Green Supply Chain Management Practice and Its Effect on Organizations' Economic Performance With the Mediating Role of Supply Chain Resilience (In the Case of Ethiopian Manufacturing Industry)

Abstract

ABSTRACT This study examines the effects of green supply chain management (GSCM) dimensions on economic performance and their indirect impact through supply chain resilience in Ethiopian manufacturing firms. Survey data from 306 companies were analyzed using structural equation modeling. Results indicate that green manufacturing and other GSCM practices improve economic performance, both directly and indirectly through supply chain resilience, whereas reverse logistics negatively affects economic performance. Supply chain resilience significantly mediates the effects of most GSCM dimensions on economic performance, highlighting its role in enabling firms to prepare for and recover from disruptions. The findings extend the resource‐based view and dynamic capabilities theory by showing how GSCM practices act as strategic capabilities in emerging markets. Practically, Ethiopian manufacturers should integrate environmental practices into supply chains to enhance resilience and performance while managing the costs associated with reverse logistics.