Applying Structural Equation Modeling for Green Supply Chain in Retail Domain

Abstract

The purpose of the research was to analyse the impact of Green Supply Chain Management (GSCM) initiatives, currently present in the retail domain in South India, on the economic performance and competitiveness of the retail companies. The GSCM concepts can be implemented in inbound, internal, and outbound stages of the retail supply chain. The research examines each of these functions separately and determines its impact on the overall performance. For this purpose, a conceptual model was developed from literature sources and data collected using a structured questionnaire circulated among mid-size retail firms in Southern India. Thereafter, a confirmatory model was tested using structural equation modeling to validate the conceptual hypothesis. The analysis identified that greening the different phases of the supply chain leads to an integrated green supply chain, which ultimately leads to competitiveness and economic performance. The research findings suggest that if the retail firms green their supply chains not only would they achieve substantial cost savings, but also enhance sales, market share, and exploit new market opportunities which lead to greater profit margins, all of which contribute to the economic performance of the firm.

Keywords: Structural Equation Modelling, Economic Performance, Competitiveness

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