Green Supply Chain Management Practices’ Impact on Operational Performance with the Mediation of Technological Innovation

Abstract

Industries strive to prevent ecologically destructive actions in their supply chains. At the same time, the optimization of their resources is a major concern for industries to minimize carbon emissions, boost sustainable practices, and improve a country’s long-term economic development. Therefore, the objective of this study is to examine the impact of Green Supply Chain Management (GSCM) methods on operational performance with the mediation of technological innovation, in the context of Pakistani manufacturing firms. The partial least square-structural modeling (PLS-SEM) method is adopted in this paper. Data were gathered from 223 different manufacturing firms in Pakistan and then analyzed among these variables. The data show good validity and reliability, and structural model explains 61% of the variance in operational performance and 45.4% of the variance in technical innovation, demonstrating its predictive validity. The R-square criteria classify R-square entities of 0.67, 0.33, and 0.19 as considerable, moderate, and weak, respectively. It is demonstrated that all the f-square values are greater than 0.020 and 0.35, indicating a significant effect on the model’s validity. The findings of this study reveal that GSCM practices have a significantly positive effect on both technological innovation and operational performance. Technological innovation has a direct influence on operational performance and has a partial mediating effect on the relationship between GSCM practices and operational performance. Therefore, this research offers managers insight into the importance of technological innovation and GSCM practice adoption to achieve competitive advantages. It further provides the groundwork for managers, practitioners, and environmental management researchers to emphasize the value of GSCM practice in improving operational performance.

Sustainable supply chain management and green technologies: a bibliometric review of literature

“…The bibliometric analysis has provided directions to scholars, who are managing plenty of research publications in the field of SSCM considering technological innovation. The research teams have found lesser investigated and introduced the new trends and developments in SSCM, such as from raw material sourcing to production (Gedik and Avinc 2020 ), raw material storage (Baars et al 2021 ), sustainable product delivery system (Soleimani et al 2018 ; Khan et al 2022c ), worked on sustainable supply chain networks (Abdi et al 2020 ) and green reverse logistics. Unfortunately, some are activities still blurred regarding green technological and IT innovation in the literature in the field of SSCM, such as ambiguity in perceiving sustainable ideology, shortage of experts, and trust deficit of manufacturing firms in the adoption of SSCM (Wangsa et al 2022 ; Seman et al 2012 ; Khan et al 2021a , 2021b ) that is challenging supply chain, procurement managers, and practitioners.…”

Green supply chain management/green finance: a bibliometric analysis of the last twenty years by using the Scopus database

“…2 ). Green supply chain management now becomes a need for many organizations to improve the relations between green product suppliers and customers and this is only possible if an organization tries to reduce the activities that are harmful to the environment and the society (Khan et al 2022 ). Hervani et al ( 2005 ) explain the term green supply chain management related to green procurement, green manufacturing, green distribution, and lastly, revere logistics.…”

“…Hervani et al ( 2005 ) explain the term green supply chain management related to green procurement, green manufacturing, green distribution, and lastly, revere logistics. When the organizations take decisions based on green supply chain management, they must consider all stages of a product from material to logistics, and the end-users (Khan et al 2022 ). Similarly, Srivastava ( 2007 ) explains green supply chain management as the group of thinking related to the environment and supply chain management, which includes product design, fetching materials, the process of manufacturing, and distribution of products to the final users.…”

Mediation effect of environmental performance in the relationship between green supply chain management practices, institutional pressures, and financial performance

“…One of the important methods to evaluate discriminant validity is cross-loading analysis (Khan M. T. et al, 2022), which confirms that the items measuring the variable are measuring what they are intended to measure (Hair et al, 2014), (Vanalle et al, 2017). The cross-loading analysis yielded sufficient data for discriminant validity in the current investigation as shown in Table 2.…”