Exploring firm performance by institutional pressures driven green supply chain management practices

Abstract

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 They are a more serious issue, especially, in the developing countries due to the prevalence of old practices and outdated technology.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.

Customer green orientation and process innovation alignment: A configuration approach in the global manufacturing industry

“…A dominant manufacturer in the buyer–supplier relationship may choose this rapid green orientation primarily due to competitive pressure or and keen awareness of potential expected green benefits. Research has shown that the increasing competitive pressures lead to external orientations towards GSCM (Ahmed, Najmi, Arif, & Younus, 2019) and proactive green business strategies (Bıçakcıoğlu, Theoharakis, & Tanyeri, 2019). However, these strategies often require a high level of organizational readiness due to not only technological and financial limitations but also limited in resource allocation and process changes for expensive green systems like EMS.…”

“…A dominant manufacturer in the buyer-supplier relationship may choose this rapid green orientation primarily due to competitive pressure or and keen awareness of potential expected green benefits. Research has shown that the increasing competitive pressures lead to external orientations towards GSCM (Ahmed, Najmi, Arif, & Younus, 2019) (Gaudillat, Antonopoulos, Dri, Traverso, & Canfora, 2017).…”

Examining the impact of institutional pressures and green supply chain management practices on firm performance

“…An increase in environmental sustainability pressure from various stakeholders has to lead the manufacturers to adopt eco-friendly methods and strategies that reduce the environmental impact of their products and services (Zhu et al, 2005). Hence, the supply chains of these firms are trying to incorporate environmental consideration to operate under governmental regulation, and their modifications comprise the introduction of sustainable processes and procedures in designing and production (Chung and Wee, 2008;Ahmed et al, 2019;Wadhwa et al, 2009). Nevertheless, few companies are considering their environmental-friendly programs even to gain and maintain a competitive edge (Zhu et al, 2008(Zhu et al, , 2011Mangla et al, 2013).…”

“…Based on the results of several researchers, green SCM practices are usually adopted in the hope of having a positive influence on the environmental and financial performances of an organization (Zhang and Yang, 2016;Ahmed et al, 2019). To overcome the environmental effect, there are various activities in a green supply chain (GSC) that include green purchase, design and the deduction in the usage of harmful material (Roehrich et al, 2017;Khan, Ahmed, Najmi and Younus, 2019).…”

Studying green consumer behavior through multiple lenses in a developing country

“…Green consumer behavior can induce industries to develop green production methods and shift wasteful pattern of consumption to green consumption (Lin and Hsu, 2015; Pride and Ferrell, 2016; Klassen and McLaughlin, 1996; Chen and Chai, 2010). Moreover, greening the supply chain and operations increases cooperative advantages, leading to increased competitiveness and economic performance (Ahmed et al , 2019). Construction of green buildings promotes the consumption of alternative materials, which consume less amount of energy and other resources needed to create building materials (Krueger et al , 2019; Oyewole, et al , 2019 and Wadu Mesthrige and Kwong, 2018).…”