The Impact of Educational Economic Factors on Institutional Sustainability Performance: The Mediating Role of Green Management Practices

This study investigates the relationship between educational economic factors and institutional sustainability performance in Saudi public universities, examining the mediating role of green management practices. Using data from 168 respondents across three Saudi public universities, we employed a quantitative approach through structured questionnaires measuring educational economic factors, green management practices, and institutional sustainability performance. PLS-SEM analysis revealed significant direct effects of educational economic factors on sustainability performance, with economic incentive programs demonstrating the strongest influence (β = 0.465, p < 0.001). Green management practices exhibited significant mediating effects, notably between financial resource allocation and sustainability performance (β = 0.191, p < 0.001). The model explains 61.6% of the variance in sustainability performance. The findings provide insights into the dynamics of sustainability implementation in Saudi higher education institutions, particularly highlighting the crucial mediating role of green management practices in translating economic initiatives into sustainability outcomes. While the study’s focus on three Saudi public universities may limit generalizability, it contributes to understanding sustainability implementation within Saudi Vision 2030’s environmental framework. Future research opportunities include expanding to private institutions, incorporating additional geographical regions, and implementing longitudinal studies to track sustainability performance evolution.