Green Supply Chain Management and Sustainable Performance: The Mediating Roles of Corporate Social Responsibility and Intellectual Capital in Saudi Arabia’s Drilling Sector—A Resource-Based View and Stakeholder Theory Perspective

Abstract

Both governments and businesses globally are realizing the importance of treating environmental management and protection programs as ongoing efforts that go beyond their immediate operations. However, past initiatives to improve the impact of these programs have faced setbacks due to growing environmental challenges. In this direction, the current study aims to develop a research model that examines the interplay between green supply chain management (GSCM), intellectual capital (IC), corporate social responsibility (CSR), and sustainable performance (SP) within Saudi Arabia’s drilling sector. Additionally, it examines the mediating roles of IC and CSR. Contextualized within the Saudi Vision 2030 framework, which emphasizes sustainability and industrial advancement, this study utilized a quantitative approach by applying structural equation modeling (SEM) to analyze survey data from 334 employees in the Eastern Region’s drilling industry. The findings indicate that GSCM significantly enhanced SP, IC, and CSR. Furthermore, CSR demonstrated a positive impact on both SP and IC and, crucially, significantly mediated the positive relationship between GSCM and SP. Conversely, IC, while positively influenced by GSCM and CSR, did not show a significant direct impact on SP, nor did it act as a significant mediator in the GSCM-SP linkage in this context. This research highlights the prominent role of CSR in translating GSCM practices into holistic performance improvements within this industrial setting. It suggests that firms seeking to maximize the benefits of GSCM should strategically embed these initiatives within a robust and visible CSR strategy to effectively meet stakeholder expectations and drive sustainable performance aligned with national goals.

Affiliated Institutions

• Saudi Electronic University SA

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