GREEN CULTURE AND INNOVATION: KEY DRIVERS OF FIRM PERFORMANCE IN PAKISTAN'S TEXTILE INDUSTRY

Abstract

The current study examines the influence of green human capital (GHC) and green supply chain management (GSCM) on firm performance (FP) in Pakistan's textile sector. Using the natural resource-based view, this study explores the mediating role of green innovation (GI) and the moderating role of organizational green culture (OGC).

Design/methodology/approach – Data were collected from owners and managers of textile firms operating in Multan, Lahore, and Faisalabad through a structured questionnaire. A purposive sampling method was used to select participants with relevant knowledge and experience. Two hundred eighty-four (284) responses were analyzed using SmartPLS v4.1 to evaluate the study hypotheses.

Findings – Results confirm that GHC and GSCM enhance FP in the textile sector, both directly and indirectly via the mediating influence of GI. Moreover, OGC positively and significantly moderates the interaction among GHC, GSCM, and FP.

Practical implications – The results highlight the critical role of GI and OGC in enhancing FP. This study offers significant insights for textile firms in Pakistan to improve performance through green practices.

Originality/value – This research enhances the current literature by emphasizing the significance of GHC and GSCM concepts in achieving FP, while also underlining the critical roles of GI and OGC within textile firms in Pakistan.