Green Supply Chain Management Practices and Their Effect on Operational Performance

The need for environmental sustainability has become a strategic necessity for businesses due to increasing
regulations, stakeholder pressure, and resource shortages. GSCM incorporates the concept of environmental management into
the supply chain process, from design to disposal. This study conducts a quantitative research to examine the association
between GSCM activities and operational efficiency in 250 manufacturing companies in India. Based on a mixed methods
approach involving surveys (n=250), accounting records analysis, and semi-structured interviews (n=30), the study examines
the extent to which the companies implement GSCM practices based on five dimensions, namely, green purchasing, eco-design,
reverse logistics, green manufacturing, and green logistics. SEM results show that GSCM practices have a strong positive effect
on operational efficiency (β=0.42, p<0.001). In particular, eco-design and green manufacturing have the highest individual
effects on operational efficiency. The link is partly mediated by green innovation capabilities.