Impact of Green Supply Chain Management Practices on the Environmental Performance of Manufacturing Firms Considering Institutional Pressure as a Moderator

Abstract

This study aimed to investigate the influence of green supply chain management practices on the environmental performance of manufacturing firms, with a specific focus on understanding how institutional pressure moderated this relationship. The research design encompassed a holistic approach, incorporating an in-depth examination of the current literature and data collection via a well-structured questionnaire. Random sampling was utilized to gather data from manufacturing companies in Pakistan, and the data analysis employed PLS-SEM. The findings revealed a significant relationship between GSCM practices and the environmental performance of manufacturing firms. Moreover, the study identified that institutional pressure played a moderating role, influencing the strength of this relationship. Notably, the impact of GSCM practices on environmental performance varied under different levels of institutional pressure. This research underscored the importance of considering institutional pressure in understanding the link between GSCM practices and environmental performance. The implications extended to academics and practitioners, providing insights into the nuanced dynamics of sustainable practices in manufacturing settings. Practical implications involved tailoring GSCM strategies based on varying degrees of institutional pressure for optimal environmental outcomes. The original contribution of this study lies in its comprehensive exploration of the interplay between GSCM practices, institutional pressure, and environmental performance. By incorporating institutional pressure as a moderator, the research provided a nuanced understanding of how external influences shaped the effectiveness of GSCM in fostering ecological sustainability within manufacturing firms.