Employee Environmental Capability and Its Relationship with Corporate Culture

Abstract

Due to rapid industrial developments and the effects of the economic revolution such as high production rates and non-ecofriendly supply systems, environmental pollution has been observed in recent years and environmental issues are increasingly becoming a concern on the planet. For this reason, there is little doubt that business organizations have been forced more and more to implement green business strategies for stakeholders, facing the necessity to improve their employees’ environmental performance. Using 461 US employees in the environmental related industries, we found empirical evidence between employees’ green performance, organizational culture and adaptability capability. Finally, the present study suggests two main corporate elements for green policy makers in eco-friendly organizations that the alignment of firm environmental strategy with strategic human resources (HR) should include (1) an organizational culture that supports employee green practices and (2) employee adaptability competency that enables workers to respond to the evolving environmental challenges as main component of analysis.

1. Introduction

Environmental problems are increasingly becoming a concern due to rapid industrial developments, and with the industrial revolution, environmental pollution has been observed in the recent past, which has positively contributed to global warming, among other environmental challenges. Bakhsh Magsi and his associates [1] expressed the dire environmental concern resulting from high production rates and non-green supply systems. In consideration of these concerns, numerous prior studies [2,3,4] illustrated the need to focus on soft skills among employees to improve their ability to tackle the evolving environmental challenges in the business. These prior studies focused on employee engagement, motivation for undertaking environmental initiatives, and lower intention to quit the environmental initiatives.

On the other hand, to reduce the environmental concerns in business sectors, previous researchers have paid attention to the corporate environmental performance, which is indicated as the effect of business products and activities on the natural environment and is associated with employees’ behavior towards the implementation of environmental strategies [5,6,7]. These prior studies argued that the environmental performance of employees can be described as employees’ behaviors, attitudes and adaptability to environmental strategies of the organization. Moreover, the employees’ behaviors in implementing environmentally sustainable strategies (described as green behavior) have been associated with increased organizational sustainability [8]. May et al. [8] further suggest that the relationship between employees’ ‘green’ behavior and organizational sustainability is mediated by elements such as organizational identification and organizational trust. The findings fit with those of previous scholars, who confirm that employees’ behaviors towards the environment are associated with corporate environmental performance (sustainability) [5,6]. With the increasing and evolving environmental challenges, concerns have been raised on how employees can also become resilient in managing environmental challenges. Consequently, this requires adaptability skills which enable employees to effectively respond to the evolving environmental conditions [1]. Bakhsh Magsi et al. [1] mentioned that it is important to consider employee’s adaptability to the evolving environmental resilient measures to enhance employees’ environmental performance. May et al. [8] suggest that organizations can use a CSR approach to employees’ ‘green’ behavior to enhance their influence on corporate sustainability. Such CSR measures can only be effective if they are based on adapting to changing environmental demands and requirements.

Organizational sustainability as an outcome of employees’ environmentally sustainable behavior is another area that has been extensively researched. Multiple studies explore the effects of CSR-based employee environmentally sensitive behavior on corporate performance and corporate sustainability. The prior study [9] posit that the prevalence of environmentally friendly workplace behaviors is mediated by factors such as employee gender, age and perceived incomes and that environmentally friendly workplace behaviors have positive impacts on organizational performance. Further findings illustrate that providing employees with the information they need to implement environmentally friendly behaviors could help organizations support employees’ interest in improving environmental performance [10,11]. The prior studies [10,11] bring up the concept of ‘green’ human resource practices, which means the recruitment and development of an organization’s workforce to exhibit environmentally friendly behaviors in the course of work. ‘Green’ human resource practices are considered a potential contributing factor to strong performance in organizational sustainability. Findings by Benn et al. [2] were also reiterated by the study of Chaudhary [12] and He et al. [13] when the researchers found that employees’ engagement and resultant adaptability has the potential of improving their environmental performance. The prior researchers realized that employee engagement is highly focused on internal environmental resource management strategies, including conservation initiatives. To this consideration, it was clear that employee adaptability enhances their environmental performance since they develop soft skills and behaviors which enable them to respond to the evolving environmental challenges. In this case they become flexible to adopting environmentally resilient measures even if the organization’s set plans fail to mitigate the noble environmental challenges.

In addition to adaptability capacity, the organizational culture was also another important factor of consideration in improving employees’ environmental performance [1,14,15]. Particularly, clan organizational culture in this case entails the organizational philosophies that bind employees together and foster knowledge sharing towards organizational activities. Most studies on clan culture often focus on employee satisfaction, and limited emphasis has been placed on the association between clan cultures and employees’ environmental performance. Chatterjee and his colleagues [16] categorized organizations as clans while exploring employee’s perception of organizational culture on the learning transfer environment. The prior authors noted that flexible organizations have cultures that support the learning transfer environment as compared to organizations with stiff cultures. However, clan cultures within an organization can be more flexible to foster learning when the leadership approach is effective, such as the use of servant leadership [17]. In addition, servant leadership enhances organizational citizenship behavior among employees [18]. Similarly, encouraging green human resource management in clan culture enables employees to adopt eco-friendly behaviors thus improving their environmental performance [19]. In several prior studies [20,21,22], human resource management plays a vital role in imparting green concepts among employees, thus promoting organizational citizenship behaviors for the environment (OCBE). It was noted that OCBE improve employees’ attitudes towards environmental initiatives. It also promotes employee involvement in organizational environmental practices which enhance environmental performance among employees. In this case, it was evident that clan cultures improve employees’ environmental performance by promoting OCBE, learning and imparting green concepts in organization activities.

The relationship between market culture and employees’ environmental performance is another concept that has been under researched. Most studies tend to focus on market research as a concept for competitive advantage and enhancing profitability, but little has been done on the association between market culture and employees’ environmental performance. However, few studies were found to relate market culture and environmental performance. For instance, Duanmu and Pittman [23] realized a negative relationship between market culture and environmental performance, which was attributed to intense the market competition that promotes high production processes. On the other hand, Chen and his associates [24] realized a positive relationship between market orientation and environmental strategy, which positively affects sustainable product quality and employees’ involvement in environmental initiatives. While this seem to enhance employee environmental performance, the association was indirect as the organization has to strategize green concepts in market orientation first. In this case, therefore, it was clear that market culture did not support employees’ environmental performance since it is highly focused on profitability and competition, which increase production processes and the rise in environmental pollution. In addition, it did not support clan culture, which embraces teamwork and organizational citizenship behavior.

1.1. Research Gap

Previous studies have tried to understand the association between employees’ environmental performance with a clan and market culture [2,3,25]. However, many studies tend to delve into systematic reviews and thematic understanding. Little is empirically known on the relationship between employees’ environmental performance with a clan and market corporate culture. In this case, the present researcher was moved to empirically understand the relationship between the three variables of employees’ environmental performance, clan cultural attributes and market corporate culture through descriptive analysis. For most studies, including those reviewed in the introduction, the focus was not comprehensive enough. Most prior authors delved into the relationship between organizational culture and environmental performance through CSR projects or enhancing employee involvement. However, little has been done to compare how clan/organization culture and market culture compared to employee environmental performance. Thus, the present researcher aims to bridge the gap by undertaking further analysis to test the relationship between employee environmental performance with clan and market culture. Finally, for practitioners who conduct environmental policies, the present study suggests an intelligent framework relating two specific organizational characteristics (Adaptability competency and Clan cultural attributes) with the use of employees’ green performance.

1.2. Research Objective and Motivation

The current study is motivated by the desire to contribute to management and HR practice as well as the research on environmentally friendly work practices. The contemporary times have seen an increasing emphasis on environmental conservation, with organizations even including CSR measures aligned to environmentally friendly practices as part of their contributions to society. In effect, there has been an implied evolution in how organizations manage their employees and steer them towards more environmentally friendly work practices through the implementation of sustainable operations. However, the existing research is deficient in defining the relationship between clan cultural attributes and market cultures and green performance among employees. These two aspects, clan cultural attributes and market cultures, are functions of management practices, and hence can steer the development of environmentally conscious employee behaviors. The study, therefore, attempts to address this gap in literature and to contribute implications for managerial practice in enhancing employees’ environmental performance.

The objective of this study is to determine the association between employees’ environmental performance and clan and market cultures. The market culture is also considered as an outset of both the environmental performance and the clan culture, and its association with employee adaptability is explored. The study’s objective is informed by existing literature on the influence of employee adaptability on environmental performance and the clan/market culture and their influence on both adaptability and performance. The findings will find application in all categories of organizations and are expected to support the hypotheses developed in the subsequent sections.

1.3. Research Model

Particularly, two prior studies examined how ‘Employee Adaptability’ can be strongly associated with an ‘Employee Environmental Performance’ [1] and can be strongly connected with clan cultural attributes [26]. Importantly this asserted that it might be possible to connect ‘Employee’s Environmental Performance’ and particular ‘Clan Culture’ attributes (See the Figure 1). Kerr and Slocum [27] explained that clan culture emphasizes flexibility and discretion rather than the stability and control of hierarchy and competitive companies. An open and well-disposed work environment where individuals share perspectives, mentalities and information is spellbinding of group culture—this culture can measure up to a more distant family. Parental figures are frequently found in pioneers. Conversely, a market culture is differentiated against a family culture by Kerr and Slocum [27]. Market culture is recognized by a feeling of individual drive and proprietorship, present moment everyday responsibilities between the association and its individuals, undeniable degrees of part autonomy, directors as arbitrators and asset allocators and rests on personal responsibility, contest and utilitarianism. The market culture supports independence in which everybody pursues their inclinations and instigates competition. Considering that the two cultures’ characteristics are opposite, the present study reasonably suspects Employee Environmental Performance is negatively associated with Market culture.

2. Literature Review

This section outlines an analysis of previous studies, journals and articles related to clan cultures, market culture, employee adaptability and employees’ environmental performance. The review was mostly based on peer-reviewed publications. In this case, articles that were not peer-reviewed were excluded from the study since the current researcher could not verify their authenticity.

2.1. The Connection between Employee Adaptability and Environmental Performance

To verify the meaningful relationship between clan culture and environmental performance, for any activity in an organization, the present study focuses on the concept of employee adaptability which is pivotal as it creates a sense of ownership considering that employees are flexible and have the ability to respond to changes even when the organization plans do not correspond with changes. This is most seen in the evolving nature of environmental challenges which require flexibility and ability to quickly adopt innovative resilient measures to mitigate the challenges. The prior study [28] found a positive relationship between employees’ emotional intelligence and adaptability, which indicates that when an employee’s emotional intelligence is boosted, they have the potential to adapt to the evolving environmental challenges and, consequently, this supports their environmental performance.

The past research [29] also reiterated that effective leadership styles such as transformational leadership enhance employee adaptability. It indicates the positive relationship between employee adaptability and clan culture since leadership styles are highly attached to clan cultures. Carmeli and his colleagues [30], on the other hand, illustrated the importance of Ethics of Care (EoC) in enhancing employee adaptation to sustainable behaviors at the workplace. The authors noted a significant relationship between the Ethics of Care provided by the organization in fostering eco-friendly behaviors and adaptability. In this case, employees effectively react to sustainable behaviors that are resilient to the environment as they become involved in organization activities. Boiral et al. [31] illustrated that employee adaptation, when achieved through increased engagement, is pivotal in achieving robust biodiversity practices, especially in natural resource companies. The authors also observed that employee adaptability is highly pegged on organizational citizenship behaviors for the environment. The finding illustrates a positive relationship between adaptability and employees’ environmental performance. Boiral et al. [31] also mentioned that when employees are engaged in environmental initiatives, they adopt voluntary behaviors to prevent harmful behaviors to the environment. In addition, Rangus and Slavec [32] reiterated that decentralizing activities allow employees to become adaptive to new changes as they become innovative and resilient in their approaches, such as the use of green concepts in their activities. Additionally, the authors noted that there is a mediation between innovation performance and decentralization when employees are involved. From this prospect, it is clear that employee adaptability plays a vital role in improving environmental performance. They are considered pivotal for the foundation of sustainable business activities.

Employees’ adaptability towards environmentally resilient measures is also influenced by the human resource’s leadership and empowerment approaches such as training and education. Empowerment practices such as training and education enable employees to develop soft skills that enable them respond to environmental changes. In addition, such adaptability components enable employees to increase participation in environmental initiatives. According to the study of Detnakarin and Rurkkhum [33], human resource leaders that embrace interaction and training to employees enhances the adoption of Organizational Citizenship Behavior towards the Environment (OCBE). The authors also noted that OCBE acts as a mediating role between employee adaptation and environmental performance. This illustrates that training and education instill soft skills which enables employees to effectively respond to environmental challenges while crafting mitigation measures to respond to the same. According to Kent et al. [34], employee adaptation should also consider best practices such as strategies for communication as well as cultures of health. Adopting health cultures provides employees with the knowledge on how to mitigate environmental challenges through engagement in green practices while communication enables knowledge sharing with regards to environmental resilient measures. The strategies support a green climate within the workplace while also fostering positive environmental behaviors among employees [35].

Raineri and Paillé [36] illustrated that the level of employee adaptability and engagement in an organization’s environmental impact affairs is manifested through their commitment to environmental concerns at the workplace. Such commitments are influenced by factors such as individual employee interplay, supervisory factors and organizational values. Anwar and his colleagues [37] also noted that green human resource practices had a positive influence on OCBE, which motivate their adaptation to environmental initiatives while also enhancing environmental performance. It was evident from the previous literature that employee engagement is an essential factor that improves environmental performance. Engagement is embedded in the organization’s clan culture rather than market culture, thus confirming that clan culture has a positive relationship with employees’ environmental performance while market culture had no significant relationship with employees’ environmental performance.

It is also important to explore key factors that enhance employee adaptability. According to Yoon and Kayes [38], behaviors of team learning support in mediating individual employee’s self-efficacy as well as individual attitude towards learning. In this case, the authors noted that training mediates employees’ environmental behavior and attitude, thus improving interaction and communication which further improves learning environmental protection approaches. This empowers employees’ adaptability to the evolving environmental concerns. Another prior studies [39,40] also indicated that green values instilled within employees improve their environmental performance through the normative organizational cultures. In addition, the authors reiterated the need for organizations to focus on appraising green behavior among employees as well as those who encourage learning transfer. In this case, it can be deduced that green practices among employees can be achieved through training and rewarding employees who practice green behaviors and pass the same to others and the external environment. In essence, when employees are motivated to adopt green behaviors, they are able to pass on the same culture to others, thus enhancing environmental protection practices through adaptability. Indigenous and local knowledge are rich systems that enable environmental protection practices as they carry stewardship insights [41]. The system provides adequate tools and insights that support mitigating environmental challenges through mobilization and management of areas that are rich in biodiversity. The article thus supports the idea that training employees and encouraging the spillover to the community create a creative roadmap to environmental protection as well as employee environmental performance.

In summary, employees’ adaptability enables them gain soft skills and behaviors that enables them respond to the evolving environmental challenges with resilient measures even if the organization plans fail to correspond to the noble environmental challenges. In this case, it can be deduced that employees’ environmental performance is supported by their adaptability and thus a positive relationship (See the Figure 2).

2.2. Employee Adaptability and Clan Organizational Culture

Employees who face new environmental challenges should be able to adapt [42]. That means that employees who can adapt to changes easily are more flexible and enjoy working with others. According to several studies, employee adaptability competency can be connected to clan cultural attributes [26,43,44,45]. The adaptability competency encompasses employees’ ability to handle diverse difficult situations. That is, clan culture supports and focuses on the development and growth of employees, leading to employees thinking innovatively. It also provides employees with a sense of psychological safety [46]. Consequently, clan culture in an organization encourages creativity among employees. Thus, the clan culture of an organization puts its focus on promoting knowledge accumulation among the workers, and as a result, HR development is focused on innovative activities [47]. Innovative thinking can be considered a means of achieving high technical performance and being competent with facile adaptability. That indicates that focusing on employee development ensures that employees become goal-oriented and maximize resource acquisition [47,48]. The emphasis of organizations on the ability to work with technology that is eco-friendly might have an association with the worker development culture, as stated by the prior study [1]. Consequently, the ability of an organization to harness the clan culture encourages the creation of knowledge. Such employee development may derive proactive characteristics as a competency. Currently, present authors have the construct that clan cultural attributes are associated with employees’ ability to be adaptable (See the Figure 3).

2.3. The Relationship between Clan Organizational Culture and Employees’ Environmental Performance

With the rapid industrial developments, the menace of pollution and environmental degradation has become a concern in most societies across the globe. These environmental problems have largely been attributed to business and organizational activities [2,3]. In response to this concern, most researchers have delved into theoretical models and frameworks to understand approaches to minimizing the menace. However, it is essential to substantiate the models through empirical examination to understand them better [25]. This means that researchers need to undertake robust descriptive research to understand the association among main factors. The prior studies [27,49] categorized organization philosophies into four primary cultural categories: adhocracy, clan, hierarchy and market cultures. The authors’ analyses noted that clan culture had a significant relationship with employee commitment to organization initiatives such as environmental protection initiatives. This shows that clan cultures have significant input in enhancing employees’ commitment towards environmental initiatives, which in turn promotes their environmental performance.

The picture of clan culture in an organization is strongly seen through the mirror of employees. According to the prior research [26], employees play a pivotal role in creating a sustainable foundation for competitive advantage in an organization. In essence, employees are pivotal in achieving environmentally friendly operation in an organization. Illustration by Abidin et al. [50] indicated that reward systems and the use of transformational leadership styles has high efficacy in improving employee performance. It also motivates employees to employ environmentally resilient measures in their activities. Clan cultures that promote work life and the environment have a significant contribution to employees’ environmental performance [26,51]. Gürlek and Uygur [52] reiterated that attributes of clan cultures such as organization trust and commitment often mediate the relationship between employee service provisions, which also enhance their environmental performance. These are attributes such as relationship with supervisors as well as provision of benefits such as vocation, adequate wage and trainings among other variables. However, there is little understanding of individual employee capability and cultures, which makes this research worth pursuing. When employees are not adequately empowered, their engagement, even in CSR projects, becomes limited. For instance, when components of clan cultures such as rewards, education and training are not adequately provided to employees, the latter becomes disengaged from environmental initiatives, such as corporate social responsibilities, thus inhibiting their environmental performance. Corporate social responsibilities enable employees to also engage with the community, which further boost their morale towards environmental protection [13,53]. The analogy herein is that rewards, training, education and knowledge transfer are the components of clan culture which potentially improves employees’ environmental performance [27,45].

Through teamwork, employees develop organization citizenship, which is a significant aspect of clan culture that improves employees’ environmental performance. In addition, employees are also able to learn from each other as well as organizational norms and environmental resilient measures. Sunday [54] observed that efficient leadership styles enable teamwork, satisfaction and employees’ commitment to environmental initiatives set by the organization. In addition, good leadership styles, such as servant and transformational leadership, emphasize employee empowerment to become resilient on environmental measures. As indicated by Gilal et al. [40] and Pham et al. [55], green human resources is pivotal for this function. It is directly linked to providing incentives and in a sustainable manner. Walsh and Sulkowski [56] also confirmed that greener organizations make employees happier and satisfied as compared to when the value of the company is given priority. The authors reiterated that organizations that perform well environmentally make employees more satisfied as compared to organizations with higher financial value. In accordance with this study, it can be echoed that clan cultures enforce performance and improved satisfaction compared to market cultures.

This can be related to employee environmental performance, which can be improved when the organization’s culture embraces green concepts rather than financial concepts [19]. As the present study reiterates clan culture (within an organization concept), human resource management is considered a key. Organizational citizenship behaviors towards the environment are often mediated through human resource management and environmental performance [53,57]. In this case, the feeling of inclusion within an organization that embraces green concepts enables positive environmental behaviors among employees and improves performance. The illustration is that clan culture should provide an enabling environment for employees to learn sustainable concepts to improve environmental performance. Campos and his associates [58] also indicated the importance of environmental management systems in supporting organizations to overcome environmental challenges that affect business activities. The authors pointed out environmental indicators, which can be used to improve environmental performance within an organization. When looking at clan cultures and supporting supportive leadership to enhance employees’ environmental performance, leaders need to consider training employees on such tools. Clan cultures are deemed sufficient in embracing the exchange of ideologies among employees as well as between employees and their leaders. This, in turn, creates an effective organizational citizenship behavior towards the environment [59]. From this illustration, clan culture cannot be considered robust enough to improve employee’s environmental performance when it does not embrace the moderating role of ideology exchange. Thus, it is vital to consider ideology exchange at a higher level to make clan culture more robust in improving employee environmental performance (See the Figure 4). Based on the investigation of numerous prior studies, the first hypothesis for this study should be:

Hypothesis 1 (H1).

Employee environmental performance is optimally supported within clan cultural attributes.

2.4. The Relationship between Clan Organizational Cultures and Market Organizational Culture

Kerr & Slocum [27] provide the difference between a clan culture and market culture (See the Figure 5). An organization with a market culture is identified by short-term, two-way commitments between the company and its workers; highly autonomous members; a feeling of personal initiative and ownership resting on self-centeredness, a competitive nature and utilitarianism; and supervisors are the ones to issue resources and negotiate. The market culture encourages people to focus on their own abilities, where everyone is aiming to achieve their own interests, and animosity is induced. In the end, workers of other companies end up being targeted by this competition, which is always directed outwards. The term ‘market’ refers to an organization that is market oriented. The vital aim is to focus on efficiency, profits and results and emphasizes the value of having power and a place in the market. According to the prior study [60], organizations with a solid market culture can achieve a great value for customers and do so, as it earns profits through coordinated leverage of all the resources available within the organization.

Thus, organizations with market culture puts emphasis on the relationships they have with contractors, unions, customers and suppliers. They believe that they have a higher chance of being successful and creating more value for customers by performing the necessary duties with the most effective and viable means present [61]. That can be done through the establishment of effective external relationships, which can result in the firm registering a high performance [62]. It is reasonable that whenever an employee shows poor performance, they are to be terminated or reassigned by the organization. That is with the consideration that the relationship between the employee and the organization is mostly transactional and short-term in a market culture. Richard and Kang [45] discussed Jack Welch as the prodigy for a good leader in organizational market culture. That proves that it might be the quintessential of a performing organization. Jack Welch advocates for differentiation or stacked rankings. That is where managers have to rank employees, either as below standard, standard or exemplary. According to Welch, the bottom ten underperforming employees have to be terminated in every period of evaluation. He further vouches rewards and financial incentives for top-notch performance using a PFP compensation scheme [45].

Market cultures are often used when an organization is focused on increasing market share and making profits. Yaprak et al. [63] illustrated the importance of Adhocracy cultures in shaping market orientation. Similarly, the authors noted that market orientation, which is a component of market cultures, focuses on emerging markets rather than environment performance or clan culture such as OCBE [26,27,45]. That implies that this kind of culture primarily works within a competitive environment rather than the sustainable environment. In this case, it has marginal or no influence on enhancing employees’ environmental performance or organizational citizenship behavior. In addition, studies related to market culture are more focused on market orientation and how to impart innovation to employees such that they can be more productive.

For instance, prior researchers such as Singh et al. [64], Tian et al. [65], Anning-Dorson [66] and Jogaratnam [67], when studying market culture, focused on innovation, employee performance and market orientation. Konar and Cohen [68] noted that most studies that have tried to associate market culture (especially through the face of financial performance) have had conflicting results due to the subjective environmental criteria and smaller samples. Jiang et al. [69], when studying market culture and corporate environmental performance, only focused on competitors, customers and infrastructure. The author did not focus on employees’ performance. In addition, Jiang et al. [69] realized the partial influence of customer orientation and environmental performance. Duanmu and Pittman [23], on the other hand, realized a negative organization environmental performance due to intense market competition. In this case, it can be deduced that market culture is focused on high competition, minimizing an organization’s environmental performance. From the studies, it was clear that market culture does not support environmental performance and neither does it support clan culture.

Despite the few studies relating market culture and an organization’s environmental performance, it is important to consider the current trend. However, it is important to note that the current trends have only focused on customer orientation, competitive levels and supply chain infrastructure. Very scant sources were focused on the relationship between employees’ environmental performance and market culture. Chen et al. [24] realized a positive relationship between market orientation and environmental strategy, which positively affects sustainable product quality and employees’ involvement in environmental initiatives. From the authors’ perspective, organizations need to engage in environmental strategies in order to orient market culture to green technologies. It shows an indirect influence between environmental performance and market culture as opposed to clan culture that has a direct relationship. Most studies have focused on the current trends through which market culture, such as greenmarket orientation, green supply chain, green management as well as green infrastructure, can improve strategic environmental performance as well as environmental involvement of employees [70,71,72,73,74,75,76]. However, it is important to note that the studies are yet to directly understand the empirical relationship between employees’ environmental performance and market culture. In essence, the authors were largely focused on how to market culture could drive green innovation and improve environmental performance. Clan cultures focus on internal integration, and they are flexible, while market cultures focus on external differentiation and emphasize stability and control. In this case, clan and market cultures are totally contrasted to each other, and thus, market culture and employee green performance could not work together.

In summary, the prior research insists that market culture is contrasted against clan culture, and its attributes do not support employees’ environmental performance since it is only focused on the competition and profitability of an organization. The culture is only viable in a competitive environment. Therefore, the present authors justifiably suspect that market culture is negatively matched with employee environmental performance (See the Figure 6). Thus, the second hypothesis for this study should be:

Hypothesis 2 (H2).

Employee environmental performance is not supported within market cultural attributes.

3. Methodology and Findings

In regard to the appropriate organizational circumstances that focus on improving environmental performance for their employee, the extant literature available is scant. Beyond the essential element of careful implementation, the existent research on employees’ green performance as a tool through which to enhance organizational eco-friendly policy is somewhat perplexing and offers little guidance to practitioners. In order to add a level of robustness to the literature, the present study is conducted to better understand and investigate the relationships between two organizational cultures and their relationships with employee environmental performance.

As to the suitable authoritative conditions that emphasize improving natural execution for their worker, the surviving accessible writing is meager. Past the fundamental component of cautious performance, the existent exploration of workers’ green performance as a device to improve a hierarchical eco-accommodating approach is somewhat perplexing and offers little direction to experts. To add a degree of power to the writing, the current examination is conducted to better comprehend and research the connections between two corporate cultures and their relationship with employee green performance. Accordingly, this investigation confirms and challenges the current research relating to employee adaptability competency/organizational culture and employee environmental performance. Prior research examined employees’ adaptability might be strongly associated with employee environmental performance. In addition, adaptability competency might be associated with clan organizational culture, however, it may not be associated with market culture. Importantly, it is posited that clan culture can be linked to environmental performance and market culture cannot (see the Figure 7). Overall, with the goal to establish hypotheses based on the literature review as it builds upon existing theories and test objective theories by examining simple relationships between variables of main factors (green performance and cultures) in the assumption of a totally empiricist paradigm (focusing on quantity) [26,43], the present study seems to be better fitted by the quantitative research approach to create meaning through objectivity uncovered in the collected data.

3.1. Variables

The questionnaire that was used to collect variables from respondents consisted of 27 questions. The survey instrument included 12 questions regarding corporate culture (Clan: 6 questions and Market: 6 questions) to test the hypotheses and also contained 15 questions regarding the environmental performance of employees. All survey questions were based entirely on prior studies. As seen by

Table 1. Variables that come from prior study.

Main Factor	Number of Questions	Sources
Organizational Culture	12	Kang & Lee (2021)
Clan Culture	6
Market Culture	6
Environmental Performance	15	Bakhsh-Magsi et al. (2018)

, variables about organizational cultures were borrowed directly by prior study [26] and the part of the environmental performance were based entirely on the prior study [1] (See the Table 1).

3.2. Data Collection and Analysis

The statistical processing and analysis methods to achieve the purpose of this study are as follows. First, the statistical processing of the collected data was analyzed using IBM SPSS statistics 27 and AMOS 24.0 programs. First, to verify the reliability of measuring tools for main factors, internal consistency was examined through Cronbach’s α value. Second, confirmatory factor analysis was conducted to measure the validity of the measurement model composed variables of two main factors, while confirming this structural equation research model’s suitability. The actual preparation and investigation techniques to accomplish the motivation behind this examination are as per the following. In the first place, factual preparation of gathered information was investigated utilizing IBM SPSS 27 and AMOS 24.0 programs. To start with, to check the unwavering quality of estimating instruments for principal factors, inward consistency was analyzed through Cronbach’s α value. Second, confirmatory factor analysis was led to gauge the legitimacy of the estimation model made factors out of two primary factors while affirming this primary condition research model’s suitability. Third, the discriminant validity was tested to investigate whether research constructs for the present study are potentially overlapping each other. Usually, if the square roots of AVEs (Average Variance Extracts) are greater than the correlational coefficients of other constructs, the discriminant validity exists among constructs. Lastly, the research model that measures a structural equation was conducted to measure the relationship between the two main factors to test the research hypothesis.

The current research obtained data from the managers and employees of sustainable green companies located in U.S. The data collection process took place between 1 September 2020 and 30 September 2020, and questionnaires were distributed in person or sent online. A total of 700 questionnaires were distributed, out of which 542 sets were returned.

In any case, 81 arrangements of polls must be disposed of because over 20% of the questionnaires were not filled out by the respondents [77]. Thus, at last, 461 arrangements of the poll were utilized for the previous investigation examination. To guarantee that the respondents who answered the questionnaire will give trustable information, we certified study respondents through an introductory letter that this survey is an anonymous survey whereby all responses will stay classified and investigated at a total.

Table 2. The information of total collected data.

	Total	Percentage (%)
Questionnaires Distributed	700	100
Uncollected Questionnaires	158	22.6
Collected Questionnaires	542	77.4
Discarded Questionnaires	81	11.6
Usable Questionnaires	461	65.9

shows the data of complete gathered information.

3.3. Demographic Characteristics

The general characteristics of the subjects who participated in this study and responded are as shown in

Table 3. Demographic characteristics for the final sample.

	Number of Participants	Percentage (%)
Gender
Male	257	55.8
Female	204	44.2
Job level
Non-Managerial	263	57.0
Managerial	198	43.0
Age distribution
20s	75	16.3
30s	99	21.5
40s	152	33.0
50s	103	22.3
Over 50	32	6.9
Industry type
Agricultural	74	16.1
Energy	72	15.6
Construction	68	14.8
Waste Management	71	15.4
Transport	92	20.0
Forestry	84	18.2

. Looking at the characteristics, the gender was 257 male (55.8%) and 204 female (44.2%). In terms of age distribution, 75 respondents in their 20s (16.3%), 99 participants in their 30s (21.5%), 152 participants in their 40s (33.0%), 103 respondents in their 50s (22.3%) and 32 people were over 50 (6.9%). Respondents in their 30s, 40s and 50s accounted for 76.8%. Table 3 also shows the breakdown data of information collected concerning segment attributes for final sample. The industry types of respondents in the green organization were 74 employees (16.1%) in the agricultural sector, 72 employees (15.6%) in the energy sector, 68 employees (14.8%) in the construction sector, 71 workers (15.4%) in the waste management service sector, 92 employees (20.0%) in the transport sector and 84 employees (18.2%) in the forestry sector.

3.4. Findings (Reliability Analysis)

This section presents the results of a statistical analysis based on the collected main dataset (N = 461). The data were analyzed with SPSS software version 27.0 and AMOS 24.0 to measure the relationship between employee’s green performance and corporate culture. All statistical findings were displayed in tables with interpretations provided in the text. To gauge an internal consistency which indicates a measure of scale reliability, Cronbach’s alpha value was applied by using general accepted rule (If Cronbach value is 0.6 or greater, a set of items were put together as a group) (See the

Table 4. The results of reliability analysis for two corporate cultures.

Sub-Factors	Question Number	Cronbach’s α
Clan Culture	1–6	0.899
Market Culture	7–12	0.834

and

Table 5. The results of reliability analysis for environmental performance.

Sub-Factors	Question Number	Cronbach’s α
Environmental Performance	13–27	0.811

).

3.5. Findings (Confirmatory Factor Analysis)

The present research also directed a confirmatory factor analysis (CFA) to gauge a conversion validity and affirm whether three primary estimation factors sensibly clarified the dormant factors. The change legitimacy attempts to examine the estimation things reliably measure the constituent idea and can be known as the factor load between the idle and noticed variables. Generally, if the factor is at least five, one might say that there is legitimacy.

Table 6. The results of confirmatory factor analysis.

Items	Unstandardized Factor Loadings	Standardized Factor Loadings	S.E.	C.R.	AVE	Construct Reliability
EEP 1	1.00	0.87
EEP 2	0.89	75	0.05	15.57 ***
EEP 3	1.01	0.86	0.05	18.43 ***
EEP 4	0.93	0.81	0.05	18.47 ***	0.749	0.863
EEP 5	0.86	0.82	0.05	16.36 ***
EEP 6	0.88	0.75	0.05	16.88 ***
EEP 7	0.89	0.77	0.05	17.27 ***
EEP 8	0.95	0.88	0.05	17.96 ***
EEP 9	0.89	0.78	0.05	17.23 ***
EEP 10	0.91	0.79	0.05	16.51 ***
EEP 11	0.85	0.67	0.05	16.62 ***
EEP 12	0.93	0.81	0.05	17.19 ***
EEP 13	1.01	0.90	0.05	17.85 ***
EEP 14	0.97	0.89	0.05	16.21 ***
EEP 15	0.91	0.84	0.05	18.52 ***
OC(Clan1)	1.00	0.82			0.864	0.939
OC(Clan2)	0.89	0.79	0.04	22.36 ***
OC(Clan3)	0.90	0.80	0.04	23.45 ***
OC(Clan4)	0.85	0.80	0.04	22.97 ***
OC(Clan5)	0.92	0.86	0.04	23.80 ***
OC(Clan6)	0.87	0.77	0.04	22.94 ***

*** p < 0.001.

shows that the worth of average change separated (AVE) is more than 0.5, which implies that all estimation factors can be viewed as having change legitimacy since they uncovered more than the relating reference esteem (0.5). (See the Table 6).

3.6. Findings (Discriminant Validity)

The survey instrument of the present research also had another solid tool to measure quality of instrument. In addition to the conversion validity, this research also assessed the discriminant validity, which is defined by measures of theoretically different constructs should not correlate highly with each other. Prior studies also insisted that the association analysis between variables may provide the discriminant validity through findings of low or negative associations among variables. This research definitely anticipates low or negative connections between employees’ environmental competency and market cultural attributes which organizations possess based on prior studies that suggested opposite directions between clan culture and market culture, as shown in the

Table 7. The results of discriminant validity.

Construct	1	2	3
1. Environmental Performance	0.869
2. Clan Culture	0.657	0.888
3. Market Culture	−0.455	−0.776	0.915

. Confirming theses negative connections between variables, the present research may suggest a clear evidence for discriminant validity. After measuring convergent validity, we tried the discriminant validity utilizing the Fornell and Larcker [78]’s rule. The discriminant validity inspects the connections between constructs and recognizes the possibly covering builds. As depicted in Table 7, this research tracked down that the square roots of AVEs are more noteworthy in all cases than the off-slanting components in their comparing line and section, implying that the necessary discriminant legitimacy has been cultivated. In total, the estimation model consolidated the acceptable prerequisites of concurrent legitimacy and discriminant validity.

3.7. Research Model Verification Result

To establish the research model’s fit, χ², RMR, TLI, GFI, CFI and RMSEA were selected as barometer. For model fit, the absolute fit (χ², RMR, GFI, RMSEA, etc.) and incremental fit (TLI, CFI, etc.) were utilized. As can be seen in

Table 8. The main result of the research model.

Path	Unstandardized Coefficients	Standardized Coefficients (β)	S.E.	T
From Clan to EEP	0.36	0.33	0.08	4.63 ***
From Market to EEP	−0.38	−0.46	0.05	−5.33 ***

*** p < 0.001, χ² = 222.39 (df = 95, p < 0.001), RMR = 0.018, GFI = 0.935, TLI = 0.966, CFI = 0.973. RMSEA = 0.056 (90% CI: 0.045~0.065).

(χ² = 222.39 (df = 95, p < 0.001, RMR = 0.018, GFI = 0.935, TLI = 0.966, CFI = 0.973, RMSEA = 0.056 (90% CI: 0.045 to 0.065) and as a result of the final analysis of the path coefficient of the research model, the clan culture had a significantly positive (+) effect on environmental performance (β = 0.33, p < 0.001). However, the statistical result also showed that market culture had a statistically negative (−) effect on employee environmental performance. Therefore, the current research agrees with the previous studies in determining that clan organizational culture enhances the environmental performance. In contrast, this research strongly insists that market organizational culture could weaken employee’s green performance. See the Table 8 and Figure 8.

4. Conclusions, Implications

4.1. Conclusions

The study focused on the association between employees’ environmental performance and the clan and market (corporate) cultures. Two primary hypotheses were formulated to aid the literature review process. The systematic review of the literature showed that clan cultures support employees’ environmental performance. In this study, the clan cultures were described as the organizational philosophies that support acquisition of environmental management skills. The findings show that clan cultures support the enhancement of employees’ environmental performance due to their relations with other employees and with workplace attributes such as adaptability and even technology use. In leadership, the review indicated that clan cultures that promote servant and transformational leadership styles create an atmosphere for green practices. The leadership styles support employees to enhance their environmental management skills and experience, which further improve environmental performance. The servant and transformational leadership styles were also realized to support OCBE, which facilitate employee ownership of environmental initiatives and thus improve their performance. Similarly, the present findings showed a significant positive relationship between clan cultures and employees’ performance, as also outlined in the research model. In triangulating the literature findings with the present empirical findings, it was practically clear that clan cultures support employees’ environmental performance, thereby confirming Hypothesis 1 of the research.

A systematic review of the literature showed that employees’ environmental performance was not supported by market cultures. Most studies in the review indicated that market culture was only viable within the profitability and competitive environment while there were scant sources on the relationship between market cultures and employees’ performance. Studies that tempted to draw a relationship between market culture and environmental performance realized a negative relationship as a result of its competitive component that promotes increased production in industries. Other studies indicated conflicting results which were empirically inadequate to infer reliable conclusion on the relationship between market culture and environmental performance. Similar to the literature analysis, the present study also observed that market culture and its attributes does not support employees’ environmental performance. It was therefore empirically demonstrated that employees’ environmental performance is not supported by market culture and its attributes, thereby confirming Hypothesis 2 of the study.

Lastly, employee’s adaptability was recognized as a pivotal factor for promoting employees’ environmental performance and clan culture. The literatures analysis indicated that the latter enables employees to acquire soft skills that can be used to respond to evolving environmental circumstances. Adaptability has been explored as employees’ flexibility to respond to environmental changes effectively. Elements of adaptability, such as change in response to technological advancement, teamwork, organizational citizenship and leadership, contribute to more defined clan cultures. Part of the clan culture includes individual learning towards environmental performance. In this case, soft skills can be achieved through robust training on green concepts as well as education on environmental management practices. Additionally, the soft skills can be acquired when employees are frequently engaged in environmental initiatives thus familiarizing them with the same. The review also noted that through trainings and education, employees become motivated, encouraged and psychologically prepared to mitigate environmental challenges, even if they are noble. The present research also empirically noted a positive relationship between employee adaptability and environmental performance as well as clan cultures. In this case, adaptability supports clan cultures and employee environmental performance, which was clearly evidence from the literature. It was thus concluded that adaptability is a supportive tool to clan cultures and the resultant employees’ environmental performance.

Performance can be improved if the GSC aspirations are stronger and worsen if the latter is weaker. Wong et al. (2020) reiterated that GSC systems that ensure customer integration enhance cost reduction and environmental performance among employees through green process innovation. According to Kiessling et al. [79], market orientation had a significant relationship with CSR and the construct of customer orientation. In this case, it could be deduced that organizations that adopt green market orientation have a higher potential of engaging in CSR projects while also improving customer orientation. The resultant effect is an improved environmental performance through employee and customer engagement. Therefore, it is important to reiterate the importance of undertaking further research to determine how the mentioned components of market culture can be improved through green concepts and influence employees’ environmental performance. However, the current studies have still focused on market culture’s financial implications rather than employees’ environmental implications. This research extended new research model based on two prior studies [1,26]. As a result, for future researchers, the present research suggests that the alignment of a firm’s environmental strategy ought not to exclude corporate cultures.

4.2. Implication

The study has both academic and practical implications for literature and organizational management, respectively. With regard to academia, the main implication is an expansion of the scope of available studies on the impacts of employees’ green behavior on organizational performance. Areas that have been rarely addressed in the past, such as employee adaptability, clan and market cultures and the integration of technology into work practices, have been addressed. Further implications include recommendations for future studies, for instance, focusing on determining approaches through which market culture can be modified to become green while also influencing employee motivation to engage in green market cultures. For instance, instead of looking at market culture attributes such as competition and profitability, it is high time to consider how aspects such as market orientation and supply chain can be made green to influence employees’ environmental performance. The prior studies [80,81] observed that green innovation enhances environmental performance. Consequently, green innovation also influences green human resource leadership, which in turn influences OCBE. Shou et al. [82], on the other hand, noted that an organization’s aspiration to implement Green Supply Chain (GSC) practices depends on environmental feedback and performance. Additionally, there is evidence of possible interactions between market culture, sustainable energy and green financial management practices, which are associated with possible positive outcomes in sustainability performance [83,84]. Studies on the market culture should include this aspect for more expansive and generally applicable results.

The study’s practical implication is that organizations should focus on clan culture to enhance employees’ environmental performance rather than on considerations to market culture, which is indebted to the financial aspects of an organization. One of the primary approaches that should be taken under consideration is the leadership style adopted in the organization. Rahbi et al. [85] illustrated that leadership styles impacts employee motivation as well as enhancing teamwork. Similarly, AVCI [86] noted that leadership styles such as transformational and transactional leadership styles had a significant positive relationship to enhancing organizational citizenship behavior. Sawitri et al. [87] also observed that job satisfaction and organizational citizenship behavior is improved through effective leadership styles. Study by Khan et al. [88] also observed that leadership styles positively influence workers’ innovativeness and organization behaviors. Another approach that organizations can use to enhance clan culture towards supporting environmental performance among employees is supporting employee adaptability by rewarding innovativeness and fast responses to market cultures and incorporating technology into operations. The study has confirmed that technology use in manufacturing practices enhances employees’ individual learning initiative and efficiency and effectiveness in handling work processes. Thus, expanding the application of technology and supporting adaptability will help organizations to develop clan cultures for better employees’ environmental performance.

5. Limitation and Recommendation

The research has a few limitations that may have lessened the accuracy of its findings. One limitation concerns the data collection. The sampling technique used for the research was slightly flawed, resulting in high expenditures in data collection. Using random sampling rather than convenience sampling led to a less optimized data collection process, during which a total of 700 questionnaires were issued but only 547 came back (only 78.1% response rate). In random sampling, a bigger sample size always brings out the most accurate outcome [89]. Therefore, many people failing to return the questionnaires show there was an issue with the identification and selection of participants, which may have limited the collection of extensive data. Additionally, among the returned ones, 81 of them had at least 20% of the questions unanswered, which reduced the sample size and limited the number of samples from which the researchers could pick information. Indeed, ending up with 461 answered questionnaires from 700 may have limited the data collected (a validity ratio of only 65.8%). The implication of such an issue in data collection is that the findings may not be optimal or a true generalizable representation of the corporate environment. A convenience sample or closer follow-up with the potential participants could have yielded more accurate and generalizable information. A significantly reduced sample size also had implications for the validity of findings. The constrained efficiency of data collection would have negative impacts on companies that would have used the findings for the advancement of employees’ environmental performance. Future studies should focus on expanding the sample size as the research topic is a critical topic that affects most companies.

While the findings on market culture could have supported Hypothesis 2 of the study, further analysis of the findings could provide directions for future research. The definition of market culture, as explored in this study, is constrained by changes that affect business operations and which are outside the direct scope of employees’ behavior, such as competitiveness and innovation. The study, however, failed to explore the extended impacts of such market culture attributes on employee behavior and can be considered quite superficial in this aspect. Increasing competitiveness implies that businesses have to invest more in approaches that can enhance competitive advantage, including using new manufacturing technologies, such AI and the Internet of Things, both of which have been associated with clan culture [90,91]. Additionally, organizations need to implement ‘green’ HR practices, which have been linked to organizational adaptability, to inculcate a clan culture that supports the development of competitive advantage [10]. These findings show that when explored to a deeper extent, the market culture could be found to be impactful on employees’ environmental performance. Future studies should thus focus on expanding the dimensions of market culture when exploring its relationship with environmental performance.

Further research should be done on the impact of customers’ perception of a company’s environmental practices and how it influences their purchasing power. Such a study will reveal how customers, the environment, companies and performance are related [92]. That is because some businesses do not realize that their business environmental practices determine how many customers they obtain. Many customers are looking at the impact of a company on the environment before buying from them. Another recommendation is that every company should redefine its sustainability goals to assess its effectiveness and whether its goals are being achieved [93]. It is imperative for every company to aim for sustainability. Protecting the environment is a collaborative approach. Since corporations have contributed the most to environmental pollution, they have to be at the front line at protecting the environment. That will enlighten a company about how well or badly there are doing regarding the protection of the environment. The employees have to be kept motivated to protect the environment. That means that organizations have to adopt organizational cultures that support eco-friendly business practices and that employees are motivated to implement that [94]. The sustainability of companies in this century is more mandatory than an option. That is because the extent of climate change is almost irreversible.

Another recommended area of research is on the factors that determine employees’ adaptability competency. Not every employee is always willing to adjust to a change in the organization. How employees will react to change is determined by how the change is communicated and implemented [95]. Therefore, managers and decision-makers have a role to play in determining the level of employee adaptability competency. Research in this area is imperative to ensure that whenever a company decided to implement more environment-friendly practices, the managers are going to communicate the change effectively for it to be received well. Companies that force change on employees make most of them rigid to change. That is because they were not involved in planning the change, and their views were not heard. It is imperative for employees to be involved in the change process for it to be successful. Failure to do so leads to a lot of confusion and conflicts of interest in the organization. Therefore, for future research, it is imperative to consider the factors that determine the employees’ adaptability competency in order to ensure a company’s change is cringed by the employees.

Another recommendation for further research is conducting a study of the effectiveness of the laws and regulations regarding the environmental standards every company requires to achieve. There are already rules in place regarding the standards each company is to maintain regarding the protection of the environment. However, some companies still release harmful wastes and fumes to the environment, yet they go scot-free [96].

Some big fish in the corporate world pollute the environment but face no charges. That is, making all the efforts to mitigate climate change turn out to be counterproductive. These companies have to face the consequences of their actions lest they keep taking advantage of their power in the corporate world. The research should cover some of the companies that are notorious for releasing harmful waste to the environment and what consequences the companies have faced. That will give an accurate representation of the status quo of how much laws and regulations help manage environmental pollution.