Green decisions: The role of environmental strategies and proactivity in India’s manufacturing micro enterprises

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This study investigates the implication of environmental strategies and environmental management accounting (EMA) on the environmental performance of manufacturing micro companies in India. It also assesses the mediating influence of EMA and the moderating impact of environmental proactivity. This paper employs the natural resource-based view theory to evaluate the domination of environmental strategies and EMA on environmental effectiveness. Even though MSMEs play a significant role in the Indian economy, their environmental impact is considerable due to less stringent adherence to environmental standards and practices. The data were gathered via a survey administered to managers of MSMEs. In the analysis, 107 reliable responses were included. Partial least square structural equation modeling is employed for the analysis of the dataset. The results show that environmental strategies positively influence environmental performance and EMA. EMA operates as a mediator for environmental strategies and environmental outcomes. Moreover, environmental proactivity moderates the association between environmental strategies and environmental performance. Hypotheses testing results conclude that manufacturing micro companies that emphasize environmental strategies and factors have improved environmental performance. Companies that proactively deal with environmental issues develop strategies to achieve sustainability.

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    • Figure 1. Research model
    • Figure 2. Moderation graph of environmental proactivity
    • Table 1. Item loadings, reliability, and AVE
    • Table 2. HTMT ratio – Discriminant validity
    • Table 3. f-square results
    • Table 4. Hypotheses results – Path coefficients
    • Conceptualization
      Chetanraj D. B., Senthil Kumar J. P.
    • Data curation
      Chetanraj D. B., Senthil Kumar J. P., Velagapudi ManiKrishna, Velaga Sri Sai
    • Formal Analysis
      Chetanraj D. B., Senthil Kumar J. P., Velagapudi ManiKrishna, Velaga Sri Sai
    • Investigation
      Chetanraj D. B., Senthil Kumar J. P., Velagapudi ManiKrishna, Velaga Sri Sai
    • Methodology
      Chetanraj D. B., Senthil Kumar J. P., Velagapudi ManiKrishna, Velaga Sri Sai
    • Resources
      Chetanraj D. B.
    • Software
      Chetanraj D. B., Velagapudi ManiKrishna, Velaga Sri Sai
    • Validation
      Chetanraj D. B., Senthil Kumar J. P., Velagapudi ManiKrishna, Velaga Sri Sai
    • Visualization
      Chetanraj D. B., Senthil Kumar J. P., Velagapudi ManiKrishna, Velaga Sri Sai
    • Writing – original draft
      Chetanraj D. B., Senthil Kumar J. P., Velagapudi ManiKrishna, Velaga Sri Sai
    • Writing – review & editing
      Chetanraj D. B., Senthil Kumar J. P., Velagapudi ManiKrishna, Velaga Sri Sai
    • Project administration
      Senthil Kumar J. P.
    • Supervision
      Senthil Kumar J. P.