On the drivers and performance outcomes of green practices adoption

Abstract

Purpose The purpose of this paper is to examine a multitude of motivators that facilitate the implementation of green practices (GP) in the context of Chinese manufacturing industry. Also, this study aims to explore the influence of GP on the environmental performance, operational performance, and financial performance of manufacturing firms. Design/methodology/approach This paper developed a conceptual model to investigate the stakeholder drivers and commensurate performance outcomes of GP. Statistical analysis was based on the data collected from 124 manufacturing firms across the Greater China. Finally, the hypotheses were empirically tested by partial least squares approach. Findings Of the ten proposed hypotheses, seven are considered valid. The statistic results reveal that pressures originate from employees, senior managers, and customers exert significant positive influence on firm’s decision to adopt GP, while the drivers generated from government and competitors is non-significant. More specifically, this study indicates that environmental performance partially mediates the relationship between GP and operational/financial performance. Originality/value The originality of this research is that it proposes a novel conceptual model, ascertains the primary drivers in promoting GP in Chinese manufacturing industry. This research provides policy insights for professional organizations, regulators, and legislators to further promote GP.