The Impact of Green Supply Chain Management on Circular Economy Performance: The Mediating Roles of Green Innovations

Abstract

Background: This study investigated the impact of green supply chain management (GSCM) on circular economy (CE) performance. The mediating roles of three green innovation types, namely green product innovation, green process innovation, and green management innovation, are also examined. Methods: This study’s population comprised all companies in the manufacturing sector in Jordan. A simple random method was applied to gather data from 278 companies. The research model was evaluated in terms of validity and reliability, which were found to be satisfactory. Hayes’s PROCESS macro in IBM SPSS was applied for hypothesis testing. Results: The findings showed that GSCM directly and positively affected CE performance. Moreover, GSCM showed positive impacts on the three types of green innovation. In addition, the three innovation types demonstrated positive impacts on CE performance and proved to positively mediate the GSCM–CE performance relationship. Conclusions: The present study is the first, to the best of our knowledge, to examine the mediating effect of green innovations on the GSCM–CE performance relationship. It is also among the first to examine the impact of GSCM on three different types of green innovation that represent technological and non-technological innovations.