Accelerating Firm’s Operational Performance through GSCM Practices and Lean Management: A Case of the Textile Sector of Karachi

Abstract

Sustainable performance remains a debate among the business community however, achieving it remains a challenge. Globally, firms have incorporated different initiatives to gain efficiency and effectiveness, but developing nations are still in transit. Operationalization of green initiatives to gain operational performance was rare in Asian literature and practice. Therefore, this study was conducted to examine the role of green supply chain management practices that impact a firm’s operational performance and the mediating role of lean management in the textile sector of Karachi. A quantitative method was used in this research study and data were collected from 184 respondents from the textile sector of Karachi through a convenience sampling technique. The data were analyzed by partial least structural equation modeling (PLS-SEM) through Smart PLS 3.0. The results indicated that lean management significantly mediates the relationship between green manufacturing, green procurement, and operational performance. Whereas eco-design without lean management does not positively affects operational performance. This study recommends local companies adopt green practices religiously to compete internationally and to educate workers and suppliers about the importance of using these practices.