Title: Green supply chain and customer satisfaction in modern retailing: a dual-perception analysis with SEM approach

Authors: Mostofa Wahid Soykoth; Mohammad Mizenur Rahaman; Md. Alamgir Hossain; Md. Jahangir Alam

Addresses: School of Business, Emporia State University, P.O. Box 4039, Emporia, KS, 66801, USA ' Department of Business Administration, Shahjalal University of Science and Technology, University Ave., Sylhet 3114, Bangladesh ' Department of Management, Hajee Mohammad Danesh Science and Technology University, Dinajpur 5200, Bangladesh ' Department of Business Administration, Leading University, Ragibnagar 3112, Sylhet, Bangladesh

Abstract: In this age of circular economy, amid rising social and environmental concerns, companies and customers are increasingly aware of eco-friendly supply chain implementation. The study aims to investigate twofold perceptions (customers' and employees') regarding the effect of green supply chain management (GSCM) on customer satisfaction (CS) through product quality, service quality, and product-service cost. A survey was conducted with structured questionnaires encompassing 509 valid participants (398 customers and 111 employees). This study provides two key findings using structural equation modelling (SEM) and confirmatory factor analysis (CFA). First, according to customers' perception, GSCM does not have a direct impact on CS; it has a positive and statistically significant impact (indirect) on CS when product quality (PQ), service quality (SQ), and product-service cost (PSC) are there as mediators. Second, as per employees' perception, GSCM does not directly affect customer satisfaction; however, a positive and statistically significant indirect relationship exists where only PQ and PSC mediate the relationship. The findings bridge gaps in green supply chain literature, demonstrating how, from an environmental aspect, taking care of product quality, service quality, and cost results in increased customer satisfaction and provides invaluable contributions to understanding green supply chain behaviour.

Keywords: green supply chain; modern retailing; customer satisfaction; product quality; service quality; product-service cost.

DOI: 10.1504/IJISM.2022.125990

International Journal of Integrated Supply Management, 2022 Vol.15 No.4, pp.381 - 409

Received: 03 Dec 2021
Accepted: 21 May 2022

Published online: 05 Oct 2022 *

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