Effect of Green Supply Chain Management Practices on Environmental Performance: Case of Mexican Manufacturing Companies

Abstract

Managers implement several Green Supply Chain Management (GSCM) practices to improve sustainability and economic performance, such as environmental management systems (EMS), eco-design (ED), source reduction (SR) and attending to external environmental management (EEM) requirements; however, the relationship among them requires a deep study. This paper reports the case of the Mexican maquiladora industry, analyzing the main relationships among GSCM practices with environmental impact (EI) and environmental cost savings (ECS). The analysis reports three structural equation models (SEM) developed as simple, second-order, and mediating models. Those relationships are tested using 160 responses to a survey applied to the Mexican maquiladora industry and with partial least squares algorithms (PLS), where conditional probabilities for different scenarios in latent variables are also reported. Findings indicate that EMS has a direct effect on EI (β = 0.442) and ECS (β = 0.227), indicating that EMS reduces EI and cost associated with the production process; however, ED has no direct effect on EI (β = 0.019) and ECS ((β = 0.006), and it can be due to the maquiladora nature as foreign companies focused on manufacturing and not to product design.

The effect of green supply chain management practices on corporate environmental performance: Does supply chain competitive advantage matter?

“…This urges firms to use the best GSCM practices to attain a competitive advantage over others and enhance EP. This is supported by past research findings (Ahmed et al, 2020;Awaliyah & Haryanto, 2022;Bryson, 2018;Yong et al, 2020), but it is inconsistent with the study findings of (García Alcaraz et al, 2022;Zhang, Wang, & Zhao, 2019).…”

“…This urges firms to use the best GSCM practices to attain a competitive advantage over others and enhance EP. This is supported by past research findings (Ahmed et al, 2020; Awaliyah & Haryanto, 2022; Bryson, 2018; Yong et al, 2020), but it is inconsistent with the study findings of (García Alcaraz et al, 2022; Zhang, Wang, & Zhao, 2019). A possible reason for these discrepancies in this current study's result to these prior studies outcomes could be that an intense focus on SCCA might lead organizations to disregard the concerns and expectations of stakeholders, including customers, communities, and regulators, who are increasingly demanding environmentally responsible practices.…”

Toward environmentally sustainable supply chains: How contract management can help companies along their transformation journey

“…An emerging novel stratagem in supply-chain management inspired our interest in the impact of green supply-chain management practices on environmental performance (García Alcaraz et al 2022; Seman et al 2019; Silva, Gomes and Sarkis 2019). Because making this relationship successful involves challenges, such as possible unwillingness to gamble on investing in it (Batrazovna et al 2020), it is worthy of deeper study.…”

“…While a recently developing supply-chain management stratagem has stimulated interest in the impact of ‘green’ supply-chain management practices on environmental performance (Çankaya and Sezen 2019; García Alcaraz et al 2022), there are obstacles to making this relationship successful. For instance, some business executives may suspect a high-cost, low-benefit scenario and not be willing to invest in strengthening it (Batrazovna et al 2020).…”

Greening the manufacturing firms: do green supply chain management and organizational citizenship behavior influence firm performance?

“…Respondents' demography So, the relationship between variables yields reliable results. In addition, by including group evaluations and mean, it is able to analyze complicated relationships and many hypotheses, something that other prototypes and models cannot achieve(García Alcaraz et al 2022). Focusing on the advantages of this method, we applied it in this study owing to its efficacy in establishing the relationship between all investigated factors(Hock-Doepgen et al 2021).…”