Analysis of Green supply chain management practices, institutional pressures and Environmental Performance: Evidence from Pakistani Pesticide Firms

Abstract

A huge number of pesticide chemicals are used to improve agriculture production. Pakistan is an agricultural country using massive pesticide chemicals opposing environmental issues. Firms need to realize the integration of green supply chain management (GSCM) practices in their supply chain. The current study intends to analyze the relationship between green supply chain management practices, institutional pressures and environmental performance. Therefore, GSCM-IP-ENP model was developed with the help of literature review. Model proved with the help of data collected from Pakistani pesticide chemical firms. Data were collected through a questionnaire from 500 senior-level managers of the pesticide firms of Pakistan. However, 468 responses were retained for analysis keeping in view the limitations of the current study. SmartPLS 3.0 were used for data analysis. Results showed strong relationships between all variables of the study. Study concluded that GSCM practices and IP have a positive and statistically significant relationship with a firm’s ENP. This study is a significant contribution to theory and practice. The study is distinctive and has significant contributions because it developed and proved the GSCM-IP-ENP model. The model helped to prove the relationship between GSCM practices, IP, and ENP in the pesticide sector of Pakistan. This study will be beneficial for the managers of pesticide firms as well as for the government to understand the importance of GSCM practices for improving the ENP performance of pesticide firms in Pakistan. This study will also useful for worldwide, especially in developing countries. This study recommends that it is essential for the management of firms to implement GSCM practices for the protection of environment. Pressure groups like government, media and consumers should exert pressure and the government should provide subsidies, if necessary, to the firms for successful implementation of GSCM practices. Furthermore, it is recommended to conduct further studies including effect on firm’s financial performance with in Pakistani context and in other countries by using the mixed methodology in the pesticide sectors as well as in other sectors of the economy to increase the generalizability of the current study