Green supply chain management and business performance

Abstract

PurposeThe purpose of this paper is to examine the impact of green supply chain management on environmental performance (EP), operational performance (OP), and business performance in the context of a developing country, Jordan. In addition, the mediating effects of environmental and OP on the relationship between green supply chain management and business performance are investigated.Design/methodology/approachThe study is based on survey data collected from 215 manufacturing firms from different industries in Jordan. Validity and reliability analyses were carried out using SPSS and Amos. Direct and indirect effects were tested using structural equation modeling.FindingsThe results revealed that green supply chain management positively and significantly affects both EP and OP. The results also demonstrated that the total effect of green supply chain management on business performance is positive and significant. The direct effect of green supply chain management on business performance proved to be negative, but insignificant. Thus, the total positive effect of green supply chain management on business performance is indirect and fully goes through EP and OP.Originality/valueThis study is one of the first to examine the direct and indirect effects of green supply chain management on business performance, especially in a developing country and the Middle East in particular. Furthermore, this study contributes to the existing body of knowledge by investigating the mediating effects of EP and OP on the green supply chain management and business performance relationship.