Planet, People, and Profit: How Green Supply Chain Management Practices Drive Employee Work Engagement and Firm Performance

Almereb, Omar Talal and Alghababsheh, Mohammad and Shamim, Saqib and Rahman, Mushfiqur (2026) Planet, People, and Profit: How Green Supply Chain Management Practices Drive Employee Work Engagement and Firm Performance. Corporate Social Responsibility and Environmental Management. csr.70576. ISSN 1535-3966

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Abstract

Despite the widespread adoption of green supply chain management (GSCM) practices, existing research offers conflicting evidence regarding their impact on firm performance, highlighting the importance of investigating the underlying mechanisms that allow firms to fully capture the value of such investments. Moreover, prior studies have largely overlooked the influence of GSCM practices on employee work engagement, which may serve as critical mechanisms through which these practices translate into improved firm performance. To address this, this study examines the relationships between internal (i.e., internal environment management, eco‐design, and investment recovery) and external (i.e., green purchasing and customer collaboration) GSCM practices and firm operational performance and the mediating role of employees' work engagement. To this end, we employed a multi‐informant data collection design in which GSCM practices and firm operational performance were assessed by managers, while work engagement was captured directly from employees from the 121 surveyed manufacturing firms, thereby enhancing measurement accuracy and the overall roundness of the results. The analysis revealed that internal GSCM practices have a positive impact on firm operational performance, while external GSCM practices do not. Unexpectedly, we found that internal GSCM practices do not increase employees' work engagement, whilst external GSCM practices do. However, employees' work engagement fully mediates the relationship between external GSCM practices and firm operational performance. This study advances the literature by exploring the impact of GSCM on employee‐level outcome and explaining how it influences performance through driving employees' work engagement.

Item Type: Article
Additional Information: ** Article version: VoR ** From Crossref journal articles via Jisc Publications Router ** History: received 02-11-2025; accepted 18-03-2026; epub 29-03-2026; issued 29-03-2026; published 29-03-2026. ** Licence for VoR version of this article starting on 29-03-2026: http://onlinelibrary.wiley.com/termsAndConditions#vor
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HF Commerce
Divisions: Institutes and Academies > Institute of Inner City Learning
Identification Number: https://doi.org/10.1002/csr.70576
SWORD Depositor: JISC Publications Router
Depositing User: JISC Publications Router
Date Deposited: 09 Apr 2026 10:37
Last Modified: 09 Apr 2026 10:37
URI: https://repository.uwtsd.ac.uk/id/eprint/4180

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