Effect of Green Supply Chain Management and Sustainability on Organizational Performance: The Mediating Role of Waste Reduction and Employee Efficiency

  • Muhammad Hamid Ullah Lahore Institute of Science and Technology Lahore
Keywords: Green Supply Chain Management, Sustainability, Waste Reduction, Employee Efficiency, Organizational Performance, Smart-PLS

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.

 

Published
2026-06-30