The Role of Green Supply Chain Management in Corporate Sustainability Performance

Abstract

Green supply chain management is crucial for organizations aiming to uphold high standards of sustainable performance. However, an underdeveloped green supply chain management can adversely affect overall sustainability outcomes. This study primarily explores the impact of green supply chain management practices on corporate sustainability performance. Using partial least squares structural equation modeling for data analysis, the study identified varying effects of different green supply chain management components on sustainability outcomes. Notably, components such as the environmental education system and green information system showed no significant correlation with sustainability performance. In contrast, the other six components demonstrated a positive and significant relationship with sustainability metrics. The study's findings highlight the critical role of green supply chain management in predicting and enhancing organizational sustainability performance. This research adds to the existing literature by underscoring the necessity of effective green supply chain management practices in driving sustainable performance across industries, particularly in the food manufacturing sector. The practical implications are significant for supply chain managers, especially within food manufacturing. By leveraging these insights, managers can refine their green supply chain management practices, focusing on elements like green procurement, eco-design, and reverse logistics to boost environmental commitment and operational efficiency. Organizations that recognize and integrate robust green supply chain management strategies can address sustainability challenges more effectively and secure a competitive edge in a dynamic business environment. The study's results suggest that an emphasis on comprehensive green supply chain management practices is essential for long-term success. By adopting these strategies, companies can improve their environmental performance and enhance their overall sustainability outcomes. This approach not only benefits the environment but also contributes to the company's reputation and market positioning. It provides valuable insights for practitioners and policymakers aiming to enhance sustainability in the food manufacturing industry. The findings encourage a proactive stance in adopting green supply chain management practices, which can lead to significant improvements in sustainability metrics and help organizations navigate the complexities of modern supply chain management.