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Analyzing the relationship between green innovation and environmental performance in large manufacturing firms

Shafique Ur RehmanILMA University, ILMA University Business School, Karachi, PakistanSascha KrausFree University of Bozen-Bolzano, Faculty of Economics & Management, Bolzano, ItalySyed Asim ShahCOMSATS University Islamabad, Business School, Attock Campus, PakistanDmitry KhaninAlfaisal University, Department of Management, Riyadh, Saudi ArabiaRaj V. MahtoUniversity of New Mexico, Anderson School of Management, Albuquerque, N.M., United States
2020en
ABI

Abstract

Extant literature suggests that green intellectual capital (GIC), green human resource management (GHRM), and green innovation (GI) impacts the environmental performance of firms. In this paper, we argue that the relationship between GIC, GHRM, GI and environmental performance is more complex than previously suggested. We propose that neither GIC nor GHRM are directly related to environmental performance. We argue instead that GI mediates the relationships between GIC, GHRM, and environmental performance. Further, we suggest that environmental strategies are directly related to environmental performance, while also moderating the relationship between GI and environmental performance. We tested our proposed model on a sample of 244 large manufacturing firms. The results of a structural equation modeling analysis provide support for most of our hypotheses.

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