Enhancing firms’ environmental performance and financial performance through green supply chain management practices and institutional pressures

2019 ◽  
Vol 11 (2) ◽  
pp. 451-476 ◽  
Author(s):  
Masood Nawaz Kalyar ◽  
Aftab Shoukat ◽  
Imran Shafique

Purpose The purpose of this study is to examine how individual dimensions of green supply chain management (GSCM) practices affect firms’ financial performance directly and through environmental performance. Furthermore, the authors investigate the contingent role of institutional pressures on the direct link between GSCM practices and environmental performance and GSCM practices and financial performance. Design/methodology/approach Using a convenience sampling technique, data were collected from 238 textile firms in the province of Punjab, Pakistan. Hayes’ PROCESS macro was used to analyze the hypotheses. Findings The findings demonstrate that GSCM practices (green manufacturing, green purchasing, eco-design, cooperation with customers and green information systems) have a significant direct impact on firms’ financial performance directly and through environmental performance. Additionally, institutional pressures significantly moderate the nexus of GSCM practices-environmental performance and environmental performance-financial performance. Practical implications Textile firms should implement GSCM practices not just because of the pressure from regulatory bodies but also to elevate their environmental and financial performance. Government should also play its role in influencing the organizations for the adoption of GSCM practices, as its role is a significant one in preserving the environment. Social implications Because of less emission, energy usage and wastage, environmental performance will be increased, which affect the society positively. Originality/value Along with studying the GSCM practices in the textile industry of Pakistan, drawing upon the institutional theory, the contingent role of institutional pressures on two stages (first, between GSCM practices and environmental performance, and secondly, between GSCM practices and financial performance) is the novelty of this study.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amer Saeed ◽  
Fatima Rasheed ◽  
Maimoona Waseem ◽  
Mosab I. Tabash

PurposeThis research scrutinizes the connection between green human resources management (GHRM) and environmental performance (EP) through mediating role of green supply chain management (GSCM).Design/methodology/approachThe conceptual prototype developed in this research was originated from familiarized literature review on the connection between EP, GSCM and GHRM. Moreover, this research employed a quantitative approach through conducting interviews and questionnaires for statistics assortment from the following entities: chief executes, general managers, directors, human resource managers, logistics managers, operation managers and supply chain managers in the manufacturing sector in Pakistan. The partial least squares structural equation modelling (PLS-SEM) was considered for statistical exploration by accepting 269 useable responses.FindingsThe research asserts significant encouragement of GHRM and GSCM on EP. Moreover, GSCM arbitrates significantly between GHRM and EP.Research limitations/implicationsThis research recommends policies to manufacturing concerns that they should work to stabilize ecological sustainability by developing maximum GHRM and GSCM.Originality/valueThis research comes up with an innovative variables structure which has never been adopted before in the manufacturing area of Punjab in Pakistan.


2020 ◽  
Vol 40 (6) ◽  
pp. 729-751 ◽  
Author(s):  
Yongyi Shou ◽  
Shuo Shan ◽  
Anlan Chen ◽  
Yang Cheng ◽  
Harry Boer

PurposeThis study investigates the relationships between environmental performance feedback and green supply chain management (GSCM). It explores how environmental performance above or below aspirations affects the implementation of GSCM practices (specifically sustainable production [SP] and sustainable sourcing [SS]) through the lens of the behavioral theory of the firm (BTOF), which has received scant attention in the operations management literature.Design/methodology/approachThe study used data from the sixth round of the International Manufacturing Strategy Survey (IMSS). It employed hierarchical linear regression to test the proposed hypotheses. Moreover, the study tested an alternate model to rule out the possible role of financial performance aspirations in explaining the implementation of SP and SS.FindingsThe results indicate that organizations determine their efforts put into the two GSCM practices according to environmental performance feedback: the greater the aspiration–environmental performance discrepancy, the stronger the efforts put into implementing GSCM practices.Originality/valueThis study contributes to the GSCM literature by revealing the impact of environmental performance aspirations on the implementation of GSCM practices through the lens of the BTOF. It also extends the BTOF by applying it in the GSCM context and indicating that performance feedback is based on environmental performance instead of financial performance in this specific context.


2019 ◽  
Vol 30 (1) ◽  
pp. 26-47 ◽  
Author(s):  
Kenneth W. Green ◽  
R. Anthony Inman ◽  
Victor E. Sower ◽  
Pamela J. Zelbst

PurposeThe purpose of this paper is to empirically assess the complementary impact of JIT, TQM and green supply chain practices on environmental performance.Design/methodology/approachData from a sample of 225 US manufacturing managers are analyzed using a PLS-SEM methodology.FindingsJIT and TQM are directly and positively associated with green supply chain management practices. JIT, TQM and green supply chain practices are complementary in that combined they provide a greater impact on environmental performance than if implemented individually.Research limitations/implicationsThe sample is limited to US manufacturing managers, with a low response rate.Practical implicationsSuccessful implementations of JIT and TQM improvement programs support the implementation of green supply chain management practices leading to improved environmental performance.Social implicationsThe combination of JIT, TQM and green manufacturing practices improves the environment by eliminating all forms of waste and providing customers with eco-friendly products and services.Originality/valueThis study is one of the first to empirically assess the complementary impact of JIT, TQM and green supply chain practices within the context of environmental sustainability.


2019 ◽  
Vol 8 (5) ◽  
pp. 415-437 ◽  
Author(s):  
Waqar Ahmed ◽  
Arsalan Najmi ◽  
Muhammad Arif ◽  
Muhammad Younus

Purpose Environmental concerns are rapidly increasing in the industries across the world. They are a more serious issue, especially, in the developing countries due to the prevalence of old practices and outdated technology. The purpose of this paper is to understand the role of institutional pressure and environmental orientation of the firm in adopting green supply chain management (GSCM) practices, and thereon the effect of GSCM on the firm’s performance. Design/methodology/approach By employing survey methodology using purposive sampling technique, the data were collected from 229 respondents who were working as supply chain management professionals in various manufacturing firms. The hypotheses were tested through partial least square structural equation modeling (PLS-SEM). Findings The findings reveal that both institutional pressures and environmental orientation significantly impact GSCM practices. The result further shows that GSCM practices have a positive effect on the environmental and economic performance as well as customer effectiveness. Originality/value Industries in the developing economies like Pakistan are reluctant to implement GSCM practices due to the perception of ambiguous financial implications. This study signifies that institutional pressures act as an effective driving force for change management and compliance.


2019 ◽  
Vol 39 (5) ◽  
pp. 767-786 ◽  
Author(s):  
Paul D. Cousins ◽  
Benn Lawson ◽  
Kenneth J. Petersen ◽  
Brian Fugate

Purpose Sustainable supply chain management has become an increasingly important driver of business performance. Understanding the contingent nature of how performance is improved in this context is therefore a critical task for management. The purpose of this paper is to explore the moderating effects of two practices unique to sustainable supply chain – ecocentricity and supply chain traceability – on a firm’s environmental and operating cost performance. Design/methodology/approach Survey data were collected from 248 UK manufacturing firms and analyzed using moderated hierarchical regression. Findings The results suggest that green supply chain management (GSCM) practices are associated with improvements in both environmental and cost-based performance. Further, higher levels of ecocentricity and supply chain traceability are associated with stronger relationships between GSCM practices and cost performance. Contrary to expectations, high levels of supply chain traceability were found to negatively moderate the relationship between GSCM practices and environmental performance. Research limitations/implications The research design was survey-based and cross-sectional. Future studies would benefit from longitudinal research designs that capture the effects of GSCM practices on performance over an extended period. The survey data is also perceptual; using secondary data to capture environmental performance outcomes, for example, would be another opportunity for future research. Practical implications The authors provide additional support to findings that GSCM practices benefit both environmental and cost performance dimensions. In this context, the authors show that investments by firms in working with a broader set of eco-system partners (ecocentricity) and building supply chain traceability and leads to improved environmental sustainability outcomes. The authors encourage managers to carefully consider how they conceptualize and monitor their supply chains. Originality/value This paper offers several contributions to the research in this area. First, the authors develop and validate a measurement scale for ecocentricity and supply chain traceability. Second, the authors show how these two variables – unique to sustainable supply chains – can positively influence firm and environmental performance.


2021 ◽  
Vol 9 (2) ◽  
pp. 421-428 ◽  
Author(s):  
Zeni Rusmawati ◽  
Noorlailie Soewarno

This study examined the relationship between green supply chain management (GSCM) on the environment and green economic performance with the moderator prediction context, which is a very fundamental approach for developing stronger theories. The writers chose green technology as a unique moderator in the context of GSCM practices and performance. The purpose of this study is to determine the role of moderating effects of green technology in investigating the relationship between green supply chain management (GSCM) practices and firm performance (environmental and green economic performance). By employing survey methodology using a purposive sampling technique, the data collected from 96 respondents in various manufacturing firms. The hypotheses were tested through SEM-PLS using SmartPLS. The further results show that the results of hypothesis testing indicate that GSCM practices (GSCM) have a positive and significant effect on environmental performance (EP) and green economic performance (GEP). The study also found that the role of green technology as a moderating variable can strengthen the positive relationship between GSCM Practices and environmental performance. While the moderation effect of Green technology (GT) can weaken the positive relationship between GSCM Practices and green economic performance (GEP).


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Elaine Quintana Borazon ◽  
Yi-Chun Huang ◽  
Jen-Ming Liu

Purpose Green sustainability has become a critical challenge for businesses to execute green supply chain management (GSCM). Most of the literature on GSCM emphasizes regulations as drivers and few pieces of research are conducted from an internal organizational culture view. This study aims to use the cultural perspective of market orientation (MO) and draws on both the natural resource-based view (NRBV) and dynamic capability view (DCV) to explore the relationships among green market orientation (GMO), GSCM capability and organizational performance. Design/methodology/approach A total of 1,000 survey questionnaires were distributed to the Taiwanese electronics industry and 207 valid questionnaires were collected. Data was analyzed using structural equation modeling. Findings The results show that GMOs have a significant positive impact on GSCM capability, environmental performance and economic performance. Moreover, GSCM capability is positively related to environmental and economic performance. The results also show that GMOs have a significant indirect influence on environmental performance and economic performance through GSCM capability. Practical implications The findings of this study suggest how Taiwan’s electrical and electronic manufacturers, while faced with pressure from competitors, customers and regulations (i.e. waste electrical and electronic equipment directive, Restriction of Hazardous Substances Directive and energy-using products directives), should efficiently and effectively implement GMO and enhance GSCM capability to improve organizational performance. Originality/value This study fills up the gap between MO and performance indistinct relationships. It has also integrated two perspectives, namely, NRBV and DCV, to explain GSCM capability as a mediator between GMO and organizational performance relationship and to examine the relationships among GMO, GSCM capability and organizational performance.


Author(s):  
Amer Saeed ◽  
H.P. Rasika Priyankara ◽  
N.P.G.S.I. Naotunna

Businesses around the globe are facing tremendous pressures to improve their manufacturing practices to minimize their harmful effects on the environment. These pressures are being exerted from different stakeholders but in developing countries mostly there are powerful suppliers and customers, which can change the choices of decision makers in the local industry. According to institutional theory these pressures combined are called normative pressures. By using path modeling this study attempted to find out the role of normative pressures to adopt green supply chain management (GSCM) practices and the impact of those adopted practices on environmental and economic performance of those companies through partial least square (PLS) structural equation modeling (SEM). Data was collected from 134 manufacturing companies in Pakistan through a questionnaire. Path analysis results confirmed that normative pressures have positive and significant impact on adopting the GSCM practices and subsequently these practices improve the environmental performance of the companies in Pakistan. Results also confirmed many existing studies that GSCM practices directly do not improve economic performance but environmental performance does have a significant positive effect on the economic performance


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