The Impact of Green Entrepreneurs, Competitive Intensity, and Climate Risks on Innovation

Greater Kuala Lumpur, a global city connecting Malaysia and Asia with the world, is a growing hub for innovation. This study explores the influence of green entrepreneurial orientation and managerial environmental concerns on innovative behavior and creative performance, incorporating climate change risk perception and competitive intensity. Grounded in cultural cognition theory, data from 220 young small business owners were analyzed using structural equation modeling to examine how climate change risk perception mediates the relationship between green entrepreneurial orientation, managerial environmental concerns, and innovation. Results indicate that climate change risk perception significantly mediates these variables’ impact on both innovation behavior and creative performance, while competitive intensity moderates the effects of green entrepreneurship and managerial environmental concerns on climate risk perception. The study offers theoretical and practical insights to support creative and innovative behavior in small enterprises.