Purpose This study investigates how environmental capabilities derived from the natural resource-based view (NRBV) including pollution prevention capability, product stewardship orientation and sustainable innovation capability affect triple bottom line performance (TBLP) in the Taiwanese restaurant industry. It further explores the mediating roles of green brand image and customer loyalty, as well as the moderating effect of environmental regulatory pressure. Design/methodology/approach The study uses survey data from 383 restaurant managers in major Taiwanese cities and analyzes the proposed framework with partial least squares structural equation modelling. TBLP is modelled as a higher-order construct comprising economic, environmental, and social performance. Bootstrapping with 5,000 resamples is used to test direct, mediating, and moderating effects. Findings Pollution prevention capability, product stewardship orientation and sustainable innovation capability all positively influence green brand image, with sustainable innovation capability showing the strongest effect. Green brand image positively affects customer loyalty, and customer loyalty improves TBLP. Green brand image mediates the effects of the three capabilities on customer loyalty, while customer loyalty mediates the effect of green brand image on TBLP. The sequential mediation paths are significant, and environmental regulatory pressure positively moderates the loyalty–TBLP relationship. Research limitations/implications The cross-sectional design limits causal inference, and the Taiwanese restaurant context may restrict generalizability. Future studies should use longitudinal or cross-country designs and examine additional boundary conditions, such as digital technologies, employee involvement, and green supply chain practices. Practical implications Restaurant managers should invest in visible and credible sustainability practices, including waste reduction, energy efficiency, transparent sourcing and sustainability-oriented innovation, because these strengthen green brand image and customer loyalty. Policymakers can reinforce these outcomes through stronger regulation, green certification schemes and incentive programs. Originality/value This research integrates NRBV, stimulus organism response (SOR), and institutional theory to explain how environmental capabilities create sustainability value in service industries. It provides theoretical insights into the indirect pathways linking internal environmental strengths and sustainability outcomes and offers practical guidance for restaurant managers and policymakers seeking competitive advantage through environmental responsibility. The study concludes that environmental capabilities, when aligned with consumer perceptions and regulatory expectations, are powerful enablers of long-term sustainability performance.
Yuan et al. (Thu,) studied this question.