IMPACT OF GREEN SUPPLY CHAIN MANAGEMENT PRACTICES ON TRIPLE BOTTOM LINE PERFORMANCE AND MODERATING EFFECT OF INSTITUTIONAL PRESSURE.

Abstract

Parallel to the rapid population growth, manufacturing as one of the supply chain practices should be increased to fulfilling their requirements. Due to the advancement of industry and technology, the needs of human beings are constantly changing and the process of supplying goods and services becomes more complex. Reasoning competition and profit maximization, the manufacturing sector creates severe environmental problems and social problems as well. Under this scenario, conducting research has begun on how manufacturing should take place while conserving the environment. Although several research have been conducted to examine this relationship, moderating effects of pressures on this relationship have not been investigated within the Sri Lankan context. Therefore, this research aimed to identify the impact of green supply chain management practices on a firm’s triple bottom line performance and to examine the moderating effects of regulatory pressure as the institutional pressure. 100 large-scale manufacturing companies were selected as the sample through the convenience sampling method. Moreover, a questionnaire survey was employed for the data collection and data was analysed through confirmatory factor analysis. Findings indicated that significant positive relationship between green supply chain management practices and triple bottom line performance i.e., environmental, economic, and social. Moreover, findings emphasize that there are no significant moderating effects of regulatory pressure on this relationship. This explored knowledge will encourage practitioners to implement green practices within their supply chains and it enables the country to achieve sustainable goals.