Impact of Green Supply Chain and Green Innovation on Business Performance and Environmental Sustainability
DOI:
https://doi.org/10.62843/jssr.v6i1.709Keywords:
Green Supply Chain Management, Green Innovation, Business Performance, Environmental Sustainability, Pakistani Industries, SmartPLSAbstract
This paper examines how Green Supply Chain Management (GSCM) is relevant to enhancing company performance and environmental sustainability in Pakistani industries. The study is conducted using a quantitative and cross-sectional research design, and primary data were collected through a structured questionnaire from 200 participants working in various industrial sectors in Pakistan. Analysis of the responses was done using SmartPLS 4, with Partial Least Squares Structural Equation Modelling. The results of the measurement model established that the constructs were within the required standards of reliability, validity and collinearity. The structural results revealed that GSCM was positively related to business performance, environmental sustainability and green innovation. The findings also revealed that green innovation positively impacted business and environmental performance. The strongest overall relationship was between GSCM and environmental sustainability, whereas the model fit was reasonable, with an SRMR value of 0.065. In general, the results indicate that GSCM is not only helpful in improving the environment, but also acts as an organisational capability that can promote innovation and business development. The research adds empirical evidence from Pakistan and provides practical implications for managers and policymakers who want to enhance sustainability and organisational performance simultaneously.
References
Abu Seman, N. A., Govindan, K., Mardani, A., Zakuan, N., Mat Saman, M. Z., Hooker, R. E., Ozkul, S., & Zaid, A. (2019). The mediating effect of green innovation on the relationship between green supply chain management and environmental performance. Journal of Cleaner Production, 229, 115–127. https://doi.org/10.1016/j.jclepro.2019.03.211
Ali, W., Wen, J., Hussain, H., Khan, N. A., Younas, M. W., & Jamil, I. (2021). Does green intellectual capital matter for green innovation adoption? Evidence from the manufacturing SMEs of Pakistan. Journal of Intellectual Capital, 22(5), 868–888. https://doi.org/10.1108/jic-06-2020-0204
Anser, M. K., Khan, M. A., Awan, U., Batool, R., Zaman, K., Imran, M., Sasmoko, Indrianti, Y., Khan, A., & Bakar, Z. A. (2020). The role of technological innovation in a dynamic model of the environmental supply chain curve: Evidence from a panel of 102 countries. Processes (Basel, Switzerland), 8(9), 1033. https://doi.org/10.3390/pr8091033
Bu, X., Dang, W. V. T., Wang, J., & Liu, Q. (2020). Environmental orientation, green supply chain management, and firm performance: Empirical evidence from Chinese small and medium-sized enterprises. International Journal of Environmental Research and Public Health, 17(4), E1199. https://doi.org/10.3390/ijerph17041199
Chan, R. Y. K., Lai, J. W. M., & Kim, N. (2022). Strategic motives and performance implications of proactive versus reactive environmental strategies in corporate sustainable development. Business Strategy and the Environment, 31(5), 2127–2142. https://doi.org/10.1002/bse.3011
El Korchi, A. (2022). Survivability, resilience and sustainability of supply chains: The COVID-19 pandemic. Journal of Cleaner Production, 377(134363), 134363. https://doi.org/10.1016/j.jclepro.2022.134363
Feng, M., Yu, W., Wang, X., Wong, C. Y., Xu, M., & Xiao, Z. (2018). Green supply chain management and financial performance: The mediating roles of operational and environmental performance. Business Strategy and the Environment, 27(7), 811–824. https://doi.org/10.1002/bse.2033
Feng, Y., Lai, K.-H., & Zhu, Q. (2022). Green supply chain innovation: Emergence, adoption, and challenges. International Journal of Production Economics, 248(108497), 108497. https://doi.org/10.1016/j.ijpe.2022.108497
Gelmez, E., Özceylan, E., & Mrugalska, B. (2024). The impact of green supply chain management on green innovation, environmental performance, and competitive advantage. Sustainability, 16(22), 9757. https://doi.org/10.3390/su16229757
Hebaz, A., & Oulfarsi, S. (2021). The drivers and barriers of green supply chain management implementation: A review. Acta Logistica, 8(2), 123–132. https://doi.org/10.22306/al.v8i2.211
Ivanov, D., Dolgui, A., & Sokolov, B. (2022). Cloud supply chain: Integrating Industry 4.0 and digital platforms in the “Supply Chain-as-a-Service.” Transportation Research Part E: Logistics and Transportation Review, 160(102676), 102676. https://doi.org/10.1016/j.tre.2022.102676
Jum’a, L., Zimon, D., & Ikram, M. (2021). A relationship between supply chain practices, environmental sustainability and financial performance: Evidence from manufacturing companies in Jordan. Sustainability, 13(4), 2152. https://doi.org/10.3390/su13042152
Jun, W., Ali, W., Bhutto, M. Y., Hussain, H., & Khan, N. A. (2019). Examining the determinants of green innovation adoption in SMEs: a PLS-SEM approach. European Journal of Innovation Management, 24(1), 67–87. https://doi.org/10.1108/ejim-05-2019-0113
Kazancoglu, I., Ozbiltekin-Pala, M., Mangla, S. K., Kumar, A., & Kazancoglu, Y. (2023). Using emerging technologies to improve the sustainability and resilience of supply chains in a fuzzy environment in the context of COVID-19. Annals of Operations Research, 322(1), 217–240. https://doi.org/10.1007/s10479-022-04775-4
Khan, S. A. R., Zhang, Y., & Nathaniel, S. (2020). Green supply chain performance and environmental sustainability: A panel study. Logforum, 16(1), 141–159. https://doi.org/10.17270/j.log.2020.394
Lamb, W. F. (2016). Which countries avoid carbon-intensive development? Journal of Cleaner Production, 131, 523–533. https://doi.org/10.1016/j.jclepro.2016.04.148
Lamb, W. F., Grubb, M., Diluiso, F., & Minx, J. C. (2022). Countries with sustained greenhouse gas emissions reductions: an analysis of trends and progress by sector. Climate Policy, 22(1), 1–17. https://doi.org/10.1080/14693062.2021.1990831
Mahar, A. S., Zhang, Y., Sadiq, B., & Gul, R. F. (2025). Sustainability transformation through green supply chain management practices and green innovations in Pakistan’s manufacturing and service industries. Sustainability, 17(5), 2204. https://doi.org/10.3390/su17052204
Munir, K., & Ameer, A. (2020). Nonlinear effect of FDI, economic growth, and industrialization on environmental quality: Evidence from Pakistan. Management of Environmental Quality, 31(1), 223–234. https://doi.org/10.1108/meq-10-2018-0186
Ninlawan, C., Seksan, P., Tossapol, K., & Pilada, W. (2010). The implementation of green supply chain management practices in electronics industry. In World Congress on Engineering, 2182, 1563–1568.
Novitasari, M., & Agustia, D. (2021). Green supply chain management and firm performance: The mediating effect of green innovation. Journal of Industrial Engineering and Management, 14(2), 391. https://doi.org/10.3926/jiem.3384
Ojo, E., Mbohwa, C., & Akinlabi, E. (2013). Green supply chain management in developing countries. SB13, 119.
Rahman, H. U., Zahid, M., Ullah, M., & Al-Faryan, M. A. S. (2023). Green supply chain management and firm sustainable performance: The awareness of China Pakistan Economic Corridor. Journal of Cleaner Production, 414(137502), 137502. https://doi.org/10.1016/j.jclepro.2023.137502
Rahman, T., Ali, S. M., Moktadir, M. A., & Kusi-Sarpong, S. (2020). Evaluating barriers to implementing green supply chain management: An example from an emerging economy. Production Planning & Control, 31(8), 673–698. https://doi.org/10.1080/09537287.2019.1674939
Raza, M. A., Khatri, K. L., Israr, A., Ul Haque, M. I., Ahmed, M., Rafique, K., & Saand, A. S. (2022). Energy demand and production forecasting in Pakistan. Energy Strategy Reviews, 39(100788), 100788. https://doi.org/10.1016/j.esr.2021.100788
Rupa, R. A., & Saif, A. N. M. (2022). Impact of green supply chain management (GSCM) on business performance and environmental sustainability: Case of a developing country. Business Perspectives and Research, 10(1), 140–163. https://doi.org/10.1177/2278533720983089
Sarkis, J. (2020). Supply chain sustainability: learning from the COVID-19 pandemic. International Journal of Operations & Production Management, 41(1), 63–73. https://doi.org/10.1108/ijopm-08-2020-0568
Shahbaz, M. H., Ahmad, S., & Malik, S. A. (2025). Green intellectual capital heading towards green innovation and environmental performance: assessing the moderating effect of green creativity in SMEs of Pakistan. International Journal of Innovation Science, 17(3), 683–704. https://doi.org/10.1108/ijis-08-2023-0169
Shahid, H. M., Waseem, R., Khan, H., Waseem, F., Hasheem, M. J., & Shi, Y. (2020). Process innovation as a moderator linking sustainable supply chain management with sustainable performance in the manufacturing sector of Pakistan. Sustainability, 12(6), 2303. https://doi.org/10.3390/su12062303
Shen, M., Huang, W., Chen, M., Song, B., Zeng, G., & Zhang, Y. (2020). Micro)plastic crisis: Un-ignorable contribution to global greenhouse gas emissions and climate change. Journal of Cleaner Production, 254.
Singh, R. L., & Singh, P. K. (2016). Global environmental problems. In Principles and applications of environmental biotechnology for a sustainable future (pp. 13-41). Singapore: Springer Singapore.
Vachon, S., & Klassen, R. D. (2006). Extending green practices across the supply chain: The impact of upstream and downstream integration. International Journal of Operations & Production Management, 26(7), 795–821. https://doi.org/10.1108/01443570610672248
Watto, W. A., Abubakar, M., Kouser, R., Quddus, A., & Fayaz, M. (2025). Green supply chain management practices and sustainable firm performance via green dynamic capacity and green entrepreneurial orientation (GEO) mediation of green innovation. International Journal of Innovation Science. https://doi.org/10.1108/ijis-08-2024-0247
Zheng, L., & Iatridis, K. (2022). Friends or foes? A systematic literature review and meta‐analysis of the relationship between eco‐innovation and firm performance. Business Strategy and the Environment, 31(4), 1838–1855. https://doi.org/10.1002/bse.2986
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Copyright in the Journal of Social Sciences Review is retained by the author(s). Authors also grant any third party the right to use the article freely as long as its integrity is maintained and its original authors, citation details and publisher are identified.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
JSSR's Editorial Board shares the vision of providing free access to information, education, and science for everyone, thus promoting its content through an OPEN ACCESS POLICY, fulfilling the DOAJ definition of open access. The JSSR adheres to an Open Access and Copyright Licensing Policy based on the belief that making research freely accessible to the public promotes greater global knowledge sharing.
The JSSR uses the Creative Commons Attribution-NonCommercial 4.0 International License. The authors who apply and publish in JSSR consent to abide by the copyright policy set out in the Creative Commons 4.0 license (Attribution-NonCommercial 4.0 International license).
- Copyright in the Journal of Social Sciences Review is retained by the author(s).
- Authors also grant any third party the right to use the article freely as long as its integrity is maintained and its original authors, citation details and publisher are identified.
While "By 'open access' to this literature, we mean its free availability on the public internet, permitting any users to read, download, copy, distribute, print, search, or link to the full texts of these articles, crawl them for indexing, pass them as data to software, or use them for any other lawful purpose, without financial, legal, or technical barriers other than those inseparable from gaining access to the internet itself."
