A vast literature supports the notion that green human resource management leads to superior environmental performance. This study argues that green innovation, environmental strategy and pro‐environmental behaviour facilitate the relationship between green human resource management and environmental performance in the manufacturing industry of developing countries. To test the mediating effect of green innovation and pro‐environmental behaviour alongside the moderating role of environmental strategy in the proposed model, we collected and analysed data from 410 manufacturing firm managers operating in Pakistan using partial least square structural equation modelling. The mediating and moderating results highlighted the significance of green innovation, environmental strategy and pro‐environmental behaviour to excel in environmental performance through operational efficiency, appropriate environmental strategy and human willingness to indulge in environmental activities. The findings also suggest implications for theory and practice in similar developing countries. The study offers generalisability in developing countries sharing the same economic and social structure.

Environmental success can only become a reality when the financial goals of firms are not compromised. Based on this proposition, the study aimed to investigate four relationships, including the effect of corporate social responsibility (CSR) on financial performance, mediation of green dynamic capabilities (GDCs) between CSR and green innovation (GI), mediation of GI between CSR and financial performance, and moderation of perceived environmental volatility in GI and financial performance nexus. A sample of 655 manufacturing firms was collected from Pakistan to test the proposed hypotheses, and structural equation modeling was conducted. The results demonstrate a positive significant influence of CSR on financial performance. In addition, the mediation of GDCs and GI has also been confirmed. Furthermore, the results demonstrate that high environmental volatility weakens the GI and financial performance nexus. The study results offer unique contributions to the literature and interesting suggestions for practicing emerging economy managers.