Fazal Ayaz, Guo Mingjing, Zain Rafique
ABSTRACT The growing importance of sustainable environmental performance in business economics calls for approaches that align environmental impact with economic development. This study examines how green entrepreneurial orientation mediates the relationships among green transformational leadership, green innovation performance, perceived social support, and green entrepreneurial performance in shaping sustainable environmental performance. Data collected from 250 senior managers in Pakistan's cement industry provide a distinctive context for understanding sustainability challenges in a pollution‐intensive sector. The analysis uses partial least squares structural equation modeling with SmartPLS 4 and is guided by Innovation Diffusion Theory. The results show that green transformational leadership facilitates the adoption of green practices and is associated with stronger green entrepreneurial performance; in turn, green entrepreneurial performance is positively related to sustainable environmental performance. The findings also indicate that green entrepreneurial orientation maps more strongly onto entrepreneurial (market) outcomes than directly onto environmental outcomes, whereas environmental improvements are more immediately driven by green innovation performance. These insights inform strategies to advance responsible consumption and production, climate action, and innovation in line with the United Nations Sustainable Development Goals for 2030.