The role of green innovation and green manufacturing in the impact of green supply chain management practices on firm performance

As firms continue to operate in the complex environment of sustainability, the integration of green practices into supply chains has emerged as a critical strategy for achieving operational efficiency as well as environmental and economic goals. This dissertation explores the complex relationships between green supply chain practices, green innovation, green manufacturing and firm performance in the context of contemporary business environments. Based on extensive empirical research and theoretical frameworks, this study provides a comprehensive analysis of the mediating effects of green innovation and green manufacturing on the relationship between green supply chain practices and various dimensions of firm performance. The findings reveal significant positive relationships between green supply chain management practices and both green innovation and green manufacturing, pointing to their important role in promoting sustainable innovation and production processes. Moreover, green supply chain management practices show a positive impact on environmental, economic and operational performance, highlighting their multifaceted benefits for firms operating in environmentally sensitive markets. Similarly, green supply chain management practices exhibit positive relationships with operational performance and underscore the importance of integrating sustainable practices into business operations to achieve efficiency gains. Moreover, the mediating role of green innovation in improving environmental and operational performance emphasizes its mediating function in translating sustainable practices into tangible business outcomes. Contrary to expectations, the study did not find a significant mediating role of green manufacturing in the relationship between green supply chain management practices and environmental performance. However, green manufacturing shows direct positive effects on environmental, economic and operational performance, emphasizing its intrinsic value in achieving sustainability across different organizational functions. Overall, this thesis contributes to the growing body of knowledge on sustainable supply chain management by elucidating the mechanisms through which green innovation and green manufacturing mediate the impact of green supply chain practices on firm performance. These insights offer practical implications for firms seeking to leverage sustainability as a strategic imperative for long-term competitiveness and environmental stewardship.