EXPLORING EMPLOYEE GREEN BEHAVIOR AS AN ANTECEDENT OF COMPETITIVE ADVANTAGE AND FIRM’S FINANCIAL PERFORMANCE

Abstract

In response to environmental degradation and stakeholders’ pressure, firms in emerging economies are prioritizing sustainable business practices by fostering employee green behavior (EGB) and addressing environmental concerns. This investigation examines the contribution of EGB as a precursor to enhance competitive advantage (CA) and improve financial performance (FFP). Further it examines whether CA acts as mediator in the relationship of EGB with FFP. Employing a quantitative research design and deductive reasoning, this study analyzed survey data from 83 manufacturing enterprises using SPSS software. The findings reveal that EGB is a critical antecedent to both CA and FFP and that CA plays a pivotal role in bridging the gap between EGB and FFP, fostering a robust and significant association. This study contributes to the existing literature by integrating the perspectives of the Natural Resource-Based View (NRBV) and the Ability-Motivation-Opportunity (AMO) theories to examine the relationships among EGB, CA, and FFP. The outcomes of this investigation provide actionable guidance for managers, researchers, and policymakers, highlighting promising directions for subsequent research endeavors.