Green supply chain practices and firm performance: empirical evidence from emerging economies

Abstract

Green supply chain management (GSCM) has gained significant attention as companies in developing countries face growing pressure from regulators, consumers, and global value chains to adopt environmentally responsible practices. Yet empirical evidence on the relationship between specific GSCM activities and firm performance in developing country contexts remains inconsistent and sparse. This study addresses that gap by empirically examining the relationships between three GSCM dimensions green procurement, green manufacturing, and green distribution and three firm performance dimensions: environmental, economic, and operational. Using a cross-sectional survey of 312 manufacturing firms across India, Nigeria, China, and Ghana, a structural equation model (SEM) was estimated, grounded in Natural Resource-Based View (NRBV) and Stakeholder Theory. Confirmatory factor analysis (CFA) confirmed strong reliability (Cronbach's α = 0.86), composite reliability (CR = 0.88), and convergent validity (AVE = 0.61). Path analysis reveals that green manufacturing exerts the strongest positive effect on environmental performance (β = 0.412, p < 0.001), while green procurement significantly influences both environmental (β = 0.341) and economic performance (β = 0.198). Green distribution notably drives operational performance (β = 0.318, p < 0.001). Environmental performance further mediates the relationship between GSCM practices and economic and operational outcomes, suggesting a virtuous cycle between ecological responsibility and business competitiveness. Country-level moderation analysis indicates that institutional quality and regulatory stringency amplify the performance benefits of GSCM adoption, highlighting the critical role of governance in sustainability transitions within emerging markets. These findings advance the GSCM literature by providing empirical evidence from economies at varying development stages, and offer actionable guidance for managers and policymakers seeking to leverage green practices as a source of sustainable competitive advantage.