Green Innovation and Sustainability Performance: Exploring the Impact of Green Supply Chain Management, Absorptive Capacity, and Institutional Pressures

This study fills the gap that exists in the context of developing economies by analyzing the influence of green supply chain management (GSCM), absorptive capacity, and institutional pressures on the relationship between green innovation and sustainability performance. Based on the natural resource-based view (NRBV), dynamic capability theory, and institutional theory, the study seeks to examine the roles of GSCM, absorptive capacity, and institutional pressures on the direct relationship between green innovation and sustainability performance. Data were collected from 370 senior supply chain professionals in private firms in the Greater Accra Region of Ghana and analyzed using covariance-based structural equation modeling (CB-SEM). The results indicate that green innovation has a positive effect on GSCM. It also indicates that GSCM mediates the relationship between green innovation and sustainability performance. However, absorptive capacity and institutional pressures do not moderate the direct relationship. The study adds to literature by discussing the interconnection of several variables in order to solve the problems of sustainability in developing countries and provides managerial recommendations for leaders and managers regarding how to manage innovation and supply chain networks in order to increase sustainability.