Environmental Compliance and Enterprise Performance in China under RCEP: The Mediating Roles of Risk Management, Innovation, and Green Culture

Rong Zhao; Panyasiri  Chaiyanant; Jidapa  Chollathanrattanapong

doi:10.60027/iarj.2026.e292256

Authors

Rong Zhao Siam University, Thailand https://orcid.org/0009-0003-5475-9362
Panyasiri Chaiyanant Siam University, Thailand https://orcid.org/0000-0003-2838-7529
Jidapa Chollathanrattanapong Siam University, Thailand https://orcid.org/0009-0003-6674-2576

DOI:

https://doi.org/10.60027/iarj.2026.e292256

Keywords:

Environmental Compliance, Enterprise Performance, Sustainable Development, Technological Innovation, RCEP, Social Responsibility

Abstract

Background and Aims: In a global low-carbon and low-pollution economy, environmental compliance is a key concern and development goal for enterprises all over the world. This research aims to explore how Chinese enterprises can participate in and integrate into environmental compliance on the Regional Comprehensive Economic Partnership (RCEP) rules, and investigate the specific mechanisms through which environmental compliance management influences enterprise performance within the RCEP framework. We provide a comprehensive analysis of Chinese enterprises’ environmental compliance, risk management, technological innovation, green culture, and enterprise performance under the framework of RCEP.

Methodology: We conduct this study on 50 major enterprises in China that are prone to causing pollution. We employ stratified random sampling to select 450 managers and staff from 50 enterprises. Then, the study employs the quantitative analysis using structural equation modelling (SEM) to analyze the effect of environmental compliance management in RCEP through risk management, technological innovation, and green culture that impact enterprise performance across the enterprises in China.

Results: Research results indicate that environmental compliance significantly enhances enterprise performance when integrated with risk management, technological innovation, and green culture. Environmental compliance model shows the relationship among the variables: Environmental compliance-> enterprise performance (β is 0.298 and p < 0.000); Environmental compliance-> risk management (β is 0.327 and p < 0.000); Environmental compliance-> technological innovation (β is 0.467 and p < 0.000); Environmental compliance-> green culture (β is 0.389 and p < 0.000). The findings highlight the pivotal role of environmental compliance as a strategic tool for competitiveness in international markets, offering crucial insights for both the Chinese government and enterprises.

Conclusion: The contribution of this paper is that the synergy between environmental compliance, risk management, technological innovation, and green culture creates the pathway to superior corporate performance and offers a competitive advantage for Chinese enterprises to improve the relationship between compliance with RCEP regulations and their business performance. Meanwhile, it also offers actionable insights for policymakers and business leaders.

Keywords: Environmental compliance; Enterprise performance; Sustainable development; Technological innovation; RCEP; Social responsibility.

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