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Impact of strategic orientation and internal environmental management on green supply chain management and environmental performance in Pakistani SMES

Usman Muhammad Haider, Rehman Asif, Bibi Munaza

LogForum

2025

Vol. 21, no 1

107--122

Background: In an era marked by rapid environmental changes, environmental sustainability is at risk due to waste and CO2 emissions from organizational operations. To mitigate these impacts and preserve the environment, organizations need to adopt strategies to manage Internal Environmental Management (IEM) and implement Green Supply Chain Management (GSCM). However, limited attention has been given in the literature to the relationship between strategic orientation (SO), IEM, GSCM, and environmental performance (EP) in the context of small and medium-sized enterprises (SMEs) in Pakistan, viewed through the lens of the Natural Resource-Based View (NRBV) framework. Therefore, this study investigates the impact of SO and IEM on GSCM and EP within Pakistani SMEs. Methods: A quantitative (deductive) approach was used to gather data from the managers of Pakistani SMEs through a survey method, with a sample size of 416. Questionnaires were distributed via e-mail, Google Forms, and face-to-face interactions to maximize responses from key respondents, including assistant managers, senior managers, and lower- and entry-level executives, due to their key decision-making roles. Data were analyzed using Smart PLS4 to assess construct validity, reliability, p-values, collinearity statistics, R-squared values, discriminant validity, and path coefficients. Results: The analysis revealed that SO negatively affects GSCM, while IEM positively affects GSCM. Additionally, GSCM positively influences EP. GSCM significantly mediates the impact of IEM and SO on EP. Conclusion: This study highlights the importance of environmental sustainability by examining the roles of SO, IEM, GSCM, and EP in Pakistani SMEs through the lens of the NRBV framework. The findings offer valuable insights into the role of GSCM in SMEs and provide stakeholders with information to promote initiatives aimed at environmental preservation. Enhancing strategic orientation and internal environmental management in developing countries like Pakistan, particularly for SMEs, can contribute to the achievement of sustainable development goals in the region.