Environmental orientation, relational capital and SMEs performance: do religious, cultural and mimetic orientations matter in a Sub-Saharan African economy?

Abstract

Purpose

Using the institutional and natural resource-based view theories, the purpose of this study is to examine the influence of religious, cultural and mimetic orientations on proactive environmental strategy, corporate environmental responsibility and traditional environmental strategy. Relying on data collected from managers of small and medium-sized enterprises (SMEs), the study further examines how proactive environmental strategy, corporate environmental responsibility and traditional environmental strategy drive relational capital and firm performance of SMEs operating in Ghana.

Design/methodology/approach

The study employed a survey research design, a quantitative approach and a partial least square structural equation modelling technique in making data analysis and interpretations due to its appropriateness for predictive research models.

Findings

The results suggest that mimetic orientation robustly and significantly influence the dimensions of environmental orientation. While religious orientation only had a robust and significant influence on proactive environmental strategy, cultural orientation robustly and significantly influences both proactive and traditional environmental strategies. Despite the positive and significant interactions that exist between proactive environmental strategy, corporate environmental responsibility, traditional environmental strategy, relational capital and firm performance, the findings particularly revealed that proactive and environmental strategies insignificantly correlated with relational capital contrary to past study findings.

Originality/value

The study is among the few to examine how religious, cultural and mimetic orientations interrelate with proactive and traditional environmental orientations, relational capital and firm performance in an emerging economy. Based on the findings, implications and directions for future research are discussed while also providing guidance for policymakers, regulatory bodies, scholars and practitioners.

Citation

Baah, C., Afum, E., Agyabeng-Mensah, Y., Dacosta, E., Opoku-Agyeman, D. and Nyame, C. (2023), "Environmental orientation, relational capital and SMEs performance: do religious, cultural and mimetic orientations matter in a Sub-Saharan African economy?", Benchmarking: An International Journal, Vol. 30 No. 1, pp. 215-233. https://doi.org/10.1108/BIJ-05-2021-0299