Green Organizational Culture and Organizational Performance: The Mediating Role of Green Innovation and Environmental Performance

Abstract

This study aims to develop and test a theoretical model that empirically examines how green organizational culture affects organizational performance. Additionally, investigated and statistically explored the study model's and their mediating role of environmental performance and green innovation, which had previously received little attention. For the sample size of 170 respondents, a quantitative approach was used. In addition, convenient random sampling was utilized to get data from the respondents. Data was gathered from a field survey utilizing a closed-ended questionnaire from Malaysia's industrial and service organizations from Malacca, Johor, Selangor, and Kedah states. The structural equation modelling approach was used to achieve the research purpose. Green organizational culture was a significant predictor of green performance in this research. Furthermore, the findings reveal that environmental performance and green innovation fully mediate the relationship between green organizational culture and organizational performance. However, this study has several limitations that lead to future research directions. The study's most significant drawback is that the data is collected merely from Malaysian industries, making generalization difficult. In addition, the cross-sectional data adds further restrictions to it. Nevertheless, by addressing organizational performance, which has not been empirically examined, this research adds to the current literature on green organizational culture, environmental performance, and green innovation. Furthermore, this research also presents a novel theoretical explanation for the relationships by understanding the mediating role of environmental performance and green innovation.

Organizational Environmental Culture, Environmental Sustainability and Performance: The Mediating Role of Green HRM and Green Innovation

“…GI is noted as a significant factor in green aspects. In Malaysian industries, EP and GI appear as full mediators that develop the relationships between firm performance and green OEC [71]. In his study, Wang [41] targets manufacturing firms to assess corporate green culture and green performance.…”

“…Consequently, in its capacity as a mediating variable, GI has a good reputation for developing the associations between the different factors [41,50,71]. However, the integration of ES and EP remains untested.…”

The mediating role of green innovation and green culture in the relationship between green human resource management and environmental performance

“…The environmental performance focuses on the organizational actions that go beyond primary compliance with basic rules and regulations to meet and exceed social expectations about the natural environment [67][68][69]. It involves the environmental impacts of organizational operations, products, and resource use in the most compliant way possible with applicable environmental laws [70].…”

“…According to statistical definitions, discriminant validity is a circumstance in which a study evaluates two statistically distinct elements [67]. To evaluate discriminant validity, first compute the square roots of AVE and then compare them to the correlations of both of these variables in the theoretical model [128].…”

The Effect of Green Innovation on Organizational Performance: Role of Enterprise Risk Management As A Mediation Variable

“…Meanwhile, according to Nishant et al (2012) andEl-Kassar &Singh (2019), there is little evidence in it of the relationship between green innovation and organizational performance. Furthermore, research has shown that green innovation is critical to achieving long-term performance (Cloud et al, 2019;Imran et al, 2021). According to Agustia et.…”