Creative industries face increasing challenges in maintaining competitiveness while integrating innovation and sustainability strategies. This study aims to examine the role of green innovation and entrepreneurial orientation in improving sustainable performance through competitive advantage as a mediating mechanism. A quantitative explanatory research approach was applied involving creative industry business owners and managers selected through purposive sampling. Data were collected using a five-point Likert-scale questionnaire and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) to evaluate the measurement and structural models. The findings indicate that green innovation and entrepreneurial orientation contribute positively to competitive advantage and sustainable performance. Furthermore, competitive advantage plays an important mediating role in transforming strategic capabilities into sustainable business outcomes. These results highlight that environmentally responsible innovation and entrepreneurial capabilities can become valuable resources for creative industry firms to achieve long-term competitiveness. This study contributes to the development of sustainability and entrepreneurship literature by demonstrating how innovation-oriented strategies and internal capabilities support sustainable performance in dynamic business environments.
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