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The tourist industry is one of the business actors that must be more astute and astute in their business field selection in response to changes in the business environment, particularly those brought about by external causes.Businesses must change their operations to become more ecologically friendly due to stakeholders' increased awareness of environmental issues, both internal and external.This research aims to examine and analyze how green entrepreneurship affects business performance and green innovation.Additionally, the moderating effect of the business environment and the mediating role of green innovation within the connections are also considered in this study.245 business players and strategic decision-makers in green tourism enterprises based in four East Javan cities-Malang, Surabaya, Pasuruan, and Bojonegoro-responded to this study.Respondents are given online surveys to complete to gather data, further examined using the Smart PLS software and structural equation modeling with partial least squares.The conclusions show that green innovation drives company performance and that green entrepreneurship substantially impacts both.Additionally, this research validates that green innovation partially mediates the relationship between green entrepreneurship and company performance.It has been established that the business environment cannot enhance the impact of green entrepreneurship on firm performance, hence serving as a moderating factor.Ultimately, our research suggests that green entrepreneurship has a significant role in the eco-friendly tourism context since it can improve business performance and spur innovation.
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