Greening the future: analyzing green entrepreneurial orientation, green knowledge management and digital transformation for sustainable innovation and circular economy

PurposeGreen innovation, digitization and sustainability have attracted considerable attention in recent years due to their transformative potential in organizations. This study, grounded in the resource-based view, explores the intricate relationship among green entrepreneurial orientations, sustainability-oriented innovation, and the circular economy, employing green knowledge management as a pivotal mechanism.Design/methodology/approachThe proposed model and hypotheses were tested using Partial Least Squares (PLS) structural equation modeling (SEM) with a sample of 274 valid questionnaires collected from manufacturing firms in Saudi Arabia.FindingsResults unveil positive relationships between green entrepreneurial orientations and sustainability-oriented innovation, as well as the circular economy, along with a positive mediation of green knowledge management in these relationships. In addition, these relationships exhibit heightened strength with increased levels of digital transformation.Originality/valueThe contributions of this research extend to both theoretical and practical realms, offering valuable insights for startups and traditional businesses as they explore the landscape of green innovation and digitization.