Environmental orientation, external environmental information exchange and environmental performance: Examining mediation and moderation effects

Abstract

Previous research presents mixed findings about the impact of environmental orientation (EO) on environmental performance (EP). Using the theoretical lens of resource orchestration theory (ROT) and contingency theory (CT), this study explores the relationships between EO, external environmental information exchange (EEIE) (with suppliers and customers), and EP. In particular, this study investigates the mediating role of EEIE between EO and EP, and the moderating effect of EO on the relationship between EEIE and EP. The proposed relationships were analysed through structural equation modelling and hierarchical linear regression analysis using survey data collected in Australia. The results reveal the partial mediating effect of EEIE on the EO-EP link, and the contingency effect of EO on the relationship between EEIE (with customers) and EP. Our study extends the boundaries of the current understanding by empirically testing both mediation and moderation within the same study, thereby presenting insights into how EO can positively influence EP, and under what circumstances. These findings provide managers with useful guidance on how EO can be complemented by external information sharing for environmental solutions.