Abstract
This research aims to inspect the role of absorptive capacity in connecting green supply chain management (GSCM) practices, responsive strategy (RS) and supply chain performance (SCP) by utilising the information processing theory (IPT). Data was collected from 57 textile organisations in Pakistan and partial least square of structural equation modelling (PLS-SEM) is employed to analyse the hypothesised juxtaposition. The results disclose that absorptive capacity stimulated by GSCM practices and RS fully mediates the posited linkages, showing that absorptive capacity is an essential organisational aptitude that intends to produce novel products to meet turbulent market expectations. The results recommend that employing the elements of absorptive capacity collectively could augment achievement. Therefore, managers may consider a holistic viewpoint, identifying that spending to establish procedures, developing employees and technology are important for achievement. The novelty of this study is to establish and clarify the role of absorptive capacity (information management) to convert practice (GSCM practices) and strategy (RS) into performance (SCP).
Keywords: GSCM practices, RS, absorptive capacity,
SCP
Introduction
SC is hypothesised as an organisational network, which involves three unique flows namely product, knowledge/information, and capital (Ketchen, Crook, & Craighead, 2014). Information is the focus of this study. Though, information is not always to help management in decision-making (Van Knippenberg, Dahlander, Haas, & George, 2015), the aptitude of establishing understanding and employing knowledge is necessary (Hislop, Bosua, & Helms, 2018).
