Modeling the relationship between organizational performance and green supply chain practices using canonical correlation analysis

Abstract

The world is moving towards a environmental restricted scenario where excellence and growth in business is contingent upon good governance and excellent green sustainability related policies, strategies and long-term values to stay ahead in competition. Green supply chain management (GSCM) practices play an essential role in shaping the way of offering environmental sustainable products and services to customers. Existing research insists that multiple pressure push organizations to navigate towards ‘eco design’, ‘green purchasing’ and ‘cooperation with customers’ leading to green supply chain management. But how these factors exactly impact the organisational performance based on green supply chain management is being explored in this research. Hypothesis developed is tested by using multivariate canonical correlation analysis to model the regression relationship of 54 manufacturing organizations. Green purchasing and eco-design are the main contributors of GSCM’s organisational performance. Cooperation with customer as major roadblock for organisational’s performance and requires management, to ponder over for improved results. The findings coincide with published research articles that were conducted in developing countries, such as Brazil and Jordan, to ensure environmental sustainability with the integration of GSCM practices.