The relative importance of innovation orientation and customer orientation for implementing green business strategies in B2B SMEs: Considering the contingency role of environmental regulations

Although innovation orientation (IO) and customer orientation (CO) may drive the adoption of green business strategies (GBS) in SMEs, previous research has mainly examined their influences separately. This study investigates their relative influence on GBS implementation, while also considering the moderating effect of environmental regulations (ER). Survey data from 140 Chilean B2B SMEs reveal that IO and CO have similarly strong, positive effects on GBS implementation. Regarding the moderating role of ER, stringent ER weaken the IO-GBS link, while they do not act as a moderator of the CO-GBS relationship. According to post-hoc qualitative evidence, this reflects the deeply intertwined nature of customer- and compliance-driven sustainability demands in the B2B SME context. The findings suggest that B2B SMEs can benefit from cultivating both strategic orientations (i.e., IO and CO) as independent organizational capital resources, while highlighting how regulatory stringency constrains innovation-driven sustainability and conditions the effectiveness of CO as a driver of GBS in resource-constrained emerging market contexts.