Green supply chain technology and organization performance: Moderating role of environmental dynamism and product-service innovation capability

Abstract

The green supply chain management (GSCM) system is considered as an environmentally friendly approach which considers different environmental issues in supply chain flow. There are different underlying technologies used in implementing GSCM; yet, we still have limited knowledge concerning how green SCM technology can enhance organizational performance. Further, the conditions that indirectly affect organizational performance within this context remain underexplored. Drawing on this gap of knowledge, the purpose of this research work is to investigate how adoption of GSCM can improve organizational performance. We also argue that the dynamism of the environment and the product-service innovation capability of organizations will have conditioning effects on this relationship. Grounded on the dynamic capability view as a theoretical lens, a conceptual model has been developed which is explored through feedback from 307 organizations involved in green supply chain management activities. We find that environmental dynamism and product-service innovation capability have moderating impacts on adopting green supply chain technology and organizational performance. The outcomes also indicate that green supply chain technology can considerably improve business value under certain contextual factors.