Green Trade Credit and Sustainable Firm Performances During COVID-19: A Conceptual Review

Abstract

The modernization of the economic world creates environmental issues around the globe, to improve global problems such as global warming, inequality, climate change, hunger and poverty; it is necessary to improve sustainable performance. Mostly, the product manufacturers have a greater influence on the supply chain and the environment. Before COVID-19, the economy of Pakistan was belligerent but not collapsed; however, COVID-19 created a situation where most of the companies will go bankrupt. Pakistan is considered less developed financially, where extensive growth is predictable in the use of green trade credit demand by firms listed at the Pakistan Stock Exchange. Thus, the study analyzes the conceptual linkages between trade credit demand and sustainable firm performances through green credit by adopting the theory of RBV and also assesses the role and impact of COVID-19; further, suggest some policies to cope with COVID-19 challenges. Secondary literature is being reviewed after searching electronic databases like Scopus, Directory of Open Access Journals, Web of Science, ProQuest, ScienceDirect, Google Scholar and JSTOR. This study will help policymakers whenever they need to consider green trade credit decisions. Thus, buyers need to be proactive while adopting green trade credit to compete in this sustainable competitive marketplace.

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

“…For enhancing a firm’s performance firms must adopt green practices (such as green processes, green design, and green technology). Many empirical studies showed that firms having concerned about their environment helps in improving their firm performance and fostering sustainable developments (Svensson et al 2016 ; Fahim and Mahadi 2022 ). A negative association was also found between green supply chain management practices and economic performance; therefore, there is a need to further investigate the green supply chain management practices to encourage firms to achieve firm sustainability (Khan et al 2021 ).…”

“…A negative association was also found between green supply chain management practices and economic performance; therefore, there is a need to further investigate the green supply chain management practices to encourage firms to achieve firm sustainability (Khan et al 2021 ). Sustainable firm performance helps businesses in creating the values and obtaining the shareholder objectives, by executing opportunities and managing the threats that originate from social, economic, and environmental development (Fahim and Mahadi 2022 ).…”