Green supply chain and customer satisfaction in modern retailing: a dual-perception analysis with SEM approach

In this age of circular economy, amid rising social and environmental concerns, companies and customers are increasingly aware of eco-friendly supply chain implementation. The study aims to investigate twofold perceptions (customers' and employees') regarding the effect of green supply chain management (GSCM) on customer satisfaction (CS) through product quality, service quality, and product-service cost. A survey was conducted with structured questionnaires encompassing 509 valid participants (398 customers and 111 employees). This study provides two key findings using structural equation modelling (SEM) and confirmatory factor analysis (CFA). First, according to customers' perception, GSCM does not have a direct impact on CS; it has a positive and statistically significant impact (indirect) on CS when product quality (PQ), service quality (SQ), and product-service cost (PSC) are there as mediators. Second, as per employees' perception, GSCM does not directly affect customer satisfaction; however, a positive and statistically significant indirect relationship exists where only PQ and PSC mediate the relationship. The findings bridge gaps in green supply chain literature, demonstrating how, from an environmental aspect, taking care of product quality, service quality, and cost results in increased customer satisfaction and provides invaluable contributions to understanding green supply chain behaviour.