Impact of Green Supply Chain Management Practices on Employee Engagement and Organizational Commitment: Mediating Role of Firm Performance

Abstract

This study extends the knowledge in green supply chain research by investigating the impacts of green supply chain management (GSCM) practices on employee engagement and organizational commitment through firm performance. The 268 respondents included in this study were employees of firms that implemented GSCM in Thailand. Our structural model was analysed using partial least squares structural equation model (PLS-SEM). The results revealed that only social and operating performance mediated the impact of four different GSCM practices on employee engagement and organizational commitment, including environmental education, green marketing and green warehousing and distribution which have positive effects, and green manufacturing which has a negative effect on firm performance. Though these four GSCM practices are reported to have a significant influence on environmental and marketing performance, these two aspects of performance failed to mediate the relationship of these practices with employee engagement and organizational commitment. The results suggest that in order to enhance employee engagement and organizational commitment, firms should invest more in GSCM practice drivers of social and operating performance. These include environmental education, green marketing and green warehousing and distribution. Thus, we explained more clearly the mechanisms under which GSCM practices influence employee engagement and organizational commitment.