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Green Strategy Effect on Financial and Environmental Performance: A Mediation Analysis of Product Quality

Author

Listed:
  • Akintunde Olayeni

    (Faculty of Business Administration, The University of Nigeria, Nsukka 40001, Enugu State, Nigeria)

  • Anastasia Ogbo

    (Faculty of Business Administration, The University of Nigeria, Nsukka 40001, Enugu State, Nigeria)

  • Henry Okwo

    (Faculty of Business Administration, The University of Nigeria, Nsukka 40001, Enugu State, Nigeria)

  • Benjamin Chukwu

    (Faculty of Business Administration, The University of Nigeria, Nsukka 40001, Enugu State, Nigeria)

  • Chuka Ifediora

    (Faculty of Business Administration, The University of Nigeria, Nsukka 40001, Enugu State, Nigeria)

  • Charity Ezenwakwelu

    (Faculty of Business Administration, The University of Nigeria, Nsukka 40001, Enugu State, Nigeria)

Abstract

The dilemma of firms in developing economies was the crux of this study. In probing whether the adoption of organization-wide green strategy would enhance the product quality and the firm’s financial lifeline, while also improving the environment, we developed a mediation model. The specific objectives were to ascertain the direct effect of green strategy on both environmental and financial performance and its total effect on both environmental and financial performance through product quality. With data collated and analyzed from 648 respondents, using the Hayes mediation approach, results show that while environmental performance is strongly predicted by green strategy and product quality (as a mediator), financial performance is also positively predicted, but by a smaller effect. The import of the findings of this study is that the adoption of green strategy mediated by product quality improves both environmental and financial performance, implying that firms can remain financially viable while adopting product-focused green strategy.

Suggested Citation

  • Akintunde Olayeni & Anastasia Ogbo & Henry Okwo & Benjamin Chukwu & Chuka Ifediora & Charity Ezenwakwelu, 2021. "Green Strategy Effect on Financial and Environmental Performance: A Mediation Analysis of Product Quality," Sustainability, MDPI, vol. 13(4), pages 1-17, February.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:4:p:2115-:d:500356
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    5. Oksana Seroka‐Stolka, 2023. "Towards sustainability: An environmental strategy choice, environmental performance, and the moderating role of stakeholder pressure," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5992-6007, December.

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