Examining the Dynamics of Green Business Model Innovation: A Dual Perspective of Strategic Orientation and Green Dynamic Capabilities

ABSTRACT Green business model innovation (GBMI) is a decisive driver of sustainable development, yet its implementation from strategic and capability perspectives remains underexplored. To address this gap, this study adopts the hierarchical linear regression and “fuzzy set qualitative comparative analysis (fsQCA)” to examine the relationship among green entrepreneurial orientation (GEO) facets, green dynamic capabilities (GDCs), and organizational resilience in promoting GBMI. Drawing on data collected from 307 Spanish manufacturing managers, the results reveal that green innovativeness and proactiveness (GEO's facets) significantly influence GBMI directly and indirectly through GDCs, and their indirect effects are strengthened when firms exhibit high resilience. In contrast, green risk‐taking shows no significant direct or moderated mediating effect and influences GBMI only indirectly via GDCs, underscoring its full mediation. Additionally, fsQCA findings show that GBMI emerges from multiple equifinal pathways, and findings revealed three configurational patterns lead to high GBMI, including “innovativeness‐GDCs,” “orientation‐GDCs,” and “orientation‐resilience,” and two configurational paths lead to non‐high GBMI. The study findings advance the GBMI literature from strategic and capability perspectives by clarifying the distinct roles of GEO facets through GDCs and organizational resilience, and offer vital implications for managerial practices.