Green Improvisation and Knowledge Absorption: Catalysts for Geo-Sustainable Environmental Management Initiatives

Abstract

This research examines the dynamic relationships between green improvisation, green absorptive capacity, environmental management initiatives (EMIs), corporate social responsibility (CSR) authenticity, and their combined impact on firms' green competitive advantage and environmental performance. The study empirically tested seven hypotheses, utilising structural equation modelling (SEM) via SmartPLS. Data was collected from the employees of firms situated in Pakistan through a survey in a time span of 6 months. Results indicate that green improvisation significantly enhances EMIs, highlighting the importance of innovative and adaptive approaches in environmental stewardship. Green absorptive capacity was found to effectively acquire and assimilate environmental knowledge, positively influencing EMIs. Additionally, EMIs were shown to strengthen CSR authenticity, thereby improving firms' green competitive advantage and environmental performance. The mediating role of CSR authenticity was confirmed, revealing its significance in translating effective environmental management into tangible outcomes. Moreover, green creativity was found to moderate the relationship between EMIs and CSR authenticity, with novel environmental solutions enhancing the effectiveness of CSR activities. These findings contribute to the literature on environmental management by elucidating the mechanisms through which environmental initiatives lead to competitive and ecological benefits. The study provides actionable insights for firms aiming to integrate environmental strategies into their core business practices, achieving a sustainable competitive edge in today's green economy.