Green Practices for Environmental Excellence: Transforming Environmental Performance Through Green Innovation and Managerial Environmental Concern

This study investigates the mediating role of green innovation in the relationship between green practices (e.g., environmental management accounting, green intellectual capital, and environmental ethics) and environmental performance, drawing on the Natural Resource-Based View (NRBV). Moreover, it examines the moderating effect of managerial environmental concern (MEC) on the relationship between green innovation and environmental performance. Survey data were collected from 397 finance managers and management accountants working in ISO 14000-certified manufacturing companies. Smart PLS 4 was employed to analyze the proposed research model. The results demonstrate a significant positive relationship between green practices and environmental performance, both directly and indirectly through green innovation. Moreover, managerial environmental concern significantly moderates the relationship between green innovation and environmental performance. This study extends the NRBV by being the first study in Pakistan’s manufacturing sector to theorize and test how green practices improve environmental performance through green innovation as a mediator and how MEC moderates this relationship. The findings offer new theoretical insights for sustainability in resource-constrained economies and provide practical implications for managers and policymakers in Pakistan.