The Indirect Effect of Top Management Commitment in Improving Green Performance

Abstract

Increasing concerns regarding environment and sustainability drive and the increasing intensity of competition forced the companies to find ways of reducing cost and enhance their images. So, it has become increasingly important for companies to balance economic and environmental performance. One of the important way is the commitment of top management team in supporting company’s practices in green product development as well as green manufacture. This study proposes a conceptual framework to analyze the effects of top management commitment in improving a firm’s green practices and performance. By using a dataset including 231 China-based companies, the study analyzes the nature of the linkages proposed in the framework. Guidelines for practitioners on top-level management in improving green practices and performance are discussed.

Keywords: top management commitment, green performance