Green Entrepreneurial Orientation and Green Innovation in Small and Medium-Sized Enterprises (SMEs).

Abstract: Since environmental issues are becoming an integral part of business performances, policymakers
and managers have started recognizing the importance of green innovation towards
sustainable business performances. The role of the automotive parts industry is crucial in minimizing
environmental degradation and promoting sustainable development. Yet few studies have focused on
the connection between green entrepreneurial orientation and green innovation that may affect small
and medium enterprise (SME) business performance. Therefore, this study aims to analyze the influence
of green entrepreneurial orientation on green innovations, and its effects on sustainable business
performances in the automotive parts industry in Thailand. The sample consists of 226 SMEs in the
automotive parts industry in Thailand. The partial least square method (PLS-SEM) has been used for
the analysis of data. The results of the study show that green innovations have the strongest influence
on economic and environmental performances. This study contributes to resource-based view theory
by incorporating green innovation as a strategic competency of SMEs’ performance. Further, green
entrepreneurial orientation and green innovation can assist SME managers in understanding the
factors leading to sustainable performance of businesses.
Keywords: green entrepreneurial orientation; green innovation; economic performance; environmental
performance; social performance