Influence of contractual and relational governance on green supply chain management practices and sustainability performance in the construction industry

Purpose This study establishes a framework of green supply chain management (GSCM) in the construction project context. The purpose is to empirically validate the effect of GSCM practices on environmental and organizational performance from the sustainability perspective and explore the distinct role of contractual and relational governance in promoting GSCM practices. Design/methodology/approach This study used survey data collected from construction companies in China, with a sample of 159 responses participating in the analysis. This study applied a survey method to test the hypothesized relationships. Partial least squares structural equation modeling (PLS-SEM) was used to test the hypothesized relationships based on the survey data in Chinese construction industry. Findings The results demonstrate that in construction projects, GSCM practices have a positive effect on both environmental and organizational performance. Contractual governance is not significantly related to GSCM practices, while relational governance positively influences the implementation of GSCM practices. The results further demonstrate the indirect effect of relational governance on the relationship between contractual governance and GSCM practices. Originality/value Theoretically, this study enhances the understanding of GSCM as a holistic method to integrate green practices into construction projects and reveals the distinct role of governance arrangements in greening construction supply chain, which contributes to project sustainability research. Practically, this study provides a systematic GSCM implementation framework and transformation path for the construction industry to achieve both organizational and environmental performance.