Promoting environmental performance in manufacturing industry of developing countries through environmental orientation and green business strategies

Abstract

This empirical study attempts to examine the effect of environmental orientation (EO) on environmental performance (EP). Mediating role of green business strategies (GBS) in this relationship is also tested. Furthermore, the moderating role of top management environmental awareness (TMEA) in the relationship between EO and GBS is also analyzed. Simple random sampling technique was used for data collection purposes. Data was collected from managers of 126 manufacturing industries of Pakistan. These industries include pharmaceutical instruments, office machinery, furniture and fixtures, electrical equipment, and automobile accessories. Correlation, linear regression and structural equation modeling techniques were used for data analysis. Findings revealed a direct effect of EO on GBS and EP. In addition, the results confirm that GBS positively mediate between EO and EP. It also founds that TMEA strengthens the direct effect of EO on GBS. Although the empirical evidence is reasonably established that EO has a substantial contribution for EP, however, in the existing studies, there is a lack of discussion on the links between EO, development of GBP and improvement of EP in the context of manufacturing industries of the developing countries like Pakistan. The results of the study suggest that organizations are required to put more attention towards stakeholders’ requirements and strategies that ensure the protection of the natural environment. Hence, EO in term of internal orientation and external orientation are pertinent to formulate GBS in order to improve EP in a more appropriate way. The data for the study was collected from manufacturing businesses; therefore, the result of the current study may not be generalizable to all industries.