Green Strategy Effect on Financial and Environmental Performance: A Mediation Analysis of Product Quality
16 Feb 2021-Sustainability (Multidisciplinary Digital Publishing Institute)-Vol. 13, Iss: 4, pp 2115
TL;DR: In this article, the authors developed a mediation model to ascertain the direct effect of green strategy on both environmental and financial performance and its total effect on both the environmental and the financial performance through product quality.
Abstract: The dilemma of firms in developing economies was the crux of this study. In probing whether the adoption of organization-wide green strategy would enhance the product quality and the firm’s financial lifeline, while also improving the environment, we developed a mediation model. The specific objectives were to ascertain the direct effect of green strategy on both environmental and financial performance and its total effect on both environmental and financial performance through product quality. With data collated and analyzed from 648 respondents, using the Hayes mediation approach, results show that while environmental performance is strongly predicted by green strategy and product quality (as a mediator), financial performance is also positively predicted, but by a smaller effect. The import of the findings of this study is that the adoption of green strategy mediated by product quality improves both environmental and financial performance, implying that firms can remain financially viable while adopting product-focused green strategy.
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TL;DR: The purpose of this study was to develop a model that supports decision-making in the development of products while considering sustainability, and is able to support qualitative–environment decisions in theDevelopment of any product.
Abstract: Dynamic changes in customers’ expectations and unfavorable climate changes have generated the need to consider such aspects in the process of creating new products and the modernization of existing products. Simultaneously including customers’ expectations and environmental impact is a key element of the sustainable development of products. Enterprises attempt, within their awareness and possibilities, to apply the idea of sustainability; they do this more or less methodically. As such, an instrument to support decision-making in the area of product development is still needed because it would both be desirable for customers and have less of a negative effect on the natural environment. The purpose of this study was to develop a model that supports decision-making in the development of products while considering sustainability. The model determines the key criteria of the product, criteria states (current and future), and their positive correlations (e.g., achieving high levels of product quality and no (or a reduction in) destructive impact on the environment). To reduce the fuzzy decision-making environment, multiplicative decision methods with the fuzzy Saaty scale were implemented. These methods were the fuzzy analytic hierarchy process (FAHP) and the fuzzy technique for order of preference by similarity to ideal solution (FTOPSIS). The model is able to support qualitative–environment decisions in the development of any product.
15 citations
TL;DR: In this paper , the authors investigated the relationship between green HRM, green culture, green innovation, and a firm's environmental performance and examined the mediating role of green culture and green innovation in relationship between GHRM and environmental performance.
Abstract: There is evidence in the literature that green HRM practices improve environmental profitability. On the other hand, existing research has failed to explain how GHRM can support the development of a green culture and green innovation influence the firm’s environmental performance and long-term growth. This study investigates the relationship between GHRM, green culture, green innovation, and a firm’s environmental performance. In addition, the study examines the mediating role of green culture and green innovation in the relationship between GHRM and environmental performance. This research conducts a large-scale study of 290 employees from Manufacturing firms in Malaysia. The research results provide managers with a better knowledge of how GHRM helps develop sustainable culture and green innovation and how these elements contribute to the improvement of environmental performance inside the organization. This study also makes a significant contribution in terms of novelty and research relevance by demonstrating that green culture and green innovation positively mediate the relationship between GHRM and environmental performance in a sustainable manner. Managers will understand the GHRM required to develop an ecologically conscious culture and promote green innovation among environmentally conscious employees. Finally, we highlighted the importance of this study for top management in the sense of mediating the role of green culture and green innovation and the consequences for future generations of responsible managers who will acquire this knowledge.
5 citations
TL;DR: The authors investigated the role of green human resource management (GHRM) and eco-innovation (GI) in firm performance and found that the significance of GHRM in influencing financial performance through the mediating role of GI.
Abstract: The growing awareness regarding environmental issues has encouraged stakeholders’ broader participation in green management and production. The article aims to investigate the role of green human resource management (GHRM) and eco-innovation (GI) in firm performance. Drawing upon the quantitative data collected through a structured questionnaire, the present study investigated how GHRM influences firms’ financial performance through the mediation of eco-innovation. The study findings suggested the significance of GHRM in influencing financial performance through the mediating role of GI. Despite the rising scholarly interest in studying GHRM, very few studies examined its influence on organizational performance in general and financial performance in particular. The present study intends to bridge the literary gaps by examining both the direct relationship between GHRM and firms’ financial performance and the indirect mechanism linking GHRM with a firm’s financial performance through GI, adding a unique contribution to literature and practice
3 citations
TL;DR: In this article , a comprehensive theoretical model was constructed and used a meta-analysis of 65 independent samples (total sample size: 14,196) to examine the relationships between green supply chain management (GSCM), enterprise environmental performance (EEP) and the moderating role of the market environment, regional culture, sampling area and industry type.
Abstract:
Purpose
The purpose of this study is to systematically analyze the relationships between green supply chain management (GSCM), enterprise environmental performance (EEP) and the moderating role of the market environment, regional culture, sampling area and industry type.
Design/methodology/approach
This study constructed a comprehensive theoretical model and used a meta-analysis of 65 independent samples (total sample size: 14,196) to examine the relationships between GSCM and EEP.
Findings
The results show that GSCM has a moderate positive impact on EEP. Moreover, all dimensions of GSCM positively influence EEP, and internal environmental management has the most significant effect. Additionally, these two relationships can be moderated by the market environment, regional culture, sampling area and industry type.
Originality/value
This study reveals that GSCM can help improve EEP and draw more general and regular conclusions. This study expands the application of meta-analysis methods in GSCM, partly avoiding the limitations of traditional empirical research methods. In addition, the conclusion of this study explains the reasons for the differences in different research results: some scholars did not incorporate market environment, regional culture, sampling area and industry type as moderators in the research process, thus leading to divergent conclusions in the relationship between GSCM and EEP. Therefore, the research conclusion enriches the theoretical research boundary of GSCM.
2 citations
01 Aug 2021
TL;DR: In this article, the authors examined the relationship of organizational performance consciousness, economic performance consciousness and environmental performance consciousness towards green logistics consciousness in enlightening environmental and social sustainability in the Malaysian situation.
Abstract: Currently, there is growing attention towards improving sustainability, including the worldwide agenda in moving towards Society 5.0. Since the formulation of Sustainable Development Goals (SDGs), the green logistics issue has been widely recognized as one crucial element to reducing environmental and social impact. Nevertheless, only a few studies in this area were established since the ignorance regarding this issue was immense globally, including in the Malaysian context. This paper intends to examine the relationship of organizational performance consciousness, economic performance consciousness, and environmental performance consciousness towards green logistics consciousness in enlightening environmental and social sustainability in the Malaysian situation. The data of 387 respondents throughout Malaysia were collected using a convenience survey sampling technique. This data was initially analyzed via descriptive, validity, reliability, and normality test using IBM SPSS Statistics. All hypotheses were analysed using the hierarchical regression analysis, which confirmed that organizational performance consciousness, economic performance consciousness, and environmental performance consciousness directly influence green logistics consciousness in Malaysia. This study is significant and crucial for business strategies formulation, predicting and assessing the potential environmental and social impacts of a proposed project, including evaluating alternatives, designing appropriate mitigation, management and monitoring measures via several entities such as government and policymakers.
2 citations
Cites background from "Green Strategy Effect on Financial ..."
...environmentally materials, despite the fact, eradicating the negative economic performance [9]....
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References
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TL;DR: In this article, the authors examined the link between firm resources and sustained competitive advantage and analyzed the potential of several firm resources for generating sustained competitive advantages, including value, rareness, imitability, and substitutability.
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"Green Strategy Effect on Financial ..." refers background in this paper
...Firm resources include the materials, skills, knowledge, processes, and other firm characteristics with which the firm seeks to gain competitive advantage [59]....
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...The resource-based view of the firm suggests that firms can enhance competitive advantage by developing unique resources and capabilities through quality products and services [58,59]....
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TL;DR: Baron and Kenny's procedure for determining if an independent variable affects a dependent variable through some mediator is so well known that it is used by authors and requested by reviewers almost reflexively.
Abstract: Baron and Kenny’s procedure for determining if an independent variable affects a dependent variable through some mediator is so well known that it is used by authors and requested by reviewers almost reflexively. Many research projects have been terminated early in a research program or later in the review process because the data did not conform to Baron and Kenny’s criteria, impeding theoretical development. While the technical literature has disputed some of Baron and Kenny’s tests, this literature has not diffused to practicing researchers. We present a nontechnical summary of the flaws in the Baron and Kenny logic, some of which have not been previously noted. We provide a decision tree and a step-by-step procedure for testing mediation, classifying its type, and interpreting the implications of findings for theory building and future research.
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"Green Strategy Effect on Financial ..." refers methods in this paper
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