Ikram - 2019 - Effect of Green Supply Chain Management On Environmental Performance and Export

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Social Science and Humanities Journal
Effect of Green Supply Chain Management on Environmental

Performance and Export Performance: A Case Study of Textile
Industries in Pakistan
1*
Muhammad Naveed Ikram, 2Dr. Danish Ahmed Siddiqui
1
Research Scholar, 2Associate Professor Karachi University Business School, University of Karachi,
Pakistan
Abstract:-This study investigated the GSCM effect on the performance of export by also seeing its mediating
influence on the environmental performance of the textile sector of Pakistan. The data has been gathered by
means of the questionnaire with a five point’s Likert scale from which a total of 350 responses are collected
from the textile sector of Pakistan. Data were analysed using structural equation modelling. The Findings
showed that there is a significant relation among the GSCM, export performance and environmental
performance. Hence, green practices can essentially help to enhance the environmental and export
performance of textile industry Moreover, export performance can also be increased it companies focus on
environmentally friendly measures. The findings of the study are essentially contributing to explaining the
role of GSC practices on export and environmental performance in the textile industry. By applying these
practices, the textile industry of Pakistan can place significant changes in increasing its export performance
and revenues.
Keywords: green supply chain, environmental performance, textile industries, export performance
1. Introduction
Background of the study Companies according to Testa & Iraldo (2010) have
initiated with incorporating GSCM initiatives by
From the past thirty years, environment protection
responding to the demands of the customer. Hasan
has been a theme present in our societies. It was
(2013) also noted that companies are now moving
only some rare NGO’s and activists at the start, but
towards implementing SCM practices to reduce the
now it progressively has become a major theme in
influence of the environment. In the textile industry,
the social, economic and political debate. Now the
the expansion of a GSC has attained vast reputation
corporations are predominantly concerned about
and businesses they are more concentrating on
their activities that impact the environment and it’s
refining their SC efficiency, prominence, and
considerable. Developing a GSC has become a trend
lessening costs. Now, the firm's makes tactics to
which is gained vast popularity now; those
lessen their manufacturing cost through reducing
industries that are into textile are majorly focusing
wastes, as they are mature enough and it is the
on enhancing their SC efficiency, visibility, and
simple way out to strive in the market. It's the key
costs. Creating of pollution, threatening the
motivational idea for firms to move towards GSCM
existence of life on earth is due to a flawed supply
practices to boost their performance (Jabbour et al.,
chain. With the passage of time the increasing
2014).
awareness towards issues concerning global
warming and environmental, have made the 1.2 Problem Statement
shoppers more concerned about the product of what
It has been noted that the textile industry in Pakistan
they are buying. has been serving exceptionally to empower the
GSCM is used to eradicate the environmental economy of the country and it has been increasing
influence on products and services. Today, the gross domestic product to 25%. The textile
SSHJ - VOL-03, ISSUE-04, 2019 Page no. 1006-1019 Page 1006

Electronic copy available at: https://ssrn.com/abstract=3397119
Muhammad Naveed Ikram et al / Effect of Green Supply Chain Management on Environmental
Performance and Export Performance: A Case Study of Textile Industries in Pakistan
industry or sector has created major links with way they can improve the export issues by adopting
different sectors including insurance, trades, green practices.
transportation and other industries that have been
1.3 Gap Analysis
influencing directly and indirectly to the economy or
GDP of the country. Moreover, the sector of textile The purpose of GSCM is to lessen the ecological
has been among the largest sectors that have been influence of products and give less possible harm to
encouraging major opportunities for employees and the environment. In boosting the economy of the
healthy investment in the industry could be Pakistan textile industry plays a vigorous role. As
beneficial. Despite the fact that the industry has been there are a lot of researches (e.g. Lee et al., 2012;
making prominent contributions in Pakistan, the Green, 2006) that has been done on cement industry,
textile industry has been facing severe challenges in manufacturing industry, automobile industry in
both manners internally and externally. The Pakistan but when it comes to textile industry
challenges have become major obstructions in the specifically about Green supply chain it has not been
company performance and have been minimizing given a central focus. While analyzing the literature
the competitive advantage. The Arab countries have on GSCM, the most prominent focal point by the
been seen to be on the rise and have been emerging researchers is the implementation of the green
which has been raising the production cost and supply chain in the textile service industry. The
creating difficulty in accessing to financials that has primary objective of the paper has been mentioned
created an influence on the income and taxes of to encourage the discussion related to the influence
Textile industry. This has minimized the exports of of GSCM on export performance and environmental
the companies in Pakistan by 4.5% in the year 2017. performance in the Textile industry of Pakistan.
There have been some major changes in the export Though different studies have been carried out that
performance of Pakistan. Particularly in the textile has depicted the clear impact of the green supply
industry, there have been certain initiatives taken by chain on various dimensions thus different
the companies to improve their export performance. directions include operational activity, social,
Moreover, there are some laws and regulations that financial and monetary activities (Lee et al., 2012;
have bounded the usage of dangerous substances Mitra & Datta, 2014; Diab et al., 2015).
and it has become mandatory for the company to Furthermore, there are no such studies that have
take healthy environmental steps to encourage the explored an area of mediating effects of economic
suppliers and the customers The green supply chain performance and their association with the green
management must be promoted to amalgamate supply chain management in Pakistan. There is a
environment-related problems and it has been lack of research papers related to the green supply
becoming prominent by the company's day by day. chain management and especially with respect to
At this point, where the government has made Pakistan. The study has been majorly contributing to
important for the firms to incorporate less hazardous the present knowledge by exploring the impact of
practices, the green supply chain has gained major economic performance and significant association
attention. Given this importance, adapting GSCM between green supply chain and export performance
has got essential for the companies to prevent in Pakistan. The central focus has been provided to
environmental issues and maintain a responsible the textile industry of Pakistan which has not been
image. The following study aims to look at the green explored much in the past studies.
side of the supply chain. This study will play an 1.4 Research Objectives
essential role in exploring the important part of
 To examine the effect of GSCM on EP in
green practices by implementing them in the textile
Pakistan textile industry
industries of Pakistan. Moreover, the study will
 To examine the effect of GSCM on Export
enable the textile industries to explore that in what
Performance in Pakistan textile industry

 To examine the effect of EP on Export The study is adding significantly to the literature by
Performance in Pakistan textile industry assessing the green practices and their role in
 To examine the mediating effect of EP on the enhancing the export side of the textile industry. The
relationship between GSCM and export study is also adding value by serving to the present
performance. literature gap by focusing the textile industry of
 To examine the association between EP and Pakistan which was not explored before.
export performance 1.7 Scope of the Study
 To assess the role of GSCM in enhancing
In our study, we have covered literature that relates
environmental performance in Pakistan.
to the green supply chain, export performance and
1.5 Research Questions environmental performance role in the textile
 What is the effect of GSCM on EP in Pakistan industry. Other variables of SC will not be cover.
textile industry? 1.8 Limitations
 What is the effect of GSCM on export
Some limitations were also noted such as
performance in Pakistan textile industry?
convenience sampling and limited time that can be
 What is the effect of EP on export performance
fulfilled by the researchers in future studies.
in Pakistan textile industry? Therefore, it is recommended to expand the study by
 What is the mediating effect of EP on the taking other factors like reverse logistics for future
relationship between GSCM and export research.
performance? 1.9 Operational Definitions
1.6 Significance of the Study 1.9.1 Green Supply Chain Management: GSCM can
This study will significantly help in assessing the be explained as assimilating environmental thinking
role of GSCM on environment and export into SCM that includes the designing of product and
performance. It will help the textile industries in incorporating eco-friendly activities until the making
understanding the importance of the green supply of end-product (Srivastava, 2007).
chain practice, and its role to enhance the 1.9.2 Environmental Performance: Environmental
environmental and export performance. With the performance is defined as the measurable outcome
rise in the knowledge and awareness of the of the organization’s capability to attain the
consumers towards the environmental concerns and environmental objectives and set forth the company
global warming, people have got more conscious plan by being environmentally responsible to the
especially at buying things. At this point, supply society and environment (Carneioro et al., 2012).
chain initiatives are designed to get the desired
sustainable environment for all the parties involved. 1.9.3 Export Performance: It is referred to as the
This study will help the textile companies to address success or failure of the firm affect to sell goods in
the concerns of consumers and adopt green other countries (Shoham, 1998).
initiatives to respond to consumer needs effectively. 2. Literature Review
Apart from this, there are many social and political
Green Supply Chain Management
anxieties subjected to the environmental issues that
have motivated all the firms to make their supply Croxton et al (2001) explored the GSCM practices
chain green. The motive of introducing the incorporated by Textile manufacturing industries in
importance of green supply chain is that it will help Dhaka. Data was gathered from 200 employees, then
to incorporate the system that will turn the it was analysed by SEM technique. Results revealed
operations into more energetic ones by without that the textile companies have incorporated a
giving any harm to the environment. restyled SC system to cut carbon footprint, smooth
transportation procedures to lessen carbon footprint,
reduce and consecutively repurpose production

waste, and upsurge use of renewable energy sources improving the economic performance. In the
as well as lessened poisonous materials. In another Malaysian health care industry green supply chain
study Zhu et al (2010) done in China to examine the practices are also been applied.
mediating relations in-between the practices of
Export Performance
internal and external GSCM conferring to economic,
ecological, and (OP) operational performance. Data Zhu & Sarkis (2004) explored the impact of firm’s
was gathered from 396 manufacturing companies determinants on the export performance (EP) in the
then it was analyzed on Smart PLS. province of Ardabil (Iran) exporters. Results
revealed that firm size, firm experience, and firm
Environmental Performance export commitment has a positive effect on export
Dubey et al (2015) explore the relationship of SRM performance whereas, the greatest impact was found
and TQM on the (EP). Data was collected from on export performance of export commitment.
Indian manufacturing firms from the procurement Similarly, Haddoud et al (2017) explored the
department from 176 respondents. Results showed network promotion role of export promotion
that a positive relation between SRM and EP which programs which drives small and medium
may benefit the company's, to attain their goals and enterprises export performance. Data was gathered
to achieve environmental performance (EP). from 160 respondents working in small and medium
However, it was also found that TQM has a negative UK exporter’s companies. The findings showed that
impact on EP. Wong et al (2011) explored whether both the experiential and informational export
internal and external GSCM practices have the same promotion programs have enhanced all types of
market and burdens. A total response of 207 SMEs' relationships. The relationships with the
questionnaires was gathered from the respondents buyers situated in foreign were found a positive
working in various Pakistan manufacturing impact on EP whereas, on export performance (EP),
industries. Results proved that in both internal- experiential forms had an indirect effect. Azar et al
external Green SC practices, normative type (2017) focused on dissimilar types of innovation for
pressures were founded the most important, whereas the company's export performance (EP). Data was
internal and external GSCM practices were collected from 218 Swedish export enterprises.
positively affected by mimetic and coercive Results displayed that firm innovation augments EP
pressures. Internal GSCM practices can improve directly and indirectly through sustained high-tech
(EP), and it also had a large impact on the outside innovation.
Green SC practices whereas in external GSCM
Methodology
practices it was found that a positive significant
impact on (EP) economic performance, however, Conceptual Framework
environmental performance has also played role in
Hypothesis Ha2: There is a significant relationship between

GSCM and environmental performance
Ha1: There is a significant relationship between
GSCM and export performance Ha3: There is a significant relationship between
environmental performance and export performance.

Type and nature of the study study and the questions are derived from the
dependent and independent variables of the study.
The qualitative technique was used in this study of
the data. The survey population was selected from Hypothesis
the textile manufacturing companies in Pakistan. In Ha1: There is a significant relationship between
order to fill out the questionnaires, they were sent to GSCM and export performance
textile-related employees working in purchase
department, logistics, import/export officers, Ha2: There is a significant relationship between
packaging staff such people were considered to have GSCM and environmental performance
appropriate knowledge of company's approaches and Ha3: There is a significant relationship between
they were considered suitable respondents to provide environmental performance and export
us the relevant and required information. performance.
4.2 Sampling Technique Type and nature of the study
The convenient sampling technique was used in this The qualitative technique was used in this study of
study. Data was gathered from the participants who the data. The survey population was selected from
willingly shared the information. Within the survey the textile manufacturing companies in Pakistan. In
form, we explained our purpose of the research, in order to fill out the questionnaires, they were sent to
which we provided the guidelines for the complete textile-related employees working in purchase
and assured that all the info that will be received department, logistics, import/export officers,
would use exclusively for the purpose of our packaging staff such people were considered to have
academic research. The data has been gathered from appropriate knowledge of company's approaches and
workers working in purchase department, logistics, they were considered suitable respondents to provide
import/export officers, packaging staff of textile us the relevant and required information.
industries of Pakistan. Various textile companies of
4.2 Sampling Technique
Pakistan neglected to be a part of this survey maybe
they vacillated to give the data that relates to the EP The convenient sampling technique was used in this
and practice or maybe because of their company study. Data was gathered from the participants who
rules. willingly shared the information. Within the survey
form, we explained our purpose of the research, in
4.3 Instrumentation
which we provided the guidelines for the complete
In order to reach the purpose of our study, an and assured that all the info that will be received
assessment questionnaire was ready. From the would use exclusively for the purpose of our
existing literature, the questions for the study were academic research. The data has been gathered from
taken. A scale was used to evaluate the effect of workers working in purchase department, logistics,
GSCM on environmental performance and export import/export officers, packaging staff of textile
performance five-point Likert scale, For GSCM industries of Pakistan. Various textile companies of
questions the observers were asked to show 1= for Pakistan neglected to be a part of this survey maybe
strongly disagree and 5= for strongly agree with the they vacillated to give the data that relates to the EP
statements provided. For Environmental and practice or maybe because of their company
performance and EP variables, participants were rules.
requested to appraise the firm’s performance as in
4.3 Instrumentation
comparison to the competitor’s performance through
the past three years, also using a Likert scale of five. In order to reach the purpose of our study, an
The questionnaire has been adapted from the study assessment questionnaire was ready. From the
done by Al-Ghwayeen & Abdallah (2018). Five existing literature, the questions for the study were
points Likert scale has been used to examine the taken. A scale was used to evaluate the effect of
GSCM on environmental performance and export

performance five-point Likert scale, For GSCM path analysis) into a single statistical synchronic
questions the observers were asked to show 1= for test. There are two methods that can be used to
strongly disagree and 5= for strongly agree with the perform Structural Equation Modelling: (i)
statements provided. For Environmental Covariance Method (ii) Partial Least Square.
performance and EP variables, participants were
Data Analysis
requested to appraise the firm’s performance as in
comparison to the competitor’s performance through Demographic Analysis
the past three years, also using a Likert scale of five. 350 sample sizes was collected from the Managerial,
The questionnaire has been adapted from the study non-managerial staff, effective level managers,
done by Al-Ghwayeen & Abdallah (2018). Five purchase department staff, packaging staff was our
points Likert scale has been used to examine the targeted audience for the study of GSCM practices
study and the questions are derived from the and its effect on export and environmental
dependent and independent variables of the study. performance. On the basis of willingness and
4.4 Sample design convenience of the participated audience, the sample
was selected.
350 sample sizes was collected from the Managerial,
non-managerial staff, effective level managers, 4.5 Data Collection
purchase department staff, packaging staff was our A major instrument in collecting the primary data
targeted audience for the study of GSCM practices was the questionnaire survey in this study. It was
and its effect on export and environmental sent online via email. For the collection of data, we
performance. On the basis of willingness and took permission from some textile industries in
convenience of the participated audience, the sample Pakistan. An online questionnaire was distributed,
was selected. and via direct electronic data entry was being used
4.5 Data Collection for the recording of responses as it was the web-
based survey. To potential members, the link of the
A major instrument in collecting the primary data survey form was sent via e-mail so that it could be
was the questionnaire survey in this study. It was distributed to the other colleagues in the textile
sent online via email. For the collection of data, we manufacturing industries of Pakistan.
took permission from some textile industries in
Pakistan. An online questionnaire was distributed, 4.6 Statistical Technique for Data Analysis
and via direct electronic data entry was being used The data will be analyzing PLS software and the
for the recording of responses as it was the web- statistical technique which is used in our study was
based survey. To potential members, the link of the Structural Equation Modelling. The relation between
survey form was sent via e-mail so that it could be several variables can be displayed by using this tool.
distributed to the other colleagues in the textile Either the variables are a manifest or latent variable
manufacturing industries of Pakistan. which means whether the variable is being observed
4.6 Statistical Technique for Data Analysis directly or is hypothetical. This statistical technique
combined the model measurement i.e. (affirmative
The data will be analyzing PLS software and the
factor analysis) and structural model i.e. (regression
statistical technique which is used in our study was path analysis) into a single statistical synchronic
Structural Equation Modelling. The relation between test. There are two methods that can be used to
several variables can be displayed by using this tool. perform Structural Equation Modelling: (i)
Either the variables are a manifest or latent variable Covariance Method (ii) Partial Least Square.
which means whether the variable is being observed
directly or is hypothetical. This statistical technique Data Analysis
combined the model measurement i.e. (affirmative Demographic Analysis
factor analysis) and structural model i.e. (regression

Frequency Percent
25 to 30 50 14.3
30 to 35 141 40.3
35 to 40 88 25.1
40 to 50 71 20.3
Total 350 100.0
The table showed that the respondents with the age percent among all. The least percent shows within
range of 30 to 35 were in majority which is 40 the age range of 25-30 years old respondents.
Frequency Percent
Male 189 54.0
Female 161 46.0
Total 350 100.0
The gender table showed that among the respondents has been covered up by the male
respondents 54 percent were males and 46 percent respondents.
were females. It implies that a major portion of
Mean Std. Deviation
Gender 1.46 .499
Age 2.5143 .97156
The mean and SD value of gender and age showed deviation was seen among the respondent’s data and
that reliability has been higher and respondents have the sample mean is less deviated from the
given polarized responses where there was no population mean.
reliability issues encountered among the respondents
4.8 Descriptive Statistics
while answering the question. Moreover, less
Maximu Mean Std.

m Deviation
Statistic Statistic Std. Statistic
Error
Our firm cooperates with suppliers to meet environmental 5.00 4.0057 .0576 1.07856
objectives 5
Our firm emphasizes purchasing eco-friendly materials 5.00 3.9314 .0600 1.12328
4
Our firm cooperates with suppliers who have environmental 5.00 3.9514 .0607 1.13574
certifications 1
Our firm has partnerships with suppliers that aim to 5.00 3.8943 .0615 1.15191
environmental solutions and/or development of 7
environmentally friendly products.
Ratio of exported products has increased during last three 5.00 3.9429 .0610 1.14163
years during the last three years compared to competitors. 2
Our export market share has increased during the last three 5.00 3.8971 .0615 1.15093
years compared to competitors 2
The number of countries that we export to has increased 5.00 3.9514 .0605 1.13321
during last three years compared to competitors 7
Our firm has achieved a high percentage of profits from 5.00 3.9514 .0582 1.08938
exported products during the last three years compared to 3
competitors
Our firm has achieved its export objectives during the last 5.00 3.9829 .0594 1.11244
three years compared to competitors 6

Our firm has reduced consumption of hazardous/toxic 5.00 3.9314 .0590 1.10528
material during the last three years compared to competitors. 8
Our firm has reduced air emissions during the last three years 5.00 4.0057 .0576 1.07856
compared to competitors. 5
Our firm has reduced effluent wastes during the last three 5.00 3.9314 .0600 1.12328
years compared to competitors. 4
Our firm has sought to improve its environmental image 5.00 3.9829 .0584 1.09426
/position during the last three years compared to competitors. 9
Our firm has reduced energy consumption during the last 5.00 3.9486 .0592 1.10880
three years compared to competitors. 7
Our firm has reduced solid wastes during the last three years 5.00 3.9629 .0603 1.12858
compared to competitors. 3
Our firm emphasizes design of products for reduced 5.00 3.8943 .0615 1.15191
consumption of material energy 7
Our firm emphasizes design of products that can be reused, 5.00 3.9429 .0610 1.14163
recycled, and recovery of component parts. 2
Our firm emphasizes design of products to reduce use of 5.00 3.8971 .0615 1.15093
harmful/toxic material 2
Our firm emphasizes optimization of design process to reduce 5.00 3.9514 .0605 1.13321
air emission and noise 7
Our firm emphasizes optimization of design process to reduce 5.00 3.9514 .0582 1.08938
solid and liquid waste 3
Our firm cooperates with customers to produce eco designs 5.00 3.9600 .0602 1.12721
5
Our firm cooperates with customers to design cleaner 5.00 3.9486 .0582 1.09056
production processes 9
Our firm cooperates with customers for green packaging 5.00 3.9743 .0599 1.12126
3
Our firm has information sharing structure with customers 5.00 3.8771 .0622 1.16506
7
Our firm cooperates with customers for using less energy 5.00 3.9743 .0588 1.10062
during products Transportation 3
5.00 3.9514 .0592 1.10764
1
Table 3: Reliability Scores (N=)
Cronbach alpha
Green Supply Chain Management 0.900
Export performance 0.781
Environmental performance 0.827
Variables No of Items Number of respondents Cronbach’s Alpha

Green Supply Chain Management 15 350 0.900
Export performance 5 350 0.781
Environmental performance 6 350 0.827
Table 3. Reliability Statistic

Reliability Statistics
Cronbach's Alpha N of Items
.908 26
To measure the data significance, reliability test has enough and is significantly followed by reflecting
been done. The table shows the Cronbach alpha of reliable answers from the respondent's side.
.908 which depicts higher consistency of the data.
5.2 Confirmatory Factor Analysis
The value is higher than the standard value of
reliability which is 0.70. The reliability score of all Factor analysis was employed to reduce a large
the variables is higher or equal to the standard value number of variables to extract most underlying
of reliability. Among all the three variables, green variables called factor. Confirmatory factor analysis
supply chain management shows higher reliability. is a useful method to examine the variability among
Therefore, it shows that the data is consistent observed variables and excerpt variability from
items and load them into a common factor.
Construct Item Loadings
cooperation with customer1 0.697
Green supply chain practice GSCM 1 0.640
GSCM 3 0.805
GSCM 4 0.724
GSCM 5 0.705
eco design1 0.764
eco design 4 0.607
ENV1 0.736
ENV3 0.804
Environment performance ENV4 0.864
ENV5 0.761
ENV6 0.672
EXP1 0.641
EXP2 0.814
Export performance EXP3 0.799
EXP4 0.711
EXP5 0.680
Structural Equation Modeling

Measurement of Outer Model While analyzing the literature through multi-variate
method, when the items of variables reflect high
In the result segment investigation of data has
loadings for their variables which are higher than
shown. The two criteria were utilized to approve and
other variables of the model, their content validity
dependability of information of an external model
needs to be required (Hair, 2010). When the items
that contains convergent validity and content
are being loaded on other constructs with the low
validity.
value they need to be removed.
Content validity:

Construct Item Loadings t-value p-value
Green supply chain practice Cooperation with customer1 0.697 21.075 0.000
cooperation with customer2 0.710 20.404 0.000
GSCM 1 0.640 17.416 0.000
GSCM 3 0.805 33.251 0.000
GSCM 4 0.724 26.888 0.000
GSCM 5 0.705 22.955 0.000
eco design1 0.764 27.903 0.000
eco design 4 0.607 13.724 0.000
Environment performance ENV1 0.736 21.414 0.000
ENV3 0.804 31.306 0.000
ENV4 0.864 50.733 0.000
ENV5 0.761 28.594 0.000
ENV6 0.672 19.660 0.000
Export performance EXP1 0.641 15.253 0.000
EXP2 0.814 40.720 0.000
EXP3 0.799 35.842 0.000
EXP4 0.711 21.364 0.000
EXP5 0.680 20.320 0.000
Convergent Validity With respect to AVE or average variance extracted,
it has been noted that those AVE values that are less
With respect to the CR, that is composite reliability,
than 0.5 do not usually convey sufficient variance in
it is a measure that could help in evaluating overall
the variables thus this refers that the mean items
reliability and validity of the collection of all the
have been less than effective and there are much
similar factors that are heterogeneous.
more errors in the variance. If the AVE is more than
In addition, it has been used in this study to assess 0.5 than it considers that all the loadings are good
the internal consistency of the measurement. In the but less than 0.50 refers it to be less perfect.
above table, it has been noted in the above table that
When measuring the convergent validity, it
environmental performance has CR of 0.879 which
comprises of three phases. At first, the constructs
shows the acceptance of threshold while composite
load has to be of more value than 0.7 as it’s a
reliability of export performance is 0.851 and green
requirement within the model i.e. greater than 0. 7 ,
supply chain management is 0.917 which shows
then comes the second which is average variance
high reliability and acceptance of threshold. The
extracted (AVE) for this, its value should be more
researcher has assured that all the factors are
than 0.5 (Fornell & Larcker, 1981) and a third phase
homogenous and there is a better estimation of all
we need to calculate is the composite reliability
the composite reliability.
(CR) its value should lie above 0.7 or at the same.
The table under, displays all these assumptions.
Average Variance Extracted
Variables Cronbach's Alpha Composite Reliability (AVE)
Green supply chain 0.900 0.917 0.504
Environment performance 0.827 0.879 0.593
Export performance 0.781 0.851 0.536
5.3.2 Final Path Model: value less than 0.5 by using Smart Pls.2.0 software
this model was analyzed.
This is the final path model, after deleting out the
insignificant factors. Those having factor loadings

Correlation of Discriminant validity the extracted variance by estimating the constructs

making up every probable pair. The discriminant
The test adapted by Fornell & Larcker (1981) is
validity has been established as the AVE in the table
discriminant validity that has been done on the basis
shown below is more than 0.5 and the diagonals are
of correlation by taking pairs and comparing it with
greater than the off-diagonal.
Environment performance GSCM Export performance
Environment performance 0.770
GSCM 0.792 0.710
Export performance 0.681 0.787 0.732
4. Discussion textile sector. It has been noted that the textile
industry has been playing major role in creating
The study depends on the investigation of the impact
opportunities for the country economy. The study
of GSCM on environmental and export
concludes that there has been a positive and
performance. The empirical observation and the
significant impact of green supply chain
statistical validation of the data gathered showed
management on export performance level hence, the
that there is a significant impact of green supply
findings reveals that the study has been showing
chain management on the environment and export
clear understanding of the implication of green
performance of Pakistan textile industry. As per the
supply chain on two major dimensions including
statistical findings, the null hypotheses of the
export performance and environment performance
proposed study have been rejected by accepting the
level. The primary limitation in this study is that it
alternative one and showing that an essential relation
has been following convenient sampling and has
exists between the dependent and independent
been seen to be biased hence; future implication on
variables. The findings are consistent with the
this study could neglect this limitation. In a nut
qualitative analysis which implies that GSCM plays
shell, it is clear that if the textile industry will start
an essential role in enhancing environmental and
following the use of proper legislations regarding
export performance.
green supply chain management then the companies
The research aims at focusing on the effect of green could gain high competitive advantage in the global
supply chain practices on environmental and export markets. Moreover, the implication of green supply
performance level however, the primary gap that has chain management could help the companies to meet
been identified in the study is interrelated to the

environmental standards including green guard and Pakistan textile industry. The results have shown
carbon trust standards that could affect export that there is a significant and positive effect of
performance level. In addition, initiation of the GSCM on export and environmental performance.
green supply chain management practices could be The study has essentially served to get deeper
entailed by making short term investments and has insights about the enhanced export and
been considered to be significant for long term. environmental performance. The findings have
explored that EP mediates the export performance
The results have shown that there is a direct and
relation in the positive and essential manner. In
optimistic effect on export performance which
short, the study has given the better insight about the
specifies that by implementing the GSCM practices,
impact of GSCM on the two main underlying
the textile industries of Pakistan will be able to
performance magnitudes and has offered the new
improve their exports by meeting the international
understanding by turning it into the academic and
eco-standards that would serve to increase the export
practical implication in the textile sector of Pakistan.
performance of the textile industries of Pakistan.
The companies need to realize that the adoption of
The finding is aligned with the study of Singh et al.
the green supply chain management could not only
(2016) that explored that the incorporation of GSCM
help the companies to cope up with the external
practices will allow raising the competitiveness of
pressures but could also help in empowering the
the worldwide market. The results are somehow
performance level. It is important for the companies
different from the study of Jordan study as the
to regard GSCM as the most influential strategic
Jordanian study is focusing on the manufacturing
tool that could improve the criteria to export the
factor for which the variables are different than that
products to the global and international markets and
of textile industry which is the focus of the present
could also improve the eco-design. The discussion
research.
also reveals that the social impact has been also
As the results proved that there is a significant highlighted by major a study which reflects that it
impact of GSCM on export performance and the could be helpful for the consumers and they could
environment if the companies aim at successfully obtain safe internal environment, minimize the
adopting and implementing green supply chain pollution level and control the energy and resource
practices than they could be able to improve the consumption.
capability and it could increase their export level.
The best primary example is of Jordanian 7.1 Research Implication
manufacturers (Diab et al., 2015) who have adopted The following study offers the theoretical
green supply chain practices and successfully contributions by contributing to the existing
contributed to the high export performance level. literature in examining that in what way GSCM
Clear arguments provide a view that the adoption of affect the Environmental and export performance
green supply chain management could improve the and expanding it by assessing the mediating role
level of competition of the company in the global environment on the relation between GSCM and
and international market and it has a significant and export. Moreover, the study has also served to the
positive impact on export performance level. present literature by generating research that sees to
Moreover, it has been also indicated that the attempt the systematic understanding of GSCM and
implication of green supply chain management its effect on the textile industry
practices could minimize the negative effects of the
7.2 Future Recommendation
operation on the environment and could encourage
environmental sustainability. The present study has the limitation that it is
focusing on the convenience sampling method.
5. Conclusion Though this approach is used in the business
The study, therefore, concludes that GSCM has literature it might result in offering the biased results
served as the significant enabler for the EP in the due to which it is suggested to the future scholars to

go for unbiased sampling. The present study has the 8. Green, S. (2006). Tiger. Reaktion Books.
time limitation and it is recommended to the future 9. Haddoud, M. Y., Jones, P., & Newbery, R.
researchers to prefer a detailed study in the same (2017). Export promotion programmes and
industry by taking a larger sample size. Lastly, the SMEs’ performance: Exploring the network
study is limited to focus on the single sector only promotion role. Journal of Small Business and
which suggest the future scholars to expand the Enterprise Development, 24(1), 68-87.
study by considering another sector such as food 10. Hair, J. F. (2010). Black, WC, Babin, BJ, &
sector of Pakistan and also expanding the study by amp; Anderson, RE (2010). Multivariate data
taking other factors like reverse logistics. analysis, 7.
11. Hasan, M. (2013). Sustainable supply chain
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Social Science and Humanities Journal

Effect of Green Supply Chain Management on Environmental

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Hypothesis Ha2: There is a significant relationship between

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Maximu Mean Std.

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Variables No of Items Number of respondents Cronbach’s Alpha

Table 3. Reliability Statistic

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Structural Equation Modeling

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Correlation of Discriminant validity the extracted variance by estimating the constructs

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