Exploring the Mediating Roles of Cleaner Production and Environmental Quality Management in Enhancing Zero-Waste and Differentiation Outcomes: Evidence from Emerging Economies

Abstract

In the face of rising environmental challenges and competitive pressures, firms in emerging economies are increasingly adopting sustainable practices to gain both ecological and strategic advantages. This study examines the mediating roles of Cleaner Production (CP) and Environmental Quality Management (EQM) in the relationship between environmentally oriented strategies and two key outcomes: zero-waste performance and differentiation advantage. Drawing on the resource-based view and institutional theory, a conceptual model is developed and empirically tested using data from 310 manufacturing firms across emerging Asian economies. The findings, derived through Structural Equation Modeling (SEM), reveal that both CP and EQM serve as significant mediators in enhancing environmental and strategic outcomes. CP facilitates operational improvements that reduce waste at the source, while EQM drives organizational alignment, continuous improvement, and stakeholder engagement. The results emphasize the importance of integrating both technical and managerial systems to realize the benefits of sustainability initiatives fully. This study contributes to the circular economy literature by offering practical insights for policy and management in industrializing regions.