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Abstract

Purpose

This study investigates economic sustainability through orientation and absorptive capacity.

Design/methodology/approach

The researchers developed a conceptual framework based on vigorous literature for this investigation. This study targeted managers from Pakistan's SME sector as respondents and employed cross-sectional data. In total, the authors based this study's findings on 192 valid cases.

Findings

The structural equation modeling (SEM) results highlight that innovation orientation (IO), customer orientation (CO), supplier orientation (SO), network orientation (NO) and absorptive capacity (AC) have significant effects on economic sustainability (ES). Moreover, this study's findings show that ES significantly predicts environmental sustainability (ENS). Finally, the results also demonstrate that ES and ENS positively and substantially affect financial performance (FP).

Practical implications

This study's findings help SMEs continue sustainable business practices by avoiding adverse environmental effects and ongoing climate changes. This study's findings contribute also to the manufacture of eco-friendly environmental products to reduce the contamination of the environment. Financial institutions and policymakers would boost SME owners' capacity and the obtainability of financial resources to improve Pakistani SMEs’ sustainable economic and environmental performance.

Originality/value

This study's findings help to enrich environmental and economic sustainability and, more significantly, for developing countries.

Details

International Journal of Productivity and Performance Management, vol. 73 no. 5
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 10 January 2023

Bahadur Ali Soomro, Nisren Farouk Moawad, Ummi Naiemah Saraih, Nadia A. Abdelmageed Abedelwahed and Naimatullah Shah

This study aims to explore the role of the green market (GM) and green innovation (GI) towards green entrepreneurship (GE) and sustainable development (SD).

Abstract

Purpose

This study aims to explore the role of the green market (GM) and green innovation (GI) towards green entrepreneurship (GE) and sustainable development (SD).

Design/methodology/approach

Based on cross-sectional data, the researchers used quantitative methods in this study to confirm the conceptual framework. The researchers used a questionnaire to collect the data obtained from Pakistan's knowledge-based companies (KBCs). In total, the researchers used 192 usable samples to deliver the findings.

Findings

The researchers used structural equation modeling (SEM) to ensure the model's fitness and as a basis for this study's hypotheses. The findings highlight that the GM factors, such as green product (GP), green design (GD), green supply chain (GSC) and green production (GPN) have a positive and significant effect GM factors, such as on both GE and SD. Further, GI is, also, a significant predictor of GE and SD. Finally, this study's findings show that GE has a predictive role of towards SD.

Practical implications

This study's findings create a source of attention for individuals to preserve the GM's natural resources. Further, mainly in developing contexts like Pakistan, the addition of the GI factor and the GM towards GE and SD contribute to the depth of the existing literature.

Originality/value

By integrating factors, such as innovation toward GE and SD, this study's findings provide an original contribution to the empirical evidence.

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