Greening the path to disruptive innovation: The roles of CEOs characteristics, green organizational identity, and green product competitiveness

Abstract This study explores the link between sustainability orientation and disruptive innovation in small and medium‐sized enterprises (SMEs) by embracing both the natural resource‐based view (NRBV) and upper echelons theory. By drawing on these theories and extending them, it sheds light on the executives' characteristics and organizational contingencies leading to disruptive innovation. Starting from the CEOs' sustainability orientation, it investigates if and how it leads to disruptive innovation through the mediating role of green organizational identity and the moderating influence of both green product competitiveness and CEOs' gender‐related characteristics. Two wave time‐lagged survey data from 257 Chinese SMEs are analyzed to empirically test these relationships. Results suggest that SMEs with CEOs characterized by sustainability focus foster a green organizational identity, enabling them to generate disruptive innovations. Additionally, the presence of high green product competitiveness strengthens the connection between sustainability orientation and green organizational identity. Lastly, the relationship between this latter and disruptive innovation can be further enhanced by female CEOs by leveraging their specific skills and abilities. Implications for managers, organizations, and public policy are discussed.