LAUSR

This study aims to develop a theoretical model for assessing the causal relationship between a proactive environmental strategy (PES), green mindfulness (GM), and environmental performance (EP) of small and medium-sized enterprises (SMEs). The theoretical model was established through a literature review and tested with 193 entrepreneurs and managers from manufacturing SMEs operating in Karachi, the largest city in Pakistan. The model was tested using PLS Smart with partial least square structural equation modeling. The results reveal that PES does not directly relate to EP. However, the study found a full mediation effect of GM on the relationship between PES and EP. Thus, this study is novel in its approach to using GM as a mediator in assessing the relationship between PES and EP. The study also found that the effects of PES are balanced when the SMEs incorporate GM, which further leads to the achievement of EP. Thus, the findings extend increasingly complex literature in the assessment of GM’s role in SMEs’ EP. Further, the scale and the models can be used to assess how SMEs respond to PES with mindful attention to achieve EP.