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

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.