Green absorptive capacity and environmental performance: a perspective of SMEs’ relational capability and green supply chain management practices

Due to the substantial scientific development in the economy and the increasingly dynamic competitive market, small- and medium-sized manufacturing enterprises (SMEs) face great difficulties in utilizing the available resource potentials. This requires SMEs to adopt non-traditional tools and techniq...

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Main Authors: Ibrahim, Muhammad, Mahmood, Rosli, Som, Hishamuddin Md
Format: Article
Published: Springer 2024
Online Access:http://psasir.upm.edu.my/id/eprint/106179/
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author Ibrahim, Muhammad
Mahmood, Rosli
Som, Hishamuddin Md
author_facet Ibrahim, Muhammad
Mahmood, Rosli
Som, Hishamuddin Md
author_sort Ibrahim, Muhammad
building UPM Institutional Repository
collection Online Access
description Due to the substantial scientific development in the economy and the increasingly dynamic competitive market, small- and medium-sized manufacturing enterprises (SMEs) face great difficulties in utilizing the available resource potentials. This requires SMEs to adopt non-traditional tools and techniques to compete in the market. This study aims to develop an empirical model to assess the role of SMEs dynamic capability through green absorptive capacity (GAC) in building a significant relationship between green supply chain management practices (GSCMP), relational capability (RC) and environmental performance (EP).The model was established through an extensive review of existing works of literature and was tested with 265 managers and entrepreneurs from manufacturing SMEs operating in Karachi, the largest city in Pakistan. In this paper, PLS structural equation modeling approach was employed to validate the proposed research hypotheses. The findings confirmed that GAC directly relates to EP. Moreover, the results significantly uncovered that GSCMP positively impacts the GAC and EP. It was also confirmed that RC has a positive significant effect on GAC and EP. Finally, the outcomes confirmed that GAC mediates the linkages among GSCMP, RC, and EP.Green absorptive capacity in the setting of a manufacturing organization as a dynamic capability is a novel approach explained in this study. The study focused on how small- and medium-sized enterprises can enjoy a competitive edge through acquiring and disseminating dynamic environmental knowledge throughout the value chain and by practicing strategically green supply chain management and relational capabilities to boost environmental performance. The outcomes will incorporate industry practitioners through practicing superior green dynamic capabilities like green SCM practice, relational capability, and green absorptive capacity to achieve high environmental goals and organizational excellence.
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spelling upm-1061792024-05-24T01:38:36Z http://psasir.upm.edu.my/id/eprint/106179/ Green absorptive capacity and environmental performance: a perspective of SMEs’ relational capability and green supply chain management practices Ibrahim, Muhammad Mahmood, Rosli Som, Hishamuddin Md Due to the substantial scientific development in the economy and the increasingly dynamic competitive market, small- and medium-sized manufacturing enterprises (SMEs) face great difficulties in utilizing the available resource potentials. This requires SMEs to adopt non-traditional tools and techniques to compete in the market. This study aims to develop an empirical model to assess the role of SMEs dynamic capability through green absorptive capacity (GAC) in building a significant relationship between green supply chain management practices (GSCMP), relational capability (RC) and environmental performance (EP).The model was established through an extensive review of existing works of literature and was tested with 265 managers and entrepreneurs from manufacturing SMEs operating in Karachi, the largest city in Pakistan. In this paper, PLS structural equation modeling approach was employed to validate the proposed research hypotheses. The findings confirmed that GAC directly relates to EP. Moreover, the results significantly uncovered that GSCMP positively impacts the GAC and EP. It was also confirmed that RC has a positive significant effect on GAC and EP. Finally, the outcomes confirmed that GAC mediates the linkages among GSCMP, RC, and EP.Green absorptive capacity in the setting of a manufacturing organization as a dynamic capability is a novel approach explained in this study. The study focused on how small- and medium-sized enterprises can enjoy a competitive edge through acquiring and disseminating dynamic environmental knowledge throughout the value chain and by practicing strategically green supply chain management and relational capabilities to boost environmental performance. The outcomes will incorporate industry practitioners through practicing superior green dynamic capabilities like green SCM practice, relational capability, and green absorptive capacity to achieve high environmental goals and organizational excellence. Springer 2024-02 Article PeerReviewed Ibrahim, Muhammad and Mahmood, Rosli and Som, Hishamuddin Md (2024) Green absorptive capacity and environmental performance: a perspective of SMEs’ relational capability and green supply chain management practices. Environment, Development and Sustainability. pp. 1-25. ISSN 1387-585X; ESSN: 1573-2975 (In Press) https://link.springer.com/article/10.1007/s10668-023-04420-5 10.1007/s10668-023-04420-5
spellingShingle Ibrahim, Muhammad
Mahmood, Rosli
Som, Hishamuddin Md
Green absorptive capacity and environmental performance: a perspective of SMEs’ relational capability and green supply chain management practices
title Green absorptive capacity and environmental performance: a perspective of SMEs’ relational capability and green supply chain management practices
title_full Green absorptive capacity and environmental performance: a perspective of SMEs’ relational capability and green supply chain management practices
title_fullStr Green absorptive capacity and environmental performance: a perspective of SMEs’ relational capability and green supply chain management practices
title_full_unstemmed Green absorptive capacity and environmental performance: a perspective of SMEs’ relational capability and green supply chain management practices
title_short Green absorptive capacity and environmental performance: a perspective of SMEs’ relational capability and green supply chain management practices
title_sort green absorptive capacity and environmental performance: a perspective of smes’ relational capability and green supply chain management practices
url http://psasir.upm.edu.my/id/eprint/106179/
http://psasir.upm.edu.my/id/eprint/106179/
http://psasir.upm.edu.my/id/eprint/106179/