Firm performance through green orientation, environmental culture and green absorptive capacity

Abstract

PurposeThe purpose of this article is to examine the effects of green internal orientation and external orientation on firm performance and to evaluate the mediating role of green absorptive capacity in this effect. It also investigates the moderating role of environmental culture in the relationship between green absorptive capacity and firm performance.Design/methodology/approachThis study was conducted based on field research with surveys conducted on 343 technology-oriented companies operating in Istanbul. SmartPLS 4 statistical software was used to analyze the data.FindingsResearch results show that green internal and external orientation has a positive and significant effect on firm performance. Additionally, green absorptive capacity has a mediating role in this effect. It has been determined that environmental culture plays a moderating role in the relationship between green absorptive capacity and firm performance.Research limitations/implicationsThis study has some limitations; for example, the fact that the data was obtained only from technology-focused companies in Istanbul may limit generalizability. However, this research makes important contributions to our understanding of the effects of green internal and external orientation on firm performance and the mediating effect of green absorptive capacity.Practical implicationsThis study shows that strengthening businesses' green internal and external orientations and improving their green absorptive capacity can increase firm performance. It is also an important warning to businesses that environmental culture can play an important role in these relationships.Social implicationsStrengthening green internal and external orientation and improving green absorptive capacity can provide social benefits through their contributions to environmental sustainability. This study can help businesses take steps to reduce their environmental impact and achieve a sustainable future.Originality/valueThis study is one of the few studies examining the effects of green internal and external orientation on firm performance and the mediating role of green absorptive capacity. Additionally, it makes a unique contribution by focusing on the moderating role of environmental culture in these relationships. This study can be a valuable guide for businesses in developing environmental sustainability strategies.