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Examining Green Supply Chain Management and Financial Performance: Roles of Social Control and Environmental Dynamism

The literature examining the relationship between green supply chain management and firm performance has expanded greatly in recent years. Although researchers maintain that green supply chain management can bring positive financial performance, to date they have ignored the moderating role of the social control mechanism, especially in the context of China. Drawing on social exchange theory, this study aims to contribute to the literature in this field by proposing social control as an effective mechanism to strengthen the impact of green supply chain management on firms’ financial performance. Today, most empirical literature in the field of green supply chain management adopts the static view and overlooks the contextual factors. This study addresses the gap by investigating the green supply chain management in an environment characterized by frequently unavoidable disruptions, and the effectiveness of social control that accommodates this complexity and dynamism. By examining green supply chain management under conditions of environmental dynamism, this study contributes to the literature of interface of green supply chain and resilience. Using a sample of 185 Chinese manufacturers, the theoretical model is empirically verified. The research findings indicate that in a dynamic environment, the joint effect of social control and green supply chain management practices is positive and significant. This paper also discusses the theoretical contribution and managerial implications of the study, outlines the research limitations, and provides recommendations for future research.

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