The impact of environmental management on fi rm economic performance: The mediating effect of green innovation and the moderating effect of environmental leadership

Many scholars have studied the relationship between environmental management and firm economic performance, but there is no consistent conclusion. According to the number of environmental management practices implemented by firms and the degree of integration of environmental management with other functions, this study divides environmental management into two dimensions: environmental management breadth (EMB) and environmental management depth (EMD), and explores the above issues. A sample including 246 Chinese listed companies is used to test the hypotheses by multiple regression analysis. The results show an inverted U-shaped relationship between EMB and economic performance; EMD has a positive impact on economic performance; green innovation mediates the relationship between EMB (EMD) and economic performance; environmental leadership moderates the impact of EMB (EMD) on green innovation. (c) 2021 Elsevier Ltd. All rights reserved.

Automated summary

The study reveals an inverted U-shaped relationship between environmental management breadth and economic performance, with environmental management depth having a positive impact on economic performance. Green innovation plays a crucial mediating role between these dimensions and economic performance.