Abstract
This study evaluated the causal effect of environmental friendly activities and resultant environmental performance of enterprises on their organizational performance. More importantly, it analyzed and empirically investigated the mediation of environmental performance in the research model which has been paid no attention to in previous studies. The final research data was gathered from 399 publicly listed enterprisesin in the three main stock markets of Vietnam. Multiple regression analyses were applied to test the causal hypotheses, while mediating procedures were employed to test statistical significance for the mediation mechanism. The empirical findings reveal positive influences of environmental responsibility on organizational and environmental performance that in turn puts a positive influence on organizational performance. Environmental performance is discovered as an entirely mediating factor in the joint research model, where environmental responsibility has no direct effect on organizational performance, but only has indirect effect through environmental performance. When included into the research model, environmental performance will transmit the whole of direct effect of environmental responsibility on organizational performance.Keywords: Environmental Responsibility, Environmental Performance, Firm Performance, VietnamJEL Classifications: Q01, Q51, E01DOI: https://doi.org/10.32479/ijeep.9955
Highlights
Insufficient compliance with environmental friendly rules has been an extreme challenge to economies and especially to emerging economies including Vietnam (World Bank, 2012)
The current study is based on the indicators stipulated by Hair et al (2011) to assess the research model
Environmental responsibility imposes a positive impact on environmental performance with the 0.01 significance level and the 0.319 coefficient of β, which is in support of Hypothesis 2
Summary
Insufficient compliance with environmental friendly rules has been an extreme challenge to economies and especially to emerging economies including Vietnam (World Bank, 2012). Grounded on Porter and Van der Linde (1999), the serious rules of environmental pollution can enable the enterprises to develop their environmental performance by vigorously seeking the best instruments of protecting the nature environment, innovating technology and increasing production effectiveness, which thereby enhance organizational effectiveness. Drawing on existing research on environmental responsibility, it can summarize that, environmental responsibility is one of the most vital driving forces for augmenting organizational as well as environmental performance, which is in turn a fundamental determinant of organizational performance These studies have usually focused only on the causal connections among the factors; and have failed to investigate complicated effects on the causal links such as mediating mechanisms that have been ignored.
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