Dynamic Capabilities and Green Strategy in Green Entrepreneurship and Circular Economy: A Study

Abstract

Despite an increase in research emphasizing the importance of “Green Entrepreneurship” (GE) in creating new business opportunities within the circular economy for “Sustainable Development” (SD), there is still a noticeable lack of studies examining its impact on promoting “Cleaner Production” (CP) and “Circular Economy Practices” (CEP). This study addresses this gap by examining the intricate relationships between “Dynamic Capability” (DC), GE, CP, CEP, and SD. Furthermore, it explores the moderating effect of the “Green Innovation Strategy” (GIS) on the relationship between DC and GE. The bibliometric analysis and “Partial Least Squares Structural Equation Modeling” (PLS‐SEM), chosen for their efficacy in identifying relationships, testing the structural model relationship, and assessing GIS moderation effects, reveal that DC significantly contributes to GE, with GIS exerting a notable moderating influence on this association. Additionally, GE positively and substantially impacts CP, CEP, and SD. The study underscores the constructive roles of CP and CEP in fostering SD. This research paper contributes to the existing literature by presenting a comprehensive and up‐to‐date analysis of published research articles to identify key research trends, prolific authors, leading journals, the most cited works, and the interconnections and evolution of knowledge over time. The study also provides valuable insights for businesses, offering actionable recommendations to accelerate the adoption of sustainable practices in the corporate world and the global pursuit of a greener and more resilient economy, paving the way for a sustainable and inclusive future.