Environmental Strategy and Sustainable Performance: The Mediating Role of Environmental Innovation

This study investigates the interrelated connections between environmental strategy, environmental innovation, and sustainable performance in private firms located in the Erbil-Kurdistan region of Iraq. Using a quantitative research design, data was collected from 118 employees in 19 organizations to analyze the intricate factors influencing sustainable business practices. The study demonstrates a direct correlation between environmental strategy and both environmental innovation and sustainable performance. Significantly, environmental innovation plays a vital role in converting strategic environmental goals into measurable results. Path and mediation studies elucidate the sequential links among these variables, offering a thorough comprehension of the mechanisms in operation. This research focuses on the comprehensive aspect of sustainable business practices, making a valuable contribution to the strategic management literature. The results emphasize the significance of fostering a culture that promotes creativity in addition to implementing environmental strategies. The paper admits limitations and recommends avenues for further research, advocating a detailed analysis of elements that moderate and influence individuals at the individual level. Organizations are strongly encouraged to embrace a complete approach that combines strategic planning, innovation, and performance monitoring in order to promote long-lasting sustainability. Amidst the challenge of reconciling economic expansion and environmental stewardship, these ideas provide vital direction for successfully navigating the intricacies of the contemporary corporate climate and contributing to a more sustainable future.