Sustainable Innovation as a Catalyst for Green Supply Chain Practices

Sustainable innovation has been identified as a crucial component in enhancing the link between green supply chain management practices and corporate reputation, particularly in emerging markets. A recent study from Al-Quds University has shed light on the mediating role of sustainable innovation in this relationship, emphasizing the need for managers to integrate it into their green supply chain strategies. The research concluded that investment in eco-design, resource-efficient technologies, and customer collaboration are vital for fostering innovation and improving public perception.

Key Takeaways:

• The study examined the mediating role of sustainable innovation in the relationship between green supply chain management practices and corporate reputation in SMEs specialized in logistics and manufacturing sectors in Saudi Arabia.
• The research developed a comprehensive model and validated it using partial least squares structural equation modeling (PLS-SEM), which confirmed the model's authenticity through rigorous tests of convergent and discriminant validity, composite reliability, and overall goodness-of-fit measures.
• The findings reveal that green supply chain practices have a significant direct impact on corporate reputation and sustainable innovation, with sustainable innovation partially mediating the green supply chain-corporate reputation relationship.
• The study highlights the need for managers to integrate sustainable innovation into their green supply chain strategies to achieve both environmental and reputational benefits.
• The research offers theoretical contributions by extending the Resource-Based View (RBV) and stakeholder theory, emphasizing the mediating power of sustainable innovation in sustainability frameworks.
• The study includes a survey of 279 valid responses from SMEs identified based on the World Bank's manufacturing and logistics sectors, with data authentication ensured via thorough screening, pilot testing, and adherence to established reliability standards.
• The research provides recommendations for investment in eco-design, resource-efficient technologies, and customer collaboration to foster innovation and improve public perception.

Statistics:

• 279 valid responses from SMEs were used in the study.
• The World Bank's manufacturing and logistics sectors were used as a reference for identifying SMEs in the survey.
• The study used partial least squares structural equation modeling (PLS-SEM) to validate the model's authenticity.
• The research found that sustainable innovation positively influences corporate reputation and partially mediates the green supply chain-corporate reputation relationship.
• The model's overall goodness-of-fit measures were found to be statistically significant.

Sources:

• Sustainable innovation as a catalyst: linking green supply chain practices to corporate reputation in emerging markets. Cleaner Logistics and Supply Chain, 2025, 16():100245. The publisher for Cleaner Logistics and Supply Chain is Elsevier.
• Al-Quds University, Department of Business Administration, Faculty of Business and Economics, Jerusalem, State of Palestine.
• VerticalNews, Ecology, Environment & Conservation, September 12, 2025.