Critical success factors for adopting green supply chain management and clean innovation technology in the small and medium-sized enterprises: A structural equation modeling approach

Abstract

Organizational sustainability in the form of environmental management and sustainable production is becoming more important for small and medium-sized enterprises (SMEs) throughout the world. This research evaluates the factors affecting the understanding of the CEO's and managers' intention to adopt practices of green supply chain management (GSCM) and clean innovation technology (CIT) in the manufacturing SMEs of Pakistan. This empirical research identifies key determinants influencing the adoption of GSCM practices. Using structural equation modeling (SEM), we selected a sample size of 350 different manufacturing firms in Pakistan. The results of the study revealed that six factors, namely, environmental, government, organization, suppliers, market, and operational factors, significantly influence the intention to adopt GSCM and positively impact sustainable production. The study's findings reveal that market and operational factors are highly significant for adopting GSCM practices at a p-value of 0.05. Environmental and organizational factors are equally significant to adopt GSCM practices at a p-value of 0.10. This research also analyzed CIT as a moderator between environmental, government, organization, customer, supplier, economic, market, and operational factors in the context of Pakistan. Hypotheses H9a, H9b, H9f, and H9g were validated and support the use of CIT to boost enterprise production and consumption. The research findings would help policymakers understand how to implement GSCM practices and guide enterprises to implement GSCM and CIT practices for enhancing enterprise performance and environmental sustainability.