The Interplay Between Environmental Ethics and Sustainable Performance: Does Organizational Green Culture and Green Innovation Really Matter?

Although organizational green culture and environmental ethics are increasingly acknowledged as crucial, few studies have comprehensively examined the interconnected relationship between green innovation and sustainable performance, particularly within manufacturing firms. As such, this study empirically examines the relationship between environmental ethics and sustainable performance through the mediating roles of green process and product innovations and the moderating role of organizational green culture on these relationships. It is grounded in stakeholder theory and a resource-based view. This study utilizes 236 valid cross-sectional data points from manufacturing firms in Turkey to test the proposed integrated theoretical model through structural equation modeling (SEM). Environmental ethics is positively associated with sustainable performance, green process innovation, and green product innovation. Green process innovation positively affects sustainable performance. Additionally, both green process and product innovations mediate the relationship between environmental ethics and sustainable performance. Moreover, organizational green culture enhances the relationship between environmental ethics and both green process innovation and green product innovation while moderating its role in sustainable performance. The findings highlight how environmental ethics, mediated by green innovation and moderated by organizational green culture, can drive sustainable performance, offering valuable insights for managers aiming to enhance sustainability initiatives in the manufacturing sector.