Mediating Role of Management Commitment in the Relationship between Green Finance and Competitive Advantage: Evidence from Commercial Banks in Kathmandu Valley, Nepal
Keywords:
Green Finance, Management Commitment, Competitive Advantage, Mediation Analysis, PROCESS Macro, Commercial Banks, NepalAbstract
This study examines the mediating role of Management Commitment in the relationship between Green Finance and Competitive Advantage among commercial banks in Kathmandu Valley, Nepal. Grounded in the Resource-Based View and Stakeholder Theory, it proposes that Green Finance strengthens Competitive Advantage more effectively when channeled through top-level Management Commitment. Data from 385 bank employees were analyzed using SPSS, including reliability analysis, Pearson correlation, regression diagnostics, and the Hayes PROCESS macro (Model 4) with 5,000 bootstrap resamples. All constructs showed acceptable reliability (α = 0.794–0.874), and regression assumptions were satisfied. The model explained 59.5% of variance in Competitive Advantage (R² = 0.595, p < .001), with both Green Finance (β = 0.516) and Management Commitment (β = 0.339) as significant predictors. A significant positive indirect effect (0.248, 95% CI [0.182, 0.319]) confirmed partial mediation, indicating green finance alone is insufficient without genuine management commitment.
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Copyright (c) 2026 Bhawana Kaphle, Purushottam Subedi , Hira Lal Shrestha (Author)
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