The Nexus Between Female Entrepreneurship and Firms' Green Practices in Smart Cities: Hindered or Empowered by Private vs. Public R&D Investment

Abstract

Dealing with environmental issues is a critical challenge of the current era, demanding action from both public and private actors to ensure sustainable economic growth. In response, “green business practices” have gained significant attention in recent decades. However, the role of female entrepreneurs in driving such practices, particularly in urban environments, remains underexplored. Our study addresses this gap by investigating how female entrepreneurship contributes to the adoption of green practices and the influence of public and private R&D investments, which show a dual and sometimes conflicting nature, as moderators in these processes using a sample of 30 Italian cities from 2011 to 2021. The context of Italy is significant as it is at the center of academic and policy debates surrounding green transformation and sustainable development. Our findings indicate that a high level of female entrepreneurship at the city level positively contributes to firms' green transition. Moreover, public R&D investments by cities strengthen the connection between female entrepreneurship and firms' adoption of green practices. In contrast, private R&D investments tend to weaken this relationship. These outcomes highlight the significant impact of female entrepreneurship on the local business environment, with cities with a higher concentration of women-led companies more likely to embrace green practices than areas with fewer female entrepreneurs. The results also offer valuable policy insights, suggesting increased support for women-led businesses could enhance the push toward sustainable business practices.