Role of green innovation and supply chain management in driving sustainable corporate performance

Abstract

Amidst the current demand for sustainable development in the globalized world, a green-orientation emerges as a strategic direction for businesses that increasingly attracts stakeholders because of its significant value for the business viability and sustainable development. The extant literature shows that the studies on CSR's influence on corporate outcomes have diverse approaches. The study explored the link of corporate social responsibility (CSR) and sustainable corporate performance (SCP) of SMEs mediated by green innovation (GI) and green supply chain management (GSCM) in an emerging economy context. The extant literature lacks discussions around the above combined relationship and impact to the sustainability domain. Using the survey method and Partial Least Squared Structural Equation Modeling (PLS-SEM) using 486 primary responses covering middle and senior managers, the study supports role of CSR in driving the sustainable corporate performance (SCP) with the intervention of GI and GSCM. The deliberations advance the current CSR literature and its involvement in the value-creating activities that lead to business performance. Importantly, this study emphasizes the implications of a circular economy in GSCM towards sustainability. Accordingly, it motivates SMEs to make strategic, operational changes that lead to significant environmental, social, and economic impacts.