Effect of Green Supply Chain Management and Sustainability on Organizational Performance: The Mediating Role of Waste Reduction and Employee Efficiency
Abstract
Green Supply Chain Management (GSCM) and sustainability initiatives are increasingly recognized as strategic tools that enhance organizational performance by integrating environmental considerations into supply chain processes. GSCM practices, including green procurement, eco-design, and sustainable logistics, reduce environmental impacts while optimizing operational efficiency. Similarly, sustainability initiatives promote resource efficiency, corporate social responsibility, and long-term competitiveness. Despite evidence of their benefits, the mechanisms through which GSCM and sustainability improve organizational performance remain underexplored. This study examines the mediating roles of waste reduction and employee efficiency in these relationships. Drawing on the Resource-Based View (RBV) and Triple Bottom Line (TBL) theory, the research proposes that GSCM and sustainability practices enhance organizational performance by minimizing waste and improving employee operational efficiency. A quantitative research design was employed, collecting data from 360 managers and employees across manufacturing and service sectors using structured questionnaires. Structural Equation Modeling (SEM) via Smart-PLS was applied to test direct and indirect relationships. Results indicate that GSCM and sustainability positively influence waste reduction and employee efficiency, which in turn significantly mediate their impact on organizational performance. These findings highlight that organizations benefit most from environmental and sustainability initiatives when they are integrated with process improvements and human capital efficiency. The study provides actionable insights for managers to design environmentally responsible supply chains while maintaining high operational productivity. Additionally, it contributes to theory by establishing a dual mediation framework connecting GSCM and sustainability to organizational outcomes. Future research could explore moderating factors such as regulatory pressure, organizational culture, and technological readiness to further elucidate these dynamics.
Copyright Notice Submission of an article implies that the work described has not been published previously (except in the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, in English or in any other language, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication. Copyrights for articles published in IJSSA journal are retained by the authors, with first publication rights granted to the journal. The journal/publisher is not responsible for subsequent uses of the work. It is the author’s responsibility to bring an infringement action if so desired by the author.
