The Impact of Green Investment and Green Marketing on Business Performance: The Mediation Role of Corporate Social Responsibility in Ethiopia’s Chinese Textile Companies

Abstract

In the current era of rapidly increasing industrialization and rising environmental concerns, green investment and green marketing have become hot strategic issues to improve the business performance of companies. This study aims to examine the impact of green marketing and green investment on business performance using the mediating role of corporate social responsibility (CSR) in Ethiopia’s Chinese textile companies. The study used a mixed research method approach that included primary and secondary data sources, with the required data gathered from 237 respondents in Ethiopia’s Chinese textile companies. The employed research data were analyzed using a structural equation model (SEM) and multivariate regression analysis to identify the causal relationship between green investment, green marketing, and business performance. The main result reveals that green marketing and green investment positively and substantially influence a firm’s business performance. Furthermore, results show that CSR has positively and significantly mediated the impact of green investment and green marketing on business performance. Even though Chinese textile companies in Ethiopia have started to incorporate green investment, green marketing, and CSR into their operations, the government and Chinese businesses should work together to close the gaps that prevent long-term growth. This study provides a useful model to help companies, managers, practitioners, and policymakers understand and manage green marketing, investment, and CSR to improve business performance.