Top Management Commitment as a Moderator in the Relationship Between Green Banking Adoption Practices and Performance: Evidence from India

Q3 Business, Management and Accounting

Indian Journal of Corporate Governance Pub Date : 2024-04-10 DOI:10.1177/09746862241236553

Saromi Newton, Sahayaselvi Susainathan, Hesil Jerda George, M. Quttainah, Satyanarayana Parayitam

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Abstract

This article aims to investigate the relationship between green banking adoption practices and performance. A conceptual model has been developed to test the moderating effect of top management commitment in the relationship between green banking adoption practices and performance in a lower-middle-income country context, that is, India. Using a survey instrument, data were collected from 393 employees working in banks in southern India. First, the psychometric properties of the survey instrument were checked using LISREL software for structural equation modelling. Second, the hypothesised relationships were tested using hierarchical regression and double-checked with path analysis. The findings indicate that green banking adoption practices are precursors to environmental, operational and financial performance. The results also provide support for the moderating effect of top management commitment in the relationship between green banking adoption practices and (a) environmental performance, (b) operational performance and (c) financial performance. The green adoption practices encompass a range of initiatives to reduce environmental impact, promote sustainability and address climate change concerns. Top management commitment is at the forefront of driving these practices, which plays a pivotal role in shaping organisational strategies and fostering a culture of sustainability. To the best of our knowledge, the model developed is the first of its kind, particularly in the context of banks in India. Investigating the interaction effect of top management commitment in enhancing performance is a novel idea and significantly contributes to the literature on sustainability. The implications for theory and practice are discussed.

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高层管理承诺是绿色银行采纳实践与绩效之间关系的调节因素：来自印度的证据

本文旨在研究绿色银行实践与绩效之间的关系。本文建立了一个概念模型，以检验在中低收入国家（即印度）的背景下，高层管理者的承诺对绿色银行实践与绩效之间关系的调节作用。研究使用调查工具收集了印度南部银行 393 名员工的数据。首先，使用 LISREL 软件进行结构方程建模，检验了调查工具的心理测量特性。其次，使用分层回归法检验了假设关系，并通过路径分析进行了双重检验。研究结果表明，绿色银行的采用实践是环境、运营和财务绩效的先导。研究结果还支持高层管理者的承诺对绿色银行实践与（a）环境绩效、（b）运营绩效和（c）财务绩效之间关系的调节作用。绿色银行实践包括一系列减少环境影响、促进可持续发展和解决气候变化问题的举措。最高管理层的承诺是推动这些做法的最前沿，在制定组织战略和培养可持续发展文化方面发挥着关键作用。据我们所知，所开发的模型是首个同类模型，尤其是针对印度银行的模型。研究高层管理承诺在提高绩效方面的互动效应是一个新颖的想法，对有关可持续发展的文献做出了重要贡献。我们还讨论了该模型对理论和实践的影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Indian Journal of Corporate Governance Business, Management and Accounting-Business and International Management

CiteScore

2.00

自引率

0.00%

发文量

期刊介绍： Indian Journal of Corporate Governance is a bi-annual refereed journal that provides a forum for discussions and exchanging views on a wide range of corporate governance issues ranging from board practices, independent directors, whistle blower policies and shareholder activism on one hand to media’s role in corporate governance, corporate social responsibility and sustainability reporting on the other. It comprises of research articles, concept papers, case studies and reports providing a blend of theory and practices of corporate governance globally to cater to the interests of practitioners, academics, researchers and policy makers.