The role of green relational capital in driving sustainable performance of tourism MSMEs: Evidence from green innovation and entrepreneurial orientation

Type of the article: Research ArticleAbstractThis study examines the determinants of sustainable performance by investigating the role of green relational capital, with green innovation and green entrepreneurial orientation as mediators, among 193 tourism-based MSME owners operating across tourism destinations in East Java, Indonesia. The proposed research model was empirically tested using partial least squares–structural equation modeling (PLS-SEM). The findings show that green relational capital has a significant effect on sustainable performance (β = 0.330, p < 0.01) and significantly influences green innovation (β = 0.725, p < 0.01) as well as green entrepreneurial orientation (β = 0.565, p < 0.01). Green innovation significantly affects sustainable performance (β = 0.329, p < 0.01), as does green entrepreneurial orientation (β = 0.287, p < 0.01). Furthermore, green innovation mediates the relationship between green relational capital and sustainable performance (β = 0.162, p < 0.01), while green entrepreneurial orientation also acts as a mediator (β = 0.238, p < 0.01). These results underscore the strategic importance of leveraging environmentally oriented relational networks to enhance innovation capabilities and entrepreneurial orientation in supporting sustainability goals among tourism-sector MSMEs.AcknowledgmentThis study was supported by a grant from the Directorate of Research and Community Service, Ministry of Education, Culture, Research, and Technology of Indonesia, through the Fundamental Basic Research Program 2025, under contract number 128/C3/DT.05.00/PL/2025.