Fostering green innovation: the role of managerial environmental concerns and business opportunities in firm performance within the Jordanian agri-food industry

In response to growing sustainability pressures, green innovation has become a strategic approach to advancing sustainable development. However, limited research has examined how its dimensions interact with internal and external drivers to influence firm performance, particularly in low-technology, resource-constrained sectors such as agri-food industries in developing economies. This study addresses this gap by investigating the effects of green product innovation (GPI), green process innovation (GPRI), and green organizational innovation (GOI) on firm performance. It also explores the mediating role of business opportunities (BO) and the moderating role of managerial environmental concern (MEC). An integrative conceptual framework was developed based on Ecological Modernization Theory, the Resource-Based View (RBV), the Natural Resource-Based View (NRBV), Stakeholder Theory, Institutional Theory, and the Porter Hypothesis. The model was tested using Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS 4.0, with data collected from 250 micro, small, and medium-sized enterprises (MSMEs) in Jordan’s agri-food sector. Results show that collaboration, environmental regulation, and firm resources significantly influence all three types of green innovation, while market demand affects green product and process innovation but not organizational innovation. GPI and GPRI positively impact both environmental and financial performance, whereas GOI has no significant direct effect. BO mediates the relationship between GPRI and GOI and financial performance only. MEC directly enhances financial performance, has no significant effect on environmental performance, and negatively moderates the relationship between GPI and both environmental and financial outcomes. The study contributes theoretically and offers practical implications for sustainability-driven innovation in resource-limited contexts.