Green Finance as a Catalyst for Sustainable Performance: The Mediating Effects of Green Innovation and Green Capabilities and the Moderating role of stakeholder pressure

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🔬研究者:The mediation model offers a nuanced understanding of how green finance translates into performance, useful for further theory development.

🏢実務担当者:Corporate sustainability teams can use the findings to justify green investments and enhance innovation capabilities under stakeholder pressure.

🏛政策担当者:Regulators can design policies that leverage stakeholder pressure to amplify green finance's impact on sustainability.

This study examined the role of green finance in enhancing sustainable performance, with a focus on the mediating effects of green innovation and green capabilities and the moderating role of stakeholder pressure. The study adopted a quantitative research design and collected data from 320 respondents working in manufacturing and service sector firms in Pakistan. Structural equation modelling (SEM) was applied to test the proposed relationships. The findings indicated that green finance exerted a significant positive effect on sustainable performance (β = 0.42, p < 0.001). Green innovation (β = 0.31, p < 0.001) and green capabilities (β = 0.36, p < 0.001) also showed significant positive effects on sustainable performance. Mediation analysis revealed that green innovation (β = 0.19, p < 0.001) and green capabilities (β = 0.22, p < 0.001) partially mediated the relationship between green finance and sustainable performance. Stakeholder pressure significantly moderated this relationship (β = 0.27, p < 0.01), strengthening the positive impact of green finance under higher levels of external pressure. The results emphasized that financial investment in environmental initiatives contributed more effectively to sustainability outcomes when supported by innovation, organizational capabilities, and stakeholder engagement. The study provided theoretical and practical implications for enhancing sustainability strategies in organizations. References Ahmed, Z., Zhang, B., & Cary, M. (2023). Linking green finance and sustainable development: Evidence from emerging economies. Environmental Science and Pollution Research, 30, 45678–45690. https://doi.org/10.1007/s11356-023-25678-9 Anwar, S. U., Xu, J., Yuan, P. Z., Su, K., Rehman, S. U., & Hameed, M. (2024). Green entrepreneurial orientation and environmental performance. Scientific Reports, 14, 30266. https://doi.org/10.1038/s41598-024-81885-y Bal, E., & Karibek, M. 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