http://jms.sciedupress.com Journal of Management and Strategy Vol. 10, No. 5; 2019 Published by Sciedu Press 48 ISSN 1923-3965 E-ISSN 1923-3973 The Impact of Green Supply Chain Management on Firm Performance: A Case of Manufacturing Industry of Karachi Muhammad Saad 1 & Danish Ahmed Siddiqui 1 1 Karachi University Business School, University of Karachi, Pakistan Correspondence: Muhammad Saad, Research Scholar, Karachi University Business School, University of Karachi, Pakistan. Received: March 28, 2019 Accepted: September 25, 2019 Online Published: November 25, 2019 doi:10.5430/jms.v10n5p48 URL: https://doi.org/10.5430/jms.v10n5p48 Abstract This paper explored advancement in what performance factors affect Green Supply Chain Management practices of the firms. Data was collected through survey questionnaire, adopted and disseminated to 200 different employees working in different organizations based in Karachi that were associated with supply chain management activities. Data was analyzed using Structural Equation Modeling. Results showed that environmental and financial performance of organization has no statistically significant association with green supply chain management. Whereas, organizational performance produced a positive and significant impact. The results are significant for managers of manufacturing organizations in improving the practices of green supply chain management and achieve competitive position in the industry. Keywords: green supply chain, firm financial performance, firm operational performance, green procurement, firm environment performance, recycle, remanufacturing, green logistics 1. Introduction The Institute of Manufacturing Research at Michigan State University proposed the main idea of a green supply chain in 1996. The motivation behind this idea was to think about the effect on the environment and to consider the manufacturing of supply chain from the perspective of resource optimization. Improvement issues. In other words, from the earliest starting point of the crude material acquisition time of the item, following and control are completed, so the item is in consistence with ecological security guidelines amid the plan and advancement organize, in this manner diminishing the mischief caused to the earth amid the utilization time frame and the restitution time frame. Around then, the green store network just contained the two implications of ecological insurance and vitality protection, which is to deliver the most earth agreeable items with the least vitality and the greenest materials. Several authors make other contributions to the definition of green supply chain from different points of view, for example, Srivastava (2007) talks about the unification of environmental practices throughout the processes (design, procurement, manufacturing, deliveries to the final client), and therefore the members of the chain, also considering a closure, which is the final disposal of the product that allows recognizing a green supply chain as a closed cycle process, where the product is theoretically returned at the end of its useful life to manufacturing processes where reprocess: some components are recycled, re-manufactured, re-used, and some are expected to be the least, they are wasted (Teixeira et al. 2016)(Govindan, Kaliyan & Kannan). GSCM is an advancement of SCM. As rivalry heightened during the 1990s, expanded familiarity with green practices has incited organizations to act morally and socially mindful in their supply chains. Toward the start of 1995, GSCM had pulled in extraordinary logical intrigue; GSCM then keeps on being a worry as of not long ago. With these practices, the organization creates ecological administration procedures because of changes out in the open and shopper consciousness of the earth and effects on store network activities. According to Teixeira et al. (2016), green supply chain management emphasized on environmental protection of the organizational activities and promotes integrated environmental as well as environmental development of organization. According to Luthra, Garg, & Haleem, (2016), main aspect of green supply chain management is to make minimal waste production and less pollution, say no to integration of harmful ingredients and minimal side effect of entire supply chain activities.