Does competitor pressure moderate the relationship between green banking practices and sustainable performance? Empirical evidence from Pakistan

Does competitor pressure moderate the relationship between green banking practices and sustainable performance? Empirical evidence from Pakistan

Title

Does competitor pressure moderate the relationship between green banking practices and sustainable performance? Empirical evidence from Pakistan

Authors

• Saba Rani
  Department of Business Administration, Fatima Jinnah Women University, Rawalpindi, Pakistan
  Email: [email protected]
• Ammara Mubashar
  Assistant Professor, Department of Business Administration, Fatima Jinnah Women University, Rawalpindi, Pakistan
  Email: [email protected]
• Hassan Zada
  Department of Management Sciences, Shaheed Zulfikar Ali Bhutto Institute of Science and Technology (SZABIST University), Islamabad 44000, Pakistan
  *Corresponding author Email: [email protected]
  ORCID: https://orcid.org/0000-0003-3347-2867
• Um-e-Rubbab
  Lecturer, Department of Business Administration, Fatima Jinnah Women University, Rawalpindi, Pakistan
  Email: [email protected]

Abstract

This study investigates the relationship between green banking practices and bank sustainability performance, particularly focusing on the banking sector in Pakistan. We collected data from a sample of 324 bank managerial employees through a self-administered questionnaire. The data is collected using a nonprobability purposive sampling technique. The findings show a significantly positive impact of all green banking practices on sustainable performance, implying that banks in Pakistan are enhancing their triple-bottom-line performance by adopting and implementing green practices. The moderating effects reflect that banks’ operations and customer practices are significantly influenced by competitor pressure to retain their customer base, attract new potential customers, and perform better on their environmental and social facets. Our study is novel in exploring the impact of branch-level green banking practices on banks’ overall performance by considering competitor pressure as a moderating factor. It offers a fresh perspective on the dynamics shaping the effectiveness of green initiatives within the banking sector. This study provides practical implications for banks to implement these practices on a larger scale, especially on the policy level, so that an eco-friendly banking community can emerge faster. This study fills the gap by exploring the influence of branch-level green banking practices on a bank’s overall performance, particularly in the context of the moderating role of competitor pressure.

Keywords

Green Banking Practices, Competitor Pressure, Sustainable Performance

JEL Codes

Q56, L13, O16

How to Cite

Rani, S., Mubashar, A., Zada, H., & Um-e-Rubbab. (2024). Does competitor pressure moderate the relationship between green banking practices and sustainable performance? Empirical evidence from Pakistan. The International Journal of Finance, 36(1), 53–71.