Green Service and Firm’s Performance: A Contingency View in the Chinese Context

Abstract

The objective of this paper is to understand the performance effects of green service practices that aim to provide support to manufacturing firms on business and environmental performance and to study also how different governance approaches affect these performance results. We draw on a sample of both SMEs and large firms in the Chinese context. Our results show that there is indeed a positive link between the implementation of green service practices and business and environmental performance. However, no differences are found with respect to large and SMEs types of firms. Regarding the interplay between green service practices and governance mechanisms, our results show that formal governance mechanisms diminish the effectiveness of green service practices in environmental and business performance. In addition, we provide evidence that the business and environmental performance effects of green service delivery are strengthened when the firm operates with uncertified EMS.