Green Strategy Effect on Financial and Environmental Performance: A Mediation Analysis of Product Quality

Akintunde Olayeni, Anastasia Ogbo, Henry Okwo, Benjamin Chukwu, Chuka Ifediora and Charity Ezenwakwelu
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Akintunde Olayeni: Faculty of Business Administration, The University of Nigeria, Nsukka 40001, Enugu State, Nigeria
Anastasia Ogbo: Faculty of Business Administration, The University of Nigeria, Nsukka 40001, Enugu State, Nigeria
Henry Okwo: Faculty of Business Administration, The University of Nigeria, Nsukka 40001, Enugu State, Nigeria
Benjamin Chukwu: Faculty of Business Administration, The University of Nigeria, Nsukka 40001, Enugu State, Nigeria
Chuka Ifediora: Faculty of Business Administration, The University of Nigeria, Nsukka 40001, Enugu State, Nigeria
Charity Ezenwakwelu: Faculty of Business Administration, The University of Nigeria, Nsukka 40001, Enugu State, Nigeria

Sustainability, 2021, vol. 13, issue 4, 1-17

Abstract: The dilemma of firms in developing economies was the crux of this study. In probing whether the adoption of organization-wide green strategy would enhance the product quality and the firm’s financial lifeline, while also improving the environment, we developed a mediation model. The specific objectives were to ascertain the direct effect of green strategy on both environmental and financial performance and its total effect on both environmental and financial performance through product quality. With data collated and analyzed from 648 respondents, using the Hayes mediation approach, results show that while environmental performance is strongly predicted by green strategy and product quality (as a mediator), financial performance is also positively predicted, but by a smaller effect. The import of the findings of this study is that the adoption of green strategy mediated by product quality improves both environmental and financial performance, implying that firms can remain financially viable while adopting product-focused green strategy.

Keywords: green strategy; product quality; financial performance; environmental performance; mediation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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