Green supply chain management and firm performance: The mediating effect of green innovation

Abstract

Purpose: The purpose of this study was to assess green innovation as a mediating variable in the relationship between green supply chain management and firm performance.Design/methodology/approach: This study used the companies listed on the PROPER program for the 2010-2018 period on the Indonesia Stock Exchange. The sample collected by using purposive sampling method obtained 488 companies. The data were tested using STATA 16.Findings: The results of the analysis showed that green supply chain management had a positive effect on green innovation, green innovation had a positive effect on firm performance, and green supply chain management had no effect on firm performance. Green innovation mediated the relationship between green supply chain management and firm performance.Research limitations/implications: The limitation of this study was using companies listed on the PROPER program, so it needed to be studied by applying other companies. Besides, it only implemented green innovation, green supply chain management, and firm performance. Future studies can apply other green-related aspects and performances.Practical implications: Regarding the problem of environmental impact, companies in Indonesia can apply green innovation and green supply chain management to improve their firm performance. Companies in Indonesia are increasingly faced with pressure from stakeholders to implement green supply chain management.Social implications: It is useful for the Indonesian government in overcoming environmental impact issues by implementing green supply chain management by companies. Companies that implement green supply chain management will have an impact on increasing green innovation and firm performance.Originality/value: This study assessed the mediation of green innovation in the relationship between green supply chain management and firm performance. This indicated that here there was pressure from stakeholders to pay full attention to the environment, so that companies in Indonesia can apply green innovation and green supply chain management to improve firm performance.

Promote Green Innovation in Manufacturing Enterprises in the Aspect of Government Subsidies in China

“…In both developed countries such as German and Poland and developing countries such as Thailand and Hungary, green innovation drives resource efficiency and boosts financial performance [5][6][7]. Additionally, companies that introduce green innovation are also more likely to face lower financial risk exposure and to possess greater free cash flow than conventional firms [8,9]. In terms of China, the low-end manufacturing industry with high energy consumption and serious pollution accounts for a relatively high proportion of China's manufacturing industry, which restricts the green transformation of the economy.…”

How Government Size Expansion Can Affect Green Innovation—An Empirical Analysis of Data on Cross-Country Green Patent Filings

“…Such factors may provide a country with a comparative advantage when competing in international markets. When it comes to enterprises, the maturity of the green supply chain [ 22 ], financial status, and other factors can motivate enterprises to promote green innovation.…”

Influencing factors for green supply chain management:a qualitative paper based on ESG concept

“…According to research, implementing sustainable supply chains improves a company's economic performance and competitiveness, providing it a competitive advantage. The link between sustainability management and corporate success is demonstrated via green innovation [2]. If managing the green supply chain improves operational efficiency and effectiveness, the company's performance will improve.…”