Championing green sustainability in manufacturing of a developing economy: implications for sustainable performance through eco-regulatory compliance

Purpose Given the unprecedented rise in environmental problems today, global manufacturing businesses are strategically diverting their attention toward green sustainability. Green sustainability emphasises environmental management throughout manufacturing processes to address firms’ sustainable performance. This study investigates whether green sustainability and eco-regulatory compliance, as strategic management approaches, influence manufacturers’ economic, social and environmental performances. Design/methodology/approach Using structured questionnaires, this quantitative-based explanatory research obtained a usable dataset of 385 from manufacturing firms in Ghana, a developing country. Data analysis was conducted using structural equation modelling. Findings The study found green sustainability and eco-regulatory compliance to influence manufacturers’ sustainable performance positively. Also, eco-regulatory compliance partially mediated the green sustainability-sustainable performance nexus in a developing economy, particularly Ghana. Research limitations/implications The study’s conceptual model is limited to manufacturing industries in developing economies, particularly Ghana. It was also limited to the natural resource-based view, quantitative approach and cross-sectional design. Practical implications The study found green sustainability and eco-regulatory compliance to influence manufacturers’ sustainable performance positively. Also, eco-regulatory compliance partially mediated the green sustainability-sustainable performance nexus in a developing economy, particularly Ghana. Social implications The study raises awareness among industry players, consumers and the public about the significance of green sustainability practices in manufacturing. This will foster support and heavy investments in eco-friendly manufacturing businesses. Also, the study promotes local initiatives that advocate for sustainability, contributing to higher community involvement in environmentally conscious efforts. It contributes to waste and pollution (emission and water) minimisation while improving water, land and air quality by emphasising green sustainability and eco-regulatory compliance throughout manufacturing operations. Originality/value The study contributes significantly to the growing debate on sustainability in manufacturing by unearthing how green sustainability and eco-regulatory compliance enhance firms’ sustainable performance. It also demonstrates the intervening role of eco-regulatory compliance in the green sustainability–sustainable performance interplay.