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Environmental sustainability orientation and corporate social responsibility influence on environmental performance of small and medium enterprises: The mediating effect of green capability

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  • Shafique Ur Rehman
  • Stefano Bresciani
  • Dorra Yahiaoui
  • Elisa Giacosa

Abstract

Despite the increasing research to determine the influence of environmental sustainability orientation (ESO) and corporate social responsibility (CSR) on environmental performance, our understanding is to see the mediating effect of green capability between ESO, CSR, and environmental performance is lacking. Data were collected by using survey questionnaires from top management of the construction and manufacturing industry in Malaysia. A total of 377 questionnaires become part of the final analysis. The researchers used SmartPLS 3.2.8 and SPSS 25.0 for analysis. The structural equation modeling (SEM) was followed to determine the variables validity and path relationships. The findings elucidate that ESO and green capability are significantly associated with environmental performance. In contrast, CSR has no direct influence on environmental performance. Moreover, ESO and CSR significantly influence green capability. Green capability mediates between ESO, CSR, and environmental performance.

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  • Shafique Ur Rehman & Stefano Bresciani & Dorra Yahiaoui & Elisa Giacosa, 2022. "Environmental sustainability orientation and corporate social responsibility influence on environmental performance of small and medium enterprises: The mediating effect of green capability," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(6), pages 1954-1967, November.
    • Handle: RePEc:wly:corsem:v:29:y:2022:i:6:p:1954-1967
    DOI: 10.1002/csr.2293
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    3. Olawole Fawehinmi & Mohd Yusoff Yusliza & Muhammad Imran Tanveer & Mohammed Sani Abdullahi, 2024. "Influence of green human resource management on employee green behavior: The sequential mediating effect of perceived behavioral control and attitude toward corporate environmental policy," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 2514-2536, May.
    4. Say Keat Ooi & Chan Hua Lee & Azlan Amran, 2023. "Assessing the influence of social capital and innovations on environmental performance of manufacturing SMEs," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 3242-3254, November.
    5. Shafique Ur Rehman & Beata Gavurova & Stefano Bresciani & Qingyu Zhang, 2024. "Tech innovation! Industry 4.0 enablers and management initiative on innovation performance: a moderation model," International Entrepreneurship and Management Journal, Springer, vol. 20(4), pages 3223-3254, December.
    6. Muddassar Sarfraz & Ilhan Ozturk & Sunghoon Yoo & Muhammad Ali Raza & Heesup Han, 2023. "Toward a new understanding of environmental and financial performance through corporate social responsibility, green innovation, and sustainable development," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-17, December.
    7. Lena, Daniela & Pasurka, Carl A. & Cucculelli, Marco, 2022. "Environmental regulation and green productivity growth: Evidence from Italian manufacturing industries," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    8. Salihi, Awaisu Adamu & Ibrahim, Haslindar & Baharudin, Dayana Mastura, 2024. "Environmental governance as a driver of green innovation capacity and firm value creation," Innovation and Green Development, Elsevier, vol. 3(2).
    9. Dr. Rana Muhammad Shahid Yaqub & Syed Farhan Gillani & Wajid Hussain & Sajjad Ahmad, 2023. "Impact of Environmental Corporate Social Responsibility on Pro-Environmental Behavior in Hospitality Industry: Mediating Role of Green Mindfulness," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(3), pages 25-35, September.

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