<![CDATA[Purpose – This study examines the effects of green entrepreneurship, green innovation, green finance, and organisational culture on MSME performance and sustainability, while testing MSME performance as a mediating pathway. Design/methodology/approach – A causal quantitative survey was conducted among 656 MSMEs in Medan, Indonesia, using non-probability mixed-frame sampling. The data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). Findings – The findings reveal differential and contrasting effects of green practices. Green finance significantly improves MSME performance but reduces sustainability, while green entrepreneurship reduces performance but improves sustainability. Green innovation positively affects both outcomes, although its effect on performance is marginally significant. Organisational culture significantly enhances sustainability but has no significant effect on performance. MSME performance also has a significant negative effect on sustainability, indicating a potential trade-off between short-term performance and long-term sustainability. Originality/Value – This study proposes a provisional Green Capability Trade-Off perspective, challenging the assumption that green practices universally generate win–win outcomes. It highlights the need to recognize the differentiated effects of green capabilities when designing strategies for sustainable MSME development.]]>
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