Objectives: This research paper examines how green banking practices contribute to competitive advantage in Indian private sector banks and evaluates the mediating role of sustainable performance in this relationship. The study is guided by the following objectives: (i) to examine the impact of green banking practices on competitive advantage, (ii) to analyze the influence of green banking practices on sustainable performance, (iii) to investigate the effect of sustainable performance on competitive advantage, and (iv) to assess the mediating role of sustainable performance between green banking practices and competitive advantage. Research Methods: A quantitative research design was employed using primary data collected from 300 managerial respondents from Indian private banks through convenience sampling. Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 4.0 was applied to test the proposed relationships and mediation effects among green banking practices, sustainable performance, and competitive advantage. Convenient sampling is used to gather the primary dataset from Indian private banks. The causal relationship between GBPs and CA will be assessed using SEM, and the mediating function of SP in this relationship will also be ascertained. Outcomes: The results indicate that green banking practices significantly enhance competitive advantage. Green banking practices also positively influence sustainable performance, which in turn strengthens competitive advantage. Mediation analysis confirms that sustainable performance partially mediates the relationship, suggesting that green initiatives improve competitiveness both directly and indirectly through enhanced sustainability outcomes. The results emphasize that banks should integrate sustainability into their strategic planning and focus on measurable green initiatives to achieve long-term competitive positioning. Uniqueness: This paper provides empirical evidence on the mechanism through which green banking practices translate into competitive advantage by incorporating sustainable performance as a mediating construct, thereby enriching sustainable banking literature in the Indian context. Uniqueness: This paper provides empirical evidence on the mechanism through which green banking practices translate into competitive advantage by incorporating sustainable performance as a mediating construct, thereby enriching sustainable banking literature in the Indian context.
Alex et al. (Thu,) studied this question.