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The mediating roles of Environmental and Operational Performances
Author’s Purpose
The aim of the study was to investigate the effects of green supply chain management on
commercial performance, operational performance, and environmental performance within the
framework of Jordan, an emerging economy. Furthermore, an investigation is conducted into the
mediating impacts of environmental and OP on the relationship between green supply chain
management and company success. Based on data from surveys gathered from 215
manufacturing facilities across various sectors in Jordan, the study was conducted. Amos and
SPSS were used for the validity and reliability assessments. The method of structural equation
modeling was used to examine both direct and indirect impacts (Abdallah & Al-Ghwayeen,
2019).
Background of Issue
Businesses and governments throughout the world have been very worried about
environmental concerns over the past ten years. Institutional pressure to meet the goal of
greening industrial operations is a major driving force behind the rising trend of adopting green
supply chain management (GSCM) approaches (Tseng et al., 2019). In an effort to lessen the
detrimental effects of their activities on the environment, businesses are implementing GSCM
procedures from supplier to consumer, which include the entire value chain (Ahmed et al., 2020).
Manufacturers are under pressure to adopt GSCM techniques in order to compete in the global
market, which also offers them prospects for export.
GSCM techniques are cutting-edge environmental technology designed to enhance both
the welfare of society and the environment. They improve a company's performance and the
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welfare of society by lowering environmental accidents, pollution, and solid waste. Eco-design
(ECD) and internal environmental management (IEM) are two examples of these techniques,
both exterior and internal. A company's environmental performance is also greatly influenced by
external GSCM activities, including reverse logistics (RL), green buying, and customer
participation. Environmental performance and both internal and external GSCM activities are
significantly correlated, indicating how crucial it is to put these practices into place for
environmental sustainability (Ma et al., 2022).
Application of Supply Chain Management
Globally, organizations are learning that environmental programs and operations need to
be managed and that they extend beyond their walls. However, energy inefficiency and
environmental issues made earlier attempts to increase efficiency worse. As a result, GSCM has
become the best option (Abdallah & Al-Ghwayeen, 2019). GSCM incorporates environmentally
sustainable practices into supply chain operations, including procurement of raw materials,
designing and developing products, manufacture, shipping, storage, packaging, retrieval,
disposal, and end-of-product life management.
An organization's business philosophy guides its identification of target markets,
comprehension of their requirements, and structuring of company operations to best meet those
needs and provide value additions for the target markets. Effectiveness, efficiency, and flexibility
are components of business performance, which is a complicated idea. Due to the concept's
subject matter and the lack of data on profitability and real assets, company performance is
inherently difficult (Ma et al., 2022). Business performance is measured using various metrics,
including financial, non-financial, and staff productivity. Research focuses on metrics related to
business success, such as profitability, market share growth, sales growth rate, and customer
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happiness. These indicators are widely used by academics and are subjective measurements
based on senior management's evaluation. However, companies in Jordan are reluctant to
disclose financial performance due to concerns about confidentiality (Abu Nimeh et al., 2018).
As a result, the environment and supply chain management (SCM) may be effectively
combined through the use of GSCM. This idea has drawn the attention of several academics as a
crucial business process that increases eco-sustainability, assists in addressing the
aforementioned shareholder motivations, and achieves acceptable profitability and market share
targets by lowering environmental risks and influences. One of the key SCM concerns is
achieving GSC, which entails managing a variety of activities, including purchasing, controlling
manufacturing supplies, circulation, marketing, and reverse logistics. Scholars have noted that if
firms implemented these tactics, it would encourage more economic and environmental
regulations, which would encourage organizational and operational activity (Samad et al., 2021).
Managerial Implications
It is recommended that managers acquire GSCM knowledge and abilities in addition to
the essential management competencies at the organizational level. It is imperative for senior
management in Jordanian enterprises to acknowledge that supply chain partners and companies
alike may realize performance advantages through collaborative GSCM processes. The Jordanian
government has to do more to encourage the implementation of GSCM, starting with internal
producer restrictions and moving on to wider product supply chain restrictions. Regarding the
study's practical ramifications, it advances knowledge of the significance of GSCM
implementation, allowing Jordanian manufacturing firms to improve their environmental and OP.
GSCM may be transformed into high levels of company success by enhancing environmental
and OP (Abdallah & Al-Ghwayeen, 2019).
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The findings from the article also suggest that senior management in the firms
concentrate on creating a thorough framework for implementing and overseeing the implications
of green supply chain management. It may be possible to expand on the body of information
already in existence and gain a better understanding of how green supply chain management
techniques affect the performance of firms by integrating future studies with the country's other
industrial sectors. This research project may grow into Jordan's building and transportation
industries. Furthermore, it's critical to investigate and gauge small- and medium-sized
enterprises' degree of knowledge regarding the use of green supply chain management in their
operations. By integrating case study analyses of all multinational corporations and finding the
beneficial effects of green supply chain management, more research may also increase the
knowledge base (Abdallah & Al-Ghwayeen, 2019).
Article Summary
This study looked at how GSCM affected environmentalDperformance (EP), operational
performance (OP), and business performance (BP)Din Jordanian manufacturing firms. It further
examinedDhow OPDand EPDaffectedDBP. Additionally, it investigated how GSCM indirectly
affected BP through EP and OP. This study finds that while GSCM enhances EP and OP in
Jordanian manufacturing firms, it has no direct impact on BP. This is among the first studies
conducted in underdeveloped nations to show that the result of GSCM is a better OP as well as
an increased EP. The results also showed that OP and EP are useful instruments for raising BP.
Furthermore, the results demonstrated that GSCM indirectly raises BP through EP and OP.
In several significant ways, this work expands on the body of current research on GSCM.
First off, by conducting an empirical investigation on the impact of GSCM on manufacturing
businesses' BP, it contributes to the body of existing knowledge. This study contributes to the
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GSCM literature and broadens the scope of the effects of GSCM on comprehensive
performances by providing evidence for the influence of GSCM on EP and OP. Second, the
results of this study highlight the significant role that EP plays in raising BP. Furthermore, it
illustrates how effectively manufacturing businesses' BP may be reinforced by an enhanced OP.
Finally, early data on the complete mediating effects of OP and EP on the association between
GSCM and BP are presented in this study (Abdallah & Al-Ghwayeen, 2019).
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References
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Ma, X., Akhtar, R., Akhtar, A., Hashim, R. A., & Sibt-e-Ali, M. (2022). Mediation effect of
environmental performance in the relationship between green supply chain management
practices, institutional pressures, and financial performance.DFrontiers in Environmental
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Samad, S., Nilashi, M., Almulihi, A., Alrizq, M., Alghamdi, A., Mohd, S., Ahmadi, H., & Syed
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performance: The moderating effect of collaborative capability.DTechnology in
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Tseng, M.-L., Islam, M. S., Karia, N., Fauzi, F. A., and Afrin, S. (2019). A Literature Review on
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