An empirical analysis: Did green supply chain management alleviate the effects of COVID-19?

ABSTRACT

Supply chain management played a central role during the COVID-19 crisis, as the outbreak of the pandemic disrupted the majority of all global supply chains. This paper tests whether companies that use green supply chain management (GSCM) practices benefited from a buffer effect in the context of COVID-19. Our empirical analysis, conducted on a sample of U.S. companies, shows that GSCM companies experienced less negative abnormal stock returns during the crisis. This result contributes to the literature on financial impact of GSCM, finding that GSCM is perceived as an effective risk management tool and can serve as an effective drug against COVID-19 crisis. Our paper also contributes to the business debate on the role of green supply chains in the post-COVID19 world.