Examining the impact of institutional pressures and green supply chain management practices on firm performance

Abstract

Purpose With the challenge of ecological business sustainability, concepts like green design, eco-friendly products, sustainable technologies and efficient processes have compelled the organizations to adopt change. The purpose of this paper is to focus on understanding the impact of green supply chain (GSC) management practices and institutional pressures on economic and environmental performances of organizations in an unstable developing economy. Design/methodology/approach Data were collected from the supply chain specialists working in manufacturing firms through a questionnaire. Valid data of 101 respondents were used for analyzing the relationship among the constructs with the help of structural equation modeling. Findings The result of this study reveals that internal GSC practices and institutional pressure have a negative insignificant impact on economic performance, whereas all the constructs are the significant contributors toward improving environmental performance. Practical implications This study will help the supply chain decision makers to make a strategy that is beneficial for improving both economic and environmental dimensions of the performance of a firm. Originality/value An environmental management study under a rapidly changing scenario is always helpful to understand the behavior and its impact. This study is very useful and need of a time in the context of any developing country facing an economic and environmental crisis.