1. Introduction
In recent years, the urgency for businesses to adopt sustainable practices has intensified due to escalating environmental concerns and increasing pressure from stakeholders for corporate responsibility. Small and medium-sized enterprises (SMEs) play a pivotal role in the global economy, particularly in developing countries like Turkey [
1,
2,
3]; however, their contribution to environmental degradation cannot be overlooked. To address this, the concept of green entrepreneurship has emerged, emphasizing the integration of environmentally friendly practices into business operations. The development of green economies varies significantly across different regions, reflecting diverse economic, regulatory, and cultural contexts.
In Europe, stringent environmental regulations and strong public awareness have propelled countries like Germany and the Nordic nations to the forefront of green economic practices. These countries have witnessed substantial investments in renewable energy, sustainable technologies, and green infrastructure, leading to a significant reduction in carbon emissions and increased resource efficiency. Similarly, in North America, countries such as the United States and Canada have seen robust growth in green industries, driven by innovation and supportive policy frameworks [
4].
Turkey is positioned at the crossroads of Europe and Asia, and as so, Turkey presents a unique case in the global landscape of green business sustainability. The country has made significant strides in adopting green practices, with government initiatives promoting renewable energy and sustainable development. Despite these efforts, Turkish SMEs still face numerous challenges, including limited access to green financing, a lack of comprehensive regulatory support, and varying levels of environmental awareness among business leaders [
5,
6]. Against this backdrop, the imperative for sustainable practices among Turkish SMEs has never been more pressing.
Environmental degradation, resource scarcity, and climate change pose significant risks to both the natural environment and the long-term viability of businesses. Addressing these challenges requires innovative solutions that not only mitigate environmental impacts but also enhance competitiveness and resilience [
7]. Understanding the dynamics of green entrepreneurship within this context is crucial for fostering environmentally responsible business practices and ensuring long-term competitiveness in the global market [
8,
9].
To effectively examine the relationship between green entrepreneurship, green structural capital, and business sustainability in Turkish SMEs, it is essential to establish a clear understanding of key concepts at the outset [
10]. Green entrepreneurship (GEN) represents a paradigm shift in business practices where entrepreneurs integrate environmental considerations into their ventures, aiming to create value not only for shareholders but also for society and the environment [
11]. GEN involves the development and implementation of innovative business models, products, and processes that minimize environmental impacts while generating economic returns. GSC encompasses the intangible assets within organizations that support and enable green entrepreneurship initiatives. These assets include knowledge, skills, networks, and organizational structures specifically geared toward promoting sustainability [
12]. Green structural capital (GSC) plays a crucial role in facilitating the adoption and implementation of green practices, thus enhancing the overall sustainability performance of SMEs [
13]. Business sustainability (BS) refers to the ability of SMEs to achieve long-term profitability and competitiveness while simultaneously addressing environmental and social concerns [
14]. Sustainable businesses operate in harmony with their environment, ensuring an efficient use of resources, a reduction in waste and pollution, and a promotion of social equity and responsibility [
15].
This study is guided by the theoretical framework of Green Theory, which was established in 1972 in response to growing concerns about the stability of nature’s balance [
16]. While globally focused, the discourse on the integration of economy and environment has long held a global dimension, predating the emergence of Green Theory, which aligned with the concerns of the burgeoning social movement and green parties. The idea is that environmental preservation and economic progress exist in a straightforward zero-sum correlation. It emphasized the possibility of separating economic expansion from environmental harm by actively promoting eco-friendly and sustainable development approaches. The concept of sustainable growth, expressively articulated by the Brundtland Commission, centers on meeting their necessities [
17]. Applying Green Theory reveals three main factors that have led to the intensification of environmental actions, especially toward the end of the 20th century. Firstly, the environmental movement’s expansion has been driven by scientific studies and environmentalists aiming to protect the environment. Secondly, there has been a growing appreciation for environmental values in countries beyond Europe and America. Lastly, a shift in perspective toward environmental issues has led to a broader conceptualization of the environment [
18].
Environmental dynamism (ED) refers to a dynamic and uncertain state within the external business environment. In this context, fluctuating client demands and commodity requirements play pivotal roles, introducing unpredictability and instability. Organizations navigating ED must adapt swiftly to these challenges, seeking equilibrium between flexibility and performance. The interplay of uncertainty, dynamics, and complexity in the external economic landscape impacts an enterprise’s organizational flexibility and overall performance [
19,
20,
21]. Additionally, ED can introduce challenges related to technological capacities and competitive landscapes, where advantages may be transient [
22,
23,
24].
Despite growing interest in green entrepreneurship and business sustainability, there remains a notable research gap in understanding the specific relationship between these concepts, particularly within the context of Turkish SMEs. While existing studies have examined various aspects of green entrepreneurship and business sustainability, they often overlook the dynamics and mechanisms that underpin these phenomena, especially in emerging economies like Turkey [
25]. One area where the literature falls short is in examining the role of GSC as a mediator between GEN and BS in Turkish SMEs [
26]. While studies have recognized the importance of GSC in fostering sustainability initiatives, few have delved into its specific functions and impact within the Turkish SME context [
27]. Understanding how GSC mediates the relationship between GEN and BS is crucial for identifying the mechanisms through which green initiatives translate into sustainable business practices in Turkey.
Furthermore, existing research tends to overlook the influence of environmental dynamism on the relationship between GEN, GSC, and BS in Turkish SMEs. Environmental dynamism means that the natural environment, rules, and market conditions can change very quickly. This can significantly impact the effectiveness of green business ideas and the utilization of structural capital [
28]. However, studies often treat environmental dynamism as a peripheral factor rather than a central determinant of sustainability outcomes in SMEs [
29]. Therefore, this study aims to fill this research gap by examining the specific relationship between GEN, GSC, and BS in Turkish SMEs, taking into account the moderating role of environmental dynamism. By analyzing these relationships, this research seeks to provide a comprehensive understanding of the mechanisms driving sustainable entrepreneurship in Turkey’s SME sector and promoting sustainability in emerging economies.
We have developed the following concise research questions to fill the identified research gap and clarify the study’s objectives: Firstly, this study aims to examine how the relationship between green entrepreneurship and green structural capital influences business sustainability in Turkish SMEs. Secondly, it seeks to understand the extent to which environmental dynamism moderates the relationship between green entrepreneurship (GEN), green structural capital (GSC), and business sustainability (BS) in Turkish SMEs. Thirdly, the investigation questions how green entrepreneurship itself impacts business sustainability within these enterprises. Fourthly, this study is interested in determining the extent to which green structural capital acts as a mediator in the relationship between green entrepreneurship and business sustainability. Lastly, it investigates how environmental dynamism affects the relationship between green entrepreneurship and business sustainability in Turkish SMEs, further delving into the complexities of how external environmental factors influence green business practices.
We designed these research questions to investigate the specific mechanisms underlying sustainable entrepreneurship in Turkish SMEs, with a focus on the roles of GEN, GSC, and environmental dynamism. This study aims to provide clear expectations for the reader regarding this research’s exploration and contribution by directly linking these questions to the stated research gap. This study examines the relationship between green entrepreneurship and business sustainability in Turkish SMEs, with a focus on the mediating role of green structural capital and the moderating effect of environmental dynamism. This study, which is grounded in Green Theory, seeks to provide new insights into how green initiatives impact sustainability outcomes. Methodologically, it employs a quantitative approach using data from SMEs in the Turkish Trade Register. We expect the findings to guide strategic decision-making and policy formulation for SMEs in Turkey and similar economies, fostering sustainable business practices.
The structure of this paper is as follows: The introduction—examining the connections between green entrepreneurship, green structural capital, and business sustainability within Turkish SMEs—begins with a literature review, establishing foundational theories and identifying research gaps.
Section 3 details the quantitative research design and data collection.
Section 4 analyzes the relationships and the roles of structural capital and environmental dynamism.
Section 5 links findings to theoretical and practical implications, and
Section 6 addresses limitations and suggests future research directions, ensuring a coherent exposition of how green initiatives impact sustainability outcomes in emerging markets.
5. Discussion
This study examines the relationships between green entrepreneurship, green structural capital, and business sustainability in Turkish SMEs, offering significant contributions to both theory and practice. Firstly, the findings robustly support the initially proposed hypotheses. The analysis confirmed the hypothesized positive relationship between green entrepreneurship and business sustainability. This aligns with the theoretical underpinnings of the study and validates previous research emphasizing the pivotal role of green entrepreneurship in driving sustainable business practices. Furthermore, the mediation analysis revealed that green structural capital mediates the relationship between green entrepreneurship and business sustainability. This mediation effect underscores the importance of accumulating green-specific resources and capabilities within SMEs to leverage environmental initiatives for sustainable business outcomes.
Regarding the moderation effect of environmental dynamism, the findings extend beyond the initial hypotheses. While we anticipated that environmental dynamism would moderate the relationship between green entrepreneurship and business sustainability, the strength of this moderation was more pronounced than expected. SMEs operating in environments characterized by higher levels of environmental dynamism experienced significantly enhanced benefits from engaging in green entrepreneurial activities. This unexpected finding underscores the importance of adaptive strategies in navigating dynamic environmental contexts and highlights the potential for SMEs to leverage environmental challenges as opportunities for sustainable growth.
When comparing the findings to existing studies, we observe both consistency and disparity. Consistent with prior research, this study confirms the positive influence of green entrepreneurship on business sustainability [
36,
101]. People widely recognize green entrepreneurship as a catalyst for sustainable business practices, characterized by proactive environmental initiatives and innovative strategies [
102]. The findings reinforce this understanding, indicating that SMEs that prioritize environmental responsibility tend to exhibit higher levels of business sustainability. However, this study goes beyond previous research by elucidating the mediating role of green structural capital, which has received comparatively less attention in the literature. While prior studies have highlighted the importance of green entrepreneurship, this research emphasizes the significance of firm-specific resources and capabilities in translating green initiatives into sustainable competitive advantage [
103]. This underscores the importance of not only engaging in environmentally responsible practices but also strategically investing in the development of green structural capital to sustain long-term sustainability performance [
104]. By drawing attention to the mediating mechanism of green structural capital, our study contributes to a deeper understanding of the underlying processes driving the relationship between green entrepreneurship and business sustainability.
Furthermore, while previous studies have acknowledged the importance of environmental context in shaping sustainability outcomes, this research provides novel insights into the moderation effect of environmental dynamism. Traditional approaches often view environmental context in static terms, overlooking the dynamic nature of environmental challenges faced by SMEs [
105]. By incorporating the concept of environmental dynamism as a moderator, our study recognizes that the effectiveness of green entrepreneurship initiatives may vary depending on the rate and magnitude of environmental changes. SMEs operating in rapidly evolving environmental landscapes may encounter unique opportunities and threats, requiring adaptive strategies to capitalize on emerging trends and mitigate risks effectively. Our findings highlight the need for SMEs to align their green initiatives with the dynamic nature of the external environment, fostering resilience and agility in the pursuit of sustainable business practices.
By deepening our understanding of the interaction between green entrepreneurship, green structural capital, and environmental dynamism, our study contributes to a more nuanced understanding of sustainable business practices in the context of SMEs [
106]. Through empirical validation of our conceptual framework, we provide actionable insights for SMEs seeking to integrate environmental considerations into their strategic agenda, ultimately enhancing their capacity to navigate complex environmental challenges while fostering long-term business sustainability. Furthermore, Ref. [
107] emphasizes the importance of green structural capital in improving SMEs’ environmental and economic performance. These studies complement our findings and further validate the importance of green entrepreneurship and green structural capital in promoting sustainable business practices.
6. Conclusions
6.1. Theoretical Contribution
This study’s findings significantly contribute to the theoretical landscape of GEN and BS by offering new understanding and expanding upon existing theories. Firstly, this research develops and tests a comprehensive theoretical model that integrates GEN, GSC, and BS within the context of Turkish SMEs. By empirically examining these relationships, this study advances existing theories by providing a better understanding of how green initiatives influence sustainable business practices in the SME sector [
36]. Moreover, this research contributes to Green Theory by contextualizing its application within the specific context of SMEs in emerging economies, particularly in Turkey.
While Green Theory has predominantly been examined in the context of large corporations and developed economies, this study demonstrates its relevance and applicability to SMEs operating in emerging markets [
108]. By highlighting the mechanisms through which green entrepreneurship fosters business sustainability in Turkish SMEs, this research enriches Green Theory and provides valuable insights into its adaptation and implementation in diverse organizational settings [
18].
Furthermore, this study’s findings have broader implications for theories related to environmental dynamism, strategic management, and organizational behavior. By examining the moderation role of ED, this research elucidates how external environmental factors shape the effectiveness of green entrepreneurial initiatives in promoting BS. This contributes to a deeper understanding of strategic management theories by emphasizing the importance of aligning environmental strategies with dynamic external contexts to achieve sustainable outcomes [
109]. Theoretically, GSC’s role as a mediator is also important because it highlights the organizational mechanisms that make it easier to turn GEN into sustainable business practices [
13]. This finding extends theories of organizational behavior by emphasizing the role of internal structures and processes in involving green resources and capabilities for sustainable development. By evaluating the conditions under which green entrepreneurship impacts BS, this study provides theoretical insights into the complex interplay between environmental initiatives and organizational outcomes [
110]. In addition, this research advances theoretical discourse in green entrepreneurship and business sustainability by developing a comprehensive model that integrates multiple theoretical perspectives. By contextualizing these theories within Turkish small and medium-sized businesses and examining their connections to environmental change, strategic management, and organizational behavior, this study demonstrates how GEN promotes sustainable business practices.
6.2. Practical Implications
The examination of green entrepreneurship, green structural capital, and business sustainability within the context of SMEs in Turkey represents a unique convergence that holds significant promise for both theoretical understanding and practical application. Within the dynamic and ever-changing economic context of Turkey, this research provides a comprehensive account of how SMEs navigate and contribute to sustainability initiatives in response to environmental changes. Based on the empirical evidence, it is crucial to outline the practical implications that arise, which can serve as a guiding light for SMEs, policymakers, and scholars.
6.2.1. Practical Implications for SMEs
This study’s findings highlight the strategic importance of incorporating green entrepreneurship (GEN) and green structural capital (GSC) into the fundamental business models of small and medium-sized enterprises (SMEs). We advise SMEs to view environmental sustainability as a strategic pathway to foster innovation, gain a competitive edge, and ensure long-term sustainability rather than merely adhering to regulations or ethical responsibilities. Small and medium-sized enterprises (SMEs) can access fresh business prospects that correspond to the increasing worldwide demand for eco-friendly goods and services by adopting GEN. This entails adopting a proactive approach to identifying and capitalizing on these opportunities, which necessitates a fundamental shift in perspective toward innovation focused on sustainability.
Furthermore, the crucial significance of GSC underscores the imperative for SMEs to allocate resources and develop their internal capacities and assets specifically focused on sustainability. This entails the creation of organizational frameworks, systems, and procedures that enable the efficient execution of environmentally sustainable practices. Small and medium-sized enterprises (SMEs) should give priority to developing a robust green supply chain (GSC), as it not only improves their sustainability performance but also establishes them as appealing collaborators in the green supply chain, thus creating new market prospects.
This study reveals that SMEs operating in highly dynamic environments can greatly benefit from green entrepreneurial activities due to the intricate role of environmental dynamism (ED); hence, it is imperative for small and medium-sized enterprises (SMEs) to foster agility and resilience in order to adjust their strategies in light of swift environmental fluctuations. This entails remaining aware of regulatory changes, market dynamics, and technological progress that could potentially influence sustainability initiatives. By doing this, small and medium-sized enterprises (SMEs) can effectively utilize the opportunities provided by environmental dynamism to advance their sustainability agenda.
For instance, a textile manufacturing SME can invest in research and development to create eco-friendly dyeing processes, utilizing natural dyes and water recycling systems to reduce environmental impact. Similarly, a construction company can develop partnerships with suppliers to source sustainable materials and adopt green building practices, leveraging collaborative networks to enhance its reputation in sustainable construction. Integration of sustainability into business strategies can be exemplified by a food processing SME setting targets for reducing food waste and packaging materials, and aligning objectives with environmental sustainability to improve operational efficiency. Furthermore, adaptation to environmental dynamism involves a renewable energy technology startup anticipating market shifts and regulatory changes to capitalize on emerging opportunities in the renewable energy sector.
Collaboration and knowledge-sharing among SMEs in the tourism sector can promote sustainable tourism practices, fostering collective efforts to reduce environmental footprints and enhance industry sustainability. Implementing comprehensive sustainability reporting frameworks allows manufacturing SMEs to track key performance indicators transparently, building trust and credibility with stakeholders while driving continuous improvement in environmental performance. These examples illustrate the practical relevance of green entrepreneurship practices in addressing environmental challenges and driving business sustainability among SMEs in Turkey.
6.2.2. Policy Implications
This study’s findings suggest the need for a regulatory and institutional framework that promotes the involvement of small and medium-sized enterprises (SMEs) in green entrepreneurship and sustainability practices from a policy standpoint. Policymakers ought to contemplate the formulation and execution of focused incentives and support initiatives aimed at fostering the adoption of environmentally friendly technologies, practices, and innovations among small and medium-sized enterprises (SMEs). Possible measures could encompass tax incentives, financial aid, specialized support, and the availability of environmentally friendly funding alternatives.
Moreover, it is imperative to implement policies that bolster the accessibility of information and resources pertaining to sustainability for small and medium-sized enterprises (SMEs). Creating platforms for the exchange of knowledge, cooperation, and the development of skills can enable SMEs to effectively navigate the intricacies of sustainability practices. It is critical for policymakers to prioritize the advancement of infrastructure and ecological frameworks that foster the expansion of green entrepreneurship. This entails the establishment of green industrial parks, incubators, and accelerators.
6.3. Limitations and Future Directions
This study offers valuable insights into the relationships between green entrepreneurship (GEN), green structural capital (GSC), and business sustainability (BS) in Turkish SMEs; however, it is important to acknowledge the limitations of this study and consider them in future research. An important limitation is the potential difficulty of applying the findings to contexts other than Turkish SMEs, as there may be variations in regulatory frameworks and market conditions. Given this constraint, future research should evaluate the proposed model in various cultural and regulatory contexts to improve the results’ applicability.
Additionally, the use of self-report measures may introduce biases, such as social desirability effects, which can impact the accuracy of the data. To mitigate these effects, future research could use more objective data collection methods or triangulate data sources. Moreover, this study’s cross-sectional design restricts our capacity to definitively establish causal relationships between the variables. We recommend using longitudinal or experimental designs in future research to more accurately establish causality and capture the dynamics of GEN, GSC, and BS over time.
The evaluation of environmental dynamism (ED) in this study may not comprehensively capture the complexities of the business environment. Subsequent research could investigate the use of more extensive, potentially subjective assessments to gain a deeper understanding of how ED impacts green entrepreneurial initiatives and business sustainability. Incorporating additional potential moderating and mediating variables into the model could enhance our comprehension of the underlying mechanisms.
To address the limitations identified in this study, we suggest several avenues for future research that can enhance our comprehension of green entrepreneurship, green structural capital, and business sustainability. An important approach involves conducting cross-cultural studies. These studies would investigate the extent to which the findings can be applied in various environmental and regulatory situations, thus assessing the strength and validity of the theoretical model developed in this study and improving its ability to be applied to different scenarios. Another crucial approach involves the implementation of longitudinal designs. These designs would enable researchers to analyze the progression of connections between green entrepreneurship and business sustainability over time. This methodology offers a more distinct understanding of the cause-and-effect relationships and has the potential to uncover the lasting impacts of green entrepreneurial initiatives on sustainable business practices.
Gaining a comprehensive understanding of these dynamics is essential for formulating strategies that promote long-term environmental and economic well-being in SMEs. In addition, the inclusion of qualitative methods provides an avenue to investigate the subjective aspects of green entrepreneurship, green structural capital, and environmental dynamism. Qualitative research has the potential to provide a more profound understanding of the subjective experiences and strategies employed by SMEs as they navigate their intricate business environments. This methodological expansion would enhance the quantitative findings and offer a more nuanced comprehension of how SMEs adopt and gain advantages from environmentally friendly practices in various settings. This extensive research has the potential to greatly enhance our understanding of both theoretical concepts and practical implementations, ultimately facilitating the development of more efficient and flexible, environmentally friendly business strategies.