An Analysis of the Impact of Entrepreneurial Mindset on Environmental Performance with the Mediating Role of Green Innovation and Green Human Resource Management

Abstract
Increasing environmental challenges and the growing emphasis on sustainable development have encouraged organizations to adopt innovative managerial approaches to improve environmental performance. In this context, the entrepreneurial mindset is considered a strategic capability that can promote environmentally responsible organizational behavior. The present study examines the effect of entrepreneurial mindset on environmental performance, emphasizing the mediating roles of green innovation and green human resource management practices. This study employs a descriptive–correlational design using a field survey. The statistical population includes managers of small and medium-sized enterprises operating in the food industry in the Toos Industrial Zone of Mashhad, totaling 240 individuals. Based on Cochran’s formula, 148 respondents were selected using simple random sampling. Data were collected using standardized questionnaires measuring entrepreneurial mindset, green innovation, green human resource practices, and environmental performance. Structural equation modeling was used to analyze the relationships among variables. The results indicate that entrepreneurial mindset has a significant positive effect on environmental performance. Moreover, green innovation and green human resource practices significantly mediate the relationship between entrepreneurial mindset and environmental performance. The findings suggest that strengthening entrepreneurial thinking alongside environmentally oriented innovation and human resource practices can enhance sustainable environmental outcomes.
 
 
Introduction
Rapid technological development and increasing market competition have significantly transformed the business environment. To remain competitive and achieve long-term sustainability, organizations must adopt strategies that enable them to respond effectively to environmental and economic changes. In this regard, the entrepreneurial mindset plays an important role in encouraging organizations and employees to recognize opportunities, promote innovation, and develop creative solutions to emerging challenges.
At the same time, industrial expansion has intensified environmental concerns such as pollution and resource depletion. As a result, governments, consumers, and international organizations increasingly expect businesses to adopt environmentally responsible practices. Many manufacturing firms have therefore implemented initiatives such as green product development, environmentally friendly technologies, and sustainable production processes.
Environmental considerations now influence multiple stages of production, including raw material sourcing, product design, manufacturing, and distribution. Organizations that effectively manage these aspects can reduce environmental impacts while improving efficiency and competitiveness. Furthermore, consumers increasingly prefer products produced by socially and environmentally responsible companies, which strengthens the strategic importance of environmental performance.
Entrepreneurial mindset can facilitate this transition toward sustainability by encouraging opportunity recognition, innovation, and proactive problem-solving. In addition, mechanisms such as green innovation and green human resource management can strengthen the relationship between entrepreneurial mindset and environmental performance. Green innovation focuses on developing environmentally friendly products and processes, while green human resource management promotes environmental awareness, training, and employee involvement in sustainability initiatives. Therefore, this study investigates the impact of entrepreneurial mindset on environmental performance with the mediating roles of green innovation and green human resource practices in food industry SMEs located in Toos Industrial Town, Mashhad.
Case Study
The case study focuses on managers of small and medium-sized food production companies located in Toos Industrial Town in Mashhad, where environmental considerations related to production and resource consumption are particularly relevant.
Materials and Methods
This research is an applied descriptive–correlational study conducted through a survey approach. The statistical population consists of 240 managers of small and medium-sized food industry enterprises in the Toos Industrial Zone of Mashhad. Using Cochran’s formula, a sample of 148 managers was selected through simple random sampling.
Data were collected using standardized questionnaires developed in previous studies, including green innovation by Kumar and Rodrigues (2020), environmental performance by Lee and Olashinde-Williams (2024), entrepreneurial mindset by Hindayati et al. (2020), and green human resource management by Afedzi et al. (2021). Reliability and validity assessments confirmed that the measurement instruments were appropriate. Data analysis was conducted using SPSS version 25 and SmartPLS software. Exploratory and confirmatory factor analyses were applied to evaluate the measurement model, and structural equation modeling was used to test the research hypotheses.
Discussion and Results
The findings reveal that entrepreneurial mindset has a significant positive relationship with environmental performance. Individuals with stronger entrepreneurial thinking tend to seek innovative and sustainable solutions and are more attentive to environmental responsibilities. These individuals often identify opportunities for environmentally friendly products and services, which contributes to improved environmental performance.
The results also show a significant positive relationship between entrepreneurial mindset and green innovation. Entrepreneurial individuals typically adopt a forward-looking perspective and actively explore new opportunities. This orientation encourages the development of innovative environmental solutions, including environmentally friendly products and processes that reduce ecological impacts while maintaining economic benefits.
Furthermore, entrepreneurial mindset positively influences green human resource management practices. Managers with entrepreneurial thinking often promote organizational cultures that encourage innovation, sustainability, and employee engagement in environmental initiatives.
The study also confirms that green innovation positively affects environmental performance. By introducing environmentally friendly technologies and processes, organizations can reduce negative environmental impacts and enhance sustainability. Similarly, green human resource management contributes to improved environmental performance by increasing employee awareness, environmental knowledge, and participation in sustainability activities.
Finally, the results indicate that green innovation and green human resource management play significant mediating roles in the relationship between entrepreneurial mindset and environmental performance. These mechanisms enable organizations to translate entrepreneurial thinking into practical environmental improvements.
Findings
The structural model indicates that entrepreneurial mindset significantly affects environmental performance (β = 0.35). Entrepreneurial mindset also positively influences green human resource practices (β = 0.58) and green innovation (β = 0.72). In addition, green human resource practices positively affect environmental performance (β = 0.34), and green innovation has a significant positive effect on environmental performance (β = 0.52). The indirect effects show that entrepreneurial mindset influences environmental performance through green human resource practices (β = 0.20) and through green innovation (β = 0.37).