GREEN SUPPLY CHAIN MANAGEMENT & ORGANIZATIONAL PERFORMANCE OF SME’s IN KARACHI

Abstract

Purpose: The purpose of this research is to explore relationship between green supply chain management (SCM) systems and business performance of company. More precisely, the current study investigates the outcome of green SCM exertions on corporate functioning of small and middle enterprises (SMEs) using more organization’s aspects. Methodology & Design: The research model which relate green SCM systems with business performance using three factors i.e. workers job satisfactions, operating efficiency and relational efficiency as moderating variable. Statistical analysis were based on data gathered, by means of survey questionnaires, from small and middle enterprises (SMEs) located mostly in Karachi, Pakistan. Validity and reliability of variables were tested using PLS-SEM analysis technique using smartPLS software version 3.2.8. Structural equation modeling was employed to test hypothesis linking green supply chain management (SCM) systems and business performance. Findings: The current study found statistical insignificance and negative connection between green SCM systems application and employee job satisfaction. Moreover statistical significance direct relationship of green SCM systems application with operational efficiency and relational efficiency has been evidenced. Statistical significant direct relationship found • between workers job satisfaction and operation efficiency, similar relationship exist between operational efficiency and relational efficiency. Also, significant direct relationships found between green SCM systems application and firm corporate performance owing to mediating role of workers job satisfaction, operational efficiency and relational efficiency. The result shows that firm’s corporate/business functioning will be enhanced when there is boosts workersjob satisfaction, operational efficiency and operational efficiency Limitations: The research had several drawback. The biggest drawback this research could have is the COVID-19 pandemic. Another is the time constraint, the data was collected within a month duration. Moreover small sample size is another constraint. Financial constraint is also effect this research, all the data was collected using free platforms and social media tools. In this study quantitative design was used. The variable used here may also be considered limited. The research has used a five-point Likert scale questionnaire for the collection of data. Data and statistics have been extracted only from the Pakistan and target population is taken from the cosmopolitan city ofKarachi. Recommendations: Analysis had shown insignificant negative relationship between application of green SCM habits and employee job satisfaction so, the human resource (HR) managers should seek steps to motivate workers to their assigned task. It is also recommended that first line managers take deep interest in activities related to application of green SCM at production floor as this application has direct significant influence on operational efficiency which also effected business performance of the firm. First line managers are also responsible for involvement in green initiative as operational efficiency play mediating role between application of green SCM systems and corporate performance of organization. Moreover it is recommended that supply chain managers should actively share responsibility of application of green SCM systems because they are main player to implement green agenda. Also green SCM systems has significant positive effect on relational efficiency of firm which further effected firm business performance.