Environmental orientations to Innovation Ecosystem: the role of green transition, perceived environmental uncertainty and green transformational leadership

The rising recognition of ecological challenges has prompted a shift towards sustainable business actions and practices, emphasizing the imperativeness of green innovation. Understanding the drivers of eco-innovation systems becomes crucial for firms’ success as global economies transition towards greener alternatives. Hence, this article’s main goal is to delve into the link between environmental orientation, green transition, perceived environmental uncertainty and green transformation (GTL) from the perspective of Chinese SMEs. This paper employs a comprehensive research design utilizing Partial Least Squares Structural Equation Modeling and Necessary Condition Analysis (NCA) to explore data from 530 Chinese SMEs. The findings highlighted that environmental orientation positively and significantly impacts SMEs’ green transitional agendas and perceived environmental uncertainty. The paper also highlights the inverse connection between PEU and the innovation ecosystem. The iteration effect of green transformational leadership between environmental orientation and innovation ecosystem was confirmed. Incorporating perceived environmental uncertainty adds a dynamic element, acknowledging the evolving nature of environmental challenges and their impact on innovation strategies. The study also finds that green transformational leadership may effectively moderate these associations, illuminating the essential function managerial leadership plays in assisting people in managing the challenges of innovation in an environment that is changing quickly. With these new perspectives, businesses can design initiatives that foster innovation within their ecosystems and advance the objectives of the green transition.