The Impact of Green Supply Chain Management on Organizational Sustainability in the Libyan Manufacturing Sector: The Mediating Role of Technological Innovation and Environmental Performance

Abstract

The purpose of this study was to examine the influence of green supply chain management on organizational sustainability, where technology innovation and environmental performance are taken as mediating factors. The focus of this study was on the increasing need for better protection of the environment and the increasing demands of the sustainable development of industries, especially in developing countries, where there are limited empirical data available on sustainability activities. The collected sample comprised 387 managers and technologists from Libyan manufacturing companies using a survey instrument and a stratified random sampling technique. Validity scales were used, and the measurements were done using the five-point Likert scale. The data analysis involved the use of PLS-SEM, where SmartPLS 4.0 was used. It entailed the analysis of the measurement model as well as the structural model, with the bootstrapping being done for 5000 samples. The findings show that GSCM significantly affects the OS. Specifically, it has a positive impact on environmental performance (EP) and technological innovation (TI), which, in turn, enhance the OS. Among the mediating factors, the EP was found to be the strongest predictor and mediator of the OS, followed by TI. The developed model proved to have a high explanatory power, with a coefficient of determination (R2) of 0.660. Thus, the integration of GSCM with innovation and environmental activities can lead to the successful achievement of sustainability objectives among manufacturing enterprises. The study’s limitations are associated with its cross-sectional design and its focus on managers. Future research could employ longitudinal designs and examine other contexts, such as digital transformation, the institutional environment, and the organizational culture.