The Effect Of Corporate Social Responsibility And Green Supply Chain Management Practices On Organizational Performance With Mediation Of Competitive Advantage

Abstract

The topics of CSR and GSCM have become points of discussion for researchers and academia in the 21st century as mechanisms for sustainable development. This study aimed to assess the effect of CSR and GSCM on organizational performance with mediation of CA in select manufacturing industries of Ethiopia. The study employed descriptive andexplanatory research designs. Furthermore, using a stratified random sampling technique, data were collected from 138 manufacturing companies involved in the leather and leather products industry, textile and garment industry, and cement industry in Ethiopia. Data were collected via questionnaires from purposively selected top-level and middle-level managers and analyzed using descriptive data analysis tools to determine the existing CSR and GSCM practices in industries, and PLS-SEM to determine the causal relationship between constructs. The finding revealed that CSR practices toward primary stakeholders (product quality, employee relation, natural environment, and local community are at a moderate level. Moreover, manufacturing companies are currently considering the adoption of GSCM activities in their production system. Internal GSCM practices of internal environmental management and eco-design are more effectively implemented than external GSCM practices such as green purchasing and cooperation with customers for environmental requirements which require collaboration and strong communication with their external stakeholders. In addition to this, investment recovery has a moderate level of adoption than the other external GSCM practices. Furthermore, corporate social responsibility has a significant and direct positive effect on environmental performance while its effect on operational performance was negligible. CSR has also a significant and positive impact on the adoption of GSCM practices in select manufacturing industries. GSCM has statistically significant impact on environmental and operational performance. In addition, green supply chain management partially mediates the relat