Abstract:
Entrepreneurship accelerates a country's economy due to its great contribution to community welfare. In the context of sustainability, green entrepreneurial behaviour is beneficial, since it reduces environmental causalities. Small businesses, however, are seen as culprits, causing damage to the environment. Rapid changes in business dynamics emphasize the need for sustainable entrepreneurship which ensures environmental and social sustainability. This study extends current body of knowledge by introducing transformative innovation as a mediator in light of the normative dimension in which entrepreneurs are actors responsible for bringing change to systems through collective behaviour. In a sample of Chinese manufacturing entrepreneurs, the study reveals that the knowledge management process and green entrepreneurial intention are positively linked to green entrepreneurial behaviour. It also shows that transformative innovation is positively related to green entrepreneurial behaviour. Finally, it confirms that transformative innovation is a significant mediator. The study provides guidance for policymakers establishing policies related to achieving green entrepreneurial behaviour using effective knowledge management processes and transformative innovation.
