Exploring the relationship between environmental collaboration and business performance with mediating effect of responsible consumption and production

Abstract

AbstractThis study aims to examine the relationship between inter‐organisational and intraorganisational environmental collaboration practices and business performance. It also investigates the mediating role of responsible consumption and production practices on various environmental collaboration and business performance relationships. Drawing from the relational view and resource‐based view, a model to analyse environmental collaboration, responsible consumption and production practices and business performance relationships is theorised and examined using a sample of 249 from manufacturing firms. Direct and mediating relationships between constructs have been assessed through structural equation modelling technique. Environmental collaboration with suppliers, customers and logistics providers directly influences firms' business performance. However, mediation analysis suggests the direct relationship between environmental collaboration practices with suppliers and business performance weakened in the presence of responsible consumption and production practices, indicating partial mediation between environmental collaboration with suppliers and business performance relationship. Also, direct relationships between environmental collaboration with customers and logistics providers and business performance become nonsignificant in the presence of responsible consumption and production practices, indicating the full mediating effect of responsible consumption and production practices. This study extends supply chain collaboration and sustainable development goal literature by offering valuable insights into environmental collaboration, responsible consumption and production and business performance relationships. The findings can assist practitioners in improving business performance through environmental collaboration and responsible consumption and production practices.