The Effect of Customer‐Centric Green Supply Chain Management on Operational Performance and Customer Satisfaction

Abstract

This study explores the links of implementing customer-centric green supply chain management (GSCM) with its antecedent factors (i.e. customer pressure) and performance outcomes (i.e. operational performance and customer satisfaction). Data for this study were obtained through a survey of 126 automobile manufacturers in China. Results suggest that customer pressure has a positive effect on the implementation of customer-centric GSCM, which, in turn, leads to multiple operational performance improvements (i.e. flexibility, delivery, quality and cost). While production flexibility and cost appear to have no significant impact on customer satisfaction, product quality and delivery are significantly and positively associated with customer satisfaction. On the practical front, this paper provides guidelines for managers in implementing customer-centric GSCM to respond to customer pressures and improve firm performance, and for policy-makers to encourage partner-focused GSCM efforts in environmental policy.

Achieving Sustainable Development by Collaborating in Green Product Innovation

“…There are a number of motivators for companies to develop new innovative green products, e.g. compliance with regulations, environmental awareness of the government and public, customer requests, market pressure through competition, technological opportunities and ecological responsibility (Chavez et al , ; Conway and Steward, ; Dangelico and Pujari, ). Environmental policies and regulations push firms to focus more on green innovation and reduce uncertainty on whether investments in the environment will be valuable (Porter and van der Linde, ).…”

Green supply chain management and financial performance: The mediating roles of operational and environmental performance

“…Green supply chain management (GSCM) comprises intra‐ and interfirm management of the upstream and downstream supply chain through internal GSCM and external GSCM practices aiming at minimizing the overall environmental impact of both the forward and the reverse flows (Klassen & Johnson, ; Narasimhan & Carter, ; Solér, Bergström, & Shanahan, ; Srivastava, ; Thun & Müller, ; van Hoek, ; Yu, Chavez, Feng, & Wiengarten, ; Zhu, Sarkis, & Lai, ). However, evidence shows that some GSCM practices do not lead to improved firm performance (Chavez, Yu, Feng, & Wiengarten, ; de Burgos‐Jiménez, Vázquez‐Brust, Plaza‐Úbeda, & Dijkshoorn, ; Eltayeb, Zailani, & Ramayah, ; Yang, Hong, & Modi, ). Studies on the relationship between GSCM and firm performance have reached mixed, inconsistent and even confusing conclusions (Chavez et al, ; Geng, Mansouri, & Aktas, ; Rao & Holt, ; Wong, Wong, & Boon‐itt, ; Zhu, Sarkis, & Lai, ).…”

“…However, evidence shows that some GSCM practices do not lead to improved firm performance (Chavez, Yu, Feng, & Wiengarten, ; de Burgos‐Jiménez, Vázquez‐Brust, Plaza‐Úbeda, & Dijkshoorn, ; Eltayeb, Zailani, & Ramayah, ; Yang, Hong, & Modi, ). Studies on the relationship between GSCM and firm performance have reached mixed, inconsistent and even confusing conclusions (Chavez et al, ; Geng, Mansouri, & Aktas, ; Rao & Holt, ; Wong, Wong, & Boon‐itt, ; Zhu, Sarkis, & Lai, ). A recent meta‐analysis by Golicic and Smith () showed limited positive effects of GSCM on firms' financial outcomes, and those positive effects of GSCM on financial outcomes were smaller than the effects of GSCM on operational and market‐based performance.…”

Customer and Supplier Collaboration in Green Product Innovation: External and Internal Capabilities

“…Firms in industrial markets are addressing environmental concerns by investing in green product innovation (GPI) and thus creating products that deal with climate change more effectively (Porter and Van der Linde, ). Firms also invest in GPI to reap economic benefits, increase their competitiveness, meet customer demand and comply with regulations (Lenox and Ehrenfeld, ; Lee and Kim, ; Wagner and Llerena, ; Chavez et al ., ; Doran and Ryan, ). By developing green innovative products, firms can reach new markets and satisfy new customers.…”