IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i19p12431-d929509.html
   My bibliography  Save this article

Proactive Environmental Strategy and Environmental Performance of the Manufacturing SMEs of Karachi City in Pakistan: Role of Green Mindfulness as a DCV

Author

Listed:
  • Muhammad Ibrahim

    (Putra Business School, University Putra Malaysia, Serdang 43400, Malaysia)

  • Rosli Mahmood

    (Putra Business School, University Putra Malaysia, Serdang 43400, Malaysia)

Abstract

This study aims to develop a theoretical model for assessing the causal relationship between a proactive environmental strategy (PES), green mindfulness (GM), and environmental performance (EP) of small and medium-sized enterprises (SMEs). The theoretical model was established through a literature review and tested with 193 entrepreneurs and managers from manufacturing SMEs operating in Karachi, the largest city in Pakistan. The model was tested using PLS Smart with partial least square structural equation modeling. The results reveal that PES does not directly relate to EP. However, the study found a full mediation effect of GM on the relationship between PES and EP. Thus, this study is novel in its approach to using GM as a mediator in assessing the relationship between PES and EP. The study also found that the effects of PES are balanced when the SMEs incorporate GM, which further leads to the achievement of EP. Thus, the findings extend increasingly complex literature in the assessment of GM’s role in SMEs’ EP. Further, the scale and the models can be used to assess how SMEs respond to PES with mindful attention to achieve EP.

Suggested Citation

  • Muhammad Ibrahim & Rosli Mahmood, 2022. "Proactive Environmental Strategy and Environmental Performance of the Manufacturing SMEs of Karachi City in Pakistan: Role of Green Mindfulness as a DCV," Sustainability, MDPI, vol. 14(19), pages 1-14, September.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:19:p:12431-:d:929509
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/19/12431/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/19/12431/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rehman, Shafique Ur & Kraus, Sascha & Shah, Syed Asim & Khanin, Dmitry & Mahto, Raj V., 2021. "Analyzing the relationship between green innovation and environmental performance in large manufacturing firms," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    2. Binh Do & Ninh Nguyen, 2020. "The Links between Proactive Environmental Strategy, Competitive Advantages and Firm Performance: An Empirical Study in Vietnam," Sustainability, MDPI, vol. 12(12), pages 1-22, June.
    3. Prasanta Kumar Dey & Chrisovaladis Malesios & Debashree De & Pawan Budhwar & Soumyadeb Chowdhury & Walid Cheffi, 2020. "Circular economy to enhance sustainability of small and medium‐sized enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2145-2169, September.
    4. Madurai Elavarasan, Rajvikram & Pugazhendhi, Rishi & Jamal, Taskin & Dyduch, Joanna & Arif, M.T. & Manoj Kumar, Nallapaneni & Shafiullah, GM & Chopra, Shauhrat S. & Nadarajah, Mithulananthan, 2021. "Envisioning the UN Sustainable Development Goals (SDGs) through the lens of energy sustainability (SDG 7) in the post-COVID-19 world," Applied Energy, Elsevier, vol. 292(C).
    5. Ieeqan A. Qurashi & Muhammad Khalique & T. Ramayah & Nick Bontis & Mohd Rafi Yaacob, 2020. "Impact of intellectual capital on innovation in pharmaceutical manufacturing SMEs in Pakistan," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 17(1), pages 61-76.
    6. Juan Felipe Reyes-Rodríguez & Jairo González-Bueno & Gladys Rueda-Barrios, 2020. "Influence of organisational and information systems and technologies resources and capabilities on the adoption of proactive environmental practices and environmental performance," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(2), pages 875-895, December.
    7. Sidney G. Winter, 2003. "Understanding dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 991-995, October.
    8. Yu-Shan Chen & Ching-Hsun Chang & Shu-Ling Yeh & Hsin-I Cheng, 2015. "Green shared vision and green creativity: the mediation roles of green mindfulness and green self-efficacy," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(3), pages 1169-1184, May.
    9. Hüseyin Doluca & Marcus Wagner & Jörn Block, 2018. "Sustainability and Environmental Behaviour in Family Firms: A Longitudinal Analysis of Environment‐Related Activities, Innovation and Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 27(1), pages 152-172, January.
    10. Setiadi Umar & Gibson N. Chunwe, 2019. "Advancing environmental productivity: Organizational mindfulness and strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 28(3), pages 447-456, March.
    11. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    12. Nelson Oly Ndubisi & Obaid Al‐Shuridah, 2019. "Organizational mindfulness, mindful organizing, and environmental and resource sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 28(3), pages 436-446, March.
    13. Naveed Ahmad & Asif Mahmood & Heesup Han & Antonio Ariza-Montes & Alejandro Vega-Muñoz & Mohi ud Din & Ghazanfar Iqbal Khan & Zia Ullah, 2021. "Sustainability as a “New Normal” for Modern Businesses: Are SMEs of Pakistan Ready to Adopt It?," Sustainability, MDPI, vol. 13(4), pages 1-17, February.
    14. Naimatullah Shah & Bahadur Ali Soomro, 2021. "Internal green integration and environmental performance: The predictive power of proactive environmental strategy, greening the supplier, and environmental collaboration with the supplier," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1333-1344, February.
    15. Muhammad Anwar & Shuangjie Li, 2021. "Spurring competitiveness, financial and environmental performance of SMEs through government financial and non-financial support," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(5), pages 7860-7882, May.
    16. Suicheng Li & Jianqi Qiao & Hecheng Cui & Shuang Wang, 2020. "Realizing the Environmental Benefits of Proactive Environmental Strategy: The Roles of Green Supply Chain Integration and Relational Capability," Sustainability, MDPI, vol. 12(7), pages 1-18, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alisher Khamdamov & Zhiwei Tang & Muhammad Ali Hussain, 2023. "Unpacking Parallel Mediation Processes between Green HRM Practices and Sustainable Environmental Performance: Evidence from Uzbekistan," Sustainability, MDPI, vol. 15(2), pages 1-18, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tu Thanh Hoai & Nha Nguyen Minh & Hien Vo Van & Nguyen Phong Nguyen, 2023. "Accounting going green: The move toward environmental sustainability in Vietnamese manufacturing firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1928-1941, July.
    2. Abiodun Tope Samson, 2015. "The Impact of Entrepreneurial Orientation, Reconfiguring Capability and Moderation of Environmental Turbulence on Export Performance of SMEs in Nigeria," Journal of Economics and Behavioral Studies, AMH International, vol. 7(3), pages 76-87.
    3. Tobias Knabke & Sebastian Olbrich, 2018. "Building novel capabilities to enable business intelligence agility: results from a quantitative study," Information Systems and e-Business Management, Springer, vol. 16(3), pages 493-546, August.
    4. Ludivine Ravat & Aurélie Hemonnet-Goujot & Sandrine Hollet-Haudebert, 2023. "Data-driven innovation capability of marketing: an exploratory study of its components and underlying processes," Post-Print hal-04151199, HAL.
    5. Dominik M. Wielgos & Christian Homburg & Christina Kuehnl, 2021. "Digital business capability: its impact on firm and customer performance," Journal of the Academy of Marketing Science, Springer, vol. 49(4), pages 762-789, July.
    6. Kim, Jongwook & Mahoney, Joseph T., 2008. "A Strategic Theory of the Firm as a Nexus of Incomplete Contracts: A Property Rights Approach," Working Papers 08-0108, University of Illinois at Urbana-Champaign, College of Business.
    7. André de Abreu Saraiva Monteiro Alves & Fernando Manuel Pereira de Oliveira Carvalho, 2022. "How Dynamic Managerial Capabilities, Entrepreneurial Orientation, and Operational Capabilities Impact Microenterprises’ Global Performance," Sustainability, MDPI, vol. 15(1), pages 1-23, December.
    8. Alex Coad, 2018. "Firm age: a survey," Journal of Evolutionary Economics, Springer, vol. 28(1), pages 13-43, January.
    9. Isabelle Le Breton–Miller & Danny Miller, 2006. "Why Do Some Family Businesses Out–Compete? Governance, Long–Term Orientations, and Sustainable Capability," Entrepreneurship Theory and Practice, , vol. 30(6), pages 731-746, November.
    10. van Uden, Annelies & Knoben, Joris & Vermeulen, P.A.M., 2015. "Making Sense of Industry Characteristics as Drivers of Dynamic Capabilites," Other publications TiSEM fbb2a35d-c957-489b-b170-d, Tilburg University, School of Economics and Management.
    11. Jim Andersén, 2023. "Green resource orchestration: A critical appraisal of the use of resource orchestration in environmental management research, and a research agenda for future study," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5506-5520, December.
    12. Jantunen, Ari & Tarkiainen, Anssi & Chari, Simos & Oghazi, Pejvak, 2018. "Dynamic capabilities, operational changes, and performance outcomes in the media industry," Journal of Business Research, Elsevier, vol. 89(C), pages 251-257.
    13. Yi-Ju Lo & Tung Hung, 2015. "Structure offshoring and returns on offshoring," Asia Pacific Journal of Management, Springer, vol. 32(2), pages 443-479, June.
    14. Emanuela Todeva & Ruslan Rakhmatullin, 2016. "Industry Global Value Chains, Connectivity and Regional Smart Specialisation in Europe. An Overview of Theoretical Approaches and Mapping Methodologies," JRC Research Reports JRC102801, Joint Research Centre.
    15. von den Driesch, Till & Eva Susanne da Costa, Maika & Christina Flatten, Tessa & Brettel, Malte, 2015. "How CEO experience, personality, and network affect firms' dynamic capabilities," European Management Journal, Elsevier, vol. 33(4), pages 245-256.
    16. Quan Anh Nguyen & Gillian Sullivan Mort, 0. "Conceptualising organisational-level and microfoundational capabilities: an integrated view of born-globals’ internationalisation," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-23.
    17. Greg Linden & David J Teece, 2018. "Remarks on Pisano: “toward a prescriptive theory of dynamic capabilities”," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(6), pages 1175-1179.
    18. Pettus, Michael L. & Kor, Yasemin Y. & Mahoney, Joseph T., 2007. "A Theory of Change in Turbulent Environments: The Sequencing of Dynamic Capabilities Following Industry Deregulation," Working Papers 07-0100, University of Illinois at Urbana-Champaign, College of Business.
    19. Irena Mladenova, 2022. "Relation between Organizational Capacity for Change and Readiness for Change," Administrative Sciences, MDPI, vol. 12(4), pages 1-15, October.
    20. Hazhir Rahmandad, 2012. "Impact of Growth Opportunities and Competition on Firm-Level Capability Development Trade-offs," Organization Science, INFORMS, vol. 23(1), pages 138-154, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:19:p:12431-:d:929509. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.