Abstract

It is still unclear whether the green proactiveness orientation (GPO) adopted by agricultural new ventures boost firm performance, and what is its internal mechanism, especially in the transition economies where agriculture accounts for a significant proportion. Therefore, drawing on the theory of green entrepreneurial orientation and natural-resource-based view, this study used the structural equation model combined with Bootstrapping to test the direct and indirect effects of GPO on firm performance. Results from 301 agricultural new ventures in China demonstrate that GPO has a positive influence on environmental performance, but its influence on financial performance is not significant. Sustainable opportunity recognition (SOR) partially mediates the relationship between GPO and environmental performance and fully mediates the relationship between GPO and financial performance. Besides, we find that environmental performance plays a mediating role between SOR and financial performance. This study, the first of its kind, focuses on green entrepreneurship of agricultural new ventures in the transition economy to enrich the literature on green entrepreneurial orientation through GPO. It also provides some valuable references for managers to recognize sustainable entrepreneurial opportunities through GPO to improve their environmental and financial performance. These could be important in terms of both management and policy implications.