Environment Practices Mediating the Environmental Compliance and firm Performance: An Institutional Theory Perspective from Emerging Economies

Amit Kumar Gupta () and Narain Gupta ()
Additional contact information
Amit Kumar Gupta: Management Development Institute Gurgaon
Narain Gupta: Management Development Institute Gurgaon

Global Journal of Flexible Systems Management, 2021, vol. 22, issue 3, No 1, 157-178

Abstract: Abstract Coercive pressure has forced firms to take up environmental measures in the last two decades in emerging economies. Under normative pressure, large firms with farsightedness take up the environmental practices as industry leaders. In a little mature emerging economy, such as India, where triple bottom line awareness is growing, the government facilitates the firms to operate in an environment-friendly ecosystem. We investigate how do environmental compliance and environmental practices influence the overall firm performance? The performance was measured in terms of financial, customer, internal business process, and learning and growth performance. A survey instrument was designed using well-established scales and administered to the middle to top-level corporate management executives to gather 240 data from the Indian firms. A rigorous statistical validity, diagnostics, and SEM were used to test the hypotheses. The environmental practices showed a full mediation effect on the effect of environmental compliance on performance. The examination of mediation relationships in an environmental context is limited in the reported literature. This paper is among the initial works that deal with complicated mediation relationships drawn from institutional theory propositions. The study established and argued that environmental practices' ecosystem would turn firms towards voluntary environmental compliance and eventually enjoy the long-term performance.

Keywords: Environmental compliance; Environmental practices; Firm performance; Institutional theory; Structural equation modelling (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://link.springer.com/10.1007/s40171-021-00266-w Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:gjofsm:v:22:y:2021:i:3:d:10.1007_s40171-021-00266-w

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/40171

DOI: 10.1007/s40171-021-00266-w

Access Statistics for this article

Global Journal of Flexible Systems Management is currently edited by Sushil

More articles in Global Journal of Flexible Systems Management from Springer, Global Institute of Flexible Systems Management
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().