Abstract
Purpose: The study investigates the role of institutional pressures and environmental orientation in implementing green supply chain practices (GSCPs) in firms. The aim is to construct a comprehensive model based on institutional theory (InT) and resource-based view (RBV) that will help study the effect of GSCPs on performance-based outcomes of industrial firms. Study Design: The study adopted a cross-sectional design, and data were collected from 351 supply chain management professionals from different manufacturing companies in Saudi Arabia. Furthermore, a questionnaire was structured to collect data, and the hypothesis of the study was tested using the PLS-SEM modeling. Findings: The study findings showed a significant effect of institutional pressure on GSCPs. Also, another significant impact of environmental orientation on GSCPs was noted. Lastly, GSCPs of manufacturing companies have a significantly positive effect on economic and ecological performances. Originality: This paper is one of the first to include institutional theory, the resource-based view, institutional pressures, environmental orientation, GSCPs, and company performances outcomes. Also, the paper provides details about performance outcomes by scattering Green Supply Chain Management (GSCM) practices and gives direction to managers for the successful implementation of these practices.
Highlights
Industrial leaders are under pressure to develop greater environmental responsibility due to the increase in global pressure from stakeholders in terms of climatic change and its implications [1]
According to [62], the second dimension based on what was stated in the average value of the extracted variance (AVE) should be more than 0.5
The institutional pressures affect government institutions, competitors, and customers and push them to enhance the successful implementation of Green Supply Chain Management (GSCM)
Summary
Industrial leaders are under pressure to develop greater environmental responsibility due to the increase in global pressure from stakeholders in terms of climatic change and its implications [1]. Greening efforts by manufacturing firms to develop environmentally friendly products, systems, technologies, processes, and business practices have become popular due to growing societal awareness of the environment [2]. According to [3,4], green supply chain management, sustainable supply chain management, and environmentally sustainable supply chain management are interlinked and contribute towards goal achievement by minimizing the adverse effects of the firm’s operations on the environment. [5] state that the interlinkage of environmental management with the supply chain is critical in sustaining corporate development. The supply chain aims to reduce emissions. The trade-offs in the supply chain are quality, carbon, cost, and service [6]. The supply chain is critical to greening manufacturers. The supply chain has a close interaction with
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