Corporate Environmental Performance as a Mediator Between Eco-Efficiency Strategy and Financial Performance in Jordanian Industrial Sectors
Keywords:Eco-Efficiency Strategy, Corporate Environmental Performance, Financial Performance, Jordanian Industrial Sector
Purpose: The purpose of this study is to examine examine corporate environmental performance (CEP) as a mediator between eco-efficiency strategy and financial performance.
Theoretical framework: The application of the corporate environmental performance item is weak since it is not documented at that time, and there are also financial and eco-efficiency plan weaknesses. Also, the goal of the present study is to advance, add to the body of literature, and fill in any gaps.
Design/methodology/approach: The study employed a survey-based cross-sectional study that included industrial, service, and real estate firms registered under the Amman Stock Exchange. A total of 230 questionnaires were distributed to the managers in health and safety, finance, and operational firms. Ultimately, 209 (90.8%) of the questionnaires were included for further analysis.
Findings: The results revealed that efficiency strategy and CEP significantly influenced corporate financial performance, whereas efficiency strategy significantly influenced CEP. Moreover, CEP mediated the relationship between efficiency strategy and corporate financial performance. Nonetheless, the study was limited to eco-efficiency strategy.
Research, Practical & Social implications: The study of Jordanian industry, service, and real estate companies' Eco-Efficiency Strategy scores includes their environmental performance, which may be utilized to determine the primary influence factor on their financial success. This study offers insightful information for policymakers.
Originality/value: The study's significance is that, in order to increase the financial success of these businesses, governments must pay more attention to the environment and the factors that influence it.
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