In response to unprecedented stakeholder pressure, firms are increasingly considering green supply chain management (GSCM) adoption to manage their environmental impact throughout the product life cycle. However, it is unclear whether and how GSCM can be transformed into a competitive advantage for adopting firms. Therefore, the purpose of this study is to examine the relationship between GSCM and competitive advantage and the mediating role of generative artificial intelligence (AI).
Based on a large-scale survey of large manufacturing firms across different sectors in Jordan, 300 responses were received and subsequently analysed using structural equation modelling.
The results reveal that GSCM have no direct impact on cost- and differentiation-based competitive advantage. The results also uncover that generative AI exerts a positive influence on both cost- and differentiation-based competitive advantage. Furthermore, the results demonstrate that generative AI plays a full mediating role in the relationship between GSCM and both cost- and differentiation-based competitive advantage.
This study is cross-sectional, limited to one country and industrial sector and does not address whether the indirect effect of GSCM on competitive advantage via generative AI is universal or context-dependent.
By demonstrating how GSCM can lead to competitive advantage, the study encourages wider adoption of GSCM among firms. This can contribute to reducing environmental impact and enhancing overall societal well-being.
This study highlights the critical role of firms’ technological capabilities in advancing the implementation of green initiatives and enhancing competitive advantage, providing valuable insights for firms striving to meet sustainability expectations and navigating the competitive landscape.
