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

Author

Listed:
  • Muhammad Talha Khan

    (Department of Industrial Engineering and Management, Dawood University of Engineering and Technology, Karachi 74800, Pakistan)

  • Muhammad Dawood Idrees

    (Department of Industrial Engineering and Management, Dawood University of Engineering and Technology, Karachi 74800, Pakistan)

  • Muhammad Rauf

    (Department of Electronic Engineering, Dawood University of Engineering and Technology, Karachi 74800, Pakistan)

  • Abdul Sami

    (Department of Electronic Engineering, Dawood University of Engineering and Technology, Karachi 74800, Pakistan)

  • Arsalan Ansari

    (Department of Electronic Engineering, Dawood University of Engineering and Technology, Karachi 74800, Pakistan)

  • Atif Jamil

    (Department of Computer Systems Engineering, Dawood University of Engineering and Technology, Karachi 74800, Pakistan)

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.

Suggested Citation

  • Muhammad Talha Khan & Muhammad Dawood Idrees & Muhammad Rauf & Abdul Sami & Arsalan Ansari & Atif Jamil, 2022. "Green Supply Chain Management Practices’ Impact on Operational Performance with the Mediation of Technological Innovation," Sustainability, MDPI, vol. 14(6), pages 1-22, March.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:6:p:3362-:d:770173
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