Effects of sustainable supply chain integration on green innovation and firm performance

Sustainability has a well-established influence on innovation, but less scrutiny about the efficacy of sus-tainable supply chain integration as a determinant of green innovations has been done. Based on informa-tion processing theory and dynamic capability view, this study proposes a framework relating sustainable supply chain integration, green innovation, and firm performance. Primary survey data and secondary data of annual reports published by 296 manufacturing firms from 19 different sectors in Pakistan were collected, and structural equation modeling (AMOS 26 and SPSS 25) was employed. Results indicate that sustainable internal, supplier, and customer integration foster both green managerial and process innova-tions. Findings also suggest that green managerial innovation has a significant positive influence on the firm's financial performance. In contrast, the influence of green process innovations on firm performance is negatively significant, suggesting that rapid changes in manufacturing processes and operational pro-cedures cost firms in multiple ways and decrease firms' profits. The new findings have implications for both managers and researchers in managing sustainable supply chains and green innovation .(c) 2021 Institution of Chemical Engineers. Published by Elsevier B.V. All rights reserved.

Automated summary

This study investigates the influence of sustainable supply chain integration on green innovation and firm performance. The findings suggest that sustainable internal, supplier, and customer integration foster both green managerial and process innovations. Green managerial innovation has a significant positive impact on financial performance, while green process innovation has a negative impact.