The Influence Business Innovation and Green Supply Chain Management on Sustainable Performance of Food Processing Industry in Thailand
DOI:
https://doi.org/10.65205/jmsr.2026.e282114Keywords:
Business Innovation, Green Supply Chain Management, Sustainable Performance, Food Processing IndustryAbstract
This study aimed to 1) examine business innovation, green supply chain management, and sustainable performance, and 2) investigate the influence of business innovation on sustainable performance through green supply chain management in the food processing industry in Thailand. The sample size was determined based on a ratio of 20 times the number of parameters and observed variables, resulting in a total of 300 respondents. The sample consisted of executives from the food processing industry and were selected using systematic sampling. Data was collected through questionnaires and in-depth interviews with 10 key informants. Structural equation modeling (SEM) was employed for data analysis. The results revealed that business innovation, green supply chain management, and sustainable performance were all at a high level. The goodness-of-fit indices indicated that the structural equation model was consistent with the empirical data (Chi-Square = 41.520, df = 29, Relative Chi-square = 1.432, p-value = .062, GFI = .976, AGFI = .936, RMSEA = .039, RMR = .006). The findings suggest that the adoption of new innovations and technologies in Thailand’s food processing industry plays a crucial role in enhancing organizational efficiency and sustainability, particularly through improving production processes to reduce costs and waste while increasing product quality, as well as promoting environmentally responsible and long-term sustainable operations. Hypothesis testing confirmed that business innovation in terms of products, operations, technology, knowledge management, and entrepreneurial skills had a significant positive effect on both sustainable performance and green supply chain management. Green manufacturing, green procurement, green design, and reverse logistics management were found to significantly contribute to economic, social, and environmental sustainability in Thailand’s food processing industry
References
Achillas, C., Bochtis, D. D., Aidonis, D., & Folinas, D. (2018). Green supply chain management.
Routledge.
Ahmad, A., Ikram, A., Rehan, M. F., & Ahmad, A. (2022). Going green: Impact of green supply chain
management practices on sustainability performance. Frontiers in Psychology, 13, 973676. https://doi.org/10.3389/fpsyg.2022.973676
Azmat, F., Lim, W. M., Moyeen, A., Voola, R., & Gupta, G. (2023). Convergence of business,
innovation, and sustainability at the tipping point of the sustainable development goals. Journal of Business Research, 167, 114170. https://doi.org/10.1016/j.jbusres.2023.114170
Basit, A. (2022). The influence of green supply chain management on sustainable performance:
green supply chain management. South Asian Management Review, 1(1), 49-66. https://doi.org/10.57044/SAMR.2022.1.1.2206
Benesty, J., Chen, J., Huang, Y., & Cohen, I. (2009). Pearson correlation coefficient. In Noise
reduction in speech processing (pp. 1-4). Berlin, Heidelberg: Springer Berlin Heidelberg.
Bernal-Torres, C. A., Torres-Guevara, L. E., Aldana-Bernal, J. C., Nicolás-Rojas, Y. W., & Pando-
Ezcurra, T. T. (2023). The moderating role of innovation in the relationship between business sustainability and organizational performance in companies of an emerging economy. Sage Open, 13(4), 21582440231217870. https://doi.org/10.1177/21582440231217870
Department of Industrial Works. (2025, April 20). List of factories licensed to operate as of the
end of 2024. Retrieved from https://www.diw.go.th/webdiw/static-fac
Habib, M. A., Bao, Y., Nabi, N., Dulal, M., Asha, A. A., & Islam, M. (2021). Impact of
strategic orientations on the implementation of green supply chain management practices and sustainable firm performance. Sustainability, 13(1), 340. https://doi.org/10.3390/su13010340
Han, Z., & Huo, B. (2020). The impact of green supply chain integration on sustainable
performance. Industrial Management & Data Systems, 120(4), 657-674. https://doi.org/10.1108/IMDS-07-2019-0373
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis (7th ed.).
Pearson.
Hu, S., & Chen, A. (2023). Unlocking the potential of sustainability: the influence of green
innovation and supply chain management on corporate performance. Environmental Science and Pollution Research, 30(44), 99774-99788. https://doi.org/10.1007/s11356-023-29022-6
Junaid, M., Zhang, Q., & Syed, M. W. (2022). Effects of sustainable supply chain integration on
green innovation and firm performance. Sustainable Production and Consumption, 30, 145-157. https://doi.org/10.1016/j.spc.2021.11.031
Kalpande, S. D., & Toke, L. K. (2021). Assessment of green supply chain management practices,
performance, pressure and barriers amongst Indian manufacturer to achieve sustainable development. International Journal of Productivity and Performance Management, 70(8), 2237-2257. https://doi.org/10.1108/IJPPM-02-2020-0045
Khan, M. T., Idrees, M. D., Rauf, M., Sami, A., Ansari, A., & Jamil, A. (2022). Green supply chain
management practices’ impact on operational performance with the mediation of technological innovation. Sustainability, 14(6), 3362. https://doi.org/10.3390/su14063362
Khan, S. A. R. (2020). The critical success factors of green supply chain Management in Emerging
Economies. Springer Nature.
Kraus, S., Filser, M., Puumalainen, K., Kailer, N., & Thurner, S. (2020). Business model innovation: A
systematic literature review. International Journal of Innovation and Technology Management, 17(06), 2050043. https://doi.org/10.1142/S0219877020500431
Le, T. T., Vo, X. V., & Venkatesh, V. G. (2022). Role of green innovation and supply
chain management in driving sustainable corporate performance. Journal of Cleaner Production, 374, 133875. https://doi.org/10.1016/j.jclepro.2022.133875
Madhavan, M., Sharafuddin, M. A., & Chaichana, T. (2022). Impact of business model innovation
on sustainable performance of processed marine food product SMEs in Thailand—a PLS-SEM approach. Sustainability, 14(15), 9673. https://doi.org/10.3390/su14159673
Martínez-Falcó, J., Sánchez-García, E., Marco-Lajara, B., & Lee, K. (2024). Green supply chain
management and sustainable performance: exploring the role of green ambidexterity innovation and top management environmental awareness. Business Process Management Journal, 30(6), 1824-1847. https://doi.org/10.1108/BPMJ-12-2023-0981
Memon, K. R., Ooi, S. K., & Han, H. (2024). Responsible innovation and corporate sustainability
performance: A structural equation modeling‐neural network approach. Business Strategy and the Environment, 33(4), 2712-2730. https://doi.org/10.1002/bse.3627
Mokbel Al Koliby, I. S., Abdullah, H. H., & Mohd Suki, N. (2024). Linking entrepreneurial
competencies, innovation and sustainable performance of manufacturing SMEs. Asia-Pacific Journal of Business Administration, 16(1), 21-40. https://doi.org/10.1108/APJBA-09-2021-0480
Morabito, V. (2017). Business innovation through blockchain. Cham: Springer International
Publishing.
National Economic and Social Development Council. (2023). National Economic and Social
Development Plan No. 13 (2023–2027). Office of the Prime Minister.
Office of Industrial Economics. (2025, April 20). Food Processing Industry Development Action
Plan, Phase 1 (2019-2027). Retrieved from http://bioie.oie.go.th/oieqrcode/uploadFile/oie297475011_488591569.pdf
Rafli, M. R., Makiah, Z., Claudia, M., Syahputra, M. D., Aisyah, L., & Faridah, R. (2025). Green Process
Innovation and its Impact on Sustainability Performance: The Mediating Role of Green Supply Chain Management in the Food and Beverage Industry. Journal of Entrepreneurship & Business, 6(2), 131-142. https://doi.org/10.24123/jeb.v6i2.7411
Sarkis, J., & Dou, Y. (2017). Green supply chain management: A concise introduction. Routledge.
Sharafuddin, M. A., Madhavan, M., & Chaichana, T. (2022). The effects of innovation adoption and
social factors between sustainable supply chain management practices and sustainable firm performance: A moderated mediation model. Sustainability, 14(15), 9099. https://doi.org/10.3390/su14159099
Shahid, H. M., Waseem, R., Khan, H., Waseem, F., Hasheem, M. J., & Shi, Y. (2020). Process
innovation as a moderator linking sustainable supply chain management with sustainable performance in the manufacturing sector of Pakistan. Sustainability, 12(6), 2303. https://doi.org/10.3390/su12062303
Shibin, K. T., Dubey, R., Gunasekaran, A., Hazen, B., Roubaud, D., Gupta, S., & Foropon, C. (2020).
Examining sustainable supply chain management of SMEs using resource based view and institutional theory. Annals of Operations Research, 290(1), 301-326. https://doi.org/10.1007/s10479-017-2706-x
Trivellas, P., Malindretos, G., & Reklitis, P. (2020). Implications of green logistics management on
sustainable business and supply chain performance: evidence from a survey in the greek agri-food sector. Sustainability, 12(24), 10515. https://doi.org/10.3390/su122410515
Wasiq, M., Kamal, M., & Ali, N. (2023). Factors influencing green innovation adoption and its
impact on the sustainability performance of small-and medium-sized enterprises in Saudi Arabia. Sustainability, 15(3), 2447. https://doi.org/10.3390/su15032447
Yadav, S., Samadhiya, A., Kumar, A., Luthra, S., Kumar, V., Garza-Reyes, J. A., & Upadhyay, A. (2024).
The interplay effects of digital technologies, green integration, and green innovation on food supply chain sustainable performance: An organizational information processing theory perspective. Technology in Society, 77, 102585. https://doi.org/10.1016/j.techsoc.2024.102585
Zhang, Z., Zhu, H., Zhou, Z., & Zou, K. (2022). How does innovation matter for sustainable
performance? Evidence from small and medium-sized enterprises. Journal of Business Research, 153, 251-265. https://doi.org/10.1016/j.jbusres.2022.08.034









