The Impact of Green Supply Chain Management on Firm’s Performance

2020 ◽  
Vol 19 (01) ◽  
pp. 2040026
Author(s):  
Sara Jassim ◽  
Muneer Al-Mubarak ◽  
Allam Hamdan

As the world grows and develops, people become more aware of business operational processes that are extremely harmful to our environment. Recently, customers’ demands, and governmental legislations have forced domestic and global organizations to implement environmentally sustainable practices in order to cure what has been damaged in the previous decades. This study focuses on the impact of green supply chain management practices on firm’s performance. These practices are green purchasing, green packaging, green manufacturing, green design and green marketing. A questionnaire was circulated among two companies of two industries: shipping and automobile. 80 managers and supervisors were targeted; 59 responses were received indicating a response rate of (74%). For testing, regression analysis and T-test were used. From the analysis, it was found that most of green practices influence firm’s performance with green manufacturing the most adopted practice that shapes the industries, followed by green marketing and green purchasing. On the other hand, little impact was found in green packaging and negative impact of green design on firm’s performance. Overall, the study indicates that the tested sample is moving towards the green concept but still it is in its first stages and needs more efforts and support from firms, suppliers and customers.

Author(s):  
Chengedzai Mafini ◽  
Asphat Muposhi

Background: South Africa has a high rate of small to medium enterprises (SMEs) failure, especially in the manufacturing sector. The operational challenges confronting manufacturing SMEs are acknowledged by the Global Competitiveness Index that ranked South African SMEs as one of the lowest in emerging economies.Objectives: The aim of this study is to examine the association between green supply chain management (GSCM) practices, environmental collaboration and financial performance in SMEs.Method: The study is quantitative in nature and involves a convenient sample of 312 SMEs based in Gauteng Province, South Africa. Data analyses follow a two-step process involving a confirmatory factor analysis to test the psychometric properties of the measurement scale and Structural Equation Modelling to test the proposed hypotheses.Results: The study shows that three GSCM practices, namely, green procurement, green logistics and green manufacturing in SMEs exert a positive effect on environmental collaboration, with green manufacturing exerting a higher effect than the other two constructs. In turn, higher levels of environmental collaboration inspired higher levels of SME financial performance.Conclusion: The study advances that SMEs can succeed financially through the influence of enhanced environmental collaboration, which emanates, in part, from the adoption and implementation of GSCM practices.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Seth Kofi Nkrumah ◽  
David Asamoah ◽  
Jonathan Annan ◽  
Benjamin Agyei-Owusu

Purpose While there is a growing pool of literature on the drivers of adoption of green supply chain management (GSCM) practices, the literature has not properly explored the role of green capabilities as drivers of GSCM adoption. This study aims to examine four green capabilities (green supplier development, green marketing, green manufacturing and packaging and environmental participation) as the drivers of GSCM adoption. Design/methodology/approach The study develops and empirically tests a research model which explores the effect of green capabilities on GSCM adoption. A survey of 200 manufacturing and extractive firms operating in Ghana was conducted, with 94 usable responses obtained. The research model was analyzed by using partial least squares structural equation modeling. Findings The results revealed that green supplier development capabilities and environmental participation capabilities had positive and significant effects on GSCM adoption. Green marketing capabilities had a positive but weak effect on GSCM adoption. Green manufacturing and packaging capabilities, however, did not significantly impact GSCM adoption. Originality/value To the best of the researchers’ knowledge, this is the first study that empirically examines green capabilities as drivers of GSCM adoption.


2014 ◽  
Vol 5 (2) ◽  
pp. 312-337 ◽  
Author(s):  
Hardeep Chahal ◽  
Ramesh Dangwal ◽  
Swati Raina

Purpose – The purpose of the study is twofold. First, to examine the domain of green marketing construct in the context of small and medium enterprises (SMEs) operating in emerging economies (i.e. India) across electrical industries and, second, to assess its impact on the SMEs performance. Design/methodology/approach – All the owners of electrical industries (SMEs) operating in Jammu District, that is, 152, were contacted using census method. Findings – The study identifies and confirms five factors, namely, greening the process, green supply chain management, green strategic policy initiative, proactive energy conservation and green innovation of green marketing as important dimensions of green marketing orientation (GMO) scale. All the dimensions of the GMO scale have positive and significant impacts on performance of the firms. In addition, there exists stronger impact of green marketing dimensions on the customer business to business (B2B) satisfaction and employee retention. Research limitations/implications – The research has certain unavoidable limitations. First, the study is based on only one sector, that is, electrical industries operating in developing industrial region of India and hence future research is suggested to comprehend green marketing in other green-savvy manufacturing sectors like pharmaceutical sector and service sector like hotels and hospitals. Further, the study has focussed on the development of GMO scale and future studies need to extend research to include variables like green satisfaction, green trust and green loyalty to understand their mediating role in green marketing and performance relationship. Furthermore, the moderating role of variables such as nature and age of the SMEs can also be studied in future research. Practical implications – GMO allows managers to understand how their firms facilitate green environment and they affect the business outcomes. Furthermore, GMO takes into consideration all important aspects (greening the process, green supply chain management, green strategic policy initiatives, proactive energy conservation and green promotion) which provide better explanatory power and identification of priority areas for managerial attention. GMO can be used by managers to determine which strategies and practices will have the most positive influence on employees’ outcome. Originality/value – This paper can help managers in identifying the perspectives of GMO in electrical sector for the developing countries. Unlike the three dimensions confirmed by studies, this study established five dimensions of green marketing, namely, greening the process green supply chain management, green strategic policy initiatives, proactive energy conservation and green promotion.


2020 ◽  
Vol 13 (1) ◽  
pp. 79 ◽  
Author(s):  
Dyah Sugandini ◽  
Muafi Muafi ◽  
Christin Susilowati ◽  
Yuni Siswanti ◽  
Wirman Syafri

Purpose: This study aims to analyze green supply chain management (GSCM) and green marketing strategies (GMS) to green purchasing intentions (GPI). This study conducts on craft SMEs in the Special Region of Yogyakarta, Indonesia. Design/methodology/approach: This study uses primary data which is obtained through questionnaires. The unit of analysis in this study is organizations and individuals. The sampling technique is purposing sampling, with the criteria of SMEs that conduct environmentally friendly production processes and consumers who have ever bought green products. Data analysis uses structural equation modeling. Research limitations/implications: This study is limited by relatively small sample size. The sample is only environmentally oriented SMEs. Large companies that are also environmentally friendly have not been included as samples in this study, so the results of this study only generalized to SMEs. Future research should accommodate these two types of companies, namely SMEs and companies, so that it can be easier to generalize the findings and allow different tests of GSCM to be applied to SMEs and large companies. This study only analyzed GSCM from two dimensions, namely GP and GCC. Other variables that can be used to explain GSCM are internal environmental, green information systems, eco-design and packaging. Practical implications: GSCM can be started with conducts the right GP and always coordinating with consumers which related to green products. GP (green purchasing) and GCC (green consumer cooperation) as GSCM elements have a strong association in predicting the success of a green marketing strategy. It is expected that SMEs should pay attention to the raw material purchase so that the problem of environmentally friendly raw materials can be truly obtained to enter the production process and produce environmentally friendly products. Originality/value: This study analyzes the relationship between GSCM practices and organizational performance in the green marketing and business strategies context, where there is still a scarcity of studies in this context. Besides that, there is an increase in awareness of green operations and green marketing in Asia, but the relevant studies in Asian countries have not been conducted much, especially in Southeast Asia. The result of this study proves that the GSCM model can increase value along the supply chain by emphasizing green supply chain management and green marketing.


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