Environmental ethics, green innovation, and sustainable performance: Exploring the role of environmental leadership and environmental strategy

Abstract

The environmental pollution and degradation of natural resources issues are worsening with every passing day and companies need to take immediate action to save the environment. Due to this reason, the current study intended to explore the mediating role of green innovation in corporate environmental ethics and sustainable performance relationship. Additionally, multiple moderating effects 1). Environmental leadership in corporate environmental ethics and green innovation relationship, 2). Environmental strategy in green innovation and sustainable performance nexus was also explored. The multisource data (N = 404) were collected from the managerial-level employees of manufacturing companies in Pakistan using the survey method. We used the “structural equation modeling” technique to examine the proposed hypotheses. The results demonstrated that green innovation mediates the relationship between corporate environmental ethics and sustainable performance (social, economic, and environmental). In addition, environmental leadership positively moderates corporate environmental ethics and green innovation nexus. Furthermore, environmental strategy strengthens the green innovation effect on environmental and economic performance. Overall, the study findings supported almost all direct, indirect, and moderating hypotheses and provided some novel theoretical and practical implications.