Green banking practices and environmental performance: unravelling the mechanisms through moderation and mediation

This study aims to test the multidimensional relationship between the green banking practices (GBP), top management commitment (TMC), employee green behavior (EGB) and environmental performance (EP). To determine the mediating role of EGB and moderating influence of TMC on EP, this research proposes a conceptual framework, which is based on social identity (SI) and resource-based view (RBV) theories. A structured questionnaire and purposive sampling technique were used to collect data from 460 banking employees in Delhi NCR region of India. Then the data was analyzed using structural equation modeling in SmartPLS v4 software. The findings showed that GBP significantly impact the EP of the banks with EGB as a mediator in this relationship. Moreover, TMC acts as a key moderator, further strengthening the impact of GBP on EGB. Overall, this analysis demonstrates how these variables work together in enhancing EP in the banking sector. This study attempts to fill a significant research gap in the body of green banking literature through examining EP in the Indian banking sector. In addition to that, this research will have an innovative approach by exploring the mediating effect of EGB and the moderating effect of TMC between GBP and EP, from an employee perspective. Furthermore, it also justifies the application of the SI and RBV theories in the green banking context. Hence, this study provides novel insights through its theoretical and practical implications by considering both direct and indirect effects.