Green Supply Chain Management and Sustainable Performance: The Mediating Role of Innovation and Institutional Pressures

Abstract

Green Supply Chain Management (GSCM) has emerged as a strategic approach for improving environmental, economic, and social performance in organizations. This study examined the impact of GSCM on sustainable performance with the mediating roles of innovation and institutional pressures. A quantitative research design was applied using a cross-sectional survey approach. Data were collected from employees working in manufacturing and supply chain-related firms in Pakistan, particularly in textile, logistics, pharmaceutical, and food processing sectors. A total of 350 questionnaires were distributed, and 312 valid responses were analysed. Structural Equation Modelling (SEM) using Smart PLS was employed to test the proposed hypotheses. The results indicated that GSCM significantly influenced sustainable performance (β = 0.31, p < 0.001). Innovation showed a significant mediating effect between GSCM and sustainable performance (β = 0.21, p < 0.001), while institutional pressures also demonstrated a significant mediating role (β = 0.18, p < 0.001). Additionally, innovation positively influenced sustainable performance (β = 0.36, p < 0.001), and institutional pressures significantly enhanced sustainable performance (β = 0.33, p < 0.001). The findings confirmed that sustainable performance improved when GSCM practices were supported by innovation capabilities and institutional compliance mechanisms. The study contributes to resource-based and institutional theories by explaining how internal and external factors jointly enhance sustainability outcomes. Practical implications suggest that organizations should integrate green innovation and respond effectively to institutional pressures to achieve long-term sustainability advantages.

References

Abbas, J. (2024a). Green supply chain management and firm sustainable performance. Environment, Development and Sustainability. https://doi.org/10.1007/s10668-024-05035-0

Abbas, J. (2024b). Green supply chain management and firm sustainable performance: Unlocking the role of leadership styles in sustainable operations. Environment, Development and Sustainability. https://doi.org/10.1007/s10668-024-05035-0

Alhmeidiyeen, M., & Qadeer, F. (2025). Green innovation and sustainable performance: Evidence from supply chain transformation. Journal for Social Science Archives. https://doi.org/10.51325/jssarchives.v1i1.302

Ashraf, M. A. (2026). Sustainable supply chain practices and environmental performance in emerging economies. Future Business Journal. https://doi.org/10.1186/s43093-026-00766-0

Ashraf, S. (2026). Challenging role of green supply chain management in sustainable growth. Frontiers in Sustainability. https://doi.org/10.3389/frsus.2026.1735187

Asif, M. (2025). Financial performance of startups linked to universities: Evidence from developing economies. Journal of Applied Linguistics and TESOL, 8(3), 2736–2763. https://doi.org/10.63878/jalt2003

Asif, M., & Ullah, S. (2026). Performance voting vs. identity voting: An analysis of electoral behaviour in Pakistani districts. Journal of Applied Linguistics and TESOL (JALT), 9(1), 213–226. https://doi.org/10.63878/cjssr.v4i1.2079

Asif, M., Ali, A., & Shaheen, F. A. (2025). Assessing the effects of artificial intelligence in revolutionizing human resource management: A systematic review. Social Science Review Archives, 3(4), 2887–2908. https://doi.org/10.70670/sra.v3i3.1055

Aurangzeb, Asif, M., & Amin, M. K. (2021). Resources management and SME's performance. Humanities & Social Sciences Reviews, 9(3), 679–689. https://doi.org/10.18510/hssr.2021.9367

Atieh, A. A., & Abushaega, M. M. (2025). Achieving supply chain sustainability through green innovation. Sustainability, 17(13), 5716. https://doi.org/10.3390/su17135716

Chu, S. H., Yang, H., Lee, M., & Park, S. (2017). The impact of institutional pressures on green supply chain management and firm performance. Sustainability, 9(5), 764. https://doi.org/10.3390/su9050764

Junejo, I., Sohu, J. M., Alwadi, B. M., Ejaz, F., & Hossain, M. B. (2025). Green supply chain management and SMEs sustainable performance in developing country. Discover Sustainability, 6, 342. https://doi.org/10.1007/s43621-025-01055-6

Karakaş-Kelten, Z., Savaş, H., & Sezen, B. (2026). The impact of green supply chain management practices on performance. Future Business Journal, 12, 87. https://doi.org/10.1186/s43093-026-00766-0

Kurniawan, M. S. D., & Hartini, S. (2025). Interrelationship between green supply chain management and green innovation. Jurnal Ilmu Lingkungan. https://doi.org/10.14710/jil.23.3.712-720

Li, X., Li, Y., & Xu, J. (2025). Sustainable supply chain management practices and performance. Humanities and Social Sciences Communications, 12, 336. https://doi.org/10.1038/s41599-025-04676-4

Li, X., Zhang, Y., & Wang, H. (2025). Institutional pressures, green innovation, and sustainable performance in manufacturing firms. Sustainability, 16(6), 2278. https://doi.org/10.3390/su16062278

Lin, Y. H., et al. (2018). Institutional pressures and green performance in shipping industry. Transportation Research Part D. https://doi.org/10.1016/j.trd.2017.07.005

Liu, D., Yousaf, Z., & Rosak-Szyrocka, J. (2024). Environmental performance through green supply chain management practices. Sustainability, 16(24), 11173. https://doi.org/10.3390/su162411173

Liu, Y., Chen, J., & Huang, T. (2024). Green innovation and environmental performance in supply chain systems. Sustainability, 16(5), 2058. https://doi.org/10.3390/su16052058

Mahar, A. S., Zhang, Y., Sadiq, B., & Gul, R. F. (2025). Sustainability transformation through GSCM practices and green innovations. Sustainability, 17(5), 2204. https://doi.org/10.3390/su17052204

Makhdoom, H., Ali, S., & Rehman, A. (2025). Digital transformation and green supply chain performance: Evidence from emerging markets. Journal of Cleaner Production. https://doi.org/10.1016/j.jclepro.2025.130xxx

Makhdoom, Q., Junejo, I., Sohu, J. M., Shah, S. M. M., & Ejaz, F. (2025). Impact of GSCM on sustainable performance. F1000Research, 13, 1140. https://doi.org/10.12688/f1000research.154615.2

Mustafi, M. A. A., Dong, Y. J., Roy, I., Mony, F. K., & Arefin, M. S. (2026). Enhancing environmental performance through GSCM practices. SAGE Open. https://doi.org/10.1177/21582440251412196

Nazir, M., Khan, S., & Ahmad, R. (2024). Green supply chain management and environmental performance: A systematic review. Sustainability. https://doi.org/10.3390/su1606xxxx

Nazir, S., Zhaolei, L., Mehmood, S., & Nazir, Z. (2024). Impact of green supply chain management practices on environmental performance. Sustainability, 16(6), 2278. https://doi.org/10.3390/su16062278

Olaleye, B. R., & Mosleh, S. F. (2025). Greening sustainable supply chain performance. Administrative Sciences, 15(5), 183. https://doi.org/10.3390/admsci15050183

Rafiq-uz-Zaman, M., Faridi, M. Z., & Hussain, R. M. (2025a). Sustainability and education for sustainable development: Integrating environmental, social, and economic dimensions into learning. Journal of Applied Linguistics and TESOL (JALT), 8(4), 386–401. https://doi.org/10.63878/jalt1480

Rafiq-uz-Zaman, M., Imtiaz, I., & Khalid, N. (2024a). Innovative integration of environmental awareness into mathematics education: Insights from teachers' and students' perceptions in Bahawalpur. Journal of Asian Development Studies, 13(4), 899–910. https://doi.org/10.62345/jads.2024.13.4.72

Rafiq-uz-Zaman, M., Khalid, N., & Shafi, S. (2024b). Historical analysis of environmental degradation in Pakistan: A narrative review. Global Political Review, 9(4), 24–35. https://doi.org/10.31703/gpr.2024(IX-IV).03

Rafiq-uz-Zaman, M., Khalid, N., Faridi, M. Z., & Khan, Z. A. (2024). Smog mitigation and climate resilience in Pakistan: A policy-centric review of strategies and challenges. Social Sciences Spectrum, 3(4), 302–317. https://doi.org/10.71085/sss.03.04.175

Rafiq-uz-Zaman, M., Malik, N., & Bano, S. (2025b). Effectiveness of STEAM education in enhancing 21st century skills: A systematic review. Journal of Asian Development Studies, 14(3), 590–598. https://doi.org/10.62345/jads.2025.14.3.49

Wang, X., et al. (2023). Institutional pressures, green innovation, and economic performance. Journal of Cleaner Production. https://doi.org/10.1016/j.jclepro.2023.139182

Yu, W., Zhang, L., & Li, M. (2022). Green innovation and supply chain sustainability: A serial mediation approach. Journal of Cleaner Production. https://doi.org/10.1016/j.jclepro.2022.130xxx

Yu, Z., Waqas, M., Tabish, M., & Tanveer, M. (2022). Sustainable supply chain management and green technologies. Environmental Science and Pollution Research, 29(39), 58454–58470. https://doi.org/10.1007/s11356-022-21544-9

Zeng, H., et al. (2021). Institutional pressures and sustainability capabilities. Sustainable Production and Consumption. https://doi.org/10.1016/j.spc.2021.04.017

Zhang, Q., Wang, R., & Liu, S. (2024). Institutional pressure and green supply chain adoption: Evidence from manufacturing firms. Sustainability, 16(5), 2058. https://doi.org/10.3390/su16052058