The role of green social behavior in frugal innovation and entrepreneurial success: The moderating impact of knowledge management

Tu, Yu-Te Article The role of green social behavior in frugal innovation and entrepreneurial success: The moderating impact of knowledge management Journal of Innovation & Knowledge (JIK) Provided in Cooperation with: Elsevier Suggested Citation: Tu, Yu-Te (2024) : The role of green social behavior in frugal innovation and entrepreneurial success: The moderating impact of knowledge management, Journal of Innovation & Knowledge (JIK), ISSN 2444-569X, Elsevier, Amsterdam, Vol. 9, Iss. 4, pp. 1-11, https://doi.org/10.1016/j.jik.2024.100566 This Version is available at: https://hdl.handle.net/10419/327468 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by-nc-nd/4.0/ The role of green social behavior in frugal innovation and entrepreneurial success: The moderating impact of knowledge management Yu-Te Tu Department of Business Administration, Chihlee University of Technology, Taiwan ARTICLE INFO Article History: Received 11 October 2023 Accepted 26 August 2024 Available online 9 November 2024 ABSTRACT Entrepreneurial success has become a necessary element of economic survival due to the current economic conditions and uncertainty worldwide. Thus, in this research, we explore green social behavior’s impact on social, technological, and business innovation in a sample of Vietnamese manufacturing firms. Results of a PLS methodology reveal that green social behavior positively impacts the three aspects of innovation. The research aims to find the mediating and moderating aspects of social, technological, and business innovation and knowledge management. The outcomes confirm that only social and business (excluding technological) innovation effectively mediate the links between green social behavior and entrepreneurial success whereas knowledge management is a significant moderator. However, knowledge management insignificantly moderates the relationship between technological innovation and entrepreneurial success. This research guides policymakers in making policies related to entrepreneurial success using green social behavior, innovation, and knowledge management. © 2024 The Author. Published by Elsevier España, S.L.U. on behalf of Journal of Innovation & Knowledge. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/) Keywords: Knowledge management Social innovation Technological innovation Business innovation Entrepreneurial success Green social behavior JEL Code: Q55 L26 D80 Introduction Entrepreneurship significantly drives social progress and economic growth by bringing new business models, products, and services to the market, creating jobs, spurring innovation, and generating wealth. Entrepreneurial firms play a crucial role in addressing societal challenges, such as climate change, poverty, and inequality (Li et al., 2020). Entrepreneurs focus on profit maximization as well as environmental and social considerations (Amoroso et al., 2018). High population density, deforestation, global warming, pollution, and ozone layer and natural resource depletion have led to a currently ongoing environmental crisis. Gas, coal, and oil production release billions of tons of carbon dioxide into the atmosphere, resulting in a huge amount of greenhouse gas emissions each year (Chand et al., 2022;Salvia et al., 2019). Governments, industrialists, and nonprofit organizations recognize the urgent need to emphasize green activities and sustainable processes for a safe planet and human life. Firms and organizations face huge pressure globally to focus on environmental sustainability. As a result, they endeavor to integrate green policies that diminish the negative environmental impacts of their products or services (Tomislav, 2018). Customers have gained awareness of organic and green products and strive to implement green purchasing behavior. Stakeholders and partners are interested in investing in environment-friendly firms and focus on eradicating the negative environmental impacts of business activities. As a result, firms, particularly entrepreneurial ones, move toward sustainability to gain a competitive edge. Entrepreneurial firms with green strategies play a critical role in addressing the challenges of climate change, resource depletion, and pollution because they introduce sustainable technologies, services, and products that reduce negative environmental impacts. By focusing on sustainability, entrepreneurs can conserve natural resources for future generations, minimize waste, and support a sustainable environment for human beings (Muo & Azeez, 2019). Moreover, they can ensure that their business venture not only provides economic benefits by creating jobs and promoting social equity but also helps environmental sustainability. Firms with a sustainable business model are adaptable and resilient, enabling them to respond to market demands and trends (Lotfiet al., 2018). Over time, consumers become socially and environmentally aware and are increasingly attracted to sustainable businesses. Entrepreneurial firms with sustainable practices and ethical values can gain a competitive edge in the market. Due to global pressure, governments worldwide are now recognizing the significance of sustainability; they are integrating and introducing policies, incentives, training programs, and legal flexibility to encourage and support sustainable E-mail address: [email protected] https://doi.org/10.1016/j.jik.2024.100566 2444-569X/© 2024 The Author. Published by Elsevier España, S.L.U. on behalf of Journal of Innovation & Knowledge. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/) Journal of Innovation & Knowledge 9 (2024) 100566 Journal of Innovation &Knowledge https://www.journals.elsevier.com/journal-of-innovation-and-knowledge entrepreneurship (Shafiet al., 2022;Soomro et al., 2020). Firms that prefer sustainability have an advantage and thus may receive support from governments, stakeholders, and other investors interested in green business ventures. In addition to being a crucial driver of social and economic growth, these firms can earn a competitive advantage if they move toward sustainability. This aspect makes them distinct from their competitors. However, to become successful, entrepreneurial firms should consider internal and external factors that are significant in business operations. These factors include green social behavior, social innovation, business innovation, technological innovation, and knowledge management (Hutasuhut et al., 2023;Li & Xu, 2022). Green social behavior refers to sustainable and environmentally responsible behavior. Socially green behavior reduces the negative environmental effects of business activities, thus promoting sustainability (Streimikiene, 2023;Varela-Candamio et al., 2018). Accordingly, it significantly contributes to minimizing industrial pollution and waste and protecting planetary well-being. Technological innovation is the process of introducing and developing innovative and new technologies that not only address problems but also improve efficiency and enhance business activities by combining or creating new and valuable solutions (Chege & Wang, 2020;Khan & Tao, 2022). It significantly contributes to organizational success by creating new opportunities, driving progress, and dealing with challenges such as energy security and climate change. Furthermore, it can enhance productivity, business operations, and economic growth. Social innovation refers to the implementation of new ideas, processes, and strategies that address environmental and social challenges and create a positive impact through innovative solutions to complex problems. Non-profit organizations, government agencies, and social enterprises support social innovation. Their action involves collaboration between various stakeholders to create scalable and sustainable solutions. Social innovation is important as it enables firms to develop effective ways to create positive changes and promote sustainability (Dionisio & de Vargas, 2020;Dvorsk y et al., 2023). Moreover, business innovation refers to creating and implementing new strategies, ideas, business models, and policies that enable firms to improve their performance and gain competitive advantage by concentrating on new ways of doing business to meet market conditions. Business innovation can take place in the form of organizational, product, or process innovation, which involves adaptability, responsiveness, and willingness to change traditional processes (Lim et al., 2020). Knowledge management in firms is the process of creating, using, sharing, and managing information and knowledge. It helps in capturing, identifying, storing, and utilizing knowledge and making it accessible to employees. Knowledge management culture enhances organizational performance as well as innovation and effectiveness (Gao et al., 2018). All these variables contribute to entrepreneurial firms’success, encouraging them to move toward sustainability. The manufacturing sector in Vietnam has an essential role in the country’s economic growth, increasing the employment rate and exports. In 2022, the sector accounted for 24.76 % of the country’s GDP (Fig. 1). As the sector’s production index increased, the percentage of individuals employed in the sector also increased (Statista, 2024). Vietnam’s manufacturing industry comprises small and medium-sized enterprises and large firms. Entrepreneurial firms in the manufacturing industry contribute to job creation and employment (Le, 2020). In 2020, Vietnam ranked 42nd on the global innovation index among 131 countries. This achievement highlights the significant contribution of entrepreneurial firms to innovation progress. However, with increases in business growth, the manufacturing sector faces challenges, particularly in terms of the environmental crisis (Vietnamnews, 2020). Vietnam’s manufacturing industry contributes considerably to resource depletion, environmental degradation, and greenhouse gas and carbon dioxide emission reduction. Entrepreneurial firms must address these challenges to create a sustainable environment (Canh et al., 2019). Manufacturing firms in Vietnam are under immense pressure from the government to suppress their negative environmental impacts. Accordingly, this research intends to help them do so. In this paper, we explore entrepreneurial firms in the manufacturing industry of Vietnam to analyze how to increase their chances of succeeding in the market Fig. 1. GDP Contribution to Vietnam’s Manufacturing Sector (2015−2022). Y.-T. Tu Journal of Innovation & Knowledge 9 (2024) 100566 2 and the role of green social behavior in this success. The direct, mediating, and moderating roles of the various factors discussed above in the success of entrepreneurial firms are examined. The paper is presented in five sections. Section 1 is the introductory section where the research gap and contribution are highlighted. Section 2 is a synthesized literature review through which the hypotheses are formulated. Section 3 presents the methodology, which covers the data collection, sampling method, and study population. Section 4 presents the data analysis and results of the study. In light of the findings, Section 5 provides policy implications and discusses the study’s limitations. Literature review Resource-based view theory The present study uses an integrated framework based on resource-based view and flow theories. The integrated perspective is best fitted as it explains the factors that lead to entrepreneurial success. The principles of growth that can be governed by an organization and the pace of growth that it should maintain must be identified, rather than determining whether it can grow or not. In this regard, Penrose’s ground-breaking work on the resource-based view should be acknowledged (Hameed et al., 2016,2021). The work highlights the significance of internal resources in firm growth. Thus, the absence or lack of such resources hinders the achievement of the desired growth. The resource-based view focuses on the need for internal resources that give a sustainable competitive edge. Resources are related to a firm’s strengths and weaknesses (Alvarez & Busenitz, 2001;Barney, 1991) and can be tangible (such as machinery, skilled personnel, and capital) or intangible (such as effective procedures, brand reputation, and trade contracts). Resources can take many forms, including assets, knowledge, attributes, information, capabilities, and processes, which are all helpful in value-creation strategies. The literature highlights three categories of resources: physical, human, and organizational (Hameed & Irfan, 2019). Green entrepreneurial support is linked to sustainable entrepreneurial processes, which include actors, resources, and institutional settings. Yi (2021) follows Timmons and Spinelli (2003) argument and suggests that resource-based theory emphasizes entrepreneurial resources as core factors of the survival and success of start-ups. In other words, entrepreneurial success relies on various kinds of resources. The present study integrates the resource-based view with the resources needed to launch green ventures and make them successful, namely, business, social, and technological innovation, green social behavior, and knowledge management. Flow theory Flow theory explains (Alam et al., 2019;Liao, 2006): state in which people are so intensely involved in an activity that nothing else seems to matter; the experience itself is so enjoyable that people will do it even at great cost, for the sheer sake of doing it”(Alam et al., 2019;Liao, 2006). Flow theory was initially proposed by Csikszentmihalyi (1990) to explain the concept of motivation. According to theory, flow is a psychological state which highlights “the peak feelings of cognitively efficient, motivated, and happy individuals” (Csikszentmihalyi, 1990) This subjective experience, along with motivation and personality, suggests flow theory, which offers insight into intrinsic motivation which may lead to relevant behaviour. Environmentally motivated individuals look for sustainable opportunities due to their green social behaviour that can increase the chances of business success (Shi et al., 2020). Through entrepreneurial skills, relevant knowledge, and green behaviour, motivation occurs that can lead to entrepreneurial success (Tom a skov a and Ka novsk a, 2022). Hypothesis development Green social behavior determines the actions organizations and individuals take to suppress negative environmental impacts and encourage and promote sustainability, In contrast, technological innovation refers to the development and implementation of innovative technologies in the market. Consumer demand for eco-friendly services and products induces firms’desire to develop innovative technologies that minimize waste and are energy efficient and thus have less environmental impact (Pletnev & Kozlova, 2022;Varela- Candamio et al., 2018). Industries’green behavior creates sustainable production methods. As a result, the adoption of a circular economy, the use of renewable energy sources, and waste reduction and recycling initiatives have led to the development of new business models and technologies. The world has been experiencing environmental challenges due to high emissions, overreliance on natural resources, and ozone layer depletion. Thus, human beings must take green initiatives. This situation pressures industrialists, governments, and firms to tackle the environmental crisis. Government policies and strategies are required to adopt green social behavior that encourages the implementation of technological innovation (Hud akov aet al., 2023;Song et al., 2019). Therefore, green social behavior positively impacts technological innovation as it promotes sustainable production. Accordingly, we propose the following hypothesis: Hypothesis 1 (H1). Green social behavior positively impacts technological innovation. Social innovation supports the development of new and innovative solutions to address social problems, such as environmental degradation, inequality, and poverty. These solutions may be in the form of new business models, social programs, green policies, or new technologies (Wittmayer et al., 2019). As the environmental crisis increases due to business operations, firms must adopt green behavior as it positively impacts the social innovations that enhance sustainability and minimize environmental impacts. Additionally, the use of renewable energy sources and green strategies promotes the development of new business models and innovative technologies that utilize natural resources sustainably and thus minimize carbon emissions. Green social behavior initiates social innovation through knowledge-sharing and collaboration among organizations and individuals. Communities and firms that engage in sustainable and green practices can share their experiences, thus creating new solutions to environmental and social issues (Soma et al., 2018;Vainauskien_ e& Vaitkien_ e, 2022). Social innovation refers to the collaboration between stakeholders, non-profit organizations, and governments. It focuses on creating a positive environmental impact and improving the standards of living. Therefore, green social behavior plays a significant role in encouraging social innovation to promote businesses’ sustainability. Accordingly, the following hypothesis is formulated: Hypothesis 2 (H2). Green social behavior positively impacts social innovation. Green social behavior indicates a company’s or individual’s action to encourage environmental sustainability and eradicate negative impacts, whereas business innovation refers to firms’processes of introducing new and creative ideas, methodologies, and products or services. The natural resources of the earth are vanishing at an alarming rate, and deforestation, climate change, and pollution issues are increasingly becoming evident by the day. Industrialists and business organizations must take the necessary steps to tackle these issues. Green social behavior significantly influences business innovation (Matenda & Sibanda, 2023). Firms with green social behavior enable employees to concentrate on new services, products, a technologies that are eco-friendly and sustainable. By adopting green practices and sustainable activities in business operations, firms can minimize costs through resource and energy efficiency measures, leading to profitability and enhanced business innovation (Gao et al., 2021). In Y.-T. Tu Journal of Innovation & Knowledge 9 (2024) 100566 3 today’s world, customers are aware of green products and services and are environmentally conscious. They support businesses and brands with a commitment to sustainability. To gain a competitive edge, firms need to innovate their business operations and introduce solutions to their business activities’negative environmental impacts. Green social behavior stimulates innovation and creativity by encouraging employees to think differently about their work operations and their ability to minimize the negative environmental impact of their services or products. Thus, firms and organizations can embrace innovative technologies and redesign processes and activities to eradicate carbon emissions and waste. Thus, we propose the following hypothesis: Hypothesis (H3). Green social behavior positively impacts business innovation. The business world is constantly changing because of updated technologies in business operations. As a result, only those firms that integrate innovative technologies can survive. Technological innovation creates new demands and markets for products and services, thus allowing entrepreneurial firms to develop new business models that tackle environmental issues as well as provide sustainable and innovative solutions (Lin & Zhu, 2019). Entrepreneurs can enhance their business activities and operations by integrating new technological innovations, thus improving their productivity and efficiency. Automated technologies that enhance the bottom line and streamline operations can help achieve this target. A combination of technological innovation and green social behavior will enable entrepreneurial firms to produce new products and services that meet the environmental demand and help them achieve sustainable and innovative goals. Furthermore, through technological innovation, entrepreneurial firms can scale up their business activities to meet industrial and customer demands. These innovations include the use of e-commerce and social media to connect to customers globally. Hence, technological innovation not only enhances consumer experience by providing improved services and communication channels but also gives firms a competitive edge by improving efficiency, productivity, and scalability and creating new opportunities. With the increasing environmental issues, governments, customers, and policymaking bodies are favoring firms that contribute positively to the environment and reduce their negative environmental impacts (AlJinini et al., 2019). The mediating characteristics of technological innovation indicate that firms need to introduce green behavior and strategies into their operations to enhance sustainability through the latest technologies and thus ensure success. Accordingly, the following hypothesis is formulated: Hypothesis (H4). Technological innovation mediates the relationship between green social behavior and entrepreneurial success. Entrepreneurial firms need various factors for successful business operations. In this regard, social innovation is essential as it helps them in implementing and developing new strategies, processes, and ideas. These new developments fulfill social needs sustainably and innovatively and address social challenges. Social innovation can further help entrepreneurial firms by creating a competitive advantage, thus providing profitable services and products with positive environmental impacts. Moreover, social innovation helps entrepreneurial firms improve their reputations by strengthening their commitment to social responsibility, hence positively influencing the business world. Through social innovation, entrepreneurial firms can address social challenges, such as inequality and environmental degradation, helping them build strong relationships with stakeholders and contribute to societal improvement. Their green social behavior can also assist them in introducing socially responsible and environmentally sustainable approaches and solutions (Carberry et al., 2019). If they embrace creative strategies and processes in their operations to manage the current global environmental degradation, entrepreneurial firms can survive in the business world. Thus, social innovation not only helps entrepreneurial firms develop a distinctive position in the market but also contributes to sustainability. Accordingly, the following hypothesis is proposed: Hypothesis (H5). Social innovation mediates the relationship between green social behavior and entrepreneurial success. In the current era, businesses should innovate their activities, processes, and operations to meet consumer demand. Their management must focus on implementing innovative policies and strategies to become successful. Business innovation can increase entrepreneurial firms’efficiency by reducing costs through improved processes, automation, and new technologies. Business innovations enable entrepreneurial firms to follow current and future trends in the market, helping them gain a competitive advantage in the industry. Green social behavior among organizations and individuals helps them integrate green policies into business operations (Demirel et al., 2019). Business innovation also helps improve brand image by presenting firms as innovators strongly committed to environmentfriendly processes. This aspect not only attracts stakeholders and investors but also satisfies customers. Only firms that can adapt to customer needs and industry trends with responsiveness, flexibility, and agility can survive in the market. These firms can stay competitive and seize new opportunities, contributing to the development of a strong relationship between green social behavior and entrepreneurial firm success. Thus, the following hypothesis is proposed: Hypothesis (H6). Business innovation mediates the relationship between green social behavior and entrepreneurial firms. Knowledge management includes firms’processes of creating, sharing, and utilizing knowledge. With proper knowledge management, firms can use their knowledge and capabilities efficiently to enhance their competitiveness and performance. They can create and share knowledge and information among individuals and organizations, helping them identify new improvement and innovation opportunities and create a culture of continuous improvement and learning. Knowledge management culture can enable firms to implement and invest in innovative technologies that contribute to their success. The moderating role of knowledge management refers to the proper management of knowledge in entrepreneurial firms, thus enhancing the impact of technological innovation (Mardani et al., 2018;Sulistiawan et al., 2022). Through a knowledge management culture, employees feel acknowledged and empowered and can share their ideas with the organization. This condition helps them adopt technological innovation. In this era, entrepreneurial firms can only achieve profitability and meet the needs of the business market successfully if they implement technological innovation in their business operations. By adopting a knowledge management culture, firms can enhance their technological innovation, which, in turn, contributes to their success. Accordingly, the following hypothesis is proposed: Hypothesis (H7). Knowledge management moderates the relationship between technological innovation and entrepreneurial success. Social innovation refers to “the process of integrating new solutions to address environmental and social challenges”by understanding community needs and the impact of proposed solutions. Knowledge management culture plays a critical role in entrepreneurial firms’effective communication of their knowledge and experience. Knowledge management emphasizes communication, collaboration, and continuous learning. Entrepreneurial firms with such a culture have a valuable understanding of the environmental and social challenges they face and thus implement innovative and successful solutions. Moreover, knowledge management helps entrepreneurs refine and develop their solutions through social innovation, contributing to their success (Ali et al., 2020;Chau et al., 2023). Therefore, the moderating role of knowledge management in the relationship between entrepreneurial success and social innovation is crucial. By integrating knowledge management culture, Y.-T. Tu Journal of Innovation & Knowledge 9 (2024) 100566 4 entrepreneurs can use their knowledge and information to tackle environmental and social challenges, promote sustainability, and create a positive impact. Accordingly, the following hypothesis is proposed: Hypothesis (H8). Knowledge management moderates the relationship between social innovation and entrepreneurial success. Knowledge management plays a significant role in organizational development. With the rapidly changing business environment, firms need to be innovative to stay in competition. Entrepreneurial success is achieved by identifying new opportunities and maintaining and building successful models, thus improving decision-making and minimizing risk (Mardani et al., 2018;Zhou et al., 2023). Firms can increase their ability to develop and innovate new business models, products, and services with proper knowledge management. Hence, knowledge management significantly encourages business innovation, which enhances entrepreneurial firms’success. With the help of a knowledge management culture, firms can improve their ability to adapt to current trends, innovate, and gain long-term success. Thus, we propose the flowing hypothesis: Hypothesis (H9). Knowledge management has a positive moderating role in the relationship between business innovation and entrepreneurial success. Methodology This research explores the effectiveness of green social behavior on social, technological, and business innovation in the presence of mediators and a moderator, namely, social, technological, and business innovation and knowledge management in the Vietnamese manufacturing sector. The researchers used primary data collected from manufacturing employees, and variables were measured with items adapted from previous literature. Green social behavior, knowledge management, entrepreneurial success, social innovation, technological innovation, and business innovation were measured with items taken from AlGhazali and Afsar (2021),Choi et al. (2020), Vod a and Florea (2019),Hsu et al. (2019),Jean et al. (2010), and Lin et al. (2010), respectively. Appendix A provides details of these measurements. The study sample was selected based on simple random sampling. A total of 538 questionnaires were delivered to employees via email, of which 294 valid responses were received. These responses were used for data analysis. PLS methodology was used to evaluate the relationship as the method is suitable for primary data. It offers appropriate outcomes when complex large samples are used (Hair et al., 2014). The methodology is based on two steps: a measurement model and a structural model. The measurement model ensures reliability and validity through discriminant and convergent validity, which indicate the correlation between variables and between items, respectively (Hair et al., 2017). Convergent validity is calculated via Cronbach’s alpha, where the standard value should be >0.70. Similarly, composite reliability (CR) should also be >0.70. Factor loadings and average variance extracted (AVE) should also be >0.50 (Hair Jr. et al., 2020). Discriminant validity is measured by the Fornell−Larcker criterion (Ringle et al., 2015) and finally checked using the heterotrait−monotrait (HTMT) ratio, for which the values should be lower than 0.90 (Hair et al., 2017). The structural model deals with the association between variables (Fig. 2). The t-values should be >1.96, and the pvalues should be <0.05, showing the significance of the associations (Hair Jr. et al., 2020). Results and discussion Research findings The study outcomes indicate the correlations between the study items, showing convergent validity. Cronbach’s alpha, CR, and AVE were used to examine convergent validity. Convergent validity is established when values of CR, Cronbach’s alpha, and AVE are at least 0.7, 0.6, and 0.5, respectively. All the values presented in Table 1 meet the threshold criteria, thus confirming convergent validity. In contrast, the Fornell−Larcker criterion was used to examine the discriminant validity. As per the criteria, the first value is greater than the remaining values in the same column, indicating a low correlation between variables. Table 2 presents the Fornell−Larcker discriminant validity results. Table 3 presents the outer loadings results. As the study involves six variables, the table shows the items against each variable in their respective columns. No cross- or double-loading issue was observed in the outer loading results. Outer loadings refer to estimated Fig. 2. Theoretical Model. Table 1 Construct reliability and validity. Cronbach’s alpha Composite reliability (rho_a) Composite reliability (rho_c) Average variance extracted BIN 0.895 0.897 0.896 0.632 ENS 0.905 0.906 0.905 0.657 GSB 0.856 0.858 0.856 0.665 KNM 0.873 0.874 0.873 0.697 SIN 0.929 0.931 0.929 0.725 TIN 0.819 0.825 0.819 0.603 Y.-T. Tu Journal of Innovation & Knowledge 9 (2024) 100566 5 associations in the reflective measurement model and explain the absolute contribution of an item to its assigned construct. Discriminant validity was examined using cross-loadings, and the values determine whether the linkages with the construct are larger than the linkages with other constructs. These figures indicate a low correlation between the variables. Table 4 provides the figures. Finally, discriminant validity was checked using the HTMT ratio. The outcome values are lower than 0.90, indicating a low correlation between the variables. Table 5 provides the figures. Table 6 presents the results of the model fitness test. In the present study, the researchers assessed model fitness to measure the discrepancies between the observed and model-implied correlation matrices. The results indicate that the saturated and estimated values of model fitness meet the threshold criteria. The model is fit, indicating that path analysis can be performed. The research examines the direct association of the variables using path analysis. The outcomes in Table 7 reveal that green social behavior positively impacts social, technological, and business innovation, thus supporting H1−H3 (Fig. 3). Then, the research examines the indirect association using path analysis. The outcomes in Table 8 reveal that social and business innovation significantly mediate the relationship between green social behavior and entrepreneurial success. Therefore, H5 and H6 are accepted. The mediation of technological innovation in the relationship between green social behavior and entrepreneurial success is insignificant, thus rejecting H4. The outcomes reveal that knowledge management significantly moderates the relationship between social and business innovation and entrepreneurial success in the manufacturing industry of Vietnam, thus accepting H8 and H9. Knowledge management insignificantly moderates the relationship between technological innovation and entrepreneurial success. Therefore, H7 is rejected (see Fig. 4). Discussion The results confirm that green social behavior is positively related to technological innovation. Green social behavior refers to the positive behavior of employees, stakeholders, and organizations aimed at minimizing negative environmental impacts. In the context of the manufacturing sector of Vietnam, this study indicates that green social behavior plays a crucial role in the emergence of technological innovation. Green behavior leads to the development of innovative and creative solutions and technologies that help minimize costs, enhance business operation efficiency, and promote sustainability. The analysis shows that green social behavior positively impacts social innovation in the manufacturing industry of Vietnam. A previous study by Hoppe and De Vries (2018) also determines the role of social innovation. Green social behavior encourages organizations to promote sustainable green practices through social innovation. Social innovation helps deal with environmental challenges through creative solutions and ideas. As the world faces huge sustainability challenges, firms need to tackle the environmental crisis, and green social behavior plays a crucial role. To address environmental challenges, firms must adopt green behavior. Previous studies, such as L€ udeke- Freund et al. (2018), indicate that green or sustainable behavior promotes business innovation. With the constant changes in the business world, only those firms that innovate their operations according to market trends will survive. Green social behavior requires innovative and new ideas and solutions to address the industrial sustainability crisis, and firms should embrace changes to gain a competitive edge. The results lead us to conclude that firms with green social behavior promote and support innovations in business operations. Table 2 Fornell−Larcker discriminant validity results. BIN ENS GSB KNM SIN TIN BIN 0.795 ENS 0.777 0.811 GSB 0.443 0.482 0.815 KNM 0.73 0.808 0.5 0.835 SIN 0.706 0.627 0.439 0.609 0.851 TIN 0.534 0.497 0.403 0.436 0.415 0.777 Table 3 Outer loadings. BIN ENS GSB KNM SIN TIN KNM £SIN KNM £TIN KNM £BIN BIN1 0.764 BIN2 0.746 BIN3 0.783 BIN4 0.847 BIN5 0.83 ENS1 0.802 ENS2 0.824 ENS3 0.794 ENS4 0.773 ENS5 0.858 GSB1 0.863 GSB2 0.814 GSB3 0.766 KNM1 0.816 KNM2 0.853 KNM3 0.835 SIN1 0.856 SIN2 0.85 SIN3 0.791 SIN4 0.854 SIN5 0.902 TIN1 0.852 TIN2 0.754 TIN3 0.718 KNM £SIN 1 KNM £BIN 1 KNM £TIN 1 Y.-T. Tu Journal of Innovation & Knowledge 9 (2024) 100566 6 The mediation results show that technological innovation is an insignificant mediator in the relationship between green social behavior and entrepreneurial success. Business and social innovation are found to be significant mediators in the relationship between green social behavior and entrepreneurial success. The results confirm that social innovation is a significant mediator. Eichler and Schwarz (2019) also indicate that sustainable behavior promotes social innovation, improving firm performance. Social innovation leads to the development of creative and innovative solutions to Table 4 Cross-loading results. BIN ENS GSB KNM SIN TIN KNM £SIN KNM £TIN KNM £BIN BIN1 0.764 0.585 0.355 0.554 0.607 0.413 0.29 0.113 0.225 BIN2 0.746 0.594 0.304 0.534 0.521 0.416 0.247 0.082 0.204 BIN3 0.783 0.603 0.356 0.562 0.529 0.362 0.243 0.099 0.16 BIN4 0.847 0.656 0.379 0.65 0.586 0.465 0.248 0.12 0.213 BIN5 0.83 0.647 0.364 0.597 0.566 0.465 0.25 0.15 0.172 ENS1 0.643 0.802 0.384 0.65 0.471 0.408 0.342 0.128 0.329 ENS2 0.651 0.824 0.403 0.662 0.537 0.368 0.309 0.136 0.33 ENS3 0.613 0.794 0.389 0.641 0.491 0.411 0.327 0.175 0.391 ENS4 0.585 0.773 0.352 0.64 0.474 0.398 0.267 0.158 0.35 ENS5 0.655 0.858 0.42 0.682 0.562 0.43 0.324 0.144 0.386 GSB1 0.391 0.441 0.863 0.459 0.365 0.355 0.138 0.031 0.181 GSB2 0.36 0.368 0.814 0.352 0.354 0.335 0.074 0.06 0.163 GSB3 0.331 0.366 0.766 0.41 0.357 0.295 0.076 0.06 0.158 KNM1 0.573 0.66 0.412 0.816 0.499 0.3 0.32 0.149 0.271 KNM2 0.65 0.689 0.431 0.853 0.539 0.404 0.371 0.222 0.338 KNM3 0.605 0.675 0.41 0.835 0.486 0.387 0.377 0.234 0.306 SIN1 0.577 0.508 0.419 0.506 0.856 0.348 0.211 0.094 0.212 SIN2 0.579 0.532 0.374 0.523 0.85 0.366 0.273 0.113 0.274 SIN3 0.567 0.517 0.315 0.487 0.791 0.328 0.228 0.113 0.256 SIN4 0.609 0.539 0.369 0.514 0.854 0.359 0.209 0.076 0.216 SIN5 0.672 0.57 0.39 0.56 0.902 0.364 0.248 0.101 0.248 TIN1 0.445 0.411 0.361 0.369 0.323 0.852 0.11 0.187 0.137 TIN2 0.429 0.388 0.286 0.36 0.333 0.754 0.088 0.168 0.095 TIN3 0.369 0.358 0.288 0.284 0.313 0.718 0.118 0.158 0.107 KNM £SIN 0.32 0.387 0.119 0.427 0.275 0.14 1 0.386 0.753 KNM £BIN 0.25 0.441 0.206 0.366 0.283 0.15 0.753 0.372 1 KNM £TIN  0.14 0.183 0.061 0.242 0.116 0.22 0.386 1 0.372 Table 5 Heterotrait−monotrait ratio results. Saturated model Estimated model SRMR 0.035 0.194 d_ULS 0.376 11.299 d_G 0.486 0.772 Chi-square 742.261 1102.755 NFI 0.871 0.809 Table 6 Model fitness test results. BIN ENS GSB KNM SIN TIN KNM £SIN KNM £TIN KNM £BIN BIN ENS 0.778 GSB 0.442 0.48 KNM 0.73 0.809 0.5 SIN 0.707 0.626 0.439 0.609 TIN 0.534 0.498 0.401 0.435 0.417 KNM £SIN 0.322 0.387 0.118 0.427 0.275 0.136 KNM £TIN 0.142 0.183 0.062 0.242 0.117 0.22 0.386 KNM £BIN 0.246 0.441 0.205 0.366 0.283 0.146 0.753 0.372 Table 7 Direct path analysis. Original sample (O) Sample mean (M) Standard deviation (STDEV) T-statistic (|O/STDEV|) P-value GSB !BIN 0.379 0.378 0.052 7.313 0 GSB !SIN 0.404 0.405 0.055 7.285 0 GSB !TIN 0.334 0.333 0.053 6.273 0 KNM £SIN !ENS 0.108 0.11 0.049 2.221 0.027 KNM £TIN !ENS 0.031 0.03 0.041 0.771 0.441 KNM £BIN !ENS 0.269 0.269 0.051 5.257 0 Y.-T. Tu Journal of Innovation & Knowledge 9 (2024) 100566 7 Fig. 3. Measurement Assessment Model. Table 8 Specific indirect effect. Original sample (O) Sample mean (M) Standard deviation (STDEV) T-statistic (|O/STDEV|) P-value GSB !BIN !ENS 0.128 0.126 0.031 4.184 0 GSB !SIN !ENS 0.044 0.044 0.021 2.084 0.038 GSB !TIN !ENS 0.023 0.023 0.016 1.486 0.138 Fig. 4. Structural Assessment Model. Y.-T. Tu Journal of Innovation & Knowledge 9 (2024) 100566 8