Green Computing Practices and Sustainable IT Performance: The Mediating Role of Energy Efficiency and the Moderating Role of Environmental Management Capability

Abstract

The study analyzes the relationship among green computing practices, sustainable IT performance, and knowledge of mediating and moderating roles of the energy efficiency and environmental management capability within the scope of information technology (IT) firms and institutions. For data collection, a cross-sectional organizational survey was used, involving IT professionals and personnel responsible for sustainability. For the measurement, multi-item scales for green computing practices, energy efficiency, environmental management capability, and sustainable IT performance were used.Data was collected using a cross-sectional organizational survey design, with IT professionals and personnel responsible for sustainability used. Multi item scales were used for the measures of green computing practices, energy efficiency, environmental management capability, and sustainable IT performance. After data cleaning, we tested the constructs for data validation by carrying out confirmatory factor analysis (CFA) and discriminant validity was tested by heterotrait monotrait ratio (HTMT). It was decided to use the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique because the proposed sustainability model represents a complex mediation-moderation model and is also predictive in nature. Path analysis with bootstrapped indirect effects and interaction-term analysis/slope significance testing were used to test the mediating role of energy efficiency and the moderating effect of environmental management capability, respectively. Model evaluation were performed using the standardized root mean square residual (SRMR), R², Q², and the predictive relevance assessment (PLSpredict) of the model. The measurement model showed good reliability, convergent validity and discriminant validity across all constructs and measures did not exceed recommended limit on overall model fit indices. The outcomes of the structural analysis revealed that energy efficiency has a significant positive relationship with green computing practices and sustainable IT performance, the relationship between energy efficiency and sustainable IT performance is significant and positive, and energy efficiency acts as a partial mediator/mediating variable in the relationship between green computing practices and sustainable IT performance. The capability of environmental management was determined as a significant mediator between energy efficiency and sustainable IT performance, being more influential among the firms which had higher environmental management capabilities. PLSpredict analysis indicated good out-of-sample predictive power for the model. The results indicate that investment in green computing can ensure sustainable IT performance significantly from a better energy use perspective, and the role of organizational environmental management capability in this transformation is significant, which provides implications for IT companies on matching the issues of "environmental management capabilities" and "sustainability strategy.