THE EFFECT OF GREEN ENTREPRENEURIAL ORIENTATION ON NEW VENTURE PERFORMANCE: EVIDENCE FROM NEW VENTURES IN FIVE CITIES IN CHINA

Abstract

With the growing emphasis on sustainable development, there are inconsistent conclusions regarding the impact of green entrepreneurial orientation (GEO) on new venture performance. Therefore, this study aims to examine how GEO affects new venture innovation performance. Using survey data collected from high-tech new ventures in China and analyzed by structural equation modeling, it is found that GEO positively impacts new ventures’ environmental and financial performance, with a greater effect on environmental performance. New ventures with stronger GEO orientation tend to conduct more green innovations and develop green products, achieving dual goals of environmental protection and profit growth. These results enrich the GEO theory and provide practical implications for new ventures adopting GEO. However, limitations exist such as lack of mediating variable analysis. Future research could incorporate larger cross-regional samples and mediating variables to further explore the mechanisms. This study contributes empirical evidence on how GEO enables new venture sustainability within the Chinese context.

Key words: Green Entrepreneurial Orientation / New Venture Performance / Environmental Performance / Financial Performance