The Impact of Green Supply Chain Management Practices on Operational Performance and Customer Satisfaction.

Today, the business world is moving towards the "Green Concept" and most organizations focus on increasing performance in their operations while reducing the impact on environment. In manufacturing sector, adopting green concept in to managing supply chains is getting an increasing attention due to higher possibility of environmental impact during supply chain activities. The purpose of this study is to identify the direct impact of green supply chain management (GSCM) practices on different dimensions of operational performance (flexibility, delivery, quality, & cost) and the indirect impact through these on customer satisfaction. Data have been collected through a survey for which a total of 94 managers in manufacturing organizations responded. Partial Least Square Structural Equation Modeling (PLS-SEM) was applied to analyze the data and SmartsPLS software was used. The study revealed that (GSCM) Practices lead to improve all dimensions of operational performance (flexibility, delivery, quality and cost) where only production flexibility and delivery significantly in turn improves customer satisfaction. Any indirect impact of GSCM practices on customer satisfaction through production cost and quality was not found in the study. This research has several important implications for manufacturers who have implemented and are willing to implement GSCM practices in their firms. In addition, the study significantly contributes to the literature by providing empirical evidence for the impact of four dimensions of GSCM practices (green purchasing, cooperation with customers, eco-design, and investment recovery) on operational performance and customer satisfaction. [ABSTRACT FROM AUTHOR]