Impact of environmental orientation on financial performance of the company due to the mediating role of suppliers green management and the moderating role of social capital

Introduction: Many companies have recognized the importance of green management and actively engaged in related activities such as orientation environment. The central goal of environmental management is to achieve high performance and sustainable competitive advantages, but the literature on the financial benefits of green management is limited.

Research method: In this regard, the present study examines the impact of orientation environment on corporate financial performance with regard to the mediating role of green provider’s management and the moderating role of social capital. The present study is a descriptive-survey research. In this study, the statistical population consists of active export industries admitted to Tehran Stock Exchange. A sample of 100 companies was selected to collect financial performance data, and a senior manager from each company answered the Core Questionnaire, Green Suppliers Management, and Social Capital. The data were analyzed using structural equation modeling and Smart PLS and SPSS software.

Findings: The findings of the study indicated that green supplier management plays a positive and meaningful mediating role and social capital plays a positive and significant moderating role in influencing the orientation environment on corporate financial performance.

Conclusion: it was found that the orientation environment had a significant and positive impact on the financial performance and management of green providers. Also, green supplier management has a positive and significant effect on financial performance. Finally, the findings of the study confirmed the significant role of moderator of social capital in the impact of orientation environment on the management of green providers.