THE IMPACT OF GREEN BUSINESS FUNCTIONS ON SUSTAINABLE PERFORMANCE: THE MODERATING ROLE OF GREEN MANAGEMENT PERCEPTION

Abstract

Objective: This study examines the impact of green business functions on the sustainable performance of businesses and analyzes the moderating role of green management perception in this relationship. The study assesses how green business functions—including production, packaging, distribution, purchasing, and marketing—impact sustainable performance (encompassing environmental, social, and economic dimensions) under varying levels of managerial support. Method: Quantitative research methods were employed, and data were collected from 206 participants working in businesses across different sectors. The sample was determined using purposive sampling to include participants capable of evaluating green practices and business performance. Survey instruments were developed using scales with established validity and reliability in the literature, and the data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings: The analyses revealed that green business functions have a direct, negative, and significant effect on sustainable performance, while green management perception has a positive and significant effect on sustainable performance. Conclusion: The impact of green business functions on sustainable performance is contextual and conditional. For green business functions to contribute positively to sustainable performance, they must be integrated with strong managerial support and a green management orientation