Examining the role of quality performance and entrepreneurial orientation on green manufacturing and financial performance

Abstract

The concept of green manufacturing is a topical discourse in sustainability studies, but its adoption seems to be lagging due to an unclear link to financial performance. The study aims to test the relationship between green manufacturing and financial performance, with quality performance as a mediator and entrepreneurial orientation as a moderator. The partial least square (PLS) method was applied for hypotheses testing. Data were randomly obtained from 116 managerial staff in manufacturing firms operating in the polymer industry in Southern Nigeria. From the PLS results, green manufacturing is positively related to financial performance (β = 0.167, p = 0.027), and this relationship is mediated by quality performance (β = 0.194, p = 0.000) and moderated by entrepreneurial orientation (β = 0.115, p = 0.000). The results demonstrated that green manufacturing spurs financial performance directly. However, optimality can be achieved indirectly through quality performance and under generative conditions or behaviors effectuated by entrepreneurial orientation. In conclusion, quality performance and entrepreneurial orientation may account for the ways in which green manufacturing enhances financial performance significantly and positively.