Exploring firm performance by institutional pressures driven green supply chain management practices

Waqar Ahmed (Department of Management Sciences, Iqra University, Karachi, Pakistan)
Arsalan Najmi (Department of Management Sciences, Iqra University, Karachi, Pakistan) (Department of Operations and Management Information Systems, University of Malaya, Kuala Lumpur, Malaysia)
Muhammad Arif (Department of Management Sciences, Iqra University, Karachi, Pakistan)
Muhammad Younus (Centre for English Language, Iqra University, Karachi, Pakistan)

Smart and Sustainable Built Environment

ISSN: 2046-6099

Publication date: 24 July 2019

Abstract

Purpose

Environmental concerns are rapidly increasing in the industries across the world. They are a more serious issue, especially, in the developing countries due to the prevalence of old practices and outdated technology. The purpose of this paper is to understand the role of institutional pressure and environmental orientation of the firm in adopting green supply chain management (GSCM) practices, and thereon the effect of GSCM on the firm’s performance.

Design/methodology/approach

By employing survey methodology using purposive sampling technique, the data were collected from 229 respondents who were working as supply chain management professionals in various manufacturing firms. The hypotheses were tested through partial least square structural equation modeling (PLS-SEM).

Findings

The findings reveal that both institutional pressures and environmental orientation significantly impact GSCM practices. The result further shows that GSCM practices have a positive effect on the environmental and economic performance as well as customer effectiveness.

Originality/value

Industries in the developing economies like Pakistan are reluctant to implement GSCM practices due to the perception of ambiguous financial implications. This study signifies that institutional pressures act as an effective driving force for change management and compliance.

Keywords

Citation

Ahmed, W., Najmi, A., Arif, M. and Younus, M. (2019), "Exploring firm performance by institutional pressures driven green supply chain management practices", Smart and Sustainable Built Environment, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/SASBE-04-2018-0022

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Publisher

:

Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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