The Mediating Role of Total Quality Management between Corporate Social Responsibility and Corporate Environmental Performance

Abstract

Manufacturers have been under increasing pressure from various groups to recognize and deal with the environmental effects of their operations, especially in the past twenty years. To manage this challenge, they have adopted two practices: corporate social responsibility (CSR) and total quality management (TQM). However, it is still not clear how these practices are supposed to affect environmental performance in developing countries, particularly the less developed ones. This study aimed to fill this gap by researching whether TQM could mediate between CSR and green management in Iranian manufacturing companies. The Baron and Kenny method was used to achieve the answer. The structural equation modeling method, using AMOS, was additionally used to explore the relationships between the concepts. Out of 849 questionnaires distributed, 328 usable responses were received. The findings supported all hypotheses: CSR is linked to a company’s environmental performance, CSR is connected to TQM, TQM is associated with the company’s environmental performance, and the relationship between CSR and environmental performance is partly mediated by TQM. Practically, the findings of this study provide organizations with actionable guidance to enhance their environmental sustainability practices, resulting in fostering long-term sustainability and gaining a competitive advantage.

1. Introduction

Manufacturers have been under increasing pressure from diverse stakeholders to acknowledge and properly manage the environmental implications of their operations, especially over the past two decades [1,2,3,4,5]. In parallel, ecologists have persistently strived to raise business owners’ awareness regarding the depletion of natural resources and convince manufacturing companies to transition from fossil fuels to renewable sources of energy. This, on the other hand, poses significant environmental risks [6,7].

This increasing concern for environmental sustainability has been driven by not only ecologists, but also international regulatory bodies to impose stricter standards for industrial operations [8]. These national and global concerns have prompted industries to rethink their processes and adopt more environmentally friendly practices [9,10,11]. This transformation has not only affected the operations of industries, but also influenced consumers’ preferences and behaviors. As a result, nowadays, consumers have become more conscious of the effects of their consumption on nature and are increasingly favoring goods and services from companies that prioritize environmental sustainability [12,13]. As companies need to satisfy all of their stakeholders’ needs, they have to be concerned about their financial benefits and, at the same time, demonstrate to society that by adopting environmentally friendly practices, their actions and products are not causing any harm to the environment [14].

Among these practices, corporate social responsibility (CSR) could emerge as a crucial element aiding companies in achieving their green performance objectives [15]. According to Gazzola and Pellicelli [16], CSR involves voluntary actions that address environmental and social concerns and embody business approaches that balance economic, environmental, and social issues for the benefit of current and future stakeholders [17]. CSR initiatives, as noted by Raimi [18], contribute to the protection of the cultural, economic, and social aspects of the environment in which companies operate, emphasizing investment in human capital development [19]. This alignment with CSR principles becomes vital to companies navigating the complex intersection of consumer expectations, environmental awareness, and sustainable business practices.

However, navigating the path to sustainability is not easy, especially in an environment characterized by intense market competition and associated risks. The endeavor to transition towards sustainable operations requires more than just aligning with green practices; it necessitates a comprehensive management program that orchestrates both quality control and the integration of sustainable methodologies. Bhatia and Kumar [1] emphasize that such a program is crucial to helping companies achieve their sustainability goals while effectively managing their products and service quality.

Amidst these challenges, total quality management (TQM) has emerged as an environmentally conscious framework, filled with the potential to considerably contribute to the meeting of quality-driven activities and sustainability objectives. Through its commitment to continual enhancement and evolution, TQM equips organizations, as well as individuals, with the tools necessary for refining products and services [20,21,22]. Therefore, TQM plays a pivotal role in propelling the corporate sustainability ambitions of organizations. In essence, TQM acts as a catalyst, furthering the convergence of green practices and operational efficacy, ultimately enhancing an organization’s ability to achieve ecological performance standards [23].

Anjum and Makhdoom [24] and Saunila and Ukko [25] assert that the philosophical foundations of CSR, TQM, and corporate green performance (CGP) are similar. Investing in quality and focusing on social and environmental aspects are more inclined to lead to excellence in green performance [15,26,27,28,29,30]. Nevertheless, this concept has been challenged by some other studies that offer contradictory findings [31,32,33,34,35]. In addition to these conflicting results, few studies have examined the relationship between CSR and TQM as a dual strategy for enhancing green performance. They highlight the complexity of the relationship between CSR, TQM, and green performance and indicate gaps in our understanding of the underlying mechanisms. Furthermore, considering TQM as a mediator between CSR and green performance can contribute to a more robust theoretical framework and provide practical insights for organizations seeking to enhance their sustainability initiatives and environmental performance [36]; something that has been neglected by scholars. Understanding if TQM mediates between CSR and green management is crucial to optimizing CSR’s impact on environmental practices, leading to more integrated and effective sustainability strategies in organizations. Accordingly, this study used a system approach of contingency theory [37] to examine the effect of TQM as a mediator between CSR and CGP in order to explain the research question of how CSR through TQM can improve green performance.

To establish the integration of both of the concepts, it is critical to explore how the proposed integrated model applies to different market contexts, especially in developing countries, which play prominent roles in the world economy [38,39]. Among all, Iran is in the emerging stages of integrating sustainability practices and enhancing green performance in domestic industries and, at the same time, is facing a lack of comprehensive studies in this regard [4,40]. The study conducted by Mehralian, Nazari [36] is the only reference that has examined all the three variables in Iranian firms, with a focus on the pharmaceutical industry. Consequently, the mechanisms through which CSR and TQM influence green performance in Iranian manufacturing firms have remained notably underdeveloped. This necessitates further scholarly inquiry to fill this knowledge gap effectively.

TQM is important to Iranian manufacturing companies because it enhances product quality, improves operational efficiency, and increases customer satisfaction [41]. Implementing TQM can also lead to better resource management and waste reduction, which are crucial to maintaining competitiveness in the global market [42]. In addition, TQM fosters a culture of continuous improvement and innovation, which is essential to adapting to changing market demands and regulatory environmental standards in Iran’s evolving industrial landscape. Therefore, in Iranian manufacturing companies, TQM has been the subject of research to understand its implementation and impact on environmental performance [43,44,45]. Accordingly, the current study aimed to fill existing gaps in the literature by answering a question: “Could TQM be a mediator between CSR and CGP in Iranian manufacturing firms?” Understanding this relationship provides valuable insights for companies that intend to implement holistic strategies that not only meet their ethical obligations, but also enhance their operational effectiveness and sustainability efforts.

To achieve the answer, this study uses six TQM practices derived from the Malcolm Baldrige National Quality Award [46]: customer focus, leadership, strategic planning, HRM, process management, and information and analysis. CGP will additionally be measured across three dimensions: green management, green product, and green process, based on previous research carried out by Xie, Huo [47] and Li, Zhao [31]. In addition, four factors classified by Maignan and Ferrell [48], i.e., ethical CSR, economic CSR, legal CSR, and discretionary CSR, are considered in this study for measuring CSR.

The present research uses the method proposed by Baron and Kenny [49] to test the hypothesis in question. This is the most widely used method for assessing mediation hypotheses [50]. The method involves four steps to show and approve a mediating effect. First, there is a need for a clear link between the independent variable and the dependent variable. Second, there must be a clear link between the independent variable and the mediator variable, which are supposed to be connected positively. Third, the mediator variable should be clearly connected to the dependent variable. Fourth, to prove a fully mediated relationship, after entering the mediator in between the direct effect, the direct link between the independent variable and the dependent variable should not be significant anymore.

2. Literature Review and Hypotheses Development

2.1. Corporate Social Responsibility (CSR)

In recent decades, corporate social responsibility (CSR) has received significant attention from both researchers and practitioners as a key topic in management literature. Gradually, companies started to shift their attention from the theoretical aspects of CSR to its incorporation into their practices [51,52,53,54]. This shift has been driven by not only a growing number of environmentally conscious consumers who seek sustainable and eco-friendly products and services, but also governments’ pressures and worldwide obligations to comply with environmental laws [55,56,57].

CSR lacks a clear conceptual definition, which has caused it to have different definitions in the literature [53]. However, all of the different definitions of CSR agree on one point: companies need to meet the expectations of their stakeholders when planning their environmental strategies [17,58]. CSR refers to the voluntary actions taken by businesses to engage with environmental and social concerns over their operations for the benefit of current and future stakeholders [16,17]. CSR also helps businesses deal with uncertainties in the social context of today’s dynamic, global, and technological business world [55].

Carroll [59] has considered economic aspects in measuring CSR as Turker [60] suggests that although economic responsibility should be distinguished from other responsibilities, they should be taken into consideration all together when implementing CSR. This is because financial interests are the main reason for starting a business, and ethical behaviors—which go beyond those concerns—significantly influence an organization’s survival [61]. Accordingly, the focus of this study is on both economic and ethical dimensions of CSR. Carroll [59] definition is considered the clearest because it identifies a company’s obligations to society, distinguishing them from mere profit-making and the responsibilities of governments.

2.2. Green Environmental Performance

The manufacturing industry has experienced a noteworthy rise in the consumption of natural resources during the production process, leading to adverse effects on the natural environment, such as global warming [62]. This has prompted concerns about the need to reduce the use of natural resources [63]. Because of the significance of this matter, the United Nations Global Compact has compelled businesses worldwide to adopt eco-friendly policies and green practices [64]. The UN Global Compact, which is the world’s largest green environmental initiator, includes around 12,500 commercial and non-commercial signatories from more than 160 countries. In line with this global pact, biologists have recommended that manufacturing businesses incorporate green thinking and social responsibility actions into their operations. This would lead to not only improved organizational economic performance, but also higher environmental performance [14,18].

In this context, Eckersley [65] promoted the green theory, which encompasses human rights, corporate governance, social responsibility, globalization, and environmental concerns. Empirical evidence collected from the surveyed literature suggests that green theory serves as a foundation for the development and adoption of practices aimed at improving green performance across various sectors and organizational scales [66,67].

Likewise, Cancino, La Paz [68] and Adomako and Tran [69] proposed that the foundation of environmentally friendly performance is based on the relationship between a company’s environmental practices and its overall performance. This concept is referred to as CGP, which aims to provide valuable information about a company’s processes and how well they adhere to environmental standards. Moreover, it is a tool for measuring the effectiveness and efficiency of a company’s environmental actions [70]. For example, in a study by Saeidi, Sofian [4] in Iran on the relationship between companies’ environmental strategies and their performance, companies with a stronger focus on environmental concerns were found to be more likely to have satisfied customers and enjoy greater financial benefits thanks to increased sales. This finding was later corroborated by Xie, Hoang [57], who found that companies with a stronger commitment to green practices tended to attract more customers.

To achieve this level of market success through being an environmentally friendly organization, companies need to significantly change their production and service processes by integrating eco-friendly practices with their strategies [71]. Similarly, Ho, Wang [72] suggested that manufacturing firms, which have the greatest impact on the environment, should shift their traditional approach to production processes, from resource acquisition to production, supply, consumption, and recycling. Li, Zhao [31] classified green strategies into two categories: green management and green technology. In the same vein, according to Li, Zhao [31] and Hu, Jiao [73], the term ‘green strategies’ encompasses the systems, policies, and practices that are applied to creating environmentally friendly systems; and the focus of green management is on converting these policies and strategies into practical, sustainable practices that promote environmental protection, while, green technology is often related to green processes and green products, as noted also by Chiou, Chan [74] and Xie, Huo [47].

In terms of green processes, the implementation of green practices in technology can assist organizations in improving their operational efficiency and minimizing their activities’ impacts on the natural environment, including air, water, and soil. On the other hand, the concept of green products relates to either creating new products or improving existing ones by using environmentally friendly materials and avoiding the use of harmful substances [47,70,75].

To test CGP, this study consolidated three key components: green product performance, green process performance, and green management performance.

2.3. Direct Effect of Corporate Social Responsability on Corporate Performance

According to Del-Castillo-Feito, Blanco-González [76], the legitimacy of companies in developing countries, as perceived through societal norms and stakeholder expectations, is the primary outcome of implementing environmental policies; which positively affects their performance, and this influence extends to shaping consumer trust, investor confidence, and regulatory support.

CSR as one of the most influential social and environmental policies encompasses the ethical and social responsibilities that companies hold toward society and the environment [77]. It serves as a bridge between an organization’s objectives and its commitment to the environment and society’s health. By integrating CSR into their core operations, environmentally conscious companies can demonstrate their dedication to social and environmental well-being. This strengthens their positions as responsible corporate citizens in the market [78].

This claim has caused many scholars to investigate the effects of CSR on different aspects of firm performance. For example, Islam, Islam [79] and Saeidi, Sofian [4] found that CSR not only fosters goodwill within communities, but also has a profound impact on an organization’s bottom line. This is because, nowadays, customers are increasingly making purchase decisions based on a company’s ethical practices, social responsibility, and environmental sustainability. On the other hand, Durand, Paugam [80] claimed that CSR can attract investors who recognize the long-term benefits of sustainable business practices. Through their investment in eco-friendly technologies, reducing carbon footprints, and championing ethical supply chain management, organizations can contribute to a greener planet and harness CSR as a strategic advantage in the competitive marketplace [3,73]. Therefore, embracing CSR as a green strategy is not just about being socially responsible, but also is a powerful driver for organizational success and environmental stewardship. These claims had been supported by Burke and Logsdon [81], who found out that CSR can bring strategic advantages to firms by aligning social responsibility efforts with business objectives, ultimately enhancing both the company’s performance and its reputation among stakeholders. This approach suggests that when CSR programs are carefully designed to align with a firm’s core strategies, they can generate significant value through increased visibility, proactive engagement, voluntary initiatives, and targeted actions that resonate with the company’s mission and societal expectations.

A study conducted by Camarena-Martinez and Wendlandt-Amézaga [82] on 50 socially responsible companies in the northwestern region of Mexico revealed intriguing insights into the strategic dimensions of CSR. Among the six dimensions—centrality, specificity, proactivity, visibility, voluntarism, and strategic value creation—the study found that the specificity of CSR activities is positively linked to the creation of strategic value for firms, while voluntarism exhibited a negative correlation. Additionally, the results indicated that centrality is perceived as the most critical dimension, whereas visibility was considered less significant by the participants.

Despite numerous studies suggesting a positive relationship between green activities and firm performance [57,83,84,85,86], some researchers have questioned this claim. They suggest that CSR initiatives may have negative or no effects on performance, indicating a relationship more complex than the one previously assumed. For example, the research conducted by Brammer and Pavelin [87] indicated that companies that invest in CSR activities may face a competitive disadvantage. Similarly, Mehralian, Nazari [36] found no significant relationship between CSR activities and organizational financial performance in the Iranian pharmaceutical industries. This perspective was further corroborated by Martínez-Costa and Martínez-Lorente [88], who identified a negative impact of CSR activities on firm financial performance. Likewise, in a study conducted among Chinese manufacturing firms, Li, Zhao [31] reported a significant negative correlation between TQM and green performance. A notable study conducted by Zeng, Zhang [32] discovered that environmental management practices and quality had a detrimental impact on firm performance in the electronics, machinery, and automobile industries across eight countries. In addition, the findings of McWilliams, Siegel [89] research revealed no significant relationship between financial performance and CSR.

Such conflicting results from various studies suggest the need for new investigations on CSR and its effects on different aspects of corporate performance. A closer look at the existing literature reveals that a significant portion of these studies rely on samples collected from developed European or US contexts [90,91]. This geographic focus leaves a conspicuous gap in understanding the effects of CSR on firm performance in developing countries, particularly within the Iranian context [92,93]. The lack of research on Iranian companies is notable, especially given the country’s unique economic, social, and regulatory environment. Despite this gap, there is a significant difference between the actual and predicted levels of CSR among Iranian companies [94], suggesting that CSR practices may not be fully optimized or aligned with global standards. This study aims to fill this gap, predicting that the results will mirror those observed in Western countries because of the universal principles of CSR that transcend cultural and economic boundaries. Accordingly, the present research hypothesizes that:

H1. 

There is a positive relationship between CSR and corporate green performance in Iranian medium- and large-sized manufacturing firms.

H1a. 

There is a positive relationship between CSR and corporate green management in Iranian medium- and large-sized manufacturing firms.

H1b. 

There is a positive relationship between CSR and corporate green product in Iranian medium- and large-sized manufacturing firms.

H1c. 

There is a positive relationship between CSR and corporate green process in Iranian medium- and large-sized manufacturing firms.

Despite the existence of many studies on the direct relationship between CSR and the performance of firms, some researchers have found this direct relationship unrealistic and claimed that the effect of CSR on CGP could be affected by some other strategies in firms [4,79,95]. Among them, Hussain, Wang [95] claimed that TQM could emerge as a pivotal mediator in this dynamic relationship [95]. In another study, Mehralian, Nazari [36] found that TQM can bridge the gap between CSR initiatives and green performance by instilling a culture of continuous improvement. Through TQM, organizations can systematically integrate sustainable practices, ensuring that CSR commitments translate into tangible environmental benefits [96]. Accordingly, TQM principles, such as efficiency, waste reduction, and ethical conduct, may act as catalysts for aligning CSR goals with concrete actions, fostering a holistic approach to corporate sustainability that positively impacts both environmental stewardship and social responsibility. The aim of this research therefore is to assess the effect of TQM as a mediator between CSR and CGP.

According to the approach adopted in this study for examining the mediating effect, before entering the mediator variable in the model, the direct effects of CSR (independent variable) on TQM as the mediator variable and also the direct effect of TQM on CGP as the dependent variable should be tested.

2.4. Corporate Social Responsibility and Total Quality Management

CSR and TQM are two pivotal dimensions in contemporary business practices, each playing a crucial role in organizational success. CSR underscores a company’s dedication to ethical, social, and environmental responsibilities [59], ensuring that businesses operate with consideration for the welfare of employees, communities, and the environment [97]. Not only do these initiatives boost a company’s reputation and build customer loyalty, but they can also lead to long-term financial gains [4].

Conversely, TQM is centered on continuous improvement and operational excellence, emphasizing the importance of enhancing efficiency and product quality through a culture of perpetual betterment and employee engagement [46,98]. By integrating CSR and TQM, companies can achieve a holistic approach to sustainable business practices, balancing ethical commitments with superior operational performance. This synergy not only drives organizational success, but also fosters a more sustainable and responsible business model.

This study aims to explain the intricate relationship between CSR and TQM, exploring their interplay and the consequential effects on organizational green performance. By examining how CSR and TQM practices complement and reinforce each other, this research seeks to uncover how integrating ethical, social, and environmental concerns with operational excellence can lead to superior green performance. Understanding this relationship is crucial, as it can provide valuable insights for companies looking to implement holistic strategies that not only meet their ethical obligations, but also enhance their operational effectiveness and sustainability efforts.

One of the fundamental intersections between CSR and TQM lies in the alignment of values [99]. Both frameworks underscore the importance of ethical conduct, integrity, and a commitment to stakeholder interests. Organizations that integrate CSR into their strategic framework often find a natural synergy with TQM principles, fostering a corporate culture that prioritizes quality, sustainability, and social responsibility [95]. This alignment enhances the organization’s reputation and additionally instills a sense of purpose among employees, fostering a conducive environment for the implementation of TQM practices [24]. In this regard, Forcadell, Lorena [100] claimed that CSR initiatives are instrumental in cultivating positive relationships with diverse stakeholders, ranging from customers and employees to communities and regulatory bodies. Such engagement is pivotal to the success of TQM, as it relies on active participation and collaboration across all levels of the organization [22]. In this vein, Mehralian, Nazari [36] mentioned that stakeholder involvement becomes more profound when they perceive the organization as socially responsible. This contributes to the overall success of TQM initiatives. In addition, trust and credibility built by CSR can create a foundation for the effective implementation of TQM.

On the other hand, by engaging stakeholders, promoting responsible practices, inspiring creative problem solving, and aligning business values with societal needs for sustainable and innovative solutions, CSR fosters innovation in any organization that implements it [3,83]. This innovation-oriented approach aligns seamlessly with TQM’s emphasis on continuous improvement. Organizations that embrace CSR fulfill their ethical obligations and also foster a culture of innovation, laying the groundwork for TQM methodologies [101]. Therefore, the integration of CSR and TQM may encourage employees to seek novel solutions, driving excellence in product and service quality.

The evidence clearly demonstrates a mutual support between CSR and TQM. CSR initiatives, when effectively integrated, generate positive externalities that enhance an organization’s reputation, drive innovation, and strengthen brand image [4,102]. Meanwhile, TQM focuses on optimizing processes and delivering high-quality products or services. That way, it acts as a catalyst for overall performance improvement [21]. This dual approach enables organizations to better meet customer expectations, comply with regulatory standards, and adapt to market changes.

In conclusion, the symbiotic relationship between CSR and TQM is evident in their shared values, stakeholder engagement, innovation, and the ultimate goal of achieving superior organizational performance. Organizations that strategically integrate these two strategies are poised to meet the demands of the modern business landscape and contribute positively to society and the environment. As businesses continue to evolve, acknowledging and leveraging the interconnectedness of CSR and TQM emerges as a strategic imperative for sustained success.

As the second step of the Baron and Kenny [49] method, for establishing a mediator relationship, there must be a clear link between the independent variable and mediator variable, which are supposed to be connected positively. Accordingly, the second hypothesis of this study is:

H2. 

There is a positive relationship between CSR and TQM in Iranian medium- and large-sized manufacturing firms.

According to the method applied to evaluating a mediator relationship, the third condition for establishing a mediator relationship is the existence of a meaningful relationship between the mediator variable and the dependent variable. In the following, this relationship and the mediating effect of TQM are discussed.

2.5. Total Quality Management, Corporate Social Responsibility and Green Performance

Given the global significance of natural resources, it is imperative for businesses worldwide to consider environmental concerns at every stage of their production processes, starting from raw material preparation to waste collection [68]. Abbas [96] emphasizes that the various stages of production in assessing green performance are interconnected. For instance, poor product quality—as highlighted by Saeidi, Sofian [4], Zhang [103] and Tasleem, Khan [26]—on the one hand, leads to negative impacts on organizational reputation and financial performance and, on the other hand, results in wastage of natural resources and human efforts, which finally cause a lower level of green performance [24,104]. A potential strategy for businesses to address this issue is adopting or innovating new environmental practices and technologies in the production and product development processes [47,103,105,106]. They not only reduce the negative environmental impact of the production process, but also contribute to improving organizational development.

TQM, as one of those environmental practices, serves as a valuable tool for firms in managing human resources and optimizing the utilization of natural resources to achieve higher levels of quality throughout the production process, including product delivery to consumers [21,22,36]. In other words, TQM aims to optimize the utilization of resources, including natural resources, which aligns with the primary objective of achieving CGP [95]. Therefore, TQM and environmental management are closely intertwined [107]. This assertion is corroborated by Qasrawi, Almahamid [108], who established a connection between TQM, long-term orientation, organizational performance, and sustainability. They argue that TQM has significant potential to enhance organizational performance across all dimensions of sustainability. The study of Valmohammadi [44] conducted in Iran indicates significant relationships between TQM practices and organizational performance.

Approximately 60 countries worldwide, including Iran, are reported to include environmental concerns in their constitution [109]. Iran’s constitution, specifically Article 50, serves as the highest legal reference in addressing environmental conservation. The timeline of environmental protection legislation enacted by the Iranian parliament includes laws related to Hunting and Fishing (1956), Water Pollution Control (1969), Environmental Protection (1974), Air Pollution Control (1995), and Waste Management (2004). Accordingly, the Iranian parliament has shown a focus on the environmental protection of natural resources dating back to the 1950s, especially in the manufacturing sector [110]. Manufacturers in Iran play a critical role in the economy by contributing to GDP and household income. However, their ability to positively impact the economy is hampered by external sanctions and the need for internal economic reforms. The potential for growth exists, particularly through suggesting an alternative path that leverages domestic resources and innovative manufacturing practices, which could provide economic and environmental benefits [111,112,113].

Despite the government’s efforts to establish laws encouraging businesses in Iran to adopt environmentally friendly strategies, CGP has not been adequately addressed in practical and theoretical terms in international scientific journals in the Iranian business context [4,114,115]. Therefore, this study examines the relationship between TQM and green performance in Iranian companies, exploring whether they hinder or support each other.

As mentioned earlier, this research assesses CGP through three dimensions: corporate green product, corporate green process, and corporate green management. Therefore, this study aims to investigate and provide answers to the following research hypotheses:

H3. 

There is a positive relationship between total quality management and corporate green performance in Iranian medium- and large-sized manufacturing firms.

H3a. 

There is a positive relationship between total quality management and corporate green management in Iranian medium- and large-sized manufacturing firms.

H3b. 

There is a positive relationship between total quality management and corporate green product in Iranian medium- and large-sized manufacturing firms.

H3c. 

There is a positive relationship between total quality management and corporate green process in Iranian medium- and large-sized manufacturing firms.

Despite the inconsistent findings in the existing literature, there is a substantial body of research on the separate effects of CSR and TQM, as two environmental practices that can affect the firm performance. However, there is still limited understanding of how CSR and TQM jointly impact the green performance of firms [24,96,116,117]. For instance, Abbas [99] and Khalil and Muneenam [118] suggest that the impact of TQM on CGP and the mediating role of CSR and organizational culture (OC) may vary depending on the size of the firm and the sector (manufacturing versus service). Similarly, Benavides-Velasco, Quintana-García [119] highlighted the relevance of TQM and CSR in the hotel industry, suggesting that industry-specific factors may influence the outcomes of this relationship. Azam, Songjiang [120] and Hassis, Othman [121] discussed the mediating role of CSR in the relationship between TQM and green innovation or corporate sustainability, which may be contingent on the organizational focus and the specific practices implemented. In two other studies, Le [122] and Do, Huang [123] provided evidence that TQM can enhance corporate green growth and corporate social performance, with CSR and customer loyalty acting as mediators, which may depend on the context of SMEs in emerging economies. Lastly, Almuntfjy, Kowang [124] proposed an integrated framework for TQM and CSR in higher education, indicating that the sector-specific context can influence the integration and effectiveness of these practices. The literature consists of only one study, carried out by Mehralian, Nazari [36], considering all three variables in the Iranian pharmaceutical industry. Therefore, taking a holistic approach to investigate the combined effects of CSR and TQM on CGP, this study mainly aims to explore the mediating role of TQM in the relationship between CSR and CGP in the manufacturing industry of Iran.

From another perspective, contingency theory (system approach) is also important to understanding how CSR and green performance are connected, with TQM helping to make this connection smoother. According to this theory, how well CSR activities improve an organization’s green performance depends on how the organization works, in what industry it operates, what people expect from it, etc. TQM helps with this by giving a clear plan for putting CSR ideas into the way the organization runs [99,119,121,125]. With TQM, the organization can keep improving and focus on what customers need, making sure the CSR goals match up with the organization’s goals. This makes the organization’s operations more friendly to the environment.

In addition, contingency theory underscores the importance of organizational flexibility and adaptability in leveraging CSR efforts to enhance green performance. TQM plays a crucial role in facilitating this flexibility. TQM methodologies enable organizations to systematically identify and address environmental issues, fostering a culture of environmental consciousness and innovation. Effective implementation of TQM can amplify the impact of CSR initiatives, leading to tangible improvements in environmental performance [124]. As a result, contingency theory provides valuable insights into the relationship between CSR and green performance, demonstrating how TQM supports the effective execution of CSR strategies for environmental benefits [125]. This integration highlights the strategic importance of aligning CSR with TQM to achieve sustainable organizational success.

Accordingly, the main and final hypotheses of this study can be stated as follows (see also Figure 1 for the study framework).

H4. 

The relationship between CSR and corporate green performance in Iranian medium- and large-sized manufacturing firms is mediated by total quality management.

H4a. 

The relationship between CSR and corporate green management in Iranian medium- and large-sized manufacturing firms is mediated by total quality management.

H4b. 

The relationship between CSR and corporate green product in Iranian medium- and large-sized manufacturing firms is mediated by total quality management.

H4c. 

The relationship between CSR and corporate green process in Iranian medium- and large-sized manufacturing firms is mediated by total quality management.

3. Methods

3.1. Sample and Data Collection

The use of a survey methodology in this study is particularly advantageous, as it allows for data collection in circumstances where comprehensive databases or secondary sources such as Fortune’s Most Admired Companies and KLD are scarce [4]. This approach is invaluable in filling the research gap caused by the limited availability of extensive databases specifically related to TQM and CSR in the context of Iran. The survey method ensures a direct and targeted exploration of these domains, providing valuable insights that would otherwise be challenging to obtain.

By focusing on the Iranian manufacturing sector, this research provides a unique perspective on how environmental practices can be tailored to local contexts in order to maximize their positive effects on green performance. In doing so, it offers practical recommendations for managers and policymakers aiming to foster sustainable development and corporate responsibility in similar settings.

The survey, at the first stage, was adopted through an extensive literature review. Then, 10 executives who were not included in the sample assessed the content validity of the survey according to the goal of this study. Finally, after making some minor changes, the final version of the survey instrument was used. To reduce various biases of survey studies, this study undertakes the suggestions of Spector and Brannick [126], in which we do not prepare any preferred response in questionnaire items, the instrument is kept as short as possible, close attention is paid to wording, and the independent and dependent variables are placed far apart from each other.

Manufacturing industries have been recognized for their substantial impact on environmental sustainability and social well-being due to their product-focused operations, resource consumption, and waste generation [96]. Accordingly, by targeting this specific sector, this study aims to gain a comprehensive understanding of the interplay between TQM and CSR, as two sustainable practices in medium- and large-sized companies engaged in the manufacturing sector located in four major business cities in Iran, namely Tehran, Mashhad, Shiraz, and Isfahan. The companies were randomly selected from a published local list of manufacturing companies. The research involves the participation of top managers from 284 companies. Top managers were involved as responders in this research because they are key decision makers and are supposed to have comprehensive knowledge of their firms’ operations, policies, and strategies [127].

The data were collected from February 2023 to May 2023 through personal visits as well as email. The questionnaires were sent to three top managers of each company. From the 852 distributed questionnaires, the researchers received 477 responses; after review of all of them, only 328 questionnaires were usable. The overall response rate for this study was 38.49%, which may initially appear low. However, lower response rates (3.70–30%) have been reported by other CSR scholars who have surveyed top managers in developing countries [4,128,129,130,131]. Therefore, taking into account the available evidence, a response rate of 38.49%, can be considered sufficient for a developing country like Iran, where CSR may not have received significant attention in practical implementation or may not be highly regarded by managers.

Once the data were collected, an independent-samples t-test was conducted to assess for non-response bias in the collected data. The findings revealed that non-response bias was not a significant issue in this study.

3.2. Independent and Mediation Variables

The literature does not consist of any universally accepted method for measuring CSR [131]. Through a content analysis of existing CSR definitions, Dahlsrud [58] developed five dimensions of CSR: environmental, social, economic, stakeholders, and voluntariness. Among the various approaches and definitions analyzed, Carroll [59] definition stands out as one of the most popular ones. Carroll’s framework evaluates CSR through four key dimensions: legal, economic, discretionary, and ethical responsibilities. He defined stakeholders and voluntariness dimensions as one dimension named discretionary. Discretionary CSR involves actions that are not mandated by law but are undertaken to meet the expectations of various stakeholders, including employees, customers, communities, and the environment [132]. These actions are voluntary and go beyond the basic economic, legal, and ethical responsibilities of a corporation [59,132]. Stakeholder CSR also focuses on the interests and expectations of stakeholders, advocating for corporate actions that create value for all parties involved, rather than solely focusing on shareholders [133,134]. Voluntary CSR, similarly, refers to initiatives that companies undertake on their own accord, driven by the desire to contribute positively to society and enhance their social license to operate [135].

This alignment in principles and objectives underscores why discretionary, stakeholder, and voluntary CSR are often viewed interchangeably in the academic literature.

The current study aims to measure the level of CSR activities, but Carroll’s model focuses more on assessing the importance of these different dimensions. Therefore, Carroll’s instrument may not be suitable to this specific research objective. Maignan, Ferrell [136] and Maignan and Ferrell [48], Maignan and Ferrell [54] later improved the tool introduced by Carroll [59]. They transformed Carroll’s original purpose from evaluating a company’s belief in social responsibilities into an assessment of actual CSR activities, which is the focus of this study. Therefore, the CSR measurement used by Maignan and Ferrell [48], Maignan and Ferrell [54] to measure firms’ perception of each CSR dimensions (legal, economic, discretionary, and ethical) was selected by this study. 29 items, with a 5-point Likert scale, were used to cover all four CSR dimensions as the independent variable, where ‘1 = strongly disagree’ and ‘5 = strongly agree’ (Appendix A).

In this research, the assessment of TQM as the mediator variable was conducted based on six dimensions of MBNQA. Leadership pertains to the role of top management in setting organizational objectives, goals, and policies to accomplish those targets.

Process management is all about ensuring seamless service or product design through relentless self-inspection and automation. This approach drives continuous improvement and operational excellence. Strategic planning, on the other hand, is the backbone of an organization’s mission and vision for quality. It involves crafting policies and strategies that align with the organization’s quality goals, creating a roadmap for success. Customer focus is crucial in understanding and meeting customer needs and market trends. Organizations strive to enhance customer satisfaction by managing relationships effectively, ensuring that their offerings are aligned with consumer expectations [46].

In TQM, information and analysis are pivotal. They support all facets of knowledge management, enabling informed decision making and fostering a culture of continuous improvement [137]. Lastly, human resource management (HRM) emphasizes employee training to boost awareness, accountability, and performance quality; it ensures that the workforce is equipped well to uphold the highest standards [138].

The measurement of this variable involves using a total of 36 items, with a 5-point Likert scale, to cover all six dimensions of the MBNQA model for TQM where ‘1 = strongly disagree’ and ‘5 = strongly agree’ (Appendix A). These items have been used in various studies [96,139,140,141,142].

3.3. Dependent Variable

To assess CGP, its three aspects were examined in detail, involving the incorporation of 16 specific items. The evaluation encompassed five items each for green process and green product performance, while green management was scrutinized through six distinct items. The particular selection of items for this section was drawn from some reliable studies [99,143,144,145]. This careful analysis ensures a comprehensive and well-informed approach to measuring and understanding the nuanced dimensions of corporate environmental sustainability and performance. The measurement of this variable involved using a total of 16 items, with 5-point Likert scale where ‘1 = strongly disagree’ and ‘5 = strongly agree’ (Appendix A).

3.4. Control Variables

Several studies [4,99,131,146,147,148] have provided evidence that the size, age, and revenue of a firm can impact the firm’s performance toward the environment. Therefore, in this study, the firms’ size, age, and sales revenue were included as control variables. Each control variable was measured using only one question.

4. Analysis

This study used confirmatory factor analysis (CFA) to conduct reliability and validity testing. The reliability of the constructs was found to be acceptable, with Cronbach’s alpha values close to 1.0, indicating high internal consistency [149]. Additionally, the measurement items demonstrated convergent validity and discriminant validity, providing further support for the strength of the measurement instrument.

According to Hair, Money [150], the convergence validity can be assessed by examining the factor loadings, with an ideal loading value above 0.6 for established items. Furthermore, Iacobucci, Saldanha [151] suggested that the average variance extracted (AVE) for all constructs should be at least 0.5 to have a proper discriminant validity.

Table 1. Instrument reliability and validity.

Construct	Item	Factor Loading	t-Value	Cronbach’s α	Composite Reliability	AVE
Leadership	5	0.698–0.773	1.96–6.02	0.844	0.729	0.675
Strategic planning	6	0.703–0.856	2.99–5.44	0.93	0.813	0.598
Customer focus	7	0.713–0.756	1.70–7.82	0.87	0.709	0.656
Process management	5	0.683–0.821	3.46–8.18	0.82	0.799	0.539
Human resource management	8	0.712–0.795	1.90–2.70	0.95	0.750	0.549
Information and analysis	5	0.723–0.806	2.85–5.82	0.89	0.782	0.612
Ethical CSR	8	0.693–0.840	5. 54–7.91	0.91	0.805	0.602
Discretionary CSR	6	0.765–0.943	3.39–9.17	0.84	0.903	0.586
Legal CSR	8	0.699–0.970	4.42–8.24	0.97	0.934	0.664
Economic CSR	7	0.807–0.996	1.85–9.32	0.88	0.948	0.577
Green management performance	6	0.686–0.859	3.99–10.03	0.81	0.826	0.644
Green process performance	5	0.799–0.972	5.44–9.78	0.96	0.965	0.580
Green product performance	5	0.709–0.967	2.03–11.41	0.85	0.896	0.668

presents information on the number of items, their factor loadings, reliability, and AVE values.

The results presented in

Table 2. Discriminant validity of constructs.

Construct	LD	SP	CF	PM	HRM	IA	ECSR	DCSR	LCSR	EcCSR	GMP	GPP	GPD
LD	0.821
SP	0.548	0.773
CF	0.491	0.612	0.810
PM	0.605	0.426	0.598	0.734
HRM	0.432	0.572	0.444	0.538	0.741
IA	0.583	0.485	0.521	0.418	0.517	0.782
ECSR	0.507	0.523	0.586	0.492	0.590	0.429	0.775
DCSR	0.619	0.594	0.409	0.556	0.447	0.566	0.437	0.765
LCSR	0.465	0.417	0.635	0.627	0.528	0.513	0.521	0.567	0.814
EcCSR	0.524	0.467	0.475	0.464	0.614	0.592	0.587	0.428	0.551	0.759
GMP	0.438	0.602	0.528	0.501	0.463	0.478	0.457	0.503	0.413	0.538	0.802
GPP	0.576	0.459	0.457	0.583	0.504	0.543	0.602	0.594	0.622	0.476	0.427	0.761
GPD	0.614	0.537	0.613	0.425	0.578	0.610	0.492	0.482	0.489	0.615	0.596	0.502	0.817

LD, leadership; SP, strategic planning; CF, customer focus; PM, process management; HRM, human resource management; IA, information and analysis; ECSR, ethical CSR; DCSR, discretionary CSR; LCSR, legal CSR; EcCSR, economy CSR; GMP, green management performance; GPP, green process performance; GPD, green product performance.

provide conclusive evidence that the constructs meet all the criteria for discriminant validity as stipulated by Hair, Money [150] and Fornell and Larcker [152].

Following the approach proposed by Fornell and Larcker [152], it was examined whether the variance of each construct, as indicated by its indicators, was higher than that of the other constructs. In addition, according to Hair, Money [150], the correlation between pairs of predictor variables should not exceed 0.9 in order to establish discriminant validity. Furthermore, having a higher square root values of AVE presented in Table 2 shows a higher correlation between pairs of indicators. Therefore, it can be inferred that the constructs exhibit strong discriminant validity.

After analyzing and approving the CFA of the measurement model, it is time to determine the goodness of fit of the measurement and structural models. In this sense, AMOS as a structural equation model was used to obtain the following goodness-of-fit indicators after the necessary adjustments.

In line with Kaynak [140] framework, seven indicators were used to assess the goodness of fit for both the measurement model and the structural model. These indicators include the chi-square to degree of freedom ratio (c2/DF) that should be less than 3 [153], goodness of fit index (GFI), normative fit index (NFI), adjusted goodness of fit index (AGFI), comparative fit index (CFI) that should be more than 0.90 [153,154], root mean square error of approximation (RMSEA), and standardized root mean squared residual (SRMR) that should be less than 0.08 [155,156].

Table 3. Analysis of measurement and structural model.

The Goodness of Fit Measurement	CMIN/DF	NFI	GFI	AGFI	CFI	RMSEA	SRMR
Structural Model	1.051	0.901	0.945	0.904	0.922	0.027	0.031
Measurement Model	1.036	0.934	0.936	0.910	0.902	0.044	0.029
Recommended value	$\le 3$	$\ge 0.9$	$\ge 0.9$	$\ge 0.9$	$\ge 0.9$	$\le 0.08$	$\le 0.08$

reveals that all the indicators demonstrated favorable values within the expected range for both the measurement model and the structural model. These results suggest that the measurement and structural models are a strong fit for the data collected in this study.

5. Results

This study aims to investigate whether TQM can act as a mediator between corporate social responsibility CSR and CGP. To collect data, managers of medium and large manufacturing companies in four major Iranian cities participated in this study. The data were collected between February 2023 and May 2023.

Through empirical research, Iacobucci, Saldanha [151] demonstrated that to evaluate hypotheses, structural equation modeling (SEM) methods are consistently more effective in detecting mediation effects compared to regression analysis. Accordingly, the current research adopted the SEM method, using AMOS to investigate the connection among the constructs. In addition, a path-weighting scheme was used to test the hypotheses of this study. The test determined the amount of variance of the dependent variable explained by the independent variable [157]. Generally, this value is known as R-square (R2), which varies between 0 and 1 [158]. However, in this study, R square in direct effect is 0.549. This means that CSR explains 54.9% of the variance of CGP. Based on the analysis, in the context of indirect relationships (moderators), the mediating effect of the TQM in the relationship between CSR and CGP was significant. More specifically, the mediator increased variance explained (R2) in CGP from 54.9% in the main structural model to 62.4% in the mediating effect models.

The companies surveyed have an average age of 5 years and an average workforce of 29 employees. Their annual sales revenue varies between USD 15,000 and USD 500,000, with 73% of the firms falling within the USD 15,000 to USD 150,000 range.

According to Baron and Kenny [49] approach to examining a mediated relationship, a significant relationship must be demonstrated between the independent variable and the dependent variable (CSR → CGP), between the independent variable and the hypothesized mediating variable (CSR → TQM), and finally between the hypothesized mediating variable and the dependent variable (TQM → CGP).

The results revealed that CSR has a significant and positive impact on CGP ($\beta$-value of 0.278 with a p-value of 0.021). They also showed that all of the three dimensions of firm’s green performance as dependent variables, namely corporate green management, corporate green product, and corporate green process, have been affected positively and significantly (p-values < 0.05) by CSR as the independent variable with $\beta$-value of 0.251, 0.215, and 0.208, respectively. This supports hypotheses H1abc as evidenced in

Table 4. Results of hypotheses.

Hypothesis	Path β	Estimate	S.E.	C.R.	ρ Value	Results	Hypothesis
H1	CSR → Corporate Green Performance	0.278	0.118	2.356	**	Significant	Accepted
H1a	CSR → Corporate Green Management	0.251	0.126	1.992	**	Significant	Accepted
H1b	CSR → Corporate Green Products	0.215	0.071	3.028	**	Significant	Accepted
H1c	CSR → Corporate Green Process	0.208	0.135	1.541	**	Significant	Accepted
H2	CSR → TQM	0.287	0.103	2.786	*	Significant	Accepted
H3	TQM → Corporate Green Performance	0.251	0.151	1.662	**	Significant	Accepted
H3a	TQM → Corporate Green Management	0.134	0.092	1.457	**	Significant	Accepted
H3b	TQM → Corporate Green Products	0.182	0.119	1.529	**	Significant	Accepted
H3c	TQM → Corporate Green Process	0.201	0.065	3.092	**	Significant	Accepted
Mediation
H4	CSR → Corporate Green Performance	0.025	0.121	0.207	**	Significant	Partial
	CSR → TQM	0.301	0.039	7.718	**
	TQM → Corporate Green Performance	0.267	0.087	3.069	*
H4a	CSR → Corporate Green Management	0.388	0.128	3.031	**	Significant	Rejected
	CSR → TQM	0.331	0.225	1.471	**
	TQM → Corporate Green Management	0.127	0.116	1.095	**
H4b	CSR → Corporate Green Product	0.017	0.049	0.347	**	Significant	Partial
	CSR → TQM	0.309	0.105	2.943	**
	TQM → Corporate Green Product	0.207	0.214	0.967	**
H4c	CSR → Corporate Green Process	0.009	0.073	0.123	0.287	Insignificant	Full
	CSR → TQM	0.259	0.143	1.811	**
	TQM → Corporate Green Process	0.148	0.132	1.121	**
Control V.
Org. Size	Size → Corporate Green Performance	0.138	0.890	0.155	0.175	Insignificant
	Size → Corporate Green Management	0.034	0.374	0.091	0.092	Insignificant
	Size → Corporate Green Product	0.097	0.293	0.331	0.103	Insignificant
	Size → Corporate Green Process	0.12	0.645	0.186	0.065	Insignificant
	Size → TQM	0.066	0.617	0.107	**	Significant
Org. age	Age → Corporate Green Performance	0.289	0.632	0.457	0.122	Insignificant
	Age → Corporate Green Management	0.147	0.184	0.799	0.278	Insignificant
	Age → Corporate Green Product	0.215	0.398	0.540	0.193	Insignificant
	Age → Corporate Green Process	0.072	0.743	0.097	0.085	Insignificant
	Age → TQM	0.303	0.521	0.582	0.264	Insignificant
Org. Rev.	Rev → Corporate Green Performance	0.126	0.289	0.436	0.141	Insignificant
	Rev → Corporate Green Management	0.148	0.075	1.973	0.207	Insignificant
	Rev → Corporate Green Product	0.189	0.619	0.305	0.098	Insignificant
	Rev → Corporate Green Process	0.095	0.457	0.208	0.223	Insignificant
	Rev → TQM	0.331	0.802	0.413	***	Significant

* $\rho \mathrm{value}\le$ 0.05; ** $\rho \mathrm{value}\le$ 0.01, *** $\rho \mathrm{value}\le$ 0.001; TQM, total quality management; CSR, corporate social responsibility; Control V., control variable; Org. Rev., organization revenue; S.E.: standard error, C.R.: critical ratio.

and Figure 2.

These findings are consistent with previous studies that have reported positive and significant effects of CSR on various aspects of firm performance, both directly and indirectly [4,99,159,160,161,162], while they do not support the previous research that reported the negative effects of CSR on firm performance [36,87,163,164].

Dahlmann, Brammer [159] and Barnett and Salomon [165] claim that time plays a crucial role in realizing higher financial returns in firms after adopting CSR practices and it may unintentionally arise from the significant short-term costs incurred during the initial stages of CSR implementation, which can impact firm profits.

The findings of this study indicate that CSR should be viewed as a long-term investment in firms, with potentially significant returns over time. Managers should be educated about the long-term financial and non-financial benefits of CSR, as well as the positive impact of improved performance on CSR. There is a mutually reinforcing relationship between the application of green practices and the environmental and financial performance of firms.

In the second step of Baron and Kenny’s approach, it was observed that CSR, as the independent variable, had a positive and significant effect on TQM, acting as the mediator variable, with a $\beta$-value of 0.287 and a p-value of 0.042. This finding not only supports H2, but also confirms the presence of a mediating relationship in the second step of the analysis.

This study aligns with previous research findings [24,36,99,166] that highlight a positive correlation between CSR and TQM. The significant result implies that organizations that participate in social development programs are more likely to enhance their capabilities to effectively manage their TQM activities.

During the third step of Baron and Kenny’s approach, it was observed that TQM had significant direct effects on green management performance, green process performance, and green product performance, with $\beta$-values of 0.134, 0.201, and 0.182, respectively, and p-values < 0.05. This supports hypotheses H3a,b,c. These findings are consistent with previous studies conducted by Abbas [96], Yang, Liu [167], Thanki, Govindan [168], and Green, Inman [34] that have also reported a positive association between TQM and green/environmental performance.

In a study undertaken by Yang, Hong [169] involving 309 international manufacturing firms, it was revealed that the environmental management practices of firms can lead to the establishment of proactive environmental management processes. Similarly, in research on the influence of green paradigms on the performance of SMEs, Thanki, Govindan [168] found that green strategies have a positive impact on environmental performance. These findings are further supported by Abbas [96], who asserted that TQM positively affects green performance.

While many studies in the available literature suggest a positive correlation between green practices and the environmental performance of firms, Li, Zhao [31] presented a contrasting view in their study conducted in Chinese manufacturing firms. They argue that there is a negative relationship between TQM and corporate green innovation. They explain that an excessive presence of control systems associated with TQM can impede firms’ ability to innovate. The results obtained from this research highlight that TQM can positively impact the green performance of firms through effective leadership, enhanced skills and knowledge of workers, technological advancements, and improved resource utilization practices.

In the last step of Baron and Kenny’s approach, the potential mediation effect of TQM was explored by examining the indirect effects of CSR on the firms’ green performance. As indicated by the research results, the $\beta$-values of CSR on CGP still is statistically significant with a p-value less than 0.05, but lower $\beta$-values of 0.025 in comparison with $\beta$-values of 0.278 in direct effect. This reduction in the $\beta$-value of CSR suggests that a portion of the effect is transferred through TQM, in accordance with Awang’s (2016) [170] findings. It indicates partial mediation, it can be inferred that TQM acts as a mediator in the relationship between CSR and a firm’s green performance, providing support for hypotheses H4, as shown in Figure 2.

Since the effects of TQM as a mediator variable have been evaluated on all the three dimensions of CGP, the results of the structural model shown in Figure 3 indicate that H4a was rejected because of still having significant and even higher $\beta$-values of CSR on corporate green management than before ($\beta$-values of 0.388 with a 95% of confident). The second graphic in Figure 3 shows a partial mediating role of TQM between CSR and corporate green product. The indirect effect of CSR and corporate green product is still significant, but with very low $\beta$-values ($\beta$-values of 0.199 with a 95% confident) in comparison with their direct effect ($\beta$-values of 0.215 with a 95% confident). In the same figure, the result of $\rho$-values is a confirmation for accepting H4c, as the effect of CSR on corporate green product is no longer significant after coming TQM in between as a mediator variable ($\beta$-values of 0.009 with a 95% confident). It defines a full mediating role for TQM between CSR and corporate green process.

The results of the current study on the effects of control variables are consistent with earlier research that has found no significant effect of age on the relationship between applied environmental strategies and firm performance [171]. It is in line with previous studies carried out by Younis and Sundarakani [171], Galbreath and Shum [131], Lee, Faff [172], Orlitzky, Siegel [173], Saeidi, Sofian [4], and Webb [174], who found significant effects of size and revenue on the relationship between corporate environmental strategies and firm performance.

6. Conclusions and Contributions

Based on the findings, it is concluded that the positive link between CSR and CGP is influenced by TQM acting as a mediator variable. This outcome aligns with the principles of contingency theory, suggesting that researchers should take a comprehensive approach to understand how organizational variables and their functions interact to affect performance outcomes. Therefore, the focus should be on considering multiple variables and contingencies rather than just one. In addition, as highlighted by Chenhall [175], the latest perspective of contingency theory emphasizes that the relationship between two variables depends on other factors like mediation or moderation. The evidence presented in this study corroborates earlier discussions, indicating that TQM can serve as a contingency variable that mediates the effectiveness of CSR in achieving higher CGP.

The results revealed that companies that actively engage in social development programs and demonstrate a strong commitment to quality management practices in their operations are more likely to experience favorable green outcomes, whereas those that display a lower level of commitment are unlikely to maintain sustainability over the long term [76]. Building on the findings of the current investigation and a thorough review of prior research, it is evident that successful modern organizations are increasingly prioritizing the integration of environmentally sustainable practices as a key strategic objective because these companies understand the significance of incorporating sustainable measures into their operations [176]. They are motivated by an awareness of the long-term benefits and competitive advantage associated with such initiatives [4]. By adopting environmentally friendly practices, these firms not only contribute positively to the environment, but also position themselves favorably in the market. Such integration is not merely a trend but rather a fundamental shift in business strategy because emphasizing sustainability enhances the company’s reputation and also appeals to a growing number of environmentally conscious consumers [177,178]. This approach allows organizations to future-proof their operations, ensuring resilience and relevance in an ever-changing business landscape [76]. Consequently, integrating sustainable practices has become a cornerstone of strategic planning for forward-thinking companies.

As a result, organizations that actively pursue sustainability as their overarching objective are anticipated to attain a competitive advantage in the future [4]. By prioritizing sustainability practices such as CSR and TQM, these firms can meet current environmental challenges and effectively respond to the evolving needs and expectations of stakeholders [1,2,69]. By incorporating sustainable principles into their strategic decision-making and operational processes, these organizations demonstrate a proactive approach that fosters resilience, innovation, and enhanced resource utilization, and, in that way, cultivates a sustainable competitive advantage for long-term success. As a result, the implementation of green logistics practices assumes paramount importance for organizations aspiring to maintain a competitive edge and achieve profitability [4,52,179,180]. Furthermore, an extensive body of research conducted over the past two decades has yielded significant insights into the favorable outcomes associated with the adoption of environmentally friendly practices, notably in terms of mitigating environmental issues. These practices encompass a range of benefits, including cost reduction in operations, enhanced energy conservation, heightened operational efficiency, and reduced environmental pollution [95,181,182]. By embracing and incorporating green practices such as TQM and CSR in their logistical operations, organizations are well positioned to optimize their financial performance and also contribute to sustainable development and environmental stewardship.

The knowledge contribution of this study arises from clarifying certain ambiguities surrounding the intricate relationship between CSR, TQM, and firm green performance. It extends the existing CSR and TQM literature by presenting a comprehensive framework that explains the mechanisms for establishing a stronger linkage between CSR and firm green performance. This theoretical framework fills gaps in understanding and provides valuable insights into the complex interplay between these constructs.

This study enriches the theoretical landscape by demonstrating the practical integration of contingency theory with modern business practices. Specifically, it shows how Iranian manufacturing companies can leverage TQM as a mediating variable to enhance the effectiveness of CSR initiatives. This theoretical contribution underscores the dynamic interplay between organizational variables, offering a more comprehensive understanding of how multiple factors collectively influence green performance. Moreover, this study provides a robust theoretical framework for sustainable strategic planning in Iranian manufacturing companies. By highlighting the critical role of TQM and CSR in driving green performance, this framework serves as a guideline for researchers and practitioners to explore the interconnectedness of sustainability initiatives and quality management. This contribution not only broadens the theoretical discourse, but also offers a practical roadmap for implementing sustainable practices in the manufacturing sector.

This study offers practical implications for the domains of CSR, TQM, and green performance. From a practical standpoint, the findings help organizations and companies enhance their environmental sustainability practices in such a way that they can foster long-term sustainability and gain competitive advantages [4]. By bridging the knowledge gap and providing practical insights, this research paves the way for positive change and the adoption of environmentally responsible practices such as CSR and TQM in firms. This can lead to a more sustainable environment and also more resilient and competitive businesses in the long term.

When considering the practical aspect, it is noteworthy, as asserted by Papagiannakis and Lioukas [183], that the perceptions of managers regarding environmental practices significantly influence a company’s environmental response. This influence has become particularly pronounced at the present time, characterized by an increase in environmental concerns among stakeholders. Therefore, managerial perspectives and approaches toward environmental practices play a crucial role in shaping a firm’s ability to effectively address and meet the heightened expectations and demands of stakeholders concerning environmental sustainability [184], especially in today’s business environment [185].

Accordingly, the outcomes of this study contribute to the advancement of knowledge among executives of Iranian firms by emphasizing the significance of TQM and CSR as two pivotal environmental strategies in fostering sustainability through the enhancement of green performance. These findings serve to enlighten executives about the critical role played by TQM and CSR in cultivating sustainable practices that enhance environmental performance and also ensure long-term viability and competitiveness in the market. Such insights enable executives to make informed decisions and develop effective strategies to drive sustainability initiatives in their organizations.

By adopting CSR and TQM practices, Iranian manufacturing companies can elevate their standards to meet international benchmarks, which enhances their global competitiveness. This alignment with global standards can open new markets, attract international investors, and facilitate smoother integration into the global supply chain. In addition, implementing TQM and CSR strategies can lead to significant cost savings through improved operational efficiency and waste reduction. Moreover, fostering a culture of continuous improvement and sustainability helps build operational resilience, enabling companies to better navigate economic fluctuations and regulatory changes. This ensures long-term stability in business.

In its entirety, this study reinforces the notion that green practices extend beyond mere environmental enhancement; they also encompass the improvement of green products, process, services, profitability, and human capital. The findings underscore the multifaceted nature of green practices, emphasizing their potential to drive holistic improvements across various dimensions. By acknowledging the interconnectedness of environmental sustainability, economic viability, and social welfare, this study emphasizes the importance of a comprehensive approach to green practices, which encompasses both ecological and socio-economic considerations.

7. Limitations and Future Studies’ Recommendations

This study’s findings are based on a specific context or industry, which potentially limits the generalizability of the results. The research relies on a restricted sample size or a specific geographic area, which may not fully represent the broader spectrum of organizations and industries. Future research should broaden the scope to enhance the applicability of the findings to a wider range of contexts.

Moreover, methodological limitations may impact this study. For instance, the research might rely on self-reported data or a specific research methodology. In addition, the cross-sectional design of this study may not completely capture the dynamic nature of the relationship between CSR, TQM, and firm green performance. Future studies could use longitudinal or experimental designs to gain a more comprehensive understanding of these relationships.

While this study highlights the significance of managerial perspectives on environmental practices, it does not deeply explore the specific mechanisms or factors shaping these perspectives. Future research could investigate the managerial decision-making process in greater detail, providing deeper insights into how managerial attitudes and perceptions influence a company’s environmental response.