Green in-store Processes and Sustainability of Large Retailers in Pakistan: The Role of Green Supply Chain Processes

Abstract

Purpose – Green supply chain management and sustainability research is mostly made on studies focusing on manufacturing companies, while research on the retail sector is missing. Moreover, literature, still lack the mechanism through which the green in-store process leads to sustainable performance. For this, we applied the Petljak et. al. (2018) model to large retailers of Pakistan. We hypothesize a strong interaction between green in-store activities, GSCM, and performance outcomes. We also assess the Triple Bottom Line in retail separately. Green In-Store Process was measured by 1. Water and Energy Management (E&W), 2. Waste Management (WM), and 3. Green Consumption (GC). Green Supply Chain constitutes 1, Green Logistics (GL), 2. Green Purchasing (GP), 3. Co-operation with Supplier (CWS). And Finally, Sustainability was measured by TBL i.e., Environmental (ENV), Economic (ECO), and Social (SOC) Performance.

Design/methodology/approach – The paper builds on empirical evidence gathered from 70 supermarkets and larger retail stores in Pakistan using a close-ended questionnaire. It is qualitative research. The identified relationships in the conceptual model are tested using partial least squares structural equation modeling.

Findings – The results show a positive relationship between all green in-store activities and all three sustainability performance. Similarly, green in-store activities also seem to positively affect Green Purchasing (GP) and Co-operation with Supplier (CWS). GP and CWS in turn affect social and environmental outcomes. Hence there seems to be a clear mediatory effect of GP and CMW in the impact of green in-store activities on social and environmental performance. Green logistics (GL) also seems to have a strong and positive mediation in explaining the effect of green consumption on economic and environmental performance.

Implications – It is recommended that organizations, particularly big retailers in Pakistan should focus on environmental problems and executing green practices to get long term benefit.

Originality/value – Although the number of studies conducted on environmental issues increases in Pakistan, but this is the first study that has capture GSCM along with TBL on the big scale retail sector of Pakistan. Moreover, it is the first empirical analysis on the relationship between green in-store activities and GSCM that has cover social performance as well as performance outcomes in the context of Pakistan.