Green supply chain integration and financial performance: A social contagion and information sharing perspective

Abstract

Although green supply chain integration (GSCI) has received wide attention, how it diffuses among supply chain members to affect the manufacturer's performance is still unclear. This study examines the relationships among GSCI, information sharing, and financial performance from a social contagion lens. By conceptualizing GSCI into three forms, two types of contagion mechanisms (i.e., cohesion and structural equivalence) were identified to investigate the underlying contagion effects between different forms of GSCI and the effects of various GSCI on information sharing and financial performance. Survey data were collected from 206 Chinese manufacturers and analyzed using structural equation modeling to test hypotheses. The results indicate that green supplier integration directly promotes green internal integration, green customer integration, and information sharing with suppliers. Green internal integration positively influences green customer integration and financial performance.Green customer integration enhances information sharing with customers. Both information sharing with suppliers and customers improve financial performance. This study contributes to the GSCI literature and provides novel managerial implications for manufacturers.

Organizational Behavior in Green Supply Chain Integration: Nexus Between Information Technology Capability, Green Innovation, and Organizational Performance

“…The concept of GSCI comes from green supply chain management (GSCM) and SCI literature ( Wong et al, 2020 ), which integrate the environmental concern in the SCI. GSCI assesses how well a producer interacts with suppliers, customers, and internal departments to satisfy environmental criteria ( Kong et al, 2021 ). GSCI aims to reduce environmental consequences, increase resource utilization, and promote long-term performance improvement by managing intra- and inter-organizational processes magnificently ( Vachon and Mao, 2008 ; Cousins et al, 2019 ).…”

“…Green internal integration is when a producer conducts environmental management practices in an organization to achieve the intra-organizational process ( Yu et al, 2014 ; Kong et al, 2020 ). Green external integration, which consists of both green supplier and green customer integration, reflects the extent to which manufacturing partners with its external partners handle inter-organizational green initiatives ( Yu et al, 2014 ; Setyadi, 2019 ; Kong et al, 2021 ). Green supplier integration offers manufacturers the opportunity to learn about green practices employed by their key suppliers, such as design specifications for green products and eco-friendly operations ( Lee et al, 2012 ).…”

“…In contrast, green customer integration is conducive to distributing key market evidence, such as customer needs for green products, competitive information, etc. ( Shafique et al, 2018 ; Kong et al, 2021 ).…”

“…Green external integration refers to the degree of environmental cooperation between manufacturers and external partners, such as common sense of environmental responsibilities, joint problem solving, and joint realization of environmental goals ( Kong et al, 2020 ). Setting common environmental goals with suppliers, reassuring suppliers to use advanced technologies in the manufacturing process, imposing specific environmental requirements on supplier product design, and jointly developing an environmentally friendly new product are all examples of green supplier integration ( Wu, 2013 ; Kong et al, 2021 ). While, green customer integration practices to attain environmental goals, jointly deciding on eco-strategic options to reduce the environmental impact of new products ( Wu, 2013 ; Kong et al, 2021 ), and performing collaborative planning to realize customer requirements and meet environmental safety needs ( Han and Huo, 2020 ).…”

“…Furthermore, the over-saturated GSC literature presents inconsistent advice and tactics that hamper the application of sustainable operations ( Samad et al, 2021 ; McDougall et al, 2022 ). The GSCI is very important on GI, which is important to achieving operational performance (OP) and EP, not just the financial performance ( Kong et al, 2021 ). GSCI has been construed by business and literature beyond a common theme of different definitions put forward by researchers through parallel approaches ( Wu, 2013 ; Setyadi, 2019 ; Kong et al, 2020 ).…”