Drivers of Proactive Environmental Strategies: Evidence from the Pharmaceutical Industry of Asian Economies

Abstract

The objective of the undertaken study is to investigate the association between proactive environmental strategy (PES) and its determinants, such as planning and organizational practices (POP) and communicational practices on sustainable development through the operating and financial performances of the pharmaceutical sectors of south Asian countries. Moreover, we examine this relationship through the eco-innovations as a meditator and technological advances as a moderator. We developed a modified conceptual model and questionnaire and verified by 856 responses from the region’s pharmaceutical sectors. We have tested our hypothesized research model and hypotheses through SEM-based modeling. The findings confirm that proactive environmental strategy and its determinants, for instance, organization and planning practices, operating practices, and communicational practices, have a positive and significant influence on pharmaceutical firms’ sustainable development through operational and financial performance. The findings further show the substantial role in eco-innovation as a mediator and technological advances as a moderator on the sustainable development in this relationship. Subsequently, eco-innovation and technological advances lessen ecological hazards and increase companies’ functioning. Therefore, the undertaken study demonstrated and concurrently ascertained towards sustainable development of environmental and economic leaders. The practical implications are equally important for every stakeholder, such as the community, policymakers, companies, and regulatory agencies concerned with fostering eco-friendly controlling exercises.