Dimensional Absorptive Capacity Relationship: Systematic Literature Review," SAGE Open, , vol. 14(2), pages 21582440231, April.
    5. Monika Stelmaszczyk & Agata Pierscieniak & Denisa Abrudan, 2023. "Managerial decisions and new product development in the circular economy model enterprise: absorptive capacity and a mediating role of strategic orientation," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 50(1), pages 35-49, March.
    6. Jing-Wen Huang & Yong-Hui Li, 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.
    7. FeCheng Ma & Farhan Khan & Kashif Ullah Khan & Si XiangYun, 2021. "Investigating the Impact of Information Technology, Absorptive Capacity, and Dynamic Capabilities on Firm Performance: An Empirical Study," SAGE Open, , vol. 11(4), pages 21582440211, November.
    8. Abu Elnasr E. Sobaih & Ahmed Hasanein & Ibrahim Elshaer, 2020. "Influences of Green Human Resources Management on Environmental Performance in Small Lodging Enterprises: The Role of Green Innovation," Sustainability, MDPI, vol. 12(24), pages 1-19, December.
    9. Héctor Cuevas-Vargas & Héctor Abraham Cortés-Palacios & Cid Leana-Morales & Eduardo Huerta-Mascotte, 2022. "Absorptive Capacity and Its Dual Effect on Technological Innovation: A Structural Equations Model Approach," Sustainability, MDPI, vol. 14(19), pages 1-18, October.
    10. Gema Albort-Morant & Jörg Henseler & Gabriel Cepeda-Carrión & Antonio L. Leal-Rodríguez, 2018. "Potential and Realized Absorptive Capacity as Complementary Drivers of Green Product and Process Innovation Performance," Sustainability, MDPI, vol. 10(2), pages 1-20, February.
    11. Shaker A. Zahra & Olga Petricevic & Yadong Luo, 2022. "Toward an action-based view of dynamic capabilities for international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 583-600, June.
    12. Hermundsdottir, Fanny & Haneberg, Dag Håkon & Aspelund, Arild, 2022. "Analyzing the impact of COVID-19 on environmental innovations in manufacturing firms," Technology in Society, Elsevier, vol. 68(C).
    13. Nadia Zahoor & Yong Kyu Lew, 2022. "Sustaining superior international performance: Strategic orientations and dynamic capability of environmentally concerned small‐ and medium‐sized enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1002-1017, March.
    14. Muhammad Ishtiaq Ishaq & Huma Sarwar & Junaid Aftab & Simona Franzoni & Ali Raza, 2024. "Accomplishing sustainable performance through leaders' competencies, green entrepreneurial orientation, and innovation in an emerging economy: Moderating role of institutional support," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 1515-1532, February.
    15. Triguero, A. & Córcoles, D., 2025. "Leveraging eco-innovation and market knowledge for a circular economy transition: Insights from Spanish manufacturing firms," Technological Forecasting and Social Change, Elsevier, vol. 216(C).
    16. Sher Jahan Khan & Puneet Kaur & Fauzia Jabeen & Amandeep Dhir, 2021. "Green process innovation: Where we are and where we are going," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3273-3296, November.
    17. Paul Hughes & Ian R. Hodgkinson & Mathew Hughes & Darwina Arshad, 2018. "Explaining the entrepreneurial orientation–performance relationship in emerging economies: The intermediate roles of absorptive capacity and improvisation," Asia Pacific Journal of Management, Springer, vol. 35(4), pages 1025-1053, December.
    18. Choonghyun Kim & Jaekang Lee, 2018. "The Effect of Network Structure on Performance in South Korea SMEs: The Moderating Effects of Absorptive Capacity," Sustainability, MDPI, vol. 10(9), pages 1-14, September.
    19. Mitja Ruzzier & Evan J. Douglas & Maja Konečnik Ruzzier & Jana Hojnik, 2020. "International Entrepreneurial Orientation and the Intention to Internationalize," Sustainability, MDPI, vol. 12(14), pages 1-19, July.
    20. Usama Awan & Shazia Nauman & Robert Sroufe, 2021. "Exploring the effect of buyer engagement on green product innovation: Empirical evidence from manufacturers," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 463-477, January.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:2:p:593-:d:1566449. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.