INFLUENCE OF GREEN SUPPLY CHAIN MANAGEMENT, ENVIRONMENTAL PERFORMANCE, MARKET PERFORMANCE AND OPERATIONAL PERFORMANCE ON BUSINESS PERFORMANCE

Abstract

The concept of supply chain management (SCM) with an environmentally friendly approach, known as Green Supply Chain Management (GSCM), it is becoming more widely aware in developing nations. This is driven by the recognition of its positive effects on both the environment and the economy, as well as an increased awareness of the importance of environmental safety. Businesses are making genuine efforts to demonstrate their dedication to sustainable practices. This paper aims to investigate how implementing green supply chain management in a developing country like Pakistan affects environmental performance (EP), operational performance (OP), market performance (MP), and overall business performance. This research relies on data obtained through a structured questionnaire administered to 101 supply chain professionals working in manufacturing companies in Pakistan. The conceptual framework for the study was constructed based on existing literature. To assess the hypotheses, Partial Least Squares-Structural Equation Modeling (PLS-SEM) was employed. The findings indicated that although green supply chain management has a positive influence on business performance, this influence was not statistically significant. However, the study revealed significant and positive effects of green supply chain management on market performance (MP), environmental performance (EP), and operational performance (OP). These results suggest that there are opportunities to enhance business performance through improvements in MP, EP, and OP facilitated by green supply chain management practices. In the context of a developing country such as Pakistan, this research adds to the current pool of knowledge by exploring how green supply chain management influences environmental performance (EP), operational performance (OP), market performance (MP), and the overall performance of businesses. The outcomes provide valuable insights for supply chain management professionals interested in implementing green supply chain practices. Additionally, the findings offer policy recommendations for organizations looking to advance their green supply chain management initiatives.