The effect of top management commitment on improving operational performance through green purchasing and green production

Abstract

This research has investigated the impact of top management commitment to enhance operational performance through green purchasing and green production Practices in the manufacturing industry. The study has surveyed 122 from 578 manufacturing companies domiciled in East Java, Indonesia, using a questionnaire designed with a seven-point Likert scale. Data analysis used the partial least square. The result revealed that top management commitment affects green purchasing, green production practices, and operational performance. Furthermore, operational performance is directly affected by green purchasing and green production. The green purchasing affects green production. In addition, top management commitment indirectly improves operational performance through green purchasing and green production. This result provides essential insight for the manager in the manufacturing industry that top management commitment and practicing green purchasing, and green production enhances operational performance. Furthermore, this research extends the acceptance of previous research related to top management commitment, green purchasing, and green production in improving operational performance. The novelty of this study is the revelation of the mediating role of green purchasing and green production in the influence of top management commitment on operational performance. Hence, this study contributes to enriching the current research in supply chain management.

The Relationship between Big Data Analytic-Artificial Intelligence and Environmental Performance: A Moderated Mediated Model of Green Supply Chain Collaboration (GSCC) and Top Management Commitment (TMC)

“…Te concept of TMC resonates with the Teory of Planned Behavior (TPB), which describes behavior based on an individual's will [65]. When an individual's activity has a goal and purpose, TBP behavioral performance occurs.…”

“…When an individual's activity has a goal and purpose, TBP behavioral performance occurs. An individual's behavior is the result of a logical cognitive process in which the individual assesses information internally before applying it to its external behavior [65]. From this point of view, it has been said that the knowledge and beliefs of top management afect how organizations use new technologies like big data analytics [66] and that managers' concerns about the environment afect how much green innovation operations afect EP and competitive capabilities [67].…”

Antecedents and consequences of procurement managers' willingness to pay for sustainability: a multi-level perspective

“…However, the behavior of top management is considered an essential element to measure organizational culture (Treviño et al, 1998). The role of top management is very important not just in terms of their responsibility to introduce ethical values in organizational culture but also in terms of their commitment to allocating and deploying required resources for implementing green procurement and green supply chain management (Basana et al, 2022). Scholars pointed out that organizational culture determines how procurement managers account for environmental and social criteria when selecting suppliers (Goebel et al, 2012).…”

“…That is, most previous studies did not take into account that the effects of green procurement on companies may not always be direct but rather mediated by other outcomes like operational performance (Song et al, 2017). Several studies have demonstrated that green procurement leads to improved operational performance (Basana et al, 2022;Yang et al, 2022). Carter and Jennings (2004) argued that top and middle managers who possess environmental values can likely play a key role in introducing initiatives linked to sustainability.…”

“…Carter and Jennings (2004) and Bonn et al (2021) showed a significant correlation between organizational culture and green procurement. More specifically, the behavior of top management has been reported as a significant antecedent of green procurement (Basana et al, 2022;Blome et al, 2014;Bonn et al, 2021;Yen and Yen, 2012). Furthermore, the behavior of top management through green procurement implementation yields improved operational performance (Basana et al, 2022).…”