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Globalization and the ever-growing presence of technology have paved the way for better developmental opportunities in society. Nonetheless, these have also been to the detriment of the environment as well as sustainable development. The aim of this study is to discover the mediating effect of green innovation with regard to the relationship which exists between green culture and environmental performance in the State of Mexico’s automotive sector. The research hypotheses were formulated following an extensive study of the literature available and were based on resource- and capability-based theory, specifically, the natural-resource view of the firm (NRBV). The design of the study was non-experimental and cross-sectional with a confirmatory reach, applied to a sample of 157 observations. The proposed theoretical model was tested using partial least squares structural equation modeling (PLS-SEM). The findings provide empirical evidence that green innovation acts as a mediator variable on the relationship between green culture and environmental performance. The scientific merit of the study is found in its proposal of a hierarchical second-order model, categorized as reflective-formative, and the study’s confirmation of the role of green innovation as a mediating construct. Therefore, the findings herein can be considered as complementary to the existing body of knowledge in the field. The practical implications derived from this study will contribute to sustainable development and expand knowledge in the following areas: Government institutions, companies that operate in the sector, decision makers, academics, and practitioners who are working on this issue at different levels.

Environmental Performance and Green Culture: The Mediating Effect of Green Innovation. An Application to the Automotive Industry