Title: The influence of greening the suppliers on environmental and economic performance

Authors: Arsalan Najmi; Huma Maqbool; Waqar Ahmed; Syed Aziz Ur Rehman

Addresses: Department of Management Sciences, Iqra University, Karachi, Pakistan; Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur, Malaysia ' Department of Management Sciences, Iqra University, Karachi, Pakistan ' Department of Management Sciences, Iqra University, Karachi, Pakistan ' Department of Management Sciences, Iqra University, Karachi, Pakistan

Abstract: The purpose of this study is to investigate the influence of greening the supplier, green purchasing capabilities and green innovation on firm's environmental performance, competitive advantage and economic performance. Data was collected from the respondents who are engaged in procurement related activities in different manufacturing industries whereas the researchers used partial least squares-structural equation modelling (PLS-SEM) for analysing the hypothesised relationships between the variables. Results has shown that greening the suppliers has positive impact on green innovation and green purchasing capabilities whereas green innovation and green purchasing capabilities have a positive impact on environmental, competitive advantage and financial performance accordingly. Since there are limited number of studies on greening the supplier in Pakistan therefore the findings will equally be helpful for future researchers and managers. In addition of providing the valuable information to sourcing professionals regarding their directions towards green supply chain, the present study recommended manufacturers to provide complete assistance to the suppliers in their green initiatives whereas their early collaboration in product development stages is highly recommended.

Keywords: greening the supplier; green purchasing capabilities; environmental performance; economic performance; competitive advantage; green innovation; Pakistan.

DOI: 10.1504/IJBPSCM.2020.108888

International Journal of Business Performance and Supply Chain Modelling, 2020 Vol.11 No.1, pp.69 - 90

Accepted: 10 Apr 2020
Published online: 05 Aug 2020 *

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