Catarina Proença

Drawing on the dynamic capability perspective, this study examines the impact of green entrepreneurial orientation (GEO) on sustainability performance through green innovation, considering the moderation of ambidexterity. Data were collected through a 26‐item questionnaire administered in two stages to key respondents from the operations and administrative/commercial departments, resulting in 369 valid responses from industrial small and medium‐sized enterprises (SMEs) in 13 Portuguese industrial districts. The findings reveal that GEO positively influences green processes and product innovation. This suggests that companies with this orientation prioritize environmental protection and business growth through green innovation. Consequently, these innovations enhance sustainability performance across the triple bottom line dimensions, highlighting the link between GEO and the mitigation of negative environmental impacts. The study argues that sustainability can drive competitiveness and stresses the need to balance exploration and exploitation to maximize the benefits of GEO on green innovation and sustainability.