An empirical investigation of green supply chain management (GSCM) and environmental sustainability in Saudi manufacturing SMEs: The mediating role of operations analytics

Abstract

Incorporating sustainability principles into Supply Chain Management (SCM) has received considerable attention in recent years, with a particular emphasis on Green Supply Chain Management (GSCM), which aims to reduce environmental consequences. Saudi Arabia has launched sustainability initiatives; however, the application of green SCM methods in SMEs in Saudi Arabian manufacturing has yet to be explored. Therefore, this research aimed to empirically assess the effect of GSCM in promoting environmental sustainability in Saudi manufacturing SMEs, focusing on the mediating function of operations analytics. Therefore, this study used a quantitative research technique to discover the link between the study variables—a rigorous questionnaire obtained primary data from managers and team leaders. SPSS was used for descriptive statistics, while SMARTPLS was used for structural equation modelling. The measurement model, path analysis, and indirect impact analysis were used to validate the research constructs and analyze the hypothesized associations. The findings support the evidence of direct positive links between green manufacturing, green business practices, eco-design and environmental sustainability in Saudi manufacturing SMEs. Conversely, no evidence was found to support the function of operations analytics as a bridge between green SCM and environmental sustainability. Although operations analytics can improve green SCM processes, more studies are needed to understand its full impact on environmental sustainability outcomes.