Implementing Green Supply Chain Management (GSCM) Practices and Observing Firm’s Competitive Advantage: A Study of Small and Medium Enterprises (SME’s) of Islamabad/ Rawalpindi

Abstract

This research examines the competitive advantage of small and medium-sized enterprises (SMEs) in Rawalpindi and Islamabad through the adoption of Green Supply Chain Management (GSCM) practices, focusing on green manufacturing, green distribution, green purchasing, and reverse logistics. Using a quantitative design, data were collected via a survey from 150 participants in various SMEs. The reliability analysis showed high internal consistency across measurement scales. The study found a strong positive correlation between GSCM practices and competitive advantage, with reverse logistics emerging as the most significant contributor. Green distribution, green purchasing, and green manufacturing also demonstrated positive impacts on cost reduction, operational efficiency, brand image, and environmental compliance. Hypothesis testing confirmed that each GSCM practice significantly affects a firm's competitive advantage. This research addresses the gap in understanding the specific impact of GSCM practices on SMEs in Pakistan, particularly in Rawalpindi and Islamabad. The findings highlight the importance of implementing sustainable supply chain practices for SMEs to remain competitive and environmentally responsible. This research offers valuable insights for supply chain professionals, policymakers, and SME managers aiming to balance economic growth and environmental sustainability through GSCM strategies.