The Effect of Green Supply Chain Management on Corporate Performance: A Comprehensive Review
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Abstract
Green Supply Chain Management (GSCM) has emerged as a strategic approach that integrates environmental considerations into supply chain activities to achieve sustainable development while enhancing corporate competitiveness. This comprehensive review explores the influence of GSCM practices—such as green procurement, eco-design, cleaner production, recycling, reverse logistics, and sustainable distribution—on different dimensions of corporate performance. The analysis highlights that GSCM not only contributes to improved environmental outcomes by reducing carbon emissions, waste, and resource consumption but also strengthens economic performance through cost reduction, operational efficiency, and innovation-driven competitiveness. Furthermore, adopting GSCM enhances corporate reputation, customer satisfaction, and compliance with environmental regulations, thereby improving social and stakeholder-related performance. Evidence from various industries suggests that companies embracing GSCM can achieve a balance between profitability and sustainability, creating long-term strategic advantages in global markets. However, the review also notes challenges such as high implementation costs, lack of technological infrastructure, and limited awareness in developing economies, which hinder the full realization of GSCM benefits. The study concludes that effective adoption of GSCM requires top management commitment, collaborative partnerships, supportive policies, and continuous innovation.
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