Abstract

Based on the natural-resource-based view and capability theory, this study explores the impact of green entrepreneurial orientation (GEO) on financial performance, the separate and joint moderating effects of stakeholder engagement and green absorptive capacity (GAC). Using data obtained from 230 Chinese manufacturing firms, it was found that GEO has positive influence on financial performance, supplier engagement and GAC strengthen the positive effect of GEO on financial performance while customer engagement has not. In addition, our empirical findings show that when a high level of supplier engagement combined with a high level of GAC, the positive effect of GEO on financial performance is increased. These findings provide important theoretical and practical implications for Chinese manufacturing firms to achieve sustainable development.