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Impact of Green Practices on Pakistani Manufacturing Firm Performance: A Path Analysis Using Structural Equation Modeling

  • S. Abdul Rehman Khan
  • Chen Jian
  • Zhang Yu
  • Hêriş Golpîra
  • Anil Kumar
Chapter
Part of the EAI/Springer Innovations in Communication and Computing book series (EAISICC)

Abstract

This study investigates the impact of green business practices including “ecological design of products,” “green purchasing of materials,” “cooperation with customers,” and “green practices in logistics operations.” By using SEM modeling, the findings indicate that all the green operations, such practices as “ecological design,” “collaboration with customers,” and “green practice in logistics,” have significant impact on organizational performance. On the other hand, green purchasing has insignificant effect to predict performance of firm. In theoretical context, the key contribution of our study is that “green purchasing of materials” has insignificant effect on predicting performance of Pakistani firms, while in other countries, “green purchasing of materials improves firm” performance. The main reason behind insignificant effect of “green purchasing” is scarcity of green vendors in Pakistan, and many organizations import green materials from other countries which substantially incur costs into the system, and governmental bodies have no supportive role and/or relaxation for green projects in terms of subsidies, lower import duties on green materials, and tax exemption on green manufacturers.

Keywords

Ecological design of products Pakistani manufacturing firms Green logistics Green supply chain 

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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • S. Abdul Rehman Khan
    • 1
  • Chen Jian
    • 1
  • Zhang Yu
    • 2
  • Hêriş Golpîra
    • 3
  • Anil Kumar
    • 4
  1. 1.School of Economics and ManagementTsinghua UniversityBeijingChina
  2. 2.School of Economics and ManagementChang’an UniversityXi’anChina
  3. 3.Department of Industrial EngineeringSanandaj Branch, Islamic Azad UniversitySanandajIran
  4. 4.Centre for Supply Chain ImprovementThe University of DerbyDerbyUK

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