Skip to main content

Advertisement

SpringerLink
Log in

Effects of the green supply chain management practices on firm performance and sustainable development

  • Research Article
  • Published:
Environmental Science and Pollution Research Aims and scope Submit manuscript

Abstract

The idea of sustainable development and green supply chain management is considered at the underlying stage in the research and academic fields, particularly in the rising economies of Asia. This research investigates the persuasive force of the firm’s green supply chain management practices with the mediating part of the competitiveness and investment recovery. Data was collected from the 12 ISO 9001 and ISO 14001 leather industries based in Pakistan. We distributed the 350 questionnaires at 12 leather industries, and the questionnaire was also transferred on Google Forms, and 50 questionnaire mail to different individuals who work in leather industries of other cities of Pakistan; out of 350 questionnaires, 183 were filled, and the remaining questionnaires were incomplete, and out of 50 emails, we get the response of 33 emails, and evaluated the model of this study by using the partial least square structural equation modeling PLS-SEM. We interact with the employees of leather industries and try to understand how they are following the green practices in their firms. This research uses resource dependence theory as the theoretical base. This study elaborates how the organization’s behavior is affected by the external resources of the corporation. The actual outcomes uncover that green supply chain management activities positively impacting the firm’s performance, where competitiveness and investment recovery play a mediating role among intra-organizational green practices.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3

Similar content being viewed by others

Data availability

Available upon request

References

  • Abbass K, Song H, Shah SM, Aziz B (2019) Determinants of stock return for non-financial sector: evidence from energy sector of Pakistan. J Bus Fin Aff 8(370):2167–0234

    Google Scholar 

  • Abbass K, Niazi AAK, Qazi TF, Basit A, Song H (2021a) The aftermath of COVID-19 pandemic period: barriers in implementation of social distancing at workplace. Library Hi Tech

  • Abbass K, Tanveer A, Huaming S, Khatiya AA (2021b) Impact of financial resources utilization on firm performance: a case of smes working in Pakistan

  • Abbass K, Qasim MZ, Song H, Murshed M, Mahmood H, Younis I (2022a) A review of the global climate change impacts, adaptation, and sustainable mitigation measures. Env Scie Pol Rese 1–21

  • Abbass K, Song H, Khan F, Begum H, Asif M (2022b) Fresh insight through the VAR approach to investigate the effects of fiscal policy on environmental pollution in Pakistan. Env Sci Pol Resea 29(16):23001–23014

    Article  Google Scholar 

  • Abbass K, Basit A, Niazi AAK, Mufti R, Zahid N, Qazi TF (2022c) Evaluating the social outcomes of COVID-19 pandemic: empirical evidence from Pakistan. Env Sci Pol Resea 1–13

  • Abbass K, Begum H, Alam ASA, Awang AH, Abdelsalam MK, Egdair IMM, Wahid R (2022d) Fresh insight through a Keynesian theory approach to investigate the economic impact of the COVID-19 pandemic in Pakistan. Sustainability 14(3):1054

    Article  CAS  Google Scholar 

  • Aigbedo H (2019) Assessment of the effect of location and financial variables on environmental management performance for industrial goods supply chains. J Environ Manag 236:254–268

    Article  Google Scholar 

  • Ait Sidhoum A, Serra T (2018) Corporate sustainable development. Revisiting the relationship between corporate social responsibility dimensions. Sustain Dev 26(4):365–378

    Article  Google Scholar 

  • Ali QM, Nisar QA, Qammar R, Abbass K (2022) Greening the workforce in higher educational institutions: the pursuance of environmental performance. Env Scie Pol Resea 1–14

  • Assumpção JJ, Campos, L MDS, Jabbour ABLDS, Jabbour CJC, & Vazquez-Brust DAJP (2019). Green Supply Chain Practices: a comprehensive and theoretically multidimensional framework for categorization. Production 29.

  • Auh S, Menguc B (2005) Top management team diversity and innovativeness: the moderating role of interfunctional coordination. Ind Mark Manag 34(3):249–261

    Article  Google Scholar 

  • Balsalobre-Lorente D, Ibáñez-Luzón L, Usman M, Shahbaz M (2022) The environmental Kuznets curve, based on the economic complexity, and the pollution haven hypothesis in PIIGS countries. Renew Energy 185:1441–1455

    Article  CAS  Google Scholar 

  • Bansal P, Roth K (2000) Why companies go green: a model of ecological responsiveness. Acad Manag J 43(4):717–736

    Article  Google Scholar 

  • Begum H, Abbas K, Alam AF, Song H, Chowdhury MT, Ghani ABA (2022) Impact of the COVID-19 pandemic on the environment and socioeconomic viability: a sustainable production chain alternative. foresight

  • Benjamin SE, Nishat MA (2021) Impacts of tanneries wastewater on the vicinal flora of Sheikhupura and Kasur, Pakistan. Ovidius Univ Ann Chem 32(1):90–97

    Article  CAS  Google Scholar 

  • Bokade S, Raut DN (2013) Cost effectiveness and flexibility of reverse logistics for consumables and raw material: an empirical investigation. Int J Supply Chain Manag 2(3):41–46

    Google Scholar 

  • Cadogan JW, Cui CC, Li EKY (2003) Export market-oriented behavior and export performance. Int Mark Rev 17(4):71–89

    Article  Google Scholar 

  • Cankaya SY, & Sezen B (2019). Effects of green supply chain management practices on sustainability performance. J Manuf Technol Manag

  • Chan RY, He H, Chan HK, Wang WY (2012) Environmental orientation and corporate performance: the mediation mechanism of green supply chain management and moderating effect of competitive intensity. Ind Mark Manag 41(4):621–630

    Article  Google Scholar 

  • Chiou T-Y, Chan HK, Lettice F, Chung SH (2011) The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan. Transp Res Part E: Logistics Transp Rev 47(6):822–836

    Article  Google Scholar 

  • Cousins PD, Lawson B, Petersen KJ, & Fugate B. (2019). Investigating green supply chain management practices and performance. Int J Oper Prod Manag

  • Das D (2018) The impact of Sustainable Supply Chain Management practices on firm performance: lessons from Indian organizations. J Clean Prod 203:179–196

    Article  Google Scholar 

  • De Giovanni P, Vinzi VE (2012) Covariance versus component-based estimations of performance in green supply chain management. Int J Prod Econ 135(2):907–916

    Article  Google Scholar 

  • Díaz AEJ, Ping CG (2018) Internal green supply chain management practices influence on firm performance. Eur J Bus Manag 10(33):23–29

    Google Scholar 

  • do Paço A, Shiel C, Alves H (2019) A new model for testing green consumer behavior. J Clean Prod 207:998–1006

    Article  Google Scholar 

  • Esfahbodi A, Zhang Y, Watson G (2016) Sustainable supply chain management in emerging economies: trade-offs between environmental and cost performance. Int J Prod Econ 181:350–366

    Article  Google Scholar 

  • Geng R, Mansouri SA, Aktas E (2017) The relationship between green supply chain management and performance: a meta-analysis of empirical evidences in Asian emerging economies. Int J Prod Econ 183:245–258

    Article  Google Scholar 

  • Ghafoor A (2015). Determinants of leather exports from Pakistan: a time series analysis. 5(2).

  • Ghafoor A, Aslam M, Rasool S (2012) Determinants of leather goods exports: a case of Pakistan. J Bus Econ 4(2):256

    Google Scholar 

  • Ghani NM AMA, Egilmez, G., Kucukvar, M., & Bhutta, M. (2017). From green buildings to green supply chains: an integrated input-output life cycle assessment and optimization framework for carbon footprint reduction policy making.

  • Ghobakhloo M, Tang SH, Zulkifli N, Ariffin MKA (2013) An integrated framework of green supply chain management implementation. Int J Innov Manag Technol 4(1):86

    Google Scholar 

  • Gold AH, Malhotra A, Segars AH (2001) Knowledge management: an organizational capabilities perspective. J Manag Inf Syst 18(1):185–214

    Article  Google Scholar 

  • Green KW, Zelbst PJ, Meacham J, & Bhadauria VS (2012). Green supply chain management practices: impact on performance. Supply Chain Manag: An Int J

  • Grote C, Jones R, Blount G, Goodyer J, Shayler M (2007) An approach to the EuP directive and the application of the economic eco-design for complex products. Int J Prod Res 45(18-19):4099–4117

    Article  Google Scholar 

  • Henseler J, Ringle CM, Sarstedt M (2015) A new criterion for assessing discriminant validity in variance-based structural equation modeling. J Acad Mark Sci 43(1):115–135

    Article  Google Scholar 

  • Ho DC, Au K, Newton E (2002) Empirical research on supply chain management: a critical review and recommendations. Int J Prod Res 40(17):4415–4430

    Article  Google Scholar 

  • Hollos D, Blome C, Foerstl K (2012) Does sustainable supplier co-operation-operation affect performance? Examining implications for the triple bottom line. Int J Prod Res 50(11):2968–2986

    Article  Google Scholar 

  • Huang Y, Haseeb M, Usman M, Ozturk I (2022) Dynamic association between ICT, renewable energy, economic complexity and ecological footprint: Is there any difference between E-7 (developing) and G-7 (developed) countries? Tech Socie 68:101853

  • Jawaad M, Zafar S (2020) Improving sustainable development and firm performance in emerging economies by implementing green supply chain activities. Sustain Dev 28(1):25–38

    Article  Google Scholar 

  • Jayaraman V, Luo Y (2007) Creating competitive advantages through new value creation: a reverse logistics perspective. Acad Manag Perspect 21(2):56–73

    Article  Google Scholar 

  • Jung S, Nam C, Yang DH, Kim S (2018) Does corporate sustainability performance increase corporate financial performance? Focusing on the information and communication technology industry in Korea. Sustain Dev 26(3):243–254

    Article  Google Scholar 

  • Kadarusman YB, Herabadi AG (2018) Improving sustainable development within Indonesian palm oil: the importance of the reward system. Sustain Dev 26(4):422–434

    Article  Google Scholar 

  • Kamal M, Usman M, Jahanger A, Balsalobre-Lorente D (2021) Revisiting the role of fiscal policy, financial development, and foreign direct investment in reducing environmental pollution during globalization mode: evidence from linear and nonlinear panel data approaches. Energies 14(21):6968

    Article  CAS  Google Scholar 

  • Kankaria S, Andukuri A, Hemamailini C & Krishnaveni M (2011). Impact of tannery effluents on ground water and agriculture with a remedial measure. A case study. Paper presented at the International conference on chemical, biological, and environmental sciences (ICCEBS'2011). IMPACT:Bangkok

  • Khan SAR, Qianli D (2017) Impact of green supply chain management practices on firms’ performance: an empirical study from the perspective of Pakistan. Environ Sci Pollut Res 24(20):16829–16844

    Article  Google Scholar 

  • Kock N (2015) Common method bias in PLS-SEM: a full collinearity assessment approach. Int J e-Collab (ijec) 11(4):1–10

    Google Scholar 

  • Kumar S, Luthra S, Haleem A (2013) Customer involvement in greening the supply chain: an interpretive structural modeling methodology. J Ind Eng Int 9(1):1–13

    Article  Google Scholar 

  • Laari S (2016). Green supply chain management practices and firm performance: evidence from Finland.

  • Laari S, Töyli J, Solakivi T, Ojala L (2016) Firm performance and customer-driven green supply chain management. J Clean Prod 112:1960–1970

    Article  Google Scholar 

  • Lai K-H, Wu SJ, Wong CW (2013) Did reverse logistics practices hit the triple bottom line of Chinese manufacturers? Int J Prod Econ 146(1):106–117

    Article  Google Scholar 

  • Lakshmimeera B, & Palanisamy C. (2013). A conceptual framework on green supply chain management practices. 3(10).

  • Lee SM, Rha JS, Choi D & Noh Y. (2013). Pressures affecting green supply chain performance.

  • Li G, Li L, Choi TM, Sethi SP (2020) Green supply chain management in Chinese firms: innovative measures and the moderating role of quick response technology. J Oper Manag 66(7-8):958–988

    Article  Google Scholar 

  • Lin Y, Wu L-Y (2014) Exploring the role of dynamic capabilities in firm performance under the resource-based view framework. J Bus Res 67(3):407–413

    Article  Google Scholar 

  • Linton JD, Klassen R, Jayaraman V (2007) Sustainable supply chains: an introduction. J Oper Manag 25(6):1075–1082

    Article  Google Scholar 

  • Liu S, Chang Y-T (2017) Manufacturers’ closed-loop orientation for the green supply chain management. Sustainability 9(2):222

    Article  Google Scholar 

  • Longoni A, Cagliano R. (2018). Inclusive environmental disclosure practices and firm performance: the role of green supply chain management.

  • Mamdouh O, Kadry K & El Ahmady B (2018). Impact of sustainable supply chain management practices on Egyptian companies’ performance.

  • Min H, Galle WP (1997) Green purchasing strategies: trends and implications. Int J Purch Mater Manag 33(2):10–17

    Google Scholar 

  • Mitra S, Datta PP (2014) Adoption of green supply chain management practices and their impact on performance: an exploratory study of Indian manufacturing firms. Int J Prod Res 52(7):2085–2107

    Article  Google Scholar 

  • Mohindra K (2008) Greening public health conferences: educating ourselves. Health Educ

  • Mumtaz U, Ali Y, Petrillo A (2018) A linear regression approach to evaluate the green supply chain management impact on industrial organizational performance. Sci Total Environ 624:162–169

    Article  CAS  Google Scholar 

  • Murray JY, Gao GY, Kotabe M (2011) Market orientation and performance of export ventures: the process through marketing capabilities and competitive advantages. J Acad Mark Sci 39(2):252–269

    Article  Google Scholar 

  • Murshed M, Abbass K, Rashid S (2021) Modelling renewable energy adoption across south Asian economies: empirical evidence from Bangladesh, India, Pakistan and Sri Lanka. Int J Finan Econ 26(4):5425–5450

    Article  Google Scholar 

  • Pekkanen TL, Pätäri S, Albadera L, Jantunen A (2018) Who cares about product sustainability information at the moment of purchase? Consumer evidence from three countries. Sustain Dev 26(3):229–242

    Article  Google Scholar 

  • Pfeffer J, & Gerald R (1978). Salancik. 1978. The external control of organizations: a resource dependence perspective. In: New York: Harper & Row.

  • Pfeffer J, Salancik GR (2003) The external control of organizations: a resource dependence perspective. Stanford University Press, Stanford

    Google Scholar 

  • Qader MR, Khan S, Kamal M, Usman M, Haseeb M (2022) Forecasting carbon emissions due to electricity power generation in Bahrain. Envir Scie Pol Resea 29(12):17346–17357

    Article  Google Scholar 

  • Ringle C, Wende S, Becker J (2015) SmartPLS. “SmartPLS 3”. SmartPLS GmbH. In, Boenningstedt

    Google Scholar 

  • Saeed A, Jun Y, Nubuor SA, Priyankara HPR, Jayasuriya MPF (2018) Institutional pressures, green supply chain management practices on environmental and economic performance: a two theory view. Sustainability 10(5):1517

    Article  Google Scholar 

  • Salem MA, Shawtari F, Shamsudin MF, Hussain HBI (2018) The consequences of integrating stakeholder engagement in sustainable development (environmental perspectives). Sustain Dev 26(3):255–268

    Article  Google Scholar 

  • Santoro G, Ferraris A, Giacosa E, Giovando G (2018) How SMEs engage in open innovation: a survey. J Knowl Econ 9(2):561–574

    Article  Google Scholar 

  • Sari K (2017) A novel multi-criteria decision framework for evaluating green supply chain management practices. Comput Ind Eng 105:338–347

    Article  Google Scholar 

  • Sarkis J (2006) Greening the supply chain. Springer, Dordrecht

    Book  Google Scholar 

  • Sarkis J, Zhu Q, Lai K-H (2011) An organizational theoretic review of green supply chain management literature. Int J Prod Econ 130(1):1–15

    Article  Google Scholar 

  • Seles BMRP, de Sousa Jabbour ABL, Jabbour CJC, Latan H, Roubaud D (2019) Do environmental practices improve business performance even in an economic crisis? Extending the win-win perspective. Ecol Econ 163:189–204

    Article  Google Scholar 

  • Seuring S, Müller M (2008a) Core issues in sustainable supply chain management–a Delphi study. Bus Strateg Environ 17(8):455–466

    Article  Google Scholar 

  • Seuring S, Müller M (2008b) From a literature review to a conceptual framework for sustainable supply chain management. J Clean Prod 16(15):1699–1710

    Article  Google Scholar 

  • Sharma VK, Chandna P, Bhardwaj A (2017) Green supply chain management related performance indicators in agro industry: a review. J Clean Prod 141:1194–1208

    Article  Google Scholar 

  • Siddiqui A, Uroos A & Nadeem F. (2016). Sectoral competitiveness and value chain analysis: leather gloves value chain analysis in Pakistan.

  • Thamsatitdej P, Boon-Itt S, Samaranayake P, Wannakarn M, Laosirihongthong T (2017) Eco-design practices towards sustainable supply chain management: interpretive structural modelling (ISM) approach. Int J Sustain Eng 10(6):326–337

    Article  Google Scholar 

  • Trujillo-Gallego M & Sarache W. (2019). An integral GSCM index for assessment of environmental performance in manufacturing companies.

  • Usman M, Makhdum MSA (2021) What abates ecological footprint in BRICS-T region? Exploring the influence of renewable energy, non-renewable energy, agriculture, forest area and financial development. Renew Energy 179:12–28

    Article  Google Scholar 

  • Usman M, Balsalobre-Lorente D (2022) Environmental concern in the era of industrialization: can financial development, renewable energy and natural resources alleviate some load? Energy Pol 62:112780

  • Usman M, Makhdum MSA, Kousar R (2020) Does financial inclusion, renewable and non-renewable energy utilization accelerate ecological footprints and economic growth? Fresh evidence from 15 highest emitting countries. Sust Citie Socie 65:102590

  • Usman M, Khalid K, Mehdi MA (2021) What determines environmental deficit in Asia? Embossing the role of renewable and non-renewable energy utilization. Renew Energy 168:1165–1176

    Article  Google Scholar 

  • Usman M, Kousar R, Makhdum MSA, Yaseen MR, Nadeem AM (2022a) Do financial development, economic growth, energy consumption, and trade openness contribute to increase carbon emission in Pakistan? An insight based on ARDL bound testing approach. Env Dev Sust 1–30

  • Usman M, Balsalobre-Lorente D, Jahanger A, Ahmad P (2022b) Pollution concern during globalization mode in financially resource-rich countries: Do financial development, natural resources, and renewable energy consumption matter? Renew Energy 183:90–102

    Article  Google Scholar 

  • Vasileiou, K & Morris J. (2006). The sustainability of the supply chain for fresh potatoes in Britain.

  • Wahat NWA, Idris K. (2012). Considering on green supply chain management drivers, as a strategic organizational development approach, Malaysian Perspective 6

  • Walker H, Di Sisto L, McBain D (2008) Drivers and barriers to environmental supply chain management practices: lessons from the public and private sectors. J Purch Supply Manag 14(1):69–85

    Article  Google Scholar 

  • Walton SV, Handfield RB, Melnyk SA (1998) The green supply chain: integrating suppliers into environmental management processes. Int J Purch Mater Manag 34(1):2–11

    Google Scholar 

  • Ward PT, Duray R (2000) Manufacturing strategy in context: environment, competitive strategy and manufacturing strategy. J Oper Manag 18(2):123–138

    Article  Google Scholar 

  • Yacob P, Wong LS, & Khor SC (2019). An empirical investigation of green initiatives and environmental sustainability for manufacturing SMEs. J Manuf Technol Manag

  • Yang C-S, Lu C-S, Haider JJ, Marlow PB (2013) The effect of green supply chain management on green performance and firm competitiveness in the context of container shipping in Taiwan. Transp Res Part E: Logistics Transp Rev 55:55–73

    Article  Google Scholar 

  • Zailani S, Govindan K, Iranmanesh M, Shaharudin MR, Chong YS (2015) Green innovation adoption in automotive supply chain: the Malaysian case. J Clean Prod 108:1115–1122

    Article  Google Scholar 

  • Zhu Q, Sarkis J (2004) Relationships between operational practices and performance among early adopters of green supply chain management practices in Chinese manufacturing enterprises. J Oper Manag 22(3):265–289

    Article  Google Scholar 

  • Zhu Q, Sarkis J, Lai K-H (2007) Green supply chain management: pressures, practices and performance within the Chinese automobile industry. J Clean Prod 15(11-12):1041–1052

    Article  Google Scholar 

  • Zhu Q, Sarkis J, Lai K-H (2008) Confirmation of a measurement model for green supply chain management practices implementation. Int J Prod Econ 111(2):261–273

    Article  Google Scholar 

  • Zhu Q, Geng Y, Sarkis J, Lai K-H (2011) Evaluating green supply chain management among Chinese manufacturers from the ecological modernization perspective. Transp Res Part E: Logistics Transp Rev 47(6):808–821

    Article  Google Scholar 

  • Zhu Q, Sarkis J, Lai K-H (2013) Institutional-based antecedents and performance outcomes of internal and external green supply chain management practices. J Purch Supply Manag 19(2):106–117

    Article  Google Scholar 

  • Zhu Q, Feng Y, Choi S-B (2017) The role of customer relational governance in environmental and economic performance improvement through green supply chain management. J Clean Prod 155:46–53

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Business & Management Sciences, The Superior University Lahore, Lahore, Pakistan

    Ahmad Amjad & Yasir Hussain

  2. School of Economics and Management, Nanjing University of Science and Technology, Nanjing, 210094, China

    Kashif Abbass

  3. School of Public Administration, Nanjing Agriculture University, Nanjing, 210095, China

    Farina Khan

  4. Department of Economics & Business Administration, University of Education, Multan Campus, Lahore, Pakistan

    Shahzad Sadiq

Authors
  1. Ahmad Amjad
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Kashif Abbass
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Yasir Hussain
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Farina Khan
    View author publications

    You can also search for this author in PubMed Google Scholar

  5. Shahzad Sadiq
    View author publications

    You can also search for this author in PubMed Google Scholar

Contributions

The idea of the original draft belongs to Ahmad Amjad and Kashif Abbass. Ahmad Amjad writes the introduction, literature review, and empirical outcome sections. Kashif Abbass, Yasir Khan, Shahzad Sadiq, and Farina Khan helped in data collection and data compiling, and visualized data of observed variables. Kashif Abbass and Ahmad Amjad constructed the methodology section in the study. All the authors read and approved the final manuscript.

Corresponding author

Correspondence to Kashif Abbass.

Ethics declarations

Ethics approval and consent to participate

The authors confirmed that this manuscript has not been published elsewhere and is not under consideration by another journal. Ethical approval and informed consent are not applicable for this study.

Consent for publication

Not applicable.

Competing interests

The authors declare no competing interests.

Additional information

Responsible Editor: Arshian Sharif

Publisher’s note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Amjad, A., Abbass, K., Hussain, Y. et al. Effects of the green supply chain management practices on firm performance and sustainable development. Environ Sci Pollut Res 29, 66622–66639 (2022). https://doi.org/10.1007/s11356-022-19954-w

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11356-022-19954-w

Keywords

Search

Navigation