Impact of adoption challenges on sustainability outcomes in FMCG green supply chains : The role of smart technologies

The Fast-Moving Consumer Goods (FMCG) business in India is expanding due to government initiatives, legislation, a youthful demographic, and rising demand from rural areas driven by increased technology penetration. This study aimed to understand the challenges in adopting green supply chain management technology (GSCMT), encompassing technologies such as Blockchain, Internet of Things (IoT), Artificial Intelligence (AI), and automation for sustainable outcomes. It examined the elements influencing the adoption of GSCMT while also emphasizing the essential sustainable outcomes. To achieve the research aims, a meticulously designed questionnaire utilizing a Likert scale from 1 to 5 was developed. The questionnaire was constructed with the assistance of experts possessing practical knowledge in utilizing smart technology. Ten big corporations’ HR departments were approached to gather data via stratified sample and snowball sampling methods. Descriptive analysis, factor analysis, and structural equation modelling were conducted to evaluate the determinants influencing technology uptake and sustainable outcomes. Factor analysis identified four variables accounting for 69.32% of the variation. The challenges identified were financial barrier (23.46%), technological barrier (21.03%), organizational resistance (18.89%), and regulatory barrier (5.93%). The sustainability outcome was further analyzed. The primary discovered criteria were carbon footprint (29.21%), waste reduction (27.50%), and energy efficiency (16.30%), contributing 73.02% of total variance. The impact of adopting GSCMT on carbon footprint, waste reduction, and energy efficiency was analyzed using SEM analysis. The SEM analysis indicated that the adoption of GSCMT significantly decreases carbon footprint (β=-0.55, p=0.001), so validating hypothesis H1, facilitates waste reduction (β=-0.43, p=0.001), thereby validating hypothesis H2, and enhances energy efficiency (β=0.37, p=0.002), thereby rejecting hypothesis H3. The managerial implication indicates that the use of GSCMT in fast-moving consumer goods (FMCG) will enhance energy efficiency while contributing to the reduction of carbon footprint and waste. Nonetheless, the current analysis is confined to businesses and technologies, which do not provide a comprehensive view of GSCMT across other sectors.