Bayu Ilham Pradana, R. Rofiaty, Rini Safitri, Moh Erfan Arif, Atikah Nur Aini Putri, Muhammad Tajuddin Meivianto
Growing environmental concerns have heightened the need for sustainability in the food and beverage (F&B) industry, yet limited research has systematically examined how green practices impact firm performance. This study contributes to the literature by examining not only the direct effects of green practices but also the mediating roles of operational excellence and competitiveness. Data were collected from 320 restaurant owners, managers, and staff in Malang City, Indonesia, using a purposive sampling approach. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to test the predictive model. The findings reveal that green practices significantly enhance firm performance both directly and indirectly. Specifically, operational excellence and competitiveness act as key mediators, demonstrating how environmental initiatives can strengthen efficiency and market positioning. The results highlight that integrating green practices into strategic and operational frameworks is essential for achieving sustainable performance gains. This study provides novel insights into the mechanisms linking sustainability and firm outcomes, with practical implications for F&B businesses worldwide. © 2026, SRAC - Romanian Society for Quality. All rights reserved.
Management Department, Faculty of Economics and Business, Brawijaya University, Indonesia; Islamic Banking Department, Faculty of Economics, Universitas Islam Negeri Maulana Malik Ibrahim Malang, Indonesia
