The Effect of Green Supply Chain Management Practices on Business Performance: Examining the Mediating Role of Competitive Advantage

In particular, the globalization process, among many other factors, causes the competitive environment in which businesses operate to sharpen both quantitatively and qualitatively. As a result, businesses have started to apply new methods/approaches and techniques that will provide a sustainable competitive advantage over rivals. In addition, the increasing number of environmental problems in recent years has made it necessary for businesses to take environmental aspects into account while continuing their activities. In the light of these explanations, businesses today consider new methods/techniques that will also take environmental factors into account when developing and implementing competitive strategies that will provide sustainable competitive advantage. In this context, one of the approaches/techniques that has come to the fore recently is Green Supply Chain Management (GSCM). GSCM practices, whose effects are evaluated in theory and practice, need to be adopted by businesses in both gaining competitive advantage (CA) and in increasing business performance (BP). In this context, the major objective of this study is to determine the mediation effect of CA on the relationship between GSCM on BP. Within the framework of this main aim, a survey has been applied to the businesses operating in the automotive sub-industry that are registered with the Konya Chamber of Industry (KCI). Four basic hypotheses have been developed within the scope of the study. Before testing the hypotheses, the GSCM practice levels of the business have been determined first. Then, CA and BP of the businesses have been measured. Findings of this research reveal that GSCM practices have a positive and significant effect on CA, and CA has a positive and significant effect on BP. In addition, it is concluded that CA has a mediating role in the effect of GSCM practices on BP.