Modelling the implications of sustainable supply chain management practises on firm performance: the mediating role of green performance

Abstract

The influx of the Paris Accord on Climate Change and the 2030 Agenda for Sustainable Development have reiterated the need to reconsider how extractive companies manage their supply chains and see how well they balance economic value, social equity and environmental friendliness, especially in the context of an emerging economy. The purpose of this article is to build a conceptual model that examines the relationship between sustainable supply chain management (SSCM) practises and firm performance (FP), as well as the mediating role of green performance (GP). A quantitative approach and survey design have been used to garner data from the extractive industry in Ghana. Our hypothesised relationships have been tested using the variance-based structural equation modelling (SEM) and Smart-PLS software version 3.3.1. The results have shown that SSCM practises such as green purchasing, reverse logistics, internal environment management and environmental corporation positively relate to FP. Our probing results have further shown that GP significantly mediates the relationship between SSCM practises and financial performance (FP). The practical implications of the article include the emergence of an integrated baseline model that explains the symbiotic relationships between SSCM practises, environmental factors and firms� performance. Moreover, policymakers, practitioners and advocacy groups are able to identify sustainable factors that affect firms� performance under safe environmental conditions in order to advance the adoption and realisation of sustainable consumption and production practises as well as climate mitigation actions within Ghana�s extractive industry, in accordance with sustainable development goals (SDGs) Twelve and Thirteen. � 2024 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.