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Based on the Social Exchange Theory (SET), the paper attempts to extend the research on the relationship between green self-managed teams and firm performance by exploring the serial mediation of extra-role green behavior and environmental performance. Furthermore, via moderated mediation, the study inspected the differences in relationships among these variables for manufacturing and service organizations.

Data of 407 respondents from 122 manufacturing and service organizations (having green self-managed teams) operating in India were collected using purposive sampling. Various statistical techniques like confirmatory factor analysis (CFA), correlations, multiple regressions and bootstrapping were employed.

The results indicated that extra-role green behavior and environmental performance served as serial mediators. Additionally, the nature of the organizations significantly moderated several indirect relationships, with one pathway found to be insignificant.

The study may be limited by the fact that the data were collected at a single moment in time rather than using a longitudinal design.

The study guides service organizations to attract environmentally conscious employees by promoting green self-managed teams and manufacturing organizations to enrich their operations and service delivery through such teams.

The study uniquely examines how green self-managed teams addressing environmental issues contribute to improved firm performance through mutual exchanges. It also advances existing literature by conducting a comparative analysis across manufacturing and service organizations in an emerging Indian market.