The Role of Green Entrepreneurial Orientation in Advancing Sustainable Economic Performance: Mediating Effects of Eco-Innovation and Institutional Legitimacy

Sustainable economic performance has become a key focus for businesses, as they manage environmental responsibility and organizational accountability. This study examines how green entrepreneurial orientation influences sustainable outcomes, highlighting the mediating roles of eco-innovation and institutional legitimacy. Using insights from the Resource-Based View and Institutional Theory, we suggest that a commitment to sustainability promotes innovative practices and enhances organizational credibility, collectively supporting long-term economic success. Data were gathered through structured interviews with 103 participants from various companies involved in green initiatives. Preliminary validation was performed with SPSS, and the testing of the hypothesis was verified utilizing Structural Equation Modeling. The results show that green entrepreneurial orientation has both direct and indirect impacts on sustainable performance. Eco-innovation acts as a crucial mechanism for turning orientation into concrete results, while legitimacy builds stakeholder trust and aligns with regulatory standards. The study adds to both theory and practice by showing how entrepreneurial strategies can lead to sustainable economic transformation.