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This study aims to explore the association between environmental sustainability thoughts and environmental performance. Mediation through social innovation and moderating role of green innovation is also tested.

A quantitative research design was used for analyzing the personal/lived experience of 387 small–medium enterprises (SMEs) managers. Data were collected from persons who were performing their job, that is, it is based on current data. Cross-section data were collected through questionnaires. Correlation and regression analysis was used to test the study hypotheses.

Green innovation encourages firms to grow to be competent and increase their environmental performance. Results proved that businesses can work in a sustainable way through environmental sustainability thoughts and green innovation. Moreover, social innovation leveraged the interplay of environmental sustainability thoughts and the environmental performance.

The uniqueness of this research is that it combined environmental sustainability thoughts, social innovation and green innovation for developing environmental performance model for SMEs. This research includes new approach on sustainability domain and offered newest relevant factors to achieve a wider perceptive and multifaceted analysis of all dimensions that influence environmental performance.