Developing and analyzing framework for understanding the effects of GSCM on green and economic performance

Abstract

Purpose The concept of green supply chain management (GSCM) is gaining popularity in developing countries due to the environmental and economic impact along with increasing awareness of environmental safety. Enterprises are trying to express their sincere commitment toward green practices. The purpose of this paper is to examine the impact of GSCM on green and economic performance of the firm under the influence of leadership and institutional pressures. Design/methodology/approach Conceptual model was developed from previous research works to understand the driving forces of green and economic performance which had inconsistent findings in the literature. Data were collected from 174 leading ISO 14001 certified manufacturing firms in Pakistan by using a structured questionnaire. Partial least squares-structural equation modeling is used for testing the hypotheses. Findings The statistical results indicate that the leadership and institutional pressures influence the firm for adoption of internal green practices and external green collaboration. The statistical results also suggest that green practices significantly improve firm’s green and economic performance. However, firm’s external green collaboration does not significantly affect green performance, but it improves green performance significantly. Research limitations/implications This research is conducted on Pakistan as a case of highly populated developing country. Originality/value This research presents the empirical evaluation of the influence of leadership and institutional pressure on green practices and improved green and economic performance. The results offer useful understanding for SCM practitioners seeking to adopt GSCM practices. The results also provide policy insights for regulators, organizations and legislators to further promote GSCM.

Analyzing the impact of environmental collaboration among supply chain stakeholders on a firm’s sustainable performance

“…This study provides three theoretical contributions to enhance the literature of green supply chain management. First, most of the results of this study are found to be consistent with the previous researches which are performed to explain or explore the coordinated efforts of various stake-holders having different research model for instance (Ahmed et al, 2018;Ahmed et al, 2019;Hollos et al (2012) and Zhu et al (2013Laari et al (2016. Lee et al (2012); Lai and Wong (2011); and .…”

“…Previous studies have shown inconclusive results which states that there is no significant effect of green practices found on financial performance (Zhang and Yang, 2016), mixed results were reported for effect of external and internal green practices on environmental, financial and operational performance (Zailani et al, 2012;Lee et al, 2012;Lai and Wong, 2015;Green et al, 2012a;Ahmed et al, 2018;Vachon and Klassen, 2008;Jayaraman et al, 2016;Golicic and Smith, 2013) and no support was found for green supply chain practices on operational performance (Vanalle et al, 2017;. These mixed results warrant additional detailed holistic investigation to further clarify these relationships between green practices and performance measures (Geng et al, 2016).…”

Buyer–supplier collaboration in green practices: The driving effects from stakeholders

“…Customer demand is a main driver of external collaboration in green product innovation (Melander, ). Although research indicates that institutional pressures significantly influence whether a firm adopts internal green practices and external green collaboration (Ahmed et al, ), few studies have examined the influence of customer pressure on collaboration with suppliers in green practices. In supply chain management practices, buyers require first‐tier suppliers to satisfy their demands.…”

“…Similar collaborative relationships are also required for adopting environmental management practices (Hofmann, Theyel, & Wood, ) and improving environmental performance (Carsten, Foerstl, Hartmann, & Blome, ; Jiang, , ). A firm's external green collaboration improves its green performance considerably (Ahmed, Ahmed, & Arsalan, ), such as green product innovation development (Dangelico, ). Cooperating with suppliers is necessary to reap the benefits from effective GSCM (Lee & Klassen, ).…”

Critical success factors for green supply chain management practices: An empirical study on data collected from food processing companies in Saudi Arabia

“…In order to rate CSFs for GSCM; means, standard deviations and ranks of these factors were identified in Table 4. All factors were ranked moderate (fairly important) to very important The above-mentioned results emerged in many previous studies as CSFs for GSCM implementation; awareness of GSCM effects (Huang et al, 2015;Malviya and Kant, 2015;Ahmed et al, 2018), management commitment (Luthra et al, 2014), organizational involvement (Muduliet al, 2013), investment recovery practices (Zhu et al, 2005), green purchasing (Zhu and Sarkis, 2004), environmentoriented TQM (Zhu and Sarkis, 2004) and green information systems (Agyemang et al, 2018). In (Zhu et al, 2013), cost drivers (Wang et al, 2018), customer drivers (Mumtaz et al, 2018), supplier drivers (Hu and Hsu, 2010;Grimm et al, 2014) and energy consumption (Diabat and Govindan, 2010).…”