Capstone-II Research Report

Impact of green supply chain on sustainable

supply chain performance in Unilever Pakistan Limited

By
Shiv Karan Singh (20161-20852)
Iqra Sohail (20181-24047)
Muhammad Rahab Rehman (20201-27683)
Syed John Zaidi (20201-28329)
Muhammad Salman khan (20201-27298)

Supervisor
Dr. Adeel Sheikh

Co-Supervisor
Dr Sherbaz Khan

Department of Supply Chain Management

College of Business Management

Institute of Business Management (IoBM)

Karachi

Fall 2023
 Table of Contents
ACKNOWLEDGEMENT.........................................................................................................2
ABSTRACT...............................................................................................................................3
DEFINATION OF KEY TERMS..............................................................................................4
CHAPTER 1 - INTRODUCTION.............................................................................................5
CHAPTER 2 - ORGANIZATIONAL BACKGROUND........................................................10
CHAPTER 3 - LITERATURE REVIEW................................................................................13
CHAPTER 4 - RESEARCH METHODOLOGY....................................................................20
CHAPTER 5 - RESULTS AND INTERPRETATION...........................................................21
CHAPTER 6 - CONCLUSIONS, MANAGERIAL IMPLICATIONS,
RECOMMENDATIONS AND LIMITATIONS.....................................................................29
REFERENCE...........................................................................................................................32
APPENDIX / QUESTIONAIRE:............................................................................................35

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ACKNOWLEDGEMENT

"All praise is due to Allah, and peace and blessings be upon His Messenger Muhammad
(PBUH)."
We would like to express our sincere gratitude and appreciation to the Almighty Allah for
His endless blessings and mercy upon us. Without His will and guidance, this work would
not have been possible.
We, Shiv Karan Singh, Iqra Sohail, Rahab, John Zaidi, and Salman Chaudhary, sincerely
thank Drs. Adeel Shah and Sherbaz Khan for their vital assistance in seeing our experiential
Capstone-II course through to its successful conclusion.
Throughout the course, Drs. Adeel Shaikh and Sherbaz Khan gave us a special chance to put
the knowledge we've learned in school to use. Their steadfast support, direction, and
mentoring were crucial in helping us develop our knowledge and abilities in the field.
We would like to express our profound gratitude to Dr. Adeel Shaikh for his knowledge,
support, and perceptive criticism, all of which tremendously enhanced our research endeavor.
His devotion to academic achievement and his efforts to create a lively learning atmosphere
have had a long-lasting effect.
In the same way, we want to thank Dr. Sherbaz Khan for all of his help and encouragement.
His meticulous attention to detail, academic integrity, and helpful criticism has all been very
helpful in improving our study and guaranteeing its caliber.
Finally, we would want to express our sincere gratitude to Drs. Adeel Shaikh and Sherbaz
Khan for their steadfast support, guidance, and the invaluable educational experience they
have given. Our academic progress has been greatly aided by their advice, and we are really
appreciative of the chance to study under them.

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ABSTRACT

The purpose of this study is to determine how sustainable supply chain management is
affected by eco-design, reverse logistics, eco-manufacturing, eco-purchasing, and internal
and external social management techniques. The moderating role of institutional pressures
between eco-design, eco-manufacturing, eco-purchasing, and sustainable supply chain
performance will also be investigated in this study. The objective of this study is to examine
the role that process innovation plays as a mediator between the performance of sustainable
supply chains and internal and external social management practices. Employees of Unilever
Pakistan made up the 105 responses that made up the sample size. SmartPls was used to
assess the outcomes. According to the findings, SSCP was significantly impacted by reverse
logistics, green manufacturing, and internal and external social management practices. Apart
from that, process innovation had a major mediation effect between internal and external
social management practices and SSCP, while institutional pressures had a large moderating
effect between eco-design and SSCP. This gives Unilever Pakistan Limited managers and
resource allocators important information because it shows them where to spend their
attention and resources—namely, on the factors that actually have a big influence on SSCP.

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DEFINATION OF KEY TERMS

Term (s) Descriptions/Definitions

Green supply chain management is a proactive and reactive approach to

Green Supply managing the environmental impact of an organization's supply chain. It
Chain encompasses all aspects of the supply chain, from the raw materials
Management sourced to the manufacturing process and the finished product
distribution (Abu Seman, 2018).
Green design is an approach to design that minimizes the negative
Eco Design environmental impact of a product or system. It considers the entire life
(Construct) cycle of a product or system, from the initial extraction of raw materials
to the final disposal or recycle (Jabbour, 2010).
Green purchasing is the process of making eco-friendly choices when
Green
purchasing products. This means choosing products that are not harmful
Purchasing
to the environment and are made from sustainable materials (Choi,
(Construct)
2018).

Green Green manufacturing is a process of making products using sustainable,

Manufacturing environmentally friendly methods. It includes using recycled materials,
(Construct) renewable energy, and efficient production methods to minimize
pollution and waste (Eltayeb, 2022).

Internal and
external social Internal social management practices refer to the strategies, policies, and
management activities that an organization employs to manage and enhance social
practice interactions and relationships within the company (Gao Y, 2019).
(Construct)

Reverse Reverse logistics is the process of moving goods and materials from the
Logistics customer back to the originating company for repair, replacement, or
(Construct) refurbishment (Lau, 2009).

Institutional Institutional pressures refer to the influences exerted by external entities

pressures and societal norms that shape and guide the behavior, decisions, and
(Construct) practices of organizations within a given institutional environment
(Sheu, 2009).

Process Process innovation refers to the implementation of new or significantly

innovation improved methods, techniques, or workflows in the production or
(Construct) delivery of goods and services within an organization. (Uddin, 2021).

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CHAPTER 1 - INTRODUCTION

This paper is focused on analyzing the impact of green supply chain variables like green
purchasing, green manufacturing, eco-design, reverse logistics, internal and external social
management practices on sustainable supply chain performance in Unilever Pakistan limited.
Additionally, this paper has incorporated the moderating impact of institutional pressures and
process innovation on such variables to analyze their respective effects on the dependent
variable which is sustainable supply chain performance.
The resource-based theory and the institutional theory serve as the foundation for this essay.
According to the resource-based hypothesis, a company's organizational strengths may
provide it with a long-term competitive edge (Rupa & Saif, 2022) . According to this
hypothesis, companies that implement green practices can enhance their environmental
performance by developing and utilizing unique organizational skills (Mills, 2003) . The
institutional theory on the other hand examines how institutions influence how businesses
behave and how that affects how well they function (Chowdhury, 2018).
Businesses must function within the triple bottom-line paradigm which considers
environmental, social, and economic issues (Sultana, 2018) in order to manage environmental
resources sustainably. According to the institutional perspective, environmental practices are
the laws and guidelines that businesses must go by in order to be allowed to
operate (Chowdhury, 2018.). This entails adhering to environmental laws and regulations for
businesses in the industrial sector. In order to enhance their environmental performance and
surpass regulatory requirements, companies must implement eco-friendly practices across
their whole supply chain. (den Hoed & Vergragt, 2014).
According to Rauer and Kaufmann (2015), "green supply chain management" refers to a
range of tactics, procedures, and laws intended to lessen the negative effects of supply chain
activities on the environment. According to Srivastava (2007), it also entails the integration
of environmental factors into supply chain management, encompassing tasks such as
environmentally friendly product design, green sourcing, green manufacturing processes,
product delivery to and from customers (reverse logistics), and the responsible disposal of
products after their useful lives.
According to Golicic and Smith (2013), Rao and Holt (2005), Wu and Pagell (2011), and
others, green supply chain management (GSCM) has a number of potential advantages, such
as strengthening reputation, increasing efficacy, efficiency, and differentiation in the market.
In addition, implementing environmentally friendly practices—also known as "going
green"—has long-term financial benefits. This is due to the fact that, as Bell, Mollenkopf,
and Stolze (2013) highlight, enterprises and the consumption of commodities face serious
restrictions in the absence of sustainable management of natural resources.
(Muhammad, 2020) emphasizes the importance of three key factors in determining a
company's long-term viability: environmental, social, and economic performance metrics.
The combination of these three metrics allows us to assess a company's overall sustainable
development as well as its economic performance.

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Businesses are currently demonstrating care for the environmental effect of their products in
order to strengthen their commitment to sustainable development. (Ananda, 2018) highlights
that the integration of environmentally conscious supply chain management techniques in the
manufacturing industry is a crucial factor in elevating a firm's enduring principles.
Green supply chain management (GSCM) methods are eco-friendly management approaches
that have been used by manufacturing organizations such as Unilever Pakistan Limited. By
decreasing solid waste, lowering effluent waste, and limiting the use of harmful materials—
tangible or intangible—in the industrial sector, these GSCM methods seek to reduce air
emissions (Sultana, 2018). Notably, in addition to improving performance sustainability,
these techniques have a major impact on a business's profitability and market share, as
highlighted by (Tiwari, 2018).
Pakistani manufacturing companies have recently shown a significant deal of interest in green
manufacturing, both in terms of research and actual applications. According to (Gupta,
2019)., there is a noteworthy trend in which customers and business partnerships are favoring
producers that prioritize eco-friendly goods and services. This tendency has been underlined
by recent surveys and research. This change in consumer desire and the manufacturing sector
are gaining ground. Beyond the advantages in terms of customer preference and market
share, green manufacturing is intrinsically tied to an organization's ability to execute
sustainably.
On the other side, green supply chain management includes green buying as a crucial
element. The main goal of green purchasing is to find items that are ecologically friendly
(Altaf, 2016). This is important since there is a rising customer desire for products that are
environmentally friendly. Organizations benefit from this customer choice in the form of
higher market shares, as shown by (Haryanto, 2017)
On the other side, eco-design concepts are now directing product distribution, packaging, and
manufacturing in accordance with eco-friendly and sustainable practices (Anwar, 2022). The
significant influence eco-design has on an organization's sustainable performance is one of its
main advantages (Azhar Ahmad, 2022). Environmental design is essential to a company's
sustainability efforts since it makes an environmental focus more prominent. As such, it is a
noteworthy and crucial procedure in the field of environmentally conscious supply chain
management, supporting the company's overarching dedication to sustainability.
Institutional pressures are laws and regulations set by the government (Rohr & Emam, 2016)
that impact variables like green manufacturing, green purchasing and eco design. It is
important that firms comply with institutional pressures like laws and regulations to further
reinforce the relationship between their sustainability objectives and that of the economy.
According to (Seroka-Stolka, 2014), reverse logistics is the practice of receiving items or
goods back from customers at an earlier point in the supply chain. As noted by (Younis,
2016) , the main reasons for doing this include recycling, reusing, remanufacturing, mending,
refurbishing, or guaranteeing safe disposal.

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The implementation of reverse logistics plays a pivotal role in enhancing an organization's
operational efficiency, boosting competitiveness, and reducing system-wide costs, as
highlighted by (Wang, 2009). Greening the reverse logistics networks is regarded as a
strategic tool, offering economic advantages and strengthening organizational
competitiveness, as indicated by (Cifci, 2012).
Moreover, internal and external social management practices are also critical for
manufacturing firms like Unilever Pakistan Limited. (Kolk, 1973) posits that increased
participation in Corporate Social Responsibility (CSR) management, involving both internal
employees and external communities, can lead to enhanced public awareness and improved
company performance in terms of environmental protection. (Marshall, "Reverse logistics
and its influence on supply chains. A comprehensive outlook", 1974) had also suggested that
corporate social responsibility policies contribute to strengthening a company's sustainable
performance.
Sustainability-focused practices such as the ones mentioned above are essential for
companies like Unilever Pakistan Limited. Activities like green purchasing aid in reducing
the supply chain's environmental impact and attracting eco-conscious consumers (Alnoor,
2019). Green manufacturing reduces ecological footprints, enhances efficiency, and fosters
competitiveness (Emerald, 2017). Eco-design integrates sustainability into product lifecycles,
minimizing environmental impact (Epoh & Mafini, 2018). Reverse logistics manages returns
and materials efficiently, saving costs and promoting environmental sustainability (Gandhi,
2021). Internal social management, focusing on employee well-being, boosts satisfaction,
reduces accidents, and enhances overall performance and reputation. These practices align
with Unilever's sustainability commitment, elevating its competitiveness and economic
performance in a socially and environmentally conscious market (Sultana, 2018)
To determine which variable has the greatest influence on the sustainability of the supply
chain at Unilever Pakistan Limited (UPL), more resources will be allocated to those variables
in order to improve the company's triple bottom line and sustainability. This research aims to
investigate the effects of these independent variables on the performance of the supply chain,
with institutional pressures and process innovation acting as a moderator.
The Unilever Sustainable Living Plan stimulates growth, lowers expenses, lowers risks, and
draws in talent (Sultana, 2018). These factors are all strongly correlated with profitability and
returns. Reducing environmental impact, boosting livelihoods, and increasing health and
well-being are the three primary goals stated in the Unilever strategy (Sultana, 2018).
The dependent variable in this study is sustainable supply chain performance. Sustainable
supply chain performance gauges performance in terms of the triple bottom line i.e. in terms
of people, planet and profit (Slaper and Haul, 2011). Any firms’ long-term viability is
assessed using three main components which are namely the economic performance
indicators: social and environmental performance indicators (Muhammad, 2020). Hence
sustainable performance of firms in this aspect does not gauge just their economic
performance but overall sustainable development in terms of three dimensions (economic,
social and environmental).

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If we do not work with the dependent variable i.e sustainable supply chain performance, we
will be unable to gauge the impact of a company like Unilever Pakistan Limited in terms of
all these three dimensions. This is important for companies like Unilever Pakistan limited
because Unilever had sought its sustainable living plan in 2010 which focused on all these 3
aspects: people, planet and profit (Sultana, 2018) Thus, not working with the dependent
variable would mean that we are unable to account for all these 3 dimensions of sustainability
which are critical to Unilever’s sustainability goals. However, if we work on the DV, we will
be able to account for sustainability in terms of the triple bottom line which is In accordance
to Unilever’s sustainable living plan which focuses on three main missions. These missions
are improving health and well-being, reducing the environmental impact and ‘enhancing
livelihoods’ of people (Sultana, 2018). We will simultaneously be able to account for the
profit element as well to evaluate the impact of these variables on profitability.
The emphasis is now shifting to sustainable energy, green goods, and green technologies (Ali,
2020) Making the switch to a greener lifestyle benefit both the earth and its inhabitants.
Additionally, due to this change in emphasis, it has been noted that customers are prepared to
spend more money on eco-friendly items. Going green provides a win-win situation for the
planet and its living beings. It has also been observed that consumers are willing to buy
expensive but eco-friendly products because of this shift in focus (Shrimurti, 2022) This
provides a favourable environment for companies like Unilever Pakistan limited which can
for example sell expensive but eco-friendly products; in accordance to its sustainable living
plan and still yield profits.
If we work on the dependent variable, we would be mitigating the risk of Greenwashing
( (Hareem, 2011). This is the risk of overlooking or underestimating the environmental and
social impacts of Unilever's operations. This could potentially result in a perception of
"greenwashing," where a company appears more sustainable than it is. Hence by focusing on
sustainable supply chain performance and by focusing on the triple bottom line, working on
the DV would allow us to reduce this risk as we will be able to gauge a better understanding
of the variables having impacts on the triple bottom line. Additionally, audits or third-party
verification can be incorporated by Unilever Pakistan limited to better understand its current
sustainability standing (Sultana, 2018).

Significance of Sustainability:
When taking into account the triple bottom line—which takes social, environmental, and
economic considerations into account—sustainability is crucial. Sustainability, first and
foremost, fosters healthier and more equal societies by addressing concerns like fair work
standards, community involvement, and access to key resources (Khan, 2022). In contrast,
environmental sustainability is essential to protecting the planet's natural resources and
lessening the effects of climate change, both of which are critical to humanity's long-term
existence. Last but not least, sustainability increases economic viability by encouraging wise
resource management, cutting waste, and frequently resulting in long-term cost savings
(Hafiz & Hareem, 2017).

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The capacity of a business to manage its supply chain activities in a socio-environmentally
responsible manner while retaining economic viability is referred to as sustainable supply
chain performance (Rao and Hanif, 2019). This entails making decisions and putting plans
into action that reduce adverse effects on the environment, support moral and just labor
standards, and encourage economic sustainability along the whole supply chain.
It is impossible to overestimate the importance of sustainable supply chain performance for
businesses. First of all, it is an essential way to reduce the risks brought on by changing
environmental laws and growing customer demand for environmentally friendly goods
(Gandhi, 2021). Businesses that take a proactive approach to sustainability issues are better
equipped to handle evolving legal requirements and adjust to changing consumer demands.
Moreover, it plays a pivotal role in enhancing a company's reputation and brand value as
consumers increasingly base their purchasing decisions on ethical and sustainability
considerations (Azhar Ahmad, 2022).
A commitment to sustainable supply chain practices can set a company apart in a competitive
marketplace. Additionally, it frequently leads to cost savings by promoting resource
efficiency and reducing waste. Sustainable supply chain initiatives also serve as a catalyst for
innovation and long-term resilience, enabling companies to thrive in an ever-evolving
business landscape (Sultana, 2018). Lastly, they facilitate the development of stronger
relationships with suppliers, as ethical and sustainable practices foster more dependable and
responsible partnerships.

Trends in sustainability:
Sustainability trends in developing economies like Pakistan are increasingly shaping green
purchasing, green manufacturing, eco-design, and reverse logistics practices. Such
developing countries are recognizing the importance of environmentally responsible
processes and are adapting to meet the growing demand for sustainable products and services.
Mentioned below are some key trends in sustainability that companies like Unilever Pakistan
have made the most of are continuing to make the most of, in order to provide value to their
customers.
Green Purchasing: It is impossible to overestimate the importance of sustainable supply chain
performance for businesses. Green buying habits are on the rise in developing economies
such as Pakistan. Customers are becoming more aware of how their decisions affect the
environment. As a result, there is a rising market for environmentally friendly and sustainable
goods. In response, businesses are selecting sustainable materials, cutting down on packaging
waste, and increasing supply chain transparency. (Ananda, 2018)
Green Manufacturing: The use of greener and more energy-efficient technology by
manufacturers is growing. To reduce their environmental impact, they are investing in
renewable energy sources and putting waste reduction plans into action (Khan, 2022). Green
certificates are becoming more common as a means of confirming environmentally beneficial
production methods (Demirci, 2020).

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Eco-Design: Product designers such as UPL are concentrating on making items that are
robust, reusable, and low energy. In addition to lessening the impact on the environment, this
move toward sustainable product design also meets customer desire for more
environmentally friendly solutions (Sultana, 2018)
Reverse Logistics: Reverse logistics, including recycling and product take-back programs, are
becoming more common in developing economies. Companies are recognizing the value of
reusing and recycling products and materials. This not only reduces waste but also opens up
opportunities for new revenue streams through the refurbishment and resale of used products
(Demirci, 2020).

Sustainable Packaging: Companies like Unilever are striving to reduce their use of single-use
plastics and opt for more sustainable packaging materials. This includes the development of
biodegradable, compostable, and recyclable packaging solutions. Additionally, there is a
growing emphasis on reducing excess packaging to minimize waste.
Sustainable Sourcing and manufacturing: Unilever Pakistan is increasingly committed to
responsibly sourcing raw materials, such as palm oil, cocoa, and coffee (Sultana, 2018). This
involves supporting fair trade practices, preventing deforestation, and ensuring that sourcing
practices do not harm local communities or ecosystems. Moreover, in its production
practices, the company has reduced its focus on plastics and paper and is moving towards
materials that do not cause harm to the environment.

CHAPTER 2 - ORGANIZATIONAL BACKGROUND

Unilever is a British-Dutch multinational consumer goods company that operates globally. In
1930, the British soap manufacturer Lever Brothers and the Dutch margarine manufacturer
Margarine Unie merged to become the firm. Featuring a vast array of products across several
categories, Unilever stands as one of the world's most extensive and multifaceted consumer
goods corporations.
Among the numerous well-known brands
that fall under the Unilever umbrella are
Ben & Jerry's, Axe, Knorr, Lipton,
Hellmann's, and Dove. Food and drink,
cleaning supplies, cosmetics and personal
hygiene goods, and health and wellness
products are all produced by the
corporation. Unilever has demonstrated a
resolute dedication to sustainability and
social responsibility via its concerted
efforts to mitigate its environmental footprint and advance moral corporate conduct.
Unilever Pakistan Limited, formerly Lever Brothers Pakistan Limited is a Pakistani fast-
moving consumer goods company based in Karachi. It is a subsidiary of the British
multinational company Unilever.

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The location of the personal care plant was decided upon in the town of Rahim Yar Khan.
The corporation moved its headquarters from Rahim Yar Khan to Karachi in the middle of
the 1960s.The business debuted on the Karachi Stock Exchange in December 1980.It
operates four plants around the nation.
Unilever Pakistan places a profound emphasis on sustainability because it recognizes that
sustainable practices are not just a business strategy but a moral imperative. As a company
deeply rooted in Pakistan's society, Unilever is committed to preserving the environment,
improving livelihoods, and improving the quality of life for current and future generations
(Sultana, 2018)
Sustainability is at the core of their operations, from responsible sourcing of raw materials to
reducing their environmental footprint and promoting social initiatives. Unilever Pakistan's
commitment to sustainability aligns with the global Unilever Sustainable Living Plan,
reflecting their dedication to creating a beneficial impact on society while ensuring the long-
term viability of their business in Pakistan.
In order to determine which variables, have the greatest influence on sustainable supply chain
performance and, ultimately, the bottom line, this study will evaluate the effects of various
green supply chain variables for Unilever Pakistan Limited. These variables include eco-
design, reverse logistics, green manufacturing, green purchasing, and internal and external
socially responsible management practices.
This will enable us to determine which factors have the biggest influence on sustainable
supply chain performance and, ultimately, the company's bottom line, as well as how green
supply chain management variables are affecting sustainable supply chain performance at
Unilever Pakistan Limited. The moderating impacts of institutional constraints and process
innovation on the sustainable supply chain performance of Unilever Pakistan Limited will
also be examined in this study.

Research questions:
1. Does green manufacturing have an impact on sustainable supply chain performance in
UPL?
2. Does institutional pressure moderate the relationship between green manufacturing and
sustainable supply chain performance in UPL?
3. Does green purchasing have an impact on sustainable supply chain performance in UPL?
4. Does institutional pressure moderate the relationship between green purchasing and
sustainable supply chain performance in UPL?
5. Does eco-deign have an impact on sustainability performance in UPL?
6. Does institutional pressure have a moderating affect between eco design and SSCP in
UPL?
7. Does reverse logistics has an impact on sustainable supply chain performance in UPL?
8. Does internal and external social management practice have an impact on SSCP in UPL?
9. Does process innovation have a mediating role between internal and external social
management practices and SSCP in UPL?

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Research objectives:
1. To figure out how green manufacturing affects UPL's sustainability performance.
2. To assess how institutional pressure between sustainability performance and green
manufacturing modifies UPL.
3. To assess how green purchasing affects UPL's sustainability performance.
4. To figure out how institutional pressure between sustainability performance and green
buying affects UPL in a moderating way.
5. To determine how eco-design affects UPL's sustainability performance
6. To evaluate the moderating effect on UPL of institutional pressure between sustainability
performance and eco-design.
7. To examine reverse logistics' effect on UPL's environmental performance
8. To evaluate the impact of internal and external social management practices on SSCP in
UPL.
9. To assess how process innovation mediates the relationship between UPL's performance
in the sustainable supply chain and internal socially responsible management practices.

Gaps:
Only SME businesses in the Gauteng region of South Africa and respondents were included
in the study that examined the relationships between environmental performance and
sustainable supply chain profitability as well as reverse logistics and these relationships
(Azhar Ahmad, 2022). Additionally, research was limited to automotive and textile sector
(Mark & Bell, 2019) As a result, we took into account the FMCG sector in our research and
focused our research towards Pakistan.
In earlier research, only GP, ED, RL, and LR were allowed to use green techniques. In order
to further broaden the scope of the research, it is proposed that other aspects of GSCM
practices be investigated in the future (Liu, 2018). For instance, green manufacturing, internal
and external social management practices, and process innovation may all be thought of as
independent variables (Epoh, 2018).
To optimize the study's validity and reliability, larger sample numbers have to be taken into
consideration in the future (Jawaad, 2019). It is also possible to carry out comparable
investigations in other developing nations, such as Bangladesh, Pakistan, etc.

Contribution:
1. Additional research on sustainable supply chain management (SSCM) in Pakistan's
industrial industry may broaden the application of SSCM techniques. This may include
taking into account variances in the effects of SSCM techniques on sustainable
performance that are unique to a certain industry. Examining how SSCM methods impact
the FMCG sector, for instance, might provide insightful information on sector-specific
sustainability potential and difficulties.
2. Reducing Respondent Biases and Increasing Sample Size: Future research should work to
reduce respondent biases and increase sample size in order to increase the reliability of
study findings. We have employed simple random sampling to prevent bias because the

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 study was further constrained in its use of convenience sampling, which might have
caused bias.
3. It is possible to include other GSCM dimensions, such as green manufacturing.
Furthermore, it is possible to look at how social management techniques, both internal
and external, affect the dependent variable.
4. It is possible to look at how institutional pressures and governmental laws and regulations
moderate the effects of various green supply chain factors. In addition, it is possible to
investigate the mediating role of technical and process innovation in order to determine
how such a variable affects the performance of the sustainable supply chain.

CHAPTER 3 - LITERATURE REVIEW

Green Supply Chain Management (GSCM) plays a pivotal role in ensuring the sustainability
of firms in today's dynamic business landscape. As businesses strive to meet the growing
expectations for environmental responsibility, GSCM emerges as a strategic approach to
integrate sustainability practices throughout the entire supply chain. By incorporating eco-
friendly initiatives, reducing carbon footprints, and optimizing resource usage, companies can
enhance their operational efficiency while minimizing negative environmental impacts (Ali,
2020). GSCM not only contributes to regulatory compliance and risk mitigation but also
fosters innovation and cost savings (Epoh, 2018). Moreover, as consumers increasingly
prioritize environmentally conscious products and ethical business practices, adopting GSCM
becomes a competitive advantage, strengthening a company's brand image and market
position.
In this study we have utilized Green supply chain variables like green purchasing, green
manufacturing, eco design, reverse logistics. Institutional pressures and process innovation
are going to be used as moderators as they have the capability to influence sustainable
performance of firms (Azhar Ahmad, 2022).

Green purchasing and Sustainable supply chain performance:

According to Abdallah (2019), green purchasing is essentially an environmentally conscious
purchasing initiative that makes sure the material or product purchased satisfies the
environmental goals set by the procuring company, such as, for example, reducing resource
use, reducing waste, reusing, and substituting materials. Reusing recycled materials is another
aspect of green shopping. (Diabat, 2011).
Furthermore, there is evidence to support the idea that businesses use evaluative methods to
track any green buying actions that their suppliers may do. In order to assess suppliers'
performance, a rigorous examination of them based on environmental factors is essentially
required, and suppliers must create and maintain an environmental management system
(Large, 2011).
Because green purchasing offers suppliers a cooperative incentive while also being a
desirable corporate social responsibility practice, it incentivizes suppliers to create green
inputs and raw materials. Thus, it fosters cooperation between the buying organization and
the providers (Choi, 2018). The cost of green materials is high, which may deter businesses

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from utilizing them in their manufacturing processes (Uddin, 2021). However, as
environmental consciousness has grown in recent years, so has the demand for eco-friendly
products.
Green purchases demonstrate a business's dedication to sustainability. According to Cherian
and Jacob (2012), there is a need for a green economy since it is advantageous for both the
environment and the economy. This leads to the derivation of the following hypothesis:
H1: Green buying significantly affects UPL's sustainability performance.

The moderating effect of institutional pressure on sustainability

performance and green buying
The external factors, such as laws, customs, and stakeholder expectations, that affect a
company's behavior are referred to as institutional pressures. In contrast, a company's
capacity to integrate ecologically friendly practices into its supply chain management
procedures is referred to as sustainable supply chain performance. Research has indicated that
institutional pressures have the potential to enhance the effectiveness of sustainable supply
chains.
For instance, (Ali, 2020) discovered that national institutional regulations, such as recycling
garbage and limiting waste defecation, may put pressure on businesses to embrace green
purchasing. Furthermore, the link between sustainability performance and green supply chain
strategies may be moderated by institutional forces. According to the resource-based theory,
when there is institutional pressure, the organization tends to deliver superior performance in
green manufacturing and green production, which can lead to better sustainability
performance. Hence on this basis the below hypothesis is derived:
H2: The relationship between green purchasing and UPL's sustainability performance is
moderated by institutional pressure.
Green manufacturing's effects on sustainability outcomes
In order to achieve green manufacturing, standards must be established for product
manufacture that ensure there are no, or fewer, health risks, safety issues, environmental
pollution, and waste disposal and recycling during the production process (Gong, 2019). In
this industry, "green manufacturing" refers to the design and control of production processes
to monitor energy consumption, greenhouse gas emissions, waste defecation, etc.
By increasing business efficiency, green manufacturing helps to decrease municipal waste
(Aziziankohan, 2017), which improves a company's sustainability performance. As a
consequence, the following hypothesis is arrived at:
H3: UPL's sustainability performance has been significantly impacted by green
manufacturing.
Institutional pressure's moderating effect on green manufacturing and
sustainability efficacy

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According to (Sarkis, 2011), there is a need for institutional pressure on firms to adhere to
norms and regulations in order to protect the environment and strengthen the link between
sustainability performance and green manufacturing. Moreover, there is no negative impact
from any kind of institutional pressure on businesses to abide by laws and regulations; on the
contrary, it helps create a system where all parties benefit. The resource-based theory states
that in order to improve sustainability, resources in a green supply chain must be expanded as
demand rises. Organizations are more likely to do better in green Institutional forces and
green manufacturing are related. The external factors, such as laws, customs, and stakeholder
expectations, that affect a company's behavior are referred to as institutional pressures. The
term "green manufacturing" describes the use of eco-friendly procedures in the production
process. Research has indicated that there is a possibility of an increase in green
manufacturing techniques due to institutional pressures. For example, (Shah, 2016)
discovered a connection between green manufacturing and sustainability performance and
institutional constraints on companies to abide by laws and regulations to protect the
environment from further harm. Similarly (Schöggl, 2017) had pointed out that institutional
pressure on businesses to make green purchases through recycling and waste defecation
management has a good impact on environmental sustainability as well as overall sustainable
performance.
These elements suggest that institutional influences may potentially serve as a moderator in
the correlation between sustainability performance and green manufacturing. For example,
the resource-based theory states that businesses tend to perform better in green manufacturing
and production when they are under institutional pressure to adhere to norms and regulations.
This is because these firms are more careful in their approach. Better sustainability
performance may result from this (Azhar Ahmad, 2022). Hence, the following hypothesis is
proposed:

H4: The relationship between UPL's sustainability performance and green manufacturing is
moderated by institutional pressure.
Eco-design:
Green design is another name for eco-design. It focuses on designing items to use the least
amount of energy and resources possible throughout the production process (Epoh & Mafini,
2018).
Additionally, eco design is the use of environmental tactics. In order for this to occur, internal
cross-functional integration and coordination between the organization's functional divisions
and partners along the supply chain are required (Kumar, 2012).
The effective use of sustainable energy sources during the production process is one aspect of
eco-design efforts that boosts organizational efficiency (Azhar Ahmad, 2022) . Using
environmentally friendly raw materials and eco-design that uses less energy and material are
two examples of how green product and process design is put to use.
Furthermore, Unilever's deliberate implementation of eco-design techniques, which promote
a more streamlined and resource-efficient supply chain, is a testament to its dedication to
15 | P a g e
sustainability. In addition to being in line with Unilever's worldwide sustainability goals
(Sultana, 2018),this strategy puts the business in a position to respond to changing customer
demands for ecologically friendly goods.
Unilever Pakistan Limited may enhance its sustainability performance by reducing waste
output, minimizing the use of hazardous materials, and lowering energy usage by using eco-
design. This leads to the derivation of the following hypothesis:H5: Eco-design has defined a
significant impact on the sustainable supply chain performance at UPL.
Moderating the impact of institutional pressure on eco-design and sustainability performance
Research indicates that institutional pressure to adhere to government requirements affects
the company's environmentally friendly practices for manufacturing goods and services
(Dubey, 2015). Institutional pressures on firms to reduce inflicting hazards to the
environment facilitates the firm to enhance its efficiency and competitiveness (Qianli, 2017).
According to, (Habib, 2021) institutional pressure forces businesses to create environmentally
friendly and environmentally non-harmful goods, which has a significant beneficial impact
on sustainable supply chain design. Consequently, in light of the above-described study, the
following theory is put forth:
H6: The relationship between eco-design and sustainability performance is moderated by
institutional pressure.
Reverse logistics:
Reverse logistics can improve environmental performance, especially in the areas of waste
reduction and resource conservation, according to a substantial body of research. (Azhar
Ahmad, 2022)
Also, several studies have found that implementing reverse logistics practices can lead to
reductions in waste and resources (Ali, 2020). For example, a study by the National
Renewable Energy Laboratory found that reverse logistics can reduce the waste associated
with the manufacturing of photovoltaic cells (Curtis et al., 2021). In addition, a study by the
University Teknologi Malaysia found that reverse logistics can reduce the waste associated
with the distribution of consumer electronics (Kianpour, 2017).
Hence with this ever-increasing focus on environmental sustainability, the use of reverse
logistics to improve environmental performance is a reality. The driving force behind this is
the continued realization of the potential of reverse logistics to make significant reductions in
the environmental impact of businesses (Neto, 2018).
Environmental performance may be significantly impacted by reverse logistics. Reverse
logistics techniques, such as product returns and remanufacturing, recovery, recycling, and
reuse, help businesses cut waste and lessen the impact of their operations on the environment.
Reverse logistics network greening may boost organizational competitiveness and have
financial advantages. Reverse logistics may therefore be used to minimize operating costs
and recoup lost revenues by encouraging the reuse or resale of goods (Epoh, 2018) , and since
it can accomplish that, it will undoubtedly have an effect on SSCP.

16 | P a g e
H7: Reverse logistics has a significant impact on environmental performance and hence
sustainable supply chain performance at UPL
Internal social responsible management practice:
Internal Social Responsible Management Practices encompass ethical and socially
responsible initiatives within a company's organizational framework, focusing on creating a
positive internal working environment (Schaltegger, 2017). The key elements of it include
prioritizing employee well-being through safe working conditions and work-life balance. It
may include embracing diversity and fostering inclusion practices by promoting a workplace
that values differences as well.
Additionally, enhancing staff roles and providing training in CSR management can positively
impact environmental improvement and thus contribute to improve SSCP. (Kolk, 1973)
makes the argument that enhanced public awareness and better business performance in
environmental preservation are correlated with increasing participation in Social
management, which involves both internal workers and external communities. Researchers,
drawing from the findings (Marshall, 1974) anticipate that adherence to corporate social
responsibility policies enhances the sustainable performance of the company.
Furthermore, (Jones, 1975) argues that companies may increase employee happiness,
minimize accidents, and eventually boost efficiency while lowering losses by concentrating
on improving employee work conditions and safety.

External social responsible management practice:

Numerous studies (Hafiz Muhammad Shahid, 2020) highlight the growing trend of
integrating external social responsibility into supply chain management practices. Firms are
recognizing that their social impact extends beyond traditional business operations,
prompting a shift towards more ethical and responsible supply chain decisions.
The organizations that actively involve stakeholders in decision-making processes tend to
build stronger relationships which enhances their ability to address social issues throughout
the supply chain. This collaborative approach is essential for long-term sustainability for any
company.
Sustainable supply chain performance is closely linked to ethical sourcing and positive
supplier relationships because the firms that prioritize responsible sourcing practices
contribute to social and environmental well-being, fostering a positive impact on the overall
supply chain.
External social responsibility has a direct influence on corporate reputation and consumer
perception and the businesses that demonstrate a commitment to social responsibility are
often perceived as trustworthy and environmentally conscious, leading to increased customer
loyalty and positive brand image. On this basis the hypothesis is derived
H8: Internal and External socially responsible management practices have a positive and
significant effect on the sustainable performance of firms.

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Process Innovation as a Moderator Between internal and external social
management practices and a Firm’s Sustainable Performance:
The study uses the RBV theoretical framework to analyze innovation and its connection to
performance. RBV suggests that only companies with superior capabilities and greater
resources will gain a competitive edge and achieve superior results.
Process innovation, due to its unclear cause-and-effect relationship, is a significant source of
competitive advantage. Process innovation can handle various technical tasks within a
company, like creating new products or improving efficiency. Recent research supports that
process innovation plays a big role in achieving sustainable performance.
Process innovation, focused on efficiency, helps companies reduce delivery time and
operational costs. It enhances production and distribution, allowing firms to follow cost-
effective strategies.
There is a theoretical gap in the relationship between SSCM and a company's sustainable
performance. Some claim that internal social management practices, such as supporting
social initiatives, developing environmental protection policies, or participating in
philanthropic endeavors, may increase expenses. On the other hand, some suggest a
constructive collaboration, claiming that SSCM increases worker contentment and fosters
company trust. Additionally, social efforts can improve ties with bankers, investors, and
government agencies, which will facilitate businesses' access to cash.
By increasing the efficacy and efficiency of the procedures used to put socially responsible
management principles into practice, both internally and externally, process innovation can
boost their impact. Process innovation, for instance, may support socially responsible
management practices by lowering waste, increasing energy efficiency, and maximizing
resource use.
Businesses may lower their operating expenses and achieve their sustainability goals by
employing process innovation. Process innovation may also assist businesses in creating
innovative, environmentally friendly, and sustainable goods and services, which will improve
their overall performance in this area. Therefore, process innovation can act as a moderator in
the relationship between internal socially responsible management practices and a firm's
sustainable performance by improving the effectiveness and efficiency of these practices
(Hafiz Muhammad Shahid, 2020)
H9: The link between a company's sustainable performance and socially responsible
management practices, both externally and internally, is mediated by process innovation.

18 | P a g e
Conceptual framework:

On the basis of resource-based theory and institutional theory, the following is the summary
of hypotheses are proposed to guide this research:
H1: Green purchasing influences UPL's sustainability performance.
H2: Institutional pressures can moderate the relationship between green purchasing and
sustainable supply chain performance at UPL.
H3: Green manufacturing influences the sustainable performance of UPL.
H4: Institutional pressures can moderate the relationship between green manufacturing and
sustainable supply chain performance at UPL.
H5: Eco-design influences sustainable supply chain performance at UPL.
H6: Institutional pressures moderate the relationship between green manufacturing and
sustainable supply chain performance at UPL.
H7: Reverse logistics influences sustainable supply chain performance at UPL.
H8: Internal and external social management practices influence sustainable supply chain
performance at UPL.
H9: Process innovation moderates the relationship between internal and external social
management practices and sustainable supply chain performance.

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CHAPTER 4 - RESEARCH METHODOLOGY
With institutional pressures acting as a moderator, the study will look at the effects of eco-
design, eco-purchasing, eco-manufacturing, and sustainable supply chain performance at
Unilever Pakistan Limited. The link between sustainable supply chain performance and
reverse logistics will also be investigated in this study, with environmental performance
acting as a moderator. Finally, this section will also look at the link that exists between
internal social management practices and the performance of sustainable supply chains, with
process innovation acting as a moderator. To investigate these correlations, a cross-sectional
research approach will be used in the study.
Smart Partial Least Squares (SPLS) will be utilized as the statistical analysis tool for this
study. Smart PLS is well-suited for structural equation modeling and is chosen for its
flexibility and robustness in handling complex models. (Henseler J. R., 2009)
Each variable under investigation will be associated with a set of questions designed to
capture the impacts of the independent variables on the dependent variable with the impact of
the respective moderators. Adhering to the Haier thumb rule of 10, a minimum of 10
responses will be collected for each variable (Harrell, 2015). Therefore in our study we have
incorporated 15 respondents per variable making 105 responses in totality.
The study will focus on employees of Unilever Pakistan Limited as the target respondents.
The choice of Unilever employees ensures relevance and specificity to the organizational
context, providing insights directly applicable to the company's work environment.
Each Unilever employee will be treated as a single response unit. This approach ensures that
the analysis reflects the individual perspectives of employees, allowing for a more granular
understanding of satisfaction levels.
Simple random sampling will be employed to select participants from the pool of Unilever
employees. In this technique Each person in the population has the same probability of
getting selected (Cochran, 1977).
The list of Unilever employees will be obtained, and a random selection process will be
applied to ensure a diverse and representative sample. Selected individuals will then be
approached for participation in the survey.
Participants will be assured of the confidentiality of their responses, and ethical
considerations, including informed consent, will be strictly adhered to throughout the data
collection process.

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CHAPTER 5 - RESULTS AND INTERPRETATION
Beta and P-value analysis:
Figure A: Beta value test Figure B: P-value test:

Bet P- Hy
Rela
a va pot
Variables tion
val lu hesi
ship
ue e s
Green
manufacturin
Sign Acc
g- sustainable 0.36
0 ifica epte
supply chain 9
nt d
performance
(SSCP)
Institutional
- 0. insig Rej
pressures-
0.05 18 nific ecte
Green man-
1 2 ant d
SSCP
Green - 0. insig Rej
purchasing- 0.01 62 nific ecte
SSCP 8 4 ant d
Inst.pressures - 0. insig Rej
- green pur- 0.07 08 nific ecte
SSCP 9 6 ant d
0. insig Rej
0.07
Eco-design 08 nific ecte
2
5 ant d

21 | P a g e
 Inst. Pressures- ecodesign-
0.229 0 Significant Accepted
SSCP
Reverse logistics- SSCP 0.129 0.005 Significant Accepted
Internal and external social
0.129 0.001 Significant Accepted
management practice- SSCP
Process innovation- I & E -
-0.087 0.014 Significant Accepted
SSCP
There is a substantial correlation between the IV and the DV when the beta value is
bigger than 0.10. Conversely, a negative sign denotes a poor correlation between the IV
and the DV. Conversely, if a P-value is at or below 0.05, it indicates a statistically
significant link (Uddin, 2021). The hypothesis will be accepted if they are less than
0.05, as this indicates that there is a statistically significant link between the IV and the
DV.

R-square (R²) and Adjusted R-square (R²):

Particulars Values
R-square 0.757
Adjusted R square 0.75

R-square (R²):
Interpretation: With an R-square value of 0.757, the independent variables—green
manufacturing, green purchasing, eco-design, reverse logistics, and internal and external
social management practices—account for roughly 75.7% of the variability in the dependent
variable of sustainable supply chain performance.
Adjusted R²:
Interpretation: The number of predictors in the model is taken into account by the adjusted R-
square value of 0.750. The reason for its small lower value is that it penalizes the inclusion of
extraneous variables, unlike the R-square.

F-square:
F-square, also known as the effect size in analysis of variance (ANOVA), quantifies the
proportion of variance in the dependent variable explained by the independent variable(s). It
aids researchers in gauging the practical significance of their findings beyond statistical
significance. (Cohen, 1988) guidelines for small, medium, and large effect sizes are
commonly referenced. Researchers often use F-square to complement p-values, providing a

22 | P a g e
more comprehensive interpretation of research outcomes (Olejnik & Algina, 2003). The
below results highlight the F-square scores pertinent to our research:

Variable F-statistic
Eco Design 0.005266
Green Manufacturing 0.164901
Green Purchasing 0.000486
Institutional Pressures 0.048005
Internal and External Social management Practice 0.018734
Process Innovation 0.034744
Reverse Logistics 0.018249
Sustainable supply chain performance
Institutional Pressures x Green Manufacturing 0.003487
Institutional Pressures x Green Purchasing 0.005077
Institutional Pressures x Eco Design 0.063649
Process Innovation x Internal and External Social
management Practice 0.012228

F-Values (interpretation)
The F-value, or F-statistic, is a statistical measure used in analysis of variance (ANOVA) and
regression analysis. It is a ratio of two variances and is employed to assess whether the
means of different groups are significantly different or if a regression model is statistically
significant (Cohen, 1988). The F-value is calculated by dividing the explained variance
(variance between groups or regression) by the unexplained variance (variance within groups
or residuals). In ANOVA, a high F-value suggests that at least one group mean is
significantly different from the others.

Eco Design -> Sustainable supply chain performance (f-square = 0.005):

This suggests that Eco Design explains a very small proportion (0.5%) of the variance in
sustainable supply chain performance after accounting for other predictors.

Green Manufacturing -> Sustainable supply chain performance (f-square = 0.165):

Green Manufacturing explains a moderate proportion (16.5%) of the variance in sustainable

supply chain performance after considering other predictors.

Green Purchasing -> Sustainable supply chain performance (f-square = 0.000):

23 | P a g e
Green Purchasing seems to have a negligible contribution (0%) to explaining the variance in
sustainable supply chain performance in this model.

Institutional Pressures -> Sustainable supply chain performance (f-square = 0.048):

Institutional Pressures explains a moderate proportion (4.8%) of the variance in sustainable

supply chain performance after accounting for other predictors.

Internal and External Social management Practice -> Sustainable supply chain
performance (f-square = 0.019)

Internal and External Social management Practice explains a small proportion (1.9%) of the
variance in sustainable supply chain performance.

Process Innovation -> Sustainable supply chain performance (f-square = 0.035):

Process Innovation explains a moderate proportion (3.5%) of the variance in sustainable

supply chain performance.

Reverse Logistics -> Sustainable supply chain performance (f-square = 0.018):

Reverse Logistics explains a small proportion (1.8%) of the variance in sustainable supply
chain performance.

Institutional Pressures x Green Manufacturing -> Sustainable supply chain performance (f-
square = 0.003):

The interaction term between Institutional Pressures and Green Manufacturing contributes a
very small proportion (0.3%) to explaining the variance in sustainable supply chain
performance.

Institutional Pressures x Green Purchasing -> Sustainable supply chain performance (f-
square = 0.005):

The interaction term between Institutional Pressures and Green Purchasing explains a small
proportion (0.5%) of the variance in sustainable supply chain performance.

Institutional Pressures x Eco Design -> Sustainable supply chain performance (f-square =
0.064):

The interaction term between Institutional Pressures and Eco Design contributes a moderate
proportion (6.4%) to explaining the variance in sustainable supply chain performance.

Process Innovation x Internal and External Social management Practice -> Sustainable
supply chain performance (f-square = 0.012):

The interaction term between Process Innovation and Internal and External Social
management Practice explains a small proportion (1.2%) of the variance in sustainable

24 | P a g e
supply chain performance.

The results indicate varying degrees of influence on sustainable supply chain performance
across different factors. Eco Design has a minimal effect (f-square = 0.005, 0.5%) after
considering other predictors. Green Manufacturing demonstrates a moderate impact (f-square
= 0.165, 16.5%), while Green Purchasing's contribution is negligible (f-square = 0.000, 0%).
Institutional Pressures (f-square = 0.048, 4.8%) and Process Innovation (f-square = 0.035,
3.5%) have a moderate influence. Internal and External Social management Practice (f-square
= 0.019, 1.9%) and Reverse Logistics (f-square = 0.018, 1.8%) contribute to a lesser extent.
Interaction terms, such as Institutional Pressures x Eco Design (f-square = 0.064, 6.4%),
highlight additional moderating effects on sustainable supply chain performance. These
findings underscore the multifaceted nature of factors influencing sustainability in the supply
chain (Olejnik & Algina, 2003; Cohen, 1988).

Construct Reliability and Validity:

Variables Cronbach's Composite Composite rel

AVE
alpha rel(rho_a) (rho_c)
Eco Design 0.778866024 0.781344988 0.872012601 0.69
Green Manufacturing 0.769716613 0.777169021 0.866849314 0.68
Green Purchasing 0.730184937 0.732455085 0.848690497 0.65
Institutional Pressures 0.785923532 0.8160574 0.875037692 0.7
Internal and External
Social management 0.804989807 0.806099607 0.884916856 0.72
Practice
Process Innovation 0.856764301 0.862716704 0.912537881 0.78
Reverse Logistics 0.765385412 0.777035256 0.86367055 0.68
Sustainable supply chain
0.744362986 0.76258825 0.855724092 0.67
performance

25 | P a g e
Cronbach's Alpha:
Interpretation: More values indicate more internal consistency. The Cronbach alpha values
range from 0 to 1. For research purposes, a Cronbach's alpha of more than 0.7 is often
regarded as appropriate. The fact that every cronbach alpha value in this model is higher than
0.7 suggests that the internal consistency of the model is strong (Uddin, 2021)

Composite Reliability (rho_a and rho_c):

Interpretation The values are between 0 and 1. Greater values, such Cronbach's alpha, signify
increased dependability. For trustworthy constructions, both rho_and rho_c should preferably
be above 0.7 (Hair, 2018). Values in this model that are more than 0.7 show that the constructs
are trustworthy.

Average Variance Extracted (AVE):

Interpretation of Average Variance Extracted (AVE): The values are between 0 and 1. A
higher degree of convergent validity is shown by higher values (closer to 1), which implies
that the concept itself accounts for a sizable amount of the variance in the indicators. AVE
scores greater than 0.5 are frequently seen as appropriate. Since every AVE number is higher
than0.5, they are all acceptable. The guideline that Average Variance Extracted (AVE) values
above 0.5 are considered appropriate is often attributed to (Fornell & Larcker, 1981). Fornell
and Larcker introduced the concept of AVE as a criterion for assessing the convergent validity
of latent constructs in structural equation modeling (SEM). They suggested that an AVE value
greater than 0.5 indicates that more than half of the variance in the indicator variables is
explained by the latent construct, supporting convergent validity. Researchers frequently
reference this threshold in assessing the adequacy of convergent validity in SEM studies.

Discriminant validity:
Variables (HTMT) Remarks
Green Manufacturing <-> Eco Design 0.971 Poor discriminant validity
Green Purchasing <-> Eco Design 0.8879 Poor discriminant validity
Green Purchasing <-> Green Manufacturing 0.8153 good discriminant validity
Institutional Pressures <-> Eco Design 0.7953 good discriminant validity
Institutional Pressures <-> Green
Manufacturing 0.8692 Poor discriminant validity
Institutional Pressures <-> Green Purchasing 0.8649 Poor discriminant validity
Internal and External Social management
Practice <-> Eco Design 0.8907 Poor discriminant validity
Internal and External Social management
Practice <-> Green Manufacturing 0.7926 good discriminant validity
Internal and External Social management
Practice <-> Green Purchasing 0.9709 Poor discriminant validity

26 | P a g e
 Internal and External Social management
Practice <-> Institutional Pressures 0.8623 Poor discriminant validity
Process Innovation <-> Eco Design 0.6909 good discriminant validity
Process Innovation <-> Green
Manufacturing 0.6831 good discriminant validity
Process Innovation <-> Green Purchasing 0.7322 good discriminant validity
Process Innovation <-> Institutional
Pressures 0.8174 good discriminant validity
Process Innovation <-> Internal and
External Social management Practice 0.8019 good discriminant validity
Reverse Logistics <-> Eco Design 0.997 Poor discriminant validity
Reverse Logistics <-> Green Manufacturing 0.9437 Poor discriminant validity
Reverse Logistics <-> Green Purchasing 0.8766 Poor discriminant validity
Reverse Logistics <-> Institutional Pressures 0.7198 good discriminant validity
Reverse Logistics <-> Internal and External
Social management Practice 0.764 good discriminant validity
Reverse Logistics <-> Process Innovation 0.6498 good discriminant validity
Sustainable supply chain performance <->
Eco Design 0.9608 Poor discriminant validity
Sustainable supply chain performance <->
Green Manufacturing 1.0511 Poor discriminant validity
Sustainable supply chain performance <->
Green Purchasing 0.8489 Good discriminant validity
Sustainable supply chain performance <->
Institutional Pressures 0.9361 Poor discriminant validity
Sustainable supply chain performance <->
Internal and External Social management
Practice 0.8912 Poor discriminant validity
Sustainable supply chain performance <->
Process Innovation 0.7877 good discriminant validity
Sustainable supply chain performance <->
Reverse Logistics 0.9009 Poor discriminant validity

Heterotrait-Monotrait Ratio (HTMT) is a measure used in partial least squares structural

equation modeling (PLS-SEM) to assess discriminant validity between constructs. It
compares the correlations between indicators measuring different constructs (heterotrait) to
the correlations between indicators measuring the same construct (monotrait). A HTMT value
less than 0.85 is often considered indicative of discriminant validity (Henseler R. , 2015).
Values nearer 0 in the HTMT score range indicate stronger discriminant validity. The scores
range from 0 to 1. More specifically, it is generally accepted for discriminant validity if the
HTMT value is around or less than 0.85.
Most of the HTMT scores appear to be below 0.85, suggesting reasonable discriminant
validity between the constructs. Notably, the HTMT scores for variables such as Green
Manufacturing <-> Eco Design (0.971), Reverse Logistics <-> Eco Design (0.997), and
Sustainable supply chain performance <-> Green Manufacturing (1.0511) are relatively high
and may indicate some overlapping in the constructs (Henseler R. , 2015).

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Collinearly statistics (VIF):

Variables VIF

1 1.812961407

10 1.606382079

11 2.045023839

12 1.552671544

13 1.483185228

14 1.569627133

15 1.646571984

16 1.726667929

17 1.670184722

18 1.856971906

2 2.074183939

24 1.393473656

25 2.183309951

26 1.958800526

3 1.289696189

30 2.140404475

31 2.516146824

32 1.977412192

4 1.702927891

5 1.431680033

6 1.686961747

7 1.841313798

8 1.777139724

9 1.222661171

Institutional Pressures x Eco Design 1

Process Innovation x Internal and External Social management 1

28 | P a g e
 Practice

Institutional Pressures x Green Manufacturing 1

Institutional Pressures x Green Purchasing 1

Interpretation:

VIF stands for Variance Inflation Factor, and it is a statistical measure used to assess
multicollinearity in regression analysis. Multicollinearity occurs when independent variables
in a regression model are highly correlated, leading to instability in the estimation of
coefficients and difficulties in interpreting the results. VIF values less than 5 are generally
considered acceptable, indicating a low level of multicollinearity (Hair, 2018). In this model,
multiple variables were used. The observation highlighted that the variables with VIF values
greater than 5 may warrant further investigation. For example, Variable 11, Variable 2,
Variable 25, and Variable 31 have relatively higher VIF values, suggesting a higher level of
multicollinearity. The interaction terms (e.g., Institutional Pressures x Eco Design) have VIF
values of 1.000, which is expected since they represent a combination of other variables and
should not contribute to multicollinearity (Henseler J. R., 2009).

29 | P a g e
CHAPTER 6 - CONCLUSIONS, MANAGERIAL IMPLICATIONS,
RECOMMENDATIONS AND LIMITATIONS

Conclusion:
With an adjusted R-square value of 0.757, the model can account for 75.7% of the variation
in the dependent variable through modifications in the independent variables. Moreover,
Cronbach values greater than 0.7 for every variable in the model show that it has a high level
of internal consistency (Henseler R. , 2015). The model's dependability is further
demonstrated by the composite reliability tests and AVE scores.
The results of the beta and p-value tests showed that the performance of the sustainable
supply chain is highly impacted by independent factors such as reverse logistics, green
manufacturing, and internal and external social management techniques. The tests also
showed that process innovation mediates the relationship between internal and external social
management practices and sustainable supply chain performance, and that institutional
pressures significantly moderate the relationship between eco-design and sustainable supply
chain performance.
There is a substantial correlation between the factors mentioned above and the dependent
variable, as indicated by the P-value scores for the aforementioned variables being below
0.05.

On this basis the following hypothesis are accepted:

H3: The performance of UPL's sustainable supply chain is greatly impacted by green
manufacturing.
H7: For UPL, reverse logistics significantly affects the performance of the sustainable supply
chain.
H8: The performance of UPL's sustainable supply chain is significantly impacted by internal
and external social management practices.
H6: At UPL, institutional factors significantly moderate the relationship between eco-design
and the success of the sustainable supply chain.
H9: Internal and external social management practices and sustainable supply chain
performance are significantly mediated by process innovation.
Accordingly, UPL ought to allocate a larger portion of its funds to reverse logistics, green
manufacturing, and internal and external social management techniques as these endeavors
greatly influence the dependent variable, which is the performance of the sustainable supply
chain. Additionally, it is important to ensure that goods are developed in a way that complies
with government requirements governing sustainability practices, since institutional pressures
have a major moderating effect between eco-design and SSCP (Choi, 2018). Finally, in order
to maintain the substantial influence that both internal and external social management

30 | P a g e
practices have on SSCP, more resources must be allocated to process innovation (Emerald,
2017).

Managerial implications:
The research paper also has certain managerial implications for firms operating in the FMCG
sector.
Firstly, managers need to divert more resources in finding ways to manufacture the product in
a green manner. This will involve finding ways to manufacture the products so that wastage,
energy and emissions are reduced and so that eco-friendly materials can be utilized in the
manufacturing process (Azhar Ahmad, 2022). They will also need to start searching for
suppliers who offer such green raw materials to be utilized in the manufacturing process.
Managers must commit more resources to reverse logistics, which is vital if they want to
improve sustainable supply chain performance (Jenkins, 2018). Effective management of
product returns, recalls and recycling processes demonstrates a company's environmental
responsibility. Reverse logistics promotes resource recovery through material refurbishment
and circular economy principles.
By reusing or revamping returned items, businesses can save costs while reducing their
dependence on new production models as well as lowering raw materials expenses
(Uddin, 2021).The efficient application of reverse logistic strategies fosters customer
satisfaction with hassle-free return procedures while streamlining transactions within the
entire supply process - thereby minimizing landfill refuse/waste sent out from each operation
site. Proactivity in managing these matters supports corporate sustainability schemes that
comply with environmentally friendly practices aligned with key Circular Economy
elements.
Managers need to invest more resources in internal and external social management practices
and process innovation (Hafiz Muhammad Shahid, 2020). Internally, it's important to create a
positive work environment by ensuring worker safety, promoting career advancement
opportunities and bringing about social welfare as this not only enhances employee wellbeing
but also leads to increased productivity as well overall resilience of the organizational
structure. Externally strengthening supplier relationship management is very crucial in order
for workers' rights and their safety are prioritized at all stages of production; community
benefits should be promoted while accidents minimized so that there exists a collaborative
ethical networking system which can positively impacts stakeholder relations (Hafiz
Muhammad Shahid, 2020). In today’s world investing here means aligning with responsible
business ethics because societal expectations have changed.
Process innovation on the other hand positively influences internal and external social
management practices. It enhances efficiency, transparency, and collaboration (Liu, 2018).
Internally, streamlined processes lead to improved working conditions, employee satisfaction,
and career development. Externally, efficient supply chain processes enable better
collaboration with suppliers, emphasizing fair labor practices and community engagement

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(Shah, 2016). These improvements contribute to sustainable supply chain performance by
reducing operational costs, minimizing social risks, and reinforcing ethical business conduct.
Additionally, since institutional pressures have a significant moderating impact between eco-
design and SSCP (Azhar Ahmad, 2022).Hence managers must comply with institutional
pressures by setting rules and regulations that the firm must follow so that the firm can have
an impact on SSCP.
Managers can ensure compliance with government rules and regulations related to eco-design
by adopting a systematic and proactive approach (Hafiz Muhammad Shahid, 2020). Firstly,
staying informed about developments in environmental legislation guarding the FMCG
sector, product standards, and eco-design requirements is crucial (Choi, 2018). Secondly, it
must be ensured that these rules and regulations are being followed throughout the company.
For this to happen, regular audits and assessments with both internal and external can ensure
ongoing compliance with institutional pressures like government rules and regulations
(Bowen, 2001).
Lastly, collaboration with suppliers can take place to ensure they adhere to eco-design
standards (Carter, 2008). Managers should establish key performance indicators (KPIs)
related to eco-design to foster a culture of continuous improvement.

Research limitations and future studies:

1. Future studies can include other firms in the FMCG sector in Pakistan. For example,
companies other than Unilever Pakistan limited could have been analyzed to gain a more
holistic impact of the independent variables on the direct variables on the FMCG sector as
a whole.
2. Future studies may increase the sample size by including more firms in the analysis to
analyze the holistic impact of the independent variables on the dependent variables.
3. Research in the future can assess how the IV affects the DV in industrialized nations.
Future research can take into account other developed nations where Unilever is present.
Pakistan is a developing country, and we have only looked at Unilever Pakistan Limited.
This may be done to assess how the independent factors affect Unilever's overall SSCP.
4. Future studies can include moderating and mediating variables other than institutional
pressures and process innovation to gauge the impacts of different variables like for
example technology on SSCP.

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APPENDIX / QUESTIONAIRE:

Questionaire Constructs:

Avoid or reduce the use of hazardous substances in

products and/or production processes (Azhar Ahmad, 2022)
Involvement of suppliers in the stages of design and
product development (Azhar Ahmad, 2022)
Reduced consumption of natural resources (raw
materials, energy, water, etc.) (Azhar Ahmad, 2022)
Reuse, recycling, and remanufacturing of materials
during production and after life (Azhar Ahmad, 2022)
Reuse, recycling, and remanufacturing of materials
during production and after life (Azhar Ahmad, 2022)
Eco-design
Environmental labelling of products (Uddin, 2021)
Avoid or reduce the use of hazardous substances in products and/or
production processes (Uddin, 2021)
Involvement of suppliers in the stages of design and product
development (Uddin, 2021)
Reduced consumption of natural resources (raw materials,
energy, water, etc.) (Uddin, 2021)
Optimisation of processes and operations to improve
environmental efficiency (Uddin, 2021)
Environmental labelling of products (Uddin, 2021)
Compliance with environmental legislation and
conducting periodic checks (Hafiz Muhammad Shahid, 2020)
Reduction monitoring and generation of hazardous
wastes and industrial effluents (Hafiz Muhammad Shahid, 2020)
Monitoring and reducing consumption of natural.
Internal and Resources (Hafiz Muhammad Shahid, 2020)
External Commitment of managers to sustainability of supply
management Chain (Hafiz Muhammad Shahid, 2020)
(management Multifunctional cooperation (between persons and/or between company
practices) sectors) for environmental improvements (Hafiz Muhammad Shahid,
2020)
Lean production (focus on reducing waste) (Hafiz Muhammad Shahid,
2020)
Cleaner production (use of clean or renewable) (Hafiz Muhammad
Shahid, 2020)
ISO 14001 certification (Uddin, 2021)
Inclusion of environmental criteria in the selection process
of suppliers (including environmental specifications in
Green
product design) (Uddin, 2021)
purchasing
Conducting environmental audits at suppliers (Uddin, 2021)
An audit of social responsibility on suppliers (Uddin, 2021)
SA 8000 or AA 1000 certification (social accountability) (Uddin, 2021)

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 The manufacturing process will reduce noise pollution to the minimum
(Azhar Ahmad, 2022)
Substitution of polluting and hazardous material parts (Azhar Ahmad,
2022)
Green
Filters and controls on emissions and discharges (Azhar Ahmad, 2022)
manufacturing
Production planning and control focused on reducing waste and
optimizing material exploitation (Azhar Ahmad, 2022)
Decrease in the consumption of natural resources.
(water, energy, petrol, gas, etc.) (Azhar Ahmad, 2022)
Collect used products from customers for recycling (Hafiz Muhammad
Shahid, 2020)
Repair and provide maintenance services after sales (Hafiz Muhammad
Shahid, 2020)
Reverse Recapture value through remanufacturing and proper disposal of
logistics returned products (Hafiz Muhammad Shahid, 2020)
Return products to suppliers for recycling (Hafiz Muhammad Shahid,
2020)
Interaction with operations and reverse logistics staff for designing
reverse logistics programmes (Hafiz Muhammad Shahid, 2020)
Institutional Pressure for the company to improve its processes and products in terms
pressures of environmental issues (Azhar Ahmad, 2022)
(Government Government pressure for the company to take responsibility for their
and society) products after their useful life (Azhar Ahmad, 2022)
Company's awareness and adherence to industry norms and best
practices related to product responsibility (Azhar Ahmad, 2022)
Extent to which the company perceives regulatory pressure to comply
with environmental and social responsibility standards (Azhar Ahmad,
2022)
Revolutionizing workflows to boost efficiency (Uddin, 2021)
Fostering a culture of innovation to streamline processes and enhance
productivity (Uddin, 2021)
Process
Unleashing the potential of inventive methodologies to redefine
innovation
business processes (Uddin, 2021)
Strategically reimagining processes for optimal performance and
sustainable growth (Uddin, 2021)

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