Organisational climate and sustainable performance in nigerian manufacturing companies: the mediating and moderating roles of eco-innovation strategy

Abstract

Organizational climate increasingly threatens society, requiring collective efforts to change manufacturing practices and consumer habits and to drive technological progress. Although previous studies have examined eco-innovation and sustainability, limited empirical evidence exists regarding its mediating and moderating roles in the relationship between organizational climate and sustainable performance, particularly within Nigerian manufacturing firms. However, this study aims to enhance the sustainable performance of Nigerian manufacturing firms through eco-innovation strategies, including green product and process innovations. A self-administered questionnaire was used in a cross-sectional study of 372 employees across the listed and informal manufacturing firms within the South-west and North-central geopolitical zones. The five structural relationships between the research variables were examined using partial least squares structural equation modeling (PLS-SEM). The findings reveal that organizational climate positively influences eco-innovation and sustainable performance. Eco-innovation further enhances sustainable performance and partially mediates the relationship between organizational climate and sustainable performance, while its moderating effect was not statistically significant. This research offers valuable theoretical insights and practical recommendations for future studies on sustainability and climate policies, emphasizing the importance of eco-innovations in achieving climate mitigation goals.