The impact of green innovation products on an organization’s social performance via green supply chain management

The purpose of this study is to examine the impact of green innovation products on an organization’s social performance through mediation of green supply chain management. Using stakeholder resource-based view theory as a theoretical framework, the research model was developed with quantitative data from 170 managers in various industries in Israel that operate in international markets. The analyses of this study were done by structural equation modeling method via AMOS28 software. The findings show that both green innovation products and green supply chain management directly affect an organization’s social performance. Moreover, green supply chain management partially mediates the relationship between green innovation products and an organization’s social performance. That is, social performance in this study is driven by technological improvements in developing green innovative products, such as pre-designing products that minimize waste in production, more efficient utilization of raw materials, less hazardous materials, and reduction of risks to the public, as well as by selecting green suppliers throughout the supply chain and logistics. The main contribution of this study is an integrative model that combines two different disciplines – marketing and supply chains – into one integrative model that examines their joint impact on the organization’s social performance. The findings provide five main insights. First, managers who want to promote social performance in their organizations should adopt green innovation products to fulfill their customers’ needs. Second, combining green supply chain management with green innovation products can create new organizational processes that may respond to stakeholders’ requirements and environmental changes, improving the organization’s social performance. Third, these findings help stakeholders such as policymakers and regulators to encourage the integration of green innovative products based on green technology, along with the development and regulatory prioritization of green suppliers, leading to a green supply chain. Fourth, the introduction of green operational indicators and data transparency enables customers and the organization to purchase greener products, services, and raw materials. Finally, researchers can extend the study findings to identify similarities across industries, make cross-country comparisons, and examine the long-term impacts of green innovation products and green supply chains on social performance.