An environmental perspective extends market orientation: Green innovation sustainability

Abstract Though there has been much research into green performance, few studies have analyzed whether a green market orientation (GMO) is important. In this study, we propose and test a model that links three subconstructs of GMO (i.e., green customer orientation, green interfunctional orientation, and green competitor orientation) and green performance. The mediating role of green innovation and if there is a missing link between these relationships is also tested. By decomposing the components of GMO and introducing green innovation as a mediator, the results contribute to a more nuanced understanding of how and why green innovation is important in the linkage between GMO and green innovation. Using a survey of 248 high‐tech firms in Taiwan, the results highlight three subconstructs of GMO in facilitating green innovation and green performance. Green innovation fully mediates the association between green interfunctional orientation and green performance. However, green innovation only partially mediates the effects of green customer orientation and green competitor orientation on green performance.