Green supply chain management practices: impact on performance

Abstract

PurposeThe aim is to contribute significantly to the first wave of empirical investigations related to the impact of green supply chain management (GSCM) practices on performance. The paper also aims to theorize and empirically assess a comprehensive GSCM practices and performance model. The model incorporates green supply chain practices that link manufacturers with supply chain partners (both suppliers and customers) to support environmental sustainability throughout the supply chain.Design/methodology/approachData collected from 159 manufacturing managers were analyzed using a structural equation modeling methodology. Manufacturing managers provide data reflecting the degree to which their organizations work with suppliers and customers to improve environmental sustainability of the supply chain.FindingsGenerally, the adoption of GSCM practices by manufacturing organizations leads to improved environmental performance and economic performance, which, in turn, positively impact operational performance. Operational performance enhances organizational performance.Research limitations/implicationsAs a first wave empirical investigation of the impact of GSCM practices on performance, the study is by necessity exploratory.Practical implicationsPractitioners are provided with a framework for assessing the synergistic impact of GSCM practices on performance. Internal environmental management and green information systems are identified as necessary precursors to the implementation of green purchasing, cooperation with customers, eco‐design, and investment recovery.Originality/valueA comprehensive GSCM practices performance model is proposed and empirically assessed. The results of this investigation support the proposition that GSCM practices are both environmentally necessary and good business. A structured two‐wave approach to the implementation of GSCM practices is recommended.

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“…The past two decades have also witnessed a trend of centralised manufacturing and global sourcing of materials and products for manufacturers and retailers, in order to further reduce cost and improve supply chain efficiency. Although delivering great commercial benefits, the aforementioned initiatives have also posed a number of challenges to logistics provisions, particularly on environmental sustainability as summarised in Table II, and summarised by Green et al (2012) and Abbasi and Nilsson, 2012. Those key trends and challenges in Table II Wang et al (2011) Open electronic logistics marketplaces, mainly for sport trading of transport services between shippers and carriers.…”

“…Recently, several authors have undertaken research on environmental sustainability in the context of supply chains (Abbasi and Nilsson, 2012;Cucchiella and Koh, 2012;Green et al, 2012;Tacken et al, 2013) and road freight transport (McKinnon, 2011). Nevertheless, despite the potential role of ICT as a key enabler for increasing cost efficiency and simultaneously reducing CO 2 emissions, there has been limited attention from both practitioners and academics to fully explore potentials in CO 2 reductions through utilising ICT.…”

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“…According to Green et al (2012), in response to the customer's demand, companies have implemented management practices in the green supply chain, as these customers demand products and services that are environmentally sustainable. Manufacturers are working together with suppliers and customers are making the practices increase the environmental sustainability.…”

Green supply chain management – food for thought?

“…Much of the debate on GSCM is to determine the drivers, motivations, or pressures in undertaking GSCM initiatives (Diabat and Govindan, 2011;Govindan et al, 2014) and its influences on organisational performances (Green Jr et al, 2012;Lee et al, 2012;Zhu et al, 2012;Laosirihongthong et al, 2013;Lee, 2015). There is also a growing research in the role of supply chain (SC) collaboration on sustainability (Vachon and Klassen, 2008;Ramanathan et al, 2014;Grekova et al, 2015;Gunasekaran et al, 2015).…”

“…It has also become fundamental for businesses to implement GSCM practices in order to generate competitive advantages and cope with increasing number of environmental regulations at various levels (regional, national, international) (Green Jr et al, 2012).…”