Environmental Orientation, Green Supply Chain Management, and Firm Performance: Empirical Evidence from Chinese Small and Medium-Sized Enterprises

Abstract

This study investigates the relationship between environmental orientation and firm performance with the mediating role of green supply chain management (GSCM). This study uses a survey questionnaire to collect data from 247 CEOs from Chinese small and medium-sized enterprises (SMEs). Structural equation modeling is used to analyze data and test hypotheses. Empirical results show that internal and external environmental orientations are positively related to the three elements of GSCM, namely, environmental selection, monitoring, and collaboration with suppliers which are also positively related to firm performance. In addition, results show that environmental selection, monitoring, and collaboration with suppliers mediates the relationship between internal and external environmental orientations and firm performance. The findings provide important implications for academic researchers and business managers in planning and implementing environmental strategies. In terms of theoretical implications, this study sheds a new light to current knowledge about the effect of environmental orientation on GSCM and firm performance of SMEs. This study also provides empirical evidence to clarify the mediating mechanism of GSCM in the link between environmental orientation and firm performance of SMEs. In terms of practical implications, this study provides knowledge for managers of SMEs to better understand the important role of environmental orientation and green supply chain management. Findings of this study provide knowledge for managers of SMEs to make their business policies better.

Green Paradox in Emerging Tourism Supply Chains: Achieving Green Consumption Behavior through Strategic Green Marketing Orientation, Brand Social Responsibility, and Green Image

“…The results of the study indicated that GSCM initiatives positively influenced the development of a strong and positive corporate image. These findings were also supported by [81]. Hence, it can be concluded that green supply chain management is an important factor that is a key predictor of green corporate image.…”

“…The results suggested that the green marketing initiatives taken by the firms led to the development of a green corporate image. Moreover, Bu et al (2020) also analyzed the impact of environmental orientation on a firm's performance and concluded by saying that the green environmental initiatives undertaken by a firm positively influence its overall performance and solidify its brand presence in the market [81]. According to signal theory, the hotel is the sender of signals and the consumers are the receivers of the signals [11].Therefore, it can be concluded that the green marketing orientation activities of the firm play a critical role in the development of a green corporate image.…”

“…The hotel's green activities lead to a significant improvement in environmental sustainability and performance [76,77]. Further, environmental partnership management between the supplier and purchaser is also important as it provides an opportunity for both entities to learn the environmental goals of the other [64,[77][78][79][80][81][82]. It was also posited that a green supply chain can significantly enhance the hotel's overall reputation and financial performance due to the reduction in costs, energy consumption, and management of waste material [65,76,83,84].…”

“…It was also posited that a green supply chain can significantly enhance the hotel's overall reputation and financial performance due to the reduction in costs, energy consumption, and management of waste material [65,76,83,84]. Han and Huo (2020) and Bu et al (2020) observed that the integration of a green supply chain had a positive relationship with the sustainable performance of the firm [81,84]. Wong et al (2012) posited that irresponsible behavior impacts the reputation and brand image of the hotels [83].…”

Impact of blockchain technology on green supply chain practices: evidence from emerging economy

“…GSCM is a new field that tries to eliminate some of the traditional supply chain weaknesses like environmental efficiency (Chin et al , 2015; Rasi et al , 2012). GSCM follows the same activities but in a different way that is more profitable, innovative and widely acceptable, socially and pro-environmentally (Bu et al , 2020). GSCM is considered as an environmental innovation (Chin et al , 2015) which is often used for a variety of activities of the organization to reduce its impact on the natural environment, including the goal of inventory waste within the industrial system to conserve energy, prevent waste of hazardous substances in the environment and recognize the inappropriate environmental impact of supply chain operations within the organization (Shou et al , 2018).…”