The influence of greening the suppliers on environmental and economic performance

The purpose of this study is to investigate the influence of greening the supplier, green purchasing capabilities and green innovation on firm's environmental performance, competitive advantage and economic performance. Data was collected from the respondents who are engaged in procurement related activities in different manufacturing industries whereas the researchers used partial least squares-structural equation modelling (PLS-SEM) for analysing the hypothesised relationships between the variables. Results has shown that greening the suppliers has positive impact on green innovation and green purchasing capabilities whereas green innovation and green purchasing capabilities have a positive impact on environmental, competitive advantage and financial performance accordingly. Since there are limited number of studies on greening the supplier in Pakistan therefore the findings will equally be helpful for future researchers and managers. In addition of providing the valuable information to sourcing professionals regarding their directions towards green supply chain, the present study recommended manufacturers to provide complete assistance to the suppliers in their green initiatives whereas their early collaboration in product development stages is highly recommended.