Effect of green supply chain management practices and operational performance on sustainable competitive advantage

Abstract

Green supply chain management (GSCM) practices have been accepted as strategy for improving overall performance.  Adopting GSCM practices is not just about short-term gains, but it is about ensuring the long-term viability of the business. Companies can future-proof their businesses against environmental challenges and market fluctuation if they integrate sustainability into their supply chain operations.  However, the actual impact of GSCM practices and operational performance (OP) on sustainable competitive advantage (SCA) is largely unknown. This study investigated how operational performance (OP) mediates the link between GSCM practices and SCA in the Oman fast moving consumer goods (FMCG) industry.  The study follows the positivism research philosophy with quantitative research. A pilot test was conducted to assess the reliability of the research instrument used. A convenience sampling technique was administered to collect data. The data extracted from 289 respondents who were employed in the (FMCG) industry in Oman.  The validity and reliability were performed. Relationships were tested using the structural equation modelling.  The study found that using OP as a mediator variable, GSCM practices had a considerable indirect impact on SCA. OP strengthens the link between GSCM practices and SCA.  Results indicate that all the constructs had a positive relationship with one another, which improved OP and created a long-lasting competitive advantage. This study developed a conceptual model that can serve as a guide for decision-making in supply chain management.  This model can help managers identify areas for improvement, prioritize initiatives, and develop strategic plans to enhance sustainability performance.  GSCM practices must be used by supply chain managers to improve overall performance. The findings might affect future research inquiries. The study used quantitative approach.  Quantitative research relies on predefined variables and hypotheses, which may overlook unforeseen factors that influence GSCM practices.