Abstract

Purpose: This study investigates the relationship between green innovation (GI) and sustainable performance (SP) in the distribution channels of the construction material retailing and wholesaling sector. Its primary contribution is empirically examining the mediating mechanism of green supply chain management (GSCM) to resolve theoretical ambiguities in the GI-GSCM relationship. Research design, data and methodology: Using survey data from 335 firms in Vietnam's construction distribution sector, this research employs Structural Equation Modeling (SEM) to test the hypothesized theoretical framework. Results: The results offer compelling evidence for the proposed model. Green innovation—driven by supplier cooperation (β = 0.405) and regulatory compliance (β = 0.218)—positively influences GSCM adoption. GSCM, in turn, fully mediates the relationship between GI and sustainable performance, with its strongest impacts on social (β = 0.489) and environmental (β = 0.383) dimensions. The analysis confirms that environmental performance is a strong predictor of economic performance (β = 0.361), whereas the direct GSCM-to-economic performance link is minimal (β = 0.086), highlighting a nuanced pathway to profitability. Conclusions: The study yields critical implications for managerial strategy and public policy. Findings underscore the necessity for firms to foster green innovation as a foundational driver for implementing robust GSCM practices, rather than as a standalone goal. This approach establishes a clear trajectory for advancing green logistics and enhancing the holistic sustainability of Vietnam's construction industry.