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Tesfaye K. Torban, Mathewos Ensarmu, Chala Dechassa,
Volume 34, Issue 3 (IJIEPR 2023)

Environmental sustainability is a growing concern for businesses and organizations due to climate change trends. This study aims to examine the direct impact of institutional pressures, green procurement (GP), and reverse logistics (RL) on environmental performance (EVP). The mediating influences of RL and GP on institutional pressure and EVP are also examined. The study uses a quantitative method where data is gathered from the CEO, operations, human resources, logistics, and procurement managers of 165 industrial park firms using customized questionnaires. The data is analyzed using the PLS-SEM software (SmartPLS 4). The results suggest that the adoption of institutional pressures has a significant effect on GP and RL, and the findings show that GP does not improve EVP. However, the implementation of RL mediates the relationship between institutional pressure and EVP. The study develops a comprehensive empirical model that tests the joint influence of institutional pressure- GP-RL-EVP model was developed and validated. The findings indicate that institutional pressure and RL help firms advance EVP.

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