<p>Eco-innovation practices can encourage sustainable development, specifically in emerging economies. This study examines the factors that can influence the eco-innovation practices of green firms listed on the Growth Enterprise Market of China, by investigating whether they exert a single core impact or how they can be combined to exert different effects. This study conducts dynamic qualitative comparative analysis on the panel dataset of 30 firms listed from 2013 to 2022. Results show that a single factor cannot drive high sustainability; rather, four configurations of factors can contribute to sustainability: (1) eco-innovation practices, coupled with technological capability and market dynamics; (2) technological capability and market dynamics; (3) eco-innovation practices, with technological capability and knowledge and skills in green practices; and (4) organizational leadership and vision. The coherence of the configurations reached its peak around 2015, when China transitioned to high-quality economic growth. The results are important for policymakers and practitioners, indicating that a multifaceted strategy combining fiscal support, technical assistance, educational programs, and market expansion initiatives can encourage green entrepreneurship development in developing countries. The policy implications presented in this study are important for sustainable development.</p>