Green Supply Chain Management and Environmental Performance: The Influence of Eco-Design, Reverse Logistics, and Green Purchasing

Abstract

Chemical manufacturing firms in Pakistan play a significant role in the industrial and economic development; however, their operations also contribute to various environmental challenges. These firms are often associated with high energy consumption, greenhouse gas emissions, industrial waste generation, water pollution, and the release of hazardous chemicals into the environment. Consequently, improving environmental performance (ENP) has become a critical priority for chemical manufacturing firms in Pakistan, particularly through the adoption of green practices, eco-innovation, sustainable production technologies, and effective environmental management systems. Therefore, this study investigates the effects of eco-design, reverse logistics, and green purchasing on ENP, while examining the mediating role of sustainable process management (SPM). A quantitative research design is adopted, and data was collected through a structured questionnaire distributed among employees working in chemical manufacturing firms in Pakistan. The collected data were analyzed using Structural Equation Modeling. The findings reveal that reverse logistics significantly improves ENP, whereas eco-design and green purchasing do not show significant direct effects. However, all green supply chain management (GSCM) practices significantly influence SPM, which subsequently enhances ENP. The study concludes that SPM plays a critical role in transforming green supply chain initiatives into improved environmental sustainability outcomes within the chemical manufacturing industry.