Green Supply Chain Management Practices and Organizational Performance: A Mediated Moderation Model with Second-Order Constructs

Abstract

This study highlights the rising significance of green supply chain management practices (GSCMPs) in elevating organizational performance (OP) within the Bangladeshi manufacturing sector. GSCMPs, structured as the single second-order independent construct, were formed by three first-order independent constructs: green eco-design (GED), green supply chain partnering (GSCP), and internal green orientation (IGO). This study proposes that GSCMPs can contribute to the overall OP, structured as the single second-order dependent construct, comprising financial performance (FP), marketing performance (MP), and environmental performance (EP) as its first-order dependent constructs. Furthermore, this research involved the mediating role of perceived competitive advantage (PCA) on the relationship between GSMPs and OP as well as the moderating role of supply chain leadership skill (SCLS) on the relationship between PCA and OP. Primary data were gathered from 340 Bangladeshi respondents involved in higher-level and mid-level management roles at different manufacturing firms using a structured survey questionnaire. Partial least square-based structural equation modeling (PLS-SEM) was employed for statistical analysis using Smart-PLS 4.0. GSCMPs exhibited a significant positive correlation with OP. Additionally, PCA was found to partially mediate the relationship between GSCMPs and OP, while SCLS was found to strengthen the positive relationship between PCA and OP. This study explores the GSCMPs-OP nexus in the Bangladeshi manufacturing sector, aiming to inspire further theoretical and empirical studies. The findings offer insights for policymakers and managers in formulating and executing GSCM-related policies and strategies.