Environmental commitment and firm financial performance: a moderated mediation study of environmental collaboration with suppliers and CEO gender

Thinh Truong Vu and Wilson V.T. Dang

International Journal of Ethics and Systems, 2020, vol. 37, issue 1, 53-69

Abstract: Purpose - Prior studies have found a mixed result on the relationship between environmental commitment and firm performance. To shed a new light on this relationship, this study aims to draw on stakeholder theory, upper echelon theory and gender socialization theory to determine the mediating role of environmental collaboration with suppliers and the moderating role of chief executive officers (CEOs) gender into this relationship. Design/methodology/approach - This study conducts a questionnaire survey to collect sample data of 177 CEOs in manufacturing firms in China. Structural equation modeling is used to analyze data and test hypotheses. Findings - Empirical results show that environmental commitment has a positive influence on firm financial performance. Furthermore, the results show that environmental collaboration with suppliers mediates the link between environmental commitment and financial performance. In addition, CEO gender has a moderating effect on the relationship between environmental commitment and environmental collaboration with suppliers. Finally, CEO gender also moderates the indirect effect of environmental commitment on financial performance through environmental collaboration with suppliers. Originality/value - Findings of this study helps to clarify the mediating and moderating mechanism in the relationship between environmental commitment and firm performance. That is this study helps to clarify the mixed relationship between environmental commitment and firm performance in prior literature. This study also provides new insight and knowledge for business managers to make better decision in dealing with the environmental issue to enhance firm performance.

Keywords: Stakeholder theory; Firm performance; Upper echelon theory; Environmental commitment; Environmental collaboration with suppliers (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijoesp:ijoes-02-2020-0015

DOI: 10.1108/IJOES-02-2020-0015

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