Impact of Green Supply Chain Management Practices on Triple Bottom Line Performance and Moderating Effect of Institutional Pressure

Abstract

Parallel to the rapid population growth, manufacturing as one of the supply chain practices should be increased to fulfilling their requirements. Due to the advancement of industry and technology, the needs of human beings are constantly changing and the process of supplying goods and services becomes more complex. Reasoning competition and profit maximization, the manufacturing sector creates severe environmental problems and social problems as well. Under this scenario, conducting research has begun on how manufacturing should take place while conserving the environment. Accordingly, previous literature confirms that green supply chain management is the appropriate solution for overcoming environmental issues.Although several research studies have been conducted to examine this relationship, moderating effects of various pressures on this relationship have not been investigated within the Sri Lankan context. Therefore, this research aims to identify the impact of green supply chain management practices on firms’ triple-bottom-line performance and also examine the moderating effects of regulatory pressure on this relationship. A hundred large-scale manufacturing companies were selected as the sample through the purposive sampling method. Moreover, a questionnaire survey was employed for the data collection, and data was analyzed through confirmatory factor analysis using PLS-SEM software. Findings indicate that significant positive relationship between green supply chain management practices and triple bottom line performance i.e., environmental, economic, and social. Moreover, findings accentuate that regulation pressure moderates the relationship of green supply chain management practices only with environmental and social performances. This explored knowledge will encourage practitioners to implement green practices within their supply chains and it enables the country to achieve sustainable goals.