Green Supply Chain Management and Competitive Advantage: Mediating Role of Operational Efficiency and Moderating Role of Regulatory Pressure

Abstract

The growing emphasis on environmental sustainability has compelled organizations to adopt green supply chain management (GSCM) practices as a strategic necessity rather than a regulatory obligation. This study examines the impact of green supply chain management on competitive advantage, with operational efficiency serving as a mediating variable and regulatory pressure as a moderating variable. Using a quantitative research design, data were collected from 260 professionals working in manufacturing and service-oriented organizations engaged in environmentally responsible practices. Structural Equation Modeling (SEM) using SmartPLS was employed to analyze the proposed relationships. The findings reveal that GSCM significantly enhances competitive advantage by improving operational efficiency, reducing waste, and optimizing resource utilization. Operational efficiency partially mediates the relationship between GSCM and competitive advantage, indicating that environmental practices translate into superior performance through improved operational processes. Furthermore, regulatory pressure strengthens the relationship between GSCM and operational efficiency, suggesting that stricter environmental regulations encourage firms to adopt more effective green practices. The study contributes to sustainability and operations management literature by integrating environmental and strategic perspectives. Practically, the findings highlight the importance of aligning environmental initiatives with operational goals and regulatory requirements to achieve sustainable competitive advantage.