Reinforcing Environmental Sustainability through Institutional Pressures, Green Supply Chain, and Customer Intention among Pakistani Manufacturing Firms

Abstract

As environmental protection is becoming a more pressing concern, companies view their environmental responsibility as a tactical tool to boost their competitiveness. The implementation of green initiatives as a strategic tool resulted due to this environmental consciousness. The institutional pressures because of the strongest stakeholder are the influential factors that enhance the implementation of green initiatives. Therefore, this study aimed to evaluate the role of institutional pressures as one of the influential factors in implementing green supply chain management practices among Pakistani manufacturing firms. Moreover, the role of green supply chain management practices, the moderating role of green marketing, and the mediating role of customer green purchase intention were also evaluated to achieve environmental sustainability. A total of 256 responses from firms and customers each were included for analysis. Quota sampling was carried out and quantitative dyadic data analysis through Structural Equation Modelling (SEM) was conducted. The results revealed that institutional pressures are significantly associated with the implementation of GSCM practice. Further, the internal and external GSCM practices are not significantly associated with customer green purchase intention, providing no mediation. However, they showed a positive and significant direct association with environmental sustainability. Additionally, green marketing acts as a significant moderator between GSCM practices and customer intention. Finally, the association between customer green purchase intention and environmental sustainability showed no significant association. This study has contributed sound theoretical insights by providing a hybrid model into the supply chain management literature by integrating the theory of planned behavior and institutional theory. This study also provides practical and managerial implications to managers, policymakers, and government officials in formulating efficient supply chains, environmental strategies, and regulations. Therefore, regional and national regulatory bodies should focus on regional and national environmental regulations, directives, and national resource-saving strategies to compel firms to behave eco-friendly and propagate their green innovation strategies and green products through green marketing.