Impact of Green Supply Chain Practices on Competitive Advantage With Mediating Role of Green Innovation An Empirical Study from Pakistan Manufacturing Industry

Abstract

The emerging environmental challenges and awareness of public, as well as the implementation of governmental regulations, have forced organizations to incorporate environmental practices such as green innovation and green supply chain management (GSCM). Accordingly, both practices are crucial for firms to withstand in dynamic environment by gaining competitive advantage. However, research on relationship of green supply chain management, competitive advantage and green innovation is relatively rare in context of Pakistan. Therefore, this study is aimed to provide empirical evidence showing that green innovation and GSCM practices significantly enhance competitive advantage of manufacturing organizations which further encourage organizations to implement these practices. The total of 270 questionnaires were distributed among supply chain managers, procurement managers and supply chain employees in manufacturing organizations located in Islamabad and Rawalpindi, out of which 243 responses were collected back. By means of SPSS-23 the study analyzed 243 responses. The results revealed that there is a significant and positive relationship between GSCM, green innovation, and competitive advantage (p<0.05).Furthermore, green innovation had a mediating relationship between GSCM and competitive advantage (p<0.05). In brief, the outcomes of this study provide enhanced understanding about the significant role of green innovation for manufacturers for improving their GSCM practices and competitive advantage.