Road to sustainability with green practices: a look at SMEs in the textile-fashion industry in Spain

Purpose This study aims to examine the relationship between internal and external green supply chain management (GSCM) practices implemented by small and medium-sized enterprises (SMEs) in the textile-fashion industry in Spain. It investigates how these practices influence the economic, environmental and social dimensions of sustainability performance. Design/methodology/approach The study uses a survey-based methodology with a sample of 161 SMEs with a minimum of ten employees. Data analysis was conducted using the partial least squares structural equation modeling technique to evaluate the impact of internal and external GSCM practices on sustainability performance. Findings The results indicate that internal GSCM practices (green production, green logistics, internal environmental management, eco-design and green packaging) do not directly influence economic and social performance but have a positive impact on environmental performance. In contrast, external GSCM practices (reverse logistics, environmental cooperation with suppliers and customers and green purchasing) positively affect economic and social performance but do not significantly contribute to environmental performance. Additionally, external GSCM practices mediate the relationship between internal GSCM practices and economic and social sustainability, enhancing their overall impact. Originality/value This research contributes to the understanding of how internal and external GSCM practices function in SMEs, emphasizing the role of external practices in mediating economic and social sustainability. It provides empirical evidence on the different roles played by these practices in achieving sustainability, offering valuable insights for managers and policymakers in the textile-fashion industry.