Nexus between green practices, green marketing, and business performance: the mediating role of corporate social responsibility in emerging economy

Achieving a sustainable future is a global necessity. Therefore, identifying and implementing environmentally sustainable practices is essential for leaders at the organizational level. This research uses stakeholder theory to examine the relationships between green practices (henceforth referred to as GPs), green marketing (henceforth referred to as GM), and business performance (henceforth referred to as BP). Additionally, it explores the role of corporate social responsibility (henceforth referred to as CSR) in this dynamic relationship. A quantitative approach was employed using a cross-sectional method. The research population consisted of 400 managers working in various companies listed in Jubail Industrial City (Saudi Arabia). Structural equation modeling (SEM) was utilized to test the proposed research model. This method involves a two-step modeling process: first, identifying the underlying constructs and their corresponding indicators, and second, assessing the reliability of the items, analyzing the factor loadings, and conducting confirmatory factor analysis. This study revealed that, as expected, GPs positively impact BP. Furthermore, CSR mediates the relationship between GPs and BP. The results also indicated that GM positively affects CSR but does not directly impact BP. Significantly, when CSR acts as a mediator, the relationship between GM and BP is positively enhanced. The findings of this research contribute to theoretical advancements in environmental strategy and are generally consistent with stakeholder theory. This study is significant, as it is one of the earliest of its kind conducted in a developing country. This study provides valuable insights for environmental researchers, managers, and policymakers to refine strategies that promote environmental practices in the workplace. Specifically, companies should implement green practices and marketing initiatives for direct benefits and out of a commitment to social responsibility, which ultimately enhances business performance.