Abstract Based on the resource-based view and stakeholder theory, this study examines how unabsorbed slack affects firm performance through the mediating effect of green management practices. In addition, the mediating effect may be moderated by corporate political activity. Results from 246 Chinese firms’ survey data and annual reports show that green management practices play a complete mediating role between unabsorbed slack and performance. Corporate political activity positively moderates the mediating effect so that the higher the degree of corporate political activity, the stronger the positive mediating effect is. This study not only deepens theoretical development of green management research, but also provides a practical guide for firms to implement more active green management practices.
