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The effect of green supply chain management practices on corporate environmental performance. Does supply chain competitive advantage matter?

Author

Listed:
  • John Wiredu

    (Northwestern Polytechnical University, China)

  • Qian Yang

    (Northwestern Polytechnical University, China)

  • Agyemang Kwasi Sampene

    (Jiangsu University, Zhenjiang, China)

  • Bright Akwasi Gyamfi

    (Sir Padampat Singhania University, India)

  • Simplice A. Asongu

    (Johannesburg, South Africa)

Abstract

This paper examines the impact of institutional pressure (IP), top management support (TMS), green supply chain management practices (GSCM), and supply chain competitive advantage (SCCA) on corporate environmental performance (EP). We also analyze the mediation effect of GSCM on the interplay between TMS and EP. Additionally, the paper also provides an analysis of the moderating role of SCCA between IP and EP. To attain the objective of this research, we assembled data from 710 business entities within the Shaanxi province of China utilizing a survey design approach. The structural equation model (SEM) was applied to test and assess the hypothetical outline. The study outcomes empirically show that TMS, GSCM, and SCCA positively and significantly impact EP. Interestingly, our study found an insignificant association between IP and EP. The study's results also demonstrate that IP directly relates to top management support. Moreover, the study's empirical findings reveal that GSCM positively mediates IP and EP. The study findings show that SCCA shapes IP and EP's connection. Accordingly, the practical implications of our study’s findings suggest that business managers, investors, and government agencies must know the importance of adopting sustainable practices within the supply chain. Business managers must take action to integrate environmental criteria into supplier selection, evaluate suppliers' environmental performance, and collaborate with eco-friendly suppliers. Hence, government agencies, stakeholders, and business managers can use this information to shape regulations and policies that encourage businesses to adopt sustainable supply chain practices. Offering incentives such as tax benefits or grants for sustainability initiatives can also promote adoption. The study recommends that a business culture that targets improving environmental performance due to institutional pressure and top management support is essential in achieving GSCM practices, thereby promising competitive advantage.

Suggested Citation

  • John Wiredu & Qian Yang & Agyemang Kwasi Sampene & Bright Akwasi Gyamfi & Simplice A. Asongu, 2023. "The effect of green supply chain management practices on corporate environmental performance. Does supply chain competitive advantage matter?," Working Papers of the African Governance and Development Institute. 23/063, African Governance and Development Institute..
    • Handle: RePEc:agd:wpaper:23/063
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    Institutional pressure; Top management support; Competitive advantage; Environmental performance; Green supply chain management practices;
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