Green practices-IS alignment and environmental performance: The mediating effects of coordination

The problem of environmental sustainability has been growing in recent years with an interest from both researchers and practitioners. A major gap that exists is the absence of empirical studies that addressed business value of green IS (information systems). Thus, drawing on the resource-based view of the firm and IT (information technology) business value literature, this study aims to develop a comprehensive research model of green practice-IS alignment, the key cross-functional coordination of green practices with manufacturing and marketing functions, and firm performance. The study provides a better understanding of the relationship between green practice-manufacturing coordination and green practice-marketing coordination, and how both variables mediated the relationship between green practices-IS alignment and environmental performance. The data used in this study were collected from manufacturing firms. The results show that a firm’s green practices-IS alignment had a positive effect on both green practices-manufacturing coordination and green practices-marketing coordination. In turn, both green practices-manufacturing coordination and green practices-marketing coordination are the significant predictors of environmental performance. Meanwhile, green practices-IS alignment had an indirect effect on environmental performance via both green practices-manufacturing coordination and green practices-marketing coordination. Moreover, the findings of this study show that environmental performance is an important predictor of economic performance.