Examining the inter-relationship among competitive market environments, green supply chain practices, and firm performance

Abstract

Purpose The purpose of this paper is to assess the impact of competitive market environments on the firm’s decision to adopt green supply chain management (GSCM) practices, while checking to see if the firm’s commitment to particular types of GSCM practices improves its performance. Design/methodology/approach To confirm a positive link between the firm’s GSCM practices to its performance, the authors collected the data from 322 Korean firms via questionnaire surveys and then analyzed these data using the structural equation model. Findings Among various types of GSCM practices, green purchasing has the greatest impact on both manufacturing and marketing performances. Also, internal environmental management positively influenced both manufacturing and marketing performances, whereas cooperation with customers and reverse logistics had no significant impact on the firm’s manufacturing and marketing performances. Originality/value To provide a practical advice for firms which are hesitant to embrace green supply chain practices due to skeptical views about their true managerial benefits, this paper discerned more effective GSCM practices from less effective GSCM practices. In so doing, this paper is one of the few studies which pinpointed what types of specific GSCM practices are most effective in enhancing firm performance.

Competitive Pressure and Business Performance in East Java Batik Industry

“…There are several factors affecting business performance such as competitive pressure (Tyler et al, 2018), innovation capability (Ulubeyli et al, 2018;Hoang & Ngoc, 2019), social capital (Santosa et al, 2020), strategies (Kaplan & Norton, 2001;An & Kim, 2019), strategic management accounting (Phornlaphatrachakorn & Na-Kalasindhu, 2020), budgetary goal characteristics (Le & Nguyen, 2020), etc. Companies need to develop multi-dimensional performance such as a balanced scorecard (Choi et al, 2018). The balanced scorecard makes managers look at the business from four perspectives, namely, customer perspective, internal perspective, innovation and learning perspective, and financial perspective (Kaplan & Norton, 1992).…”

The impact of relational capital on green supply chain management and financial performance

“…It also provides a potential explanation of previous mixed results on the impacts of GSCM practices on performance outcomes by revealing that manufacturers must implement supplier, internal, and customer green management together, instead of adopting individual practices piecemeal (Eltayeb et al, 2011;Choi et al, 2018;Famiyeh et al, 2018). In addition, our study links supplier, internal, and customer relational capital with GSCM, thus enhancing current understandings of the antecedents of GSCM (Kumar et al, 2019).…”

“…Eltayeb et al (2011) report that green purchasing has no significant effect on performance. Choi et al (2018) find that cooperation with customers and reverse logistics have no significant impact on manufacturing or marketing performance. Famiyeh et al (2018) fail to discover a positive relationship between green purchasing and delivery time.…”

“…Environmental protection and the greening of production have become major concerns for manufacturers in both developed countries (Choi et al, 2018;Green et al, 2019;Laari et al, 2018) and developing countries (Yu et al, 2017;Zhu et al, 2007a;Feng et al, 2018;Gopal and Thakkar, 2016;Vanalle et al, 2017). Green manufacturing is now viewed by many firms as essential to global supply chain strategies (Zhu et al, 2007b;Geng et al, 2017;Miroshnychenko et al, 2017), and it is also considered the key to achieving sustainable development (Rao and Holt, 2005).…”

Supply Chain Practitioners’ Perception on Sustainability: An Empirical Study

“…Scientists believe that if these changes are prolonged, it may have an adverse effect over the living pattern of all the species on earth. The main culprits of this environmental issue are the organizations releasing dangerous carbon dioxide gas into the atmosphere [1]. The supply chain processes of modern organizations have drastically increased the environmental pollutions, adverse changes in weather, global warming, and endangered human lives, with the release of greenhouse gases and untreated effluents, the production of non-biodegradable products, and excessive use of hazardous resources [2,3].…”