Corporate sustainability in developing economies increasingly depends on firms’ ability to acquire, assimilate, and apply environmental knowledge to improve innovation and social outcomes. Green Absorptive Capacity (GAC) has emerged as a critical driver of both innovation and performance, but the specific pathways through which it influences Corporate Social Performance (CSP) remain underexplored. This study investigates the effect of GAC on CSP through the dual mediating roles of Green Innovation (GI) and Environmental Performance (EP), while also assessing the moderating influence of Green Organizational Culture (GOC). A structured survey was conducted among 280 employees from sustainability-focused companies in India across sectors such as textiles, infrastructure, industrial services, and agricultural equipment. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that GAC significantly enhances both GI and EP, which in turn positively influence CSP. GI and EP function as complementary mediators in the GAC–CSP relationship. Furthermore, GOC significantly moderates the relationship between GAC and GI, indicating that a supportive green culture strengthens the link between environmental knowledge and innovation. The study offers practical implications by demonstrating how environmental capabilities and organizational culture jointly promote sustainable and socially responsible corporate performance.
Sah et al. (Wed,) studied this question.