Original scientific paper
https://doi.org/10.1080/1331677X.2023.2199822
The effect of firms’ environmentally sustainable practices on economic performance
Sikandar Ali Qalati
Belem Barbosa
Shuja Iqbal
Abstract
Companies are pressured by stakeholders to protect the environment
while improving their economic performance. This study
aims to further explore the impact of environmentally sustainable
practices (ESP) on firm performance (FP), by considering the effects
of green employee integration (GEI), environmental sustainability
(ES), and employee environmental orientation (EEO). To test the set
of hypotheses defined for this article, a closed-ended questionnaire
survey was conducted with employees working in the manufacturing
sector in China. Data from 325 employees were analysed using
SmartPLS 4 software. The results demonstrate that environmentally
sustainable practices (ESP) have a direct and significant influence
on GEI, ES, and FP. In addition, GEI has a significant direct impact
on ES and FP, and ES has a direct impact on FP. This research also
demonstrated the partial mediation of GEI and ES and the moderation
of EEO on the ESP–FP relationship. This research advances the
scope of the ability, motivation, and opportunity theory and the
social identity theory. Results suggest that managers should adopt,
implement, and promote green practices, as this leads to involving
employees in activities that can lessen adverse impacts on society
and improve firm’s economic performance, including in terms of
reputation and profits.
Keywords
Environmentally sustainable practices; environmental sustainability; green employee integration; employees’ environmental orientation; firm performance
Hrčak ID:
314874
URI
Publication date:
6.6.2023.
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