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The rise in environmental regulation also enforced several limitations on organizations to follow the globally accepted business activities and incentivize firms for implementing eco-friendly business methods. Keeping in mind, the current study seeks to analyze the ecological aspects of them by identifying the relationship of ecological innovation, entrepreneurial orientation and entrepreneurial self-efficacy in affecting a firm’s energy efficiency and environmental performance. The findings of structural equation modelling ensure that all chosen factors have a significant and positive influence on energy efficiency and environmental performance of SMEs in Malaysia. Furthermore, the findings of structural equation modelling recommended that ecological innovation, entrepreneurial orientation and entrepreneurial self-efficacy have a positive and significantly influenced on energy efficiency and environmental performance. Technical speaking, the results confirm that the ecological innovation, entrepreneurial orientation and entrepreneurial self-efficacy are the key contributors to enhance the energy efficiency and environmental performance of SMEs in Malaysia.

IMPACT OF ECOLOGICAL INNOVATION, ENTREPRENEURIAL SELF-EFFICACY AND ENTREPRENEURIAL ORIENTATION ON ENVIRONMENTAL PERFORMANCE AND ENERGY EFFICIENCY