Green supply chain management and business performance The mediating roles of environmental and operational performances

• Published in: Business process management journal Vol. 26; no. 2; pp. 489 - 512
• Main Authors: Abdallah, Ayman Bahjat, Al-Ghwayeen, Wafaa Shihadeh
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Group Publishing Limited 06-04-2020
• Subjects: Climate change; Cooperation; Corporate image; Customers; Developing countries; Efficiency; Environmental conditions; Environmental impact; Environmental management; Environmental regulations; LDCs; Literature reviews; Manufacturing; Multivariate statistical analysis; Product development; Product life cycle; Raw materials; Recycling; Reliability analysis; Reverse logistics; Suppliers; Supply chain management; Supply chains
• ISSN: 1463-7154; 1758-4116
• DOI: 10.1108/BPMJ-03-2018-0091

Purpose
The purpose of this paper is to examine the impact of green supply chain management on environmental performance (EP), operational performance (OP), and business performance in the context of a developing country, Jordan. In addition, the mediating effects of environmental and OP on the relationship between green supply chain management and business performance are investigated.
Design/methodology/approach
The study is based on survey data collected from 215 manufacturing firms from different industries in Jordan. Validity and reliability analyses were carried out using SPSS and Amos. Direct and indirect effects were tested using structural equation modeling.
Findings
The results revealed that green supply chain management positively and significantly affects both EP and OP. The results also demonstrated that the total effect of green supply chain management on business performance is positive and significant. The direct effect of green supply chain management on business performance proved to be negative, but insignificant. Thus, the total positive effect of green supply chain management on business performance is indirect and fully goes through EP and OP.
Originality/value
This study is one of the first to examine the direct and indirect effects of green supply chain management on business performance, especially in a developing country and the Middle East in particular. Furthermore, this study contributes to the existing body of knowledge by investigating the mediating effects of EP and OP on the green supply chain management and business performance relationship.