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This study aims to explore the impact of a firm's external environmental factors (macro and micro) on business performance mediated by green practices. Data is collected from 280 managers of food processing firms in North India. Through Structural Equation Modelling (SEM) it is found that a firm's macro and microenvironmental factors positively impact the adoption of green practices; in turn, green practices positively influence business performance. Results of mediation analysis reveal that green practices fully mediate the relationship between macro environmental factors and business performance and partially mediate the relationship between micro environmental factors and business performance. The results from the moderation analysis reveal that environmental preservation moderates the relationship between green practices and business performance. The study provides theoretical and practical implications that will assist practitioners and policymakers in promoting environmentally friendly practices and improving firm performance.
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Maaz et al. (2026) studied this question.
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