Leveraging Environmental Responsibility and Managerial Decision-Making for Enhanced Firm Performance: The Mediating Role of Green Culture

Abstract

Abstract This study aims to analyze the direct and indirect relationship between environmental responsibility (ER), managerial decision-making (MDM), green culture (GRC), and firm performance (FPR). Additionally, institutional theory has been applied to hypothesis development. Furthermore, this research data was obtained from Chinese manufacturing firms which are listed on the Shenzhen Stock Exchange. The study is quantitative, and a simple random sampling technique was employed during data collection, where data came from 390 managers working in leather manufacturing firms. The Partial Least Squares Structural Equation Modelling (PLS-SEM 4) statistical package is unaliased for hypotheses testing. The study results demonstrate that ER, MDM and GRC have positively and significantly correlated with FRP. While GRC is partially mediated by ER, MDM and FPR. The overall results indicate that ER, MDM, and GRC are cornerstones for improving the performance of manufacturing firms. The findings contribute to the existing body of knowledge and have implications for potential policymakers and managers within Chinese manufacturing firms.