Green Practices to Enhance Firm performance: The Moderating Role of Organizational Green Culture
► Muhammad Abubakr Tahir
mabubakar@nuaa.edu.cn
https://orcid.org/0009-0005-5588-9411
► Fahad Zain (Corresponding Author)
fahadzain90@gmail.com
hhttps://orcid.org/0000-0002-0281-3174
► Kamran Ali
kamran.ali@pugc.edu.pk
https://orcid.org/0000-0003-4149-6893
Received: 23 June, 2024
Final Revision: 18 September, 2024
Accepted: 31 October, 2024
Published: 28 November, 2024
10.52283/NSWRCA.AJBMR.20240802A07
Abstract
Environmental degradation is a global issue. At present, more than mere profitability is needed for businesses; environmental impacts must also be considered. So, due to social pressures and regulations, businesses must balance environmental sustainability and economic growth. For this, industrialists and academics focus on green aspects. Drawing upon the natural resource-based view theory (NRBVT), the study examines the impact of green human capital (GHC) and green supply chain management (GSCM) on firm performance (FP) with green innovation (GI) as a mediator. Moreover, it explores the neglected moderating role of organizational green culture (OGC). FP is measured as a higher-order construct of two distinct dimensions: environmental and financial performance. GHC, GSCM, GI and OGC are measured as lower-order constructs. The researchers utilized a cross-sectional design for this study. Primary data were collected (online and offline) from managers of the textile industry via questionnaire. A cover letter was attached to the questionnaire detailing the study's objectives and instructions for its completion. Three hundred six complete responses were collected and analyzed using Smart-PLS 3.2.9 (variance-based software). The findings confirm that GHC, GSCM, and GI positively and significantly impact on FP. Additionally, GI partially mediates between the links of GHC-FP and GSCM-FP. Moreover, the study confirms that OGC moderates the association between GI and FP. The study reveals that green resources are essential for textile performance. Managers should proactively implement ecological strategies within their businesses to improve performance.
Keywords: Firm Performance, Green Innovation, Organizational Green Culture, Green Supply Chain Management, Green Human Capital.