Impact of Green Supply Chain Management on Economic and Organizational Performance of Food Industry in Sindh and Punjab

Purpose – The aim of this study to investigate the impact of green supply chain practices from the management decision-making level to the implementation of the food industry. We modified the Ahmed & Najmi (2018) model to include organization performance as an outcome factor, as it better captures firms' performance than just taking economic performance factors. We hypothesized that positive Institutional and Leadership Pressures would lead to external and internal Green Practices, which would in turn makes the organizational as well as economic Performance better. Design/methodology/approach – Empirical validity was established by conducting a survey using a close-ended questionnaire. Data were collected from 150 respondents from Sindh food manufacturing and 150 respondents from Punjab food manufacturing organizations, from the executive staff. Data were analyzed using confirmatory factor analysis and structured equation modeling.Findings – Institutional performance seems to have a positive and significant effect on external green practices, however, affect negatively to internal practices. Leadership pressure also has a negative effect on external green collaborations. Both internal and external factors also seem to have a positive and significant effect on both organizational and economic performance. As expected, economic performance seems to affect organizational performance, moreover, external Green Collaboration also affect Internal Green Practices, positively.Practical implications – organizations and decision-makers of the food industry are provided with detailed insight into implementing a green supply chain, from multiple perspectives of the organization, which may help the decision-makers in formulating the strategies.Originality/value – It is a novel attempt to assess the organizational and economic performance of the food industry in Pakistan, using a modified version of the Ahmed & Najmi model, as it shed light for the first time on how institutions and leadership can influence the performance of food industry through green practices