Antecedents and Effects of Green
Antecedents and Effects of Green
Antecedents and Effects of Green
https://www.emerald.com/insight/1463-5771.htm
BIJ
30,10 Antecedents and effects of green
supply chain management
(GSCM) practices
4014 Dimitrios Chatzoudes and Prodromos Chatzoglou
Department of Production and Management Engineering, School of Engineering,
Received 6 September 2021
Revised 19 June 2022
Democritus University of Thrace, Xanthi, Greece
Accepted 6 November 2022
Abstract
Purpose – During the previous two decades, “Green Supply Chain Management” (GSCM) has been gaining the
attention of researchers and practitioners from various fields (e.g. operations, logistics and supply chain
management). Its significance is constantly growing, and various studies are conducted in order to capture its
overall organizational contribution. The present study attempts to bring together various organizational
aspects that have never been collectively investigated before in the relevant literature. Under that rationale, a
robust conceptual framework is developed and empirically tested. This framework includes 17 factors that are
classified in three dimensions: (1) drivers of GSCM practices, (2) GSCM practices and (3) firm performance
(GSCM outcomes).
Design/methodology/approach – The examination of the proposed conceptual framework was performed
using a newly developed structured questionnaire that was distributed to a sample of Greek manufacturing
organizations. Supply Chain managers and Chief Executive Officers (CEOs) were used as key respondents, due
to their knowledge and experience. After the completion of the three-month research period (last quarter of
2019), 292 useable questionnaires were returned. The empirical data were analyzed using the “Structural
Equation Modeling” technique. The study is empirical (based on primary data), explanatory (examines cause
and effect relationships), deductive (tests research hypotheses) and quantitative (includes the analysis of
quantitative data collected with the use of a structured questionnaire).
Findings – Empirical results point out that internal environmental management, green innovative practices
and environmental proactivity are GSCM practices with the most significant impact on firm performance.
Moreover, the mediating role of GSCM practices in the relationship between GSCM drivers and firm
performance is also highlighted. Finally, it was found that GSCM practices can explain 35% of the variance in
firm performance and the drivers of GSCM practices can explain 78% of the variance of these practices.
Originality/value – The proposed three-dimensional conceptual framework of this empirical study and its
underlining rationale has rarely been adopted in the relevant literature. Moreover, the study investigates which
GSCM practices have an impact on firm performance, thus offering value to practitioners of the field. Also, it is
one of the few similar studies that have been conducted on a European country.
Keywords Green supply chain management (GSCM), Environmental proactivity,
Environmental performance, Empirical study, Structural equation modeling (SEM), Greece
Paper type Research paper
1. Introduction
Green supply chain management (GSCM) has been gaining in interest among researchers and
practitioners of supply chain management, operations and logistics, especially over the last
decade (Asif et al., 2020; Perotti et al., 2012; Tseng et al., 2019). GSCM is, nowadays, a
fundamental part of sustainable supply chain management (Carter and Rogers, 2008; Fang
and Zhang, 2018). The growing importance of GSCM has been substantially driven by
increasing environmental concerns, such as environmental pollution (Sheu et al., 2005),
diminishing raw material resources, overflowing waste sites and increasing levels of
pollution (Srivastava, 2007), government regulations, changing consumer demands and the
Benchmarking: An International
Journal development of international certification standards (Dou et al., 2018; Murphy and Poist,
Vol. 30 No. 10, 2023
pp. 4014-4057
2003). Although supply chain management has been widely studied in the last two decades,
© Emerald Publishing Limited
1463-5771
discussions on GSCM have not gained momentum until the early 2000s (Maditati et al., 2018;
DOI 10.1108/BIJ-09-2021-0524 Mitra and Datta, 2014; Liu et al., 2020a).
According to the popular definition of Sarkis (2012), GSCM is the integration of Antecedents
environmental concerns into supply chain management (SCM) practices. It promotes and effects of
efficiency and synergy among supply chain partners, in an effort to simultaneously minimize
waste and increase operational benefits. As such, it is both a matter of social responsibility
GSCM
and a set of practices that have the ability to increase business value (Wang et al., 2020). practices
Under that context, green business practices in the supply chain have emerged as a priority
for organizations that wish to achieve environmental and organizational goals (Rizzi et al.,
2022). The need for green supply chains has also been highlighted during the COVID-19 4015
pandemic (Kitsis and Chen, 2021). The disruption of global supply chain activities, especially
during the first wave of the health crisis (April 2020) and the significant simultaneous
reduction in CO2 emissions during that period (Le Quere, 2020) was evident of the need for
further greening the supply chains around the globe. According to data provided by Bove
and Swartz (2016) in a McKinsey report, supply chains of consumer goods companies are
responsible for more than 80% of greenhouse gas emissions, while also having a huge effect
on natural, animal and geological resources. Kitsis and Chen (2021) provide various similar
arguments, concluding that the COVID-19 crisis underlines the need for redefining the way
organizations manage their supply chain operations and footprint.
Over the last decade, numerous previous studies have investigated the benefits of
implementing GSCM practices. Researchers found that GSCM practices have an effect on
firm performance (e.g. Bhardwaj, 2016; Dues et al., 2013), operational performance (Vanalle
et al., 2017), stock prices (Bose and Pal, 2012), competitiveness (Yang et al., 2013), recognition
from producers and consumers (Testa and Iraldo, 2010), export performance (Al-Ghwayeen
and Abdallah, 2018), environmental sustainability (Rupa and Saif, 2022) and environmental
collaboration (Trujillo-Gallego et al., 2021).
But despite these tangible benefits, it seems that many organizations are not willing to
change their traditional supply chain operations in the light of mid- and long-term future for
positive outcomes (Asif et al., 2020; Jell-Ojobor and Raha, 2022). Under that context, many
companies adopt environmental practices only after external motivation from governments,
suppliers, customers and various other stakeholders. The present study examines both
internal and external pressures (drivers) for adopting GSCM practices, thus offering a
complete perspective of the investigated phenomenon. Moreover, according to Choudhary
and Sangwan (2022), the adoption of GSCM practices should be justified on the basis of a
formal performance evaluation system that takes under consideration economic,
environmental and operational perspectives. Mishra et al. (2017) argue that very few
previous studies have focused on measuring GSCM performance and ask for further future
research. This study measures GSCM outcomes using a multifaceted approach (operational,
market, financial and environmental performance), thus attempting to bridge that gap in the
literature.
The present study aims to investigate the relationship between various factors of GSCM.
In that direction, a robust conceptual framework has been developed and empirically tested.
It is based on the results of an extensive literature review analysis, which identified the main
factors that have been used by previous similar studies. More analytically, the proposed
conceptual framework includes 17 factors that are further classified into three different
dimensions: (1) drivers for adopting GSCM practices (GSCM drivers), (2) GSCM practices and
(3) GSCM outcomes. In order to empirically test the proposed conceptual framework
(hypothesis testing), a newly developed structured questionnaire was distributed to a random
sample of Greek manufacturing organizations. After the completion of a three-month data
collection period, 292 useable questionnaires were returned.
The proposed three-dimensional conceptual framework of this study answers to the
suggestions of previous systematic literature reviews. For example, the literature review of
Mishra et al. (2017) concluded that limited attention has been placed on examining the effects
BIJ of GSCM practices, while research focuses mainly on established economies, like China and
30,10 the United States. Choudhary and Sangwan (2022), in their recent systematic literature
review, argued that simultaneous analysis of GSCM pressures, practices and performance
measures is required in order to identify the cascading effects and determine the most
significant factors for each country. Tseng et al. (2019) offer similar suggestions, arguing that
future empirical studies should adopt the same three-dimensional approach (GSCM drivers,
GSCM practices and performance outcomes). Balon (2020) shares these views and argues that
4016 examining the mediating effects between GSCM practices and performance measures is a
very interesting direction for future research.
The present paper examines the above-mentioned factors. In line with Tseng et al. (2019), it
includes drivers that have both a positive and a negative effect on the implementation of
GSCM practices; it also considers the downstream supply chain, incorporating cooperation
with customer in its GSCM practices; it uses a holistic approach for the measurement of firm
performance, capturing, among others, the environmental performance of the investigated
organizations. Most of the previous studies have failed to adopt such an enhanced approach.
Under that context, the originality of the present study is rooted in its proposed conceptual
framework. Its three-dimensional approach answers the calls of recent previous systematic
literature reviews (Choudhary and Sangwan, 2022; Balon, 2020; Tseng et al., 2019) for
building coherent research models that take various dimensions and factors into
consideration.
In summary, the significance (contribution) of this study can be summarized in the
following points:
(1) It proposes a three dimensional conceptual framework: (1) drivers for adopting GSCM
practices, (2) GSCM practices and (3) firm performance (GSCM outcomes). Such a
multidimensional approach has randomly been explored in the relevant existing
literature.
(2) The newly developed conceptual framework aspires to provide certain tools for
practitioners. It goes beyond the well-researched approaches of its field and aims to
further enhance the knowledge concerning GSCM practices that have an influence on
various measures of firm performance.
(3) The present study is one of the very few similar empirical attempts that have been
conducted on a European country and especially in a country of south-eastern Europe
(SEE).
(4) It is built upon an extensive analysis of the empirical literature of the field and a
synthesis of previous research (see Appendix), offering room for comparisons and
future replication.
(5) The results of this study may be generalized in other developed countries, European
or not, with similar economic realities and yield interesting outcomes for practitioners
in these countries.
2. Literature review
2.1 Main concepts
During the recent years, the concept of the supply chain has become a constantly growing
field of interest, for both the academic community and the businesses worldwide (Ahmed
et al., 2019; Laari et al., 2016). Nowadays, the management of the supply chain is an important
source of value and profitability (Stevens and Johnson, 2016). Harrison and van Hoek (2005)
define supply chain management as the process of coordination of the flow of materials and
information throughout the supply chain. Mangan et al. (2004) argue that the supply chain Antecedents
includes the promotion, by the most appropriate way, of the right product, in the right and effects of
quantity and appropriate quality, in the right place, at the right time, for the right customer, at
the right price. Recently, there is an increasing number of studies and practices for managing
GSCM
supply chains, associated with converting them into environmentally friendly entities and practices
aiming at improving the efficiency of individual activities and increasing the profitability of
the participating partners (Darnall et al., 2008; Seuring and Muller, 2008).
The interest toward the implementation of GSCM emerged in the late 1980s, when 4017
consumers began to concentrate on the environmental pollution, acid rain and global
warming. In 1978, after a decision by the International Commission for the environment,
impetus was given to environmental issues, not only in economic but, also, in political terms
(Bowen et al., 2001). The transport and distribution industry were the major environmental
polluters, so the newly imposed principles were applied to logistics. The 1990s was seen by
many as a crucial decade for GSCM (Ali et al., 2016; Petljak et al., 2018).
In the recent years, more and more companies seek to convert their supply chain activities
into environmentally friendly entities, especially after having noticed that there is a link
between environmental performance and economic benefits (de Giovanni and Vinzi, 2012;
Do et al., 2020; Liu et al., 2020b). This practically means that the environmental objectives and
the measurement of the performance of the supply chain is translated into economic and
operational objectives, in order to reduce the environmental impact, increase consumer
satisfaction and enhance business profits (Eltayeb and Zailani, 2009; Feng et al., 2018;
Longoni and Cagliano, 2018; Laari et al., 2018).
The term “green supply chain management” captures the process of using
environmentally friendly inflows (raw materials) and their conversion into outflows
(finished goods) that can be recovered and reused at the end of their life cycle, creating a
sustainable supply chain (Agarwal et al., 2018; Nikbakhsh, 2009). Expanding the above
definition, a green supply chain attempts to incorporate all the environmental considerations
in a traditional supply chain covering all its stages, such as the design of the product, the
selection of appropriate suppliers and the procurement process, the manufacture and
processing of the product, the packaging and storage, the transport and delivery of finished
products to the consumer, as well as the management of the product after the end of its life
cycle (Fahimnia et al., 2015; Susanty et al., 2018).
4.2 Measurement
A newly developed structured questionnaire was designed and used for collecting the
appropriate primary data. The questionnaire was divided into two sections. The first section
refers to the general characteristics of the correspondent and the firm, while the second
section includes questions (items) that measure the 17 factors (constructs) of the conceptual Antecedents
framework. All questions (items) measuring the 17 research factors (a total of 113 items) were and effects of
measured using a five-point Likert scale ranging from one (totally disagree) to five (totally
agree). Table 1 presents the factors (constructs), the number of items used to measure each
GSCM
construct and the related literature. practices
Number of
Factors Sources items
(A) FIRST DIMENSION: drivers for adopting green supply chain management (GSCM) practices
A1. Internal barriers Murillo-Luna et al. (2007) 7
A2. Entrepreneurial Menguc et al. (2010) 6
orientation
A3. Government regulations Menguc et al. (2010) 5
A4. Customer pressure Menguc et al. (2010), Ateş et al. (2012), Laari et al. (2017) 6
A5. Relative advantage Murillo-Luna et al. (2007), Lee et al. (2014) 4
A6. Stakeholder pressures Pondeville et al. (2013), Aragon-Correa et al. (2008), Gonzalez- 12
Benito and Gonzalez-Benito (2006)
(B) SECOND DIMENSION: Green Supply Chain Management (GSCM) Practices
B1. Internal environmental Lee et al. (2014), Zhu et al. (2012), Lee et al. (2012) 10
management
B2. Eco-design Lee et al. (2014), Zhu et al. (2012), Lee et al. (2012) 5
B3. Green material Lee et al. (2014), Lee et al. (2012) 5
management
B4. Customer cooperation Lee et al. (2012), Lee et al. (2014), Zhu et al. (2012), Perotti et al. 5
(2012)
B5. Green purchasing Lee et al. (2014), Zhu et al. (2012), Eltayeb et al. (2011) 8
B6. Green innovative practices Aragon-Correa et al. (2008) 6
B7. Environmental Sambasivan et al. (2013) 6
proactivity
(C) THIRD DIMENSION: Firm performance
C1. Operational performance Perotti et al. (2012), Sambasivan et al. (2013) 5
C2. Market performance Perotti et al. (2012), Sambasivan et al. (2013) 5
C3. Financial performance Mitra and Datta (2014), Laari et al. (2016) 8
C4. Environmental Zhu et al. (2012), Laari et al. (2016), Perotti et al. (2012), 10
performance Sambasivan et al. (2013) Table 1.
Total 113 Factor measurement
BIJ unidimensionality and reliability (using the IBM SPSS 25.0 software) and (2) for its goodness
30,10 of fit to the proposed research model (using the IBM AMOS 21.0 software).
(1) The examination of the unidimensionality of each of the research factors was
conducted using explanatory factor analysis (EFA) (using principal component
analysis and varimax rotation). Moreover, the statistical measure “Cronbach Alpha”
was used for estimating the reliability of the same factors. In total, seventeen analyses
4030 were conducted, each for every factor of the proposed research model. On the same
vein, the statistical measure “Cronbach Alpha” was also calculated 17 times. Then,
second-order EFA was conducted, treating the various sub-factors of every
dimension, as items.
For the appropriate statistical analysis, the following measures were examined (Hair et al.,
2014; Cooper and Schindler, 2003; Nunnally and Bernstein, 1994):
The statistical test of “Kaiser–Mayer–Olkin” (KMO) (values over 0.7 are satisfactory,
while values over 0.5 are acceptable).
The “Bartlett’s test of Sphericity” (it should be statistically significant, at the 0.05 level).
The criterion of “eigenvalue”. Factors whose “eigenvalue” is over one (1) are selected.
For determining the percent of the total variance that is explained by the proposed
factor(s), total variance explained (TVE) was used. TVE should be more than 50%.
For testing the significance of the items, their factor loadings were examined. A
loading over 0.5 was considered significant.
In order to test the reliability of the various factors, the statistical measure “Cronbach
Alpha” was being used. In general, values greater than 0.7 are considered to be valid.
After making all the proposed modifications (removal of few items), the appropriate tests
concluded that all the scales used are valid and reliable (see Table 2 below for the main results).
(2) After taking under consideration all modifications proposed from the EFA, the
evaluation of the goodness of fit of the seventeen research factors (constructs) was
conducted using confirmatory factor analysis (CFA). More specifically, the following
measures have been examined (Hair et al., 2014; Schumacker and Lomax, 2010; Smith
and McMillan, 2001):
Normed X2 (X2/df): Values between 1 and 3 indicate a statistically significant
model, while values between 1 and 5 are also considered acceptable.
Composite/construct reliability (CR): A measure of internal consistency that is
used complimentary with “Cronbach Alpha”. It should higher than 0.7.
Average variance extracted (AVE): Assesses the convergent validity of factors. It
should be higher than 50%.
RMSEA (root mean square error of approximation): Measures the error of
approximation, while taking sample size into account. RMSEA should be less
than 0.08 (or 0.1).
CFI (comparative fit index)/GFI (goodness of fit index): Values over 0.90 indicate
an acceptable model fit.
All tests conducted produced quite satisfactory results (see Table 2 below for the main
results).
Exploratory factor analysis (EFA) Confirmatory factor analysis (CFA)
Bartlett’s Eigen- Cronbach Normed
2
Dimensions/Factors Mean S.D KMO test value TVE alpha X C.R AV.E RMSEA CFI/GFI
(A) FIRST DIMENSION: drivers for adopting green supply chain management (GSCM) practices
A1. Internal barriers 2,541 0.860 0.744 p < 0.05 2,264 66.76% 0.819 2.79 0.83 59.2% 0.074 0.91/0.93
A2. Entrepreneurial 3,541 0.823 0.813 p < 0.05 3,070 76.45% 0.806 2.23 0.76 64.6% 0.066 0.99/0.97
orientation
A3. Government regulations 3,314 0.967 0.842 p < 0.05 2,655 65.42% 0.862 3.57 0.74 68.0% 0.053 0.90/0.94
A4. Customer pressure 2,952 0.997 0.872 p < 0.05 1,781 66.04% 0.894 3.14 0.83 72.6% 0.071 0.94/0.96
A5. Relative advantage 3,883 0.881 0.765 p < 0.05 2,411 68.73% 0.847 1.97 0.79 59.3% 0.068 0.99/0.99
A6. Stakeholder pressures 2,858 0.828 0.739 p < 0.05 1,731 69.32% 0.889 3.16 0.72 58.7% 0.071 0.91/0.93
Second-order EFA/CFA 0.712 p < 0.05 1,841 61.56% 0.831 2.23 0.76 61.2% 0.056 0.94/0.99
(B) SECOND DIMENSION: green supply chain management (GSCM) practices
B1. Internal environmental 3,689 0.786 0.624 p < 0.05 1,813 63.61% 0.739 3.14 0.77 67.4% 0.082 0.92/0.93
management
B2. Eco-design 3,575 0.859 0.751 p < 0.05 2,489 55.48% 0.755 3.66 0.74 72.1% 0.081 0.93/0.95
B3. Green material 3,400 1,028 0.690 p < 0.05 2,543 67.43% 0.878 2.63 0.76 73.4% 0.084 0.91/0.93
management
B4. Customer cooperation 3,420 1,049 0.862 p < 0.05 3,223 69.90% 0.891 2.41 0.81 69.6% 0.074 0.99/0.97
B5. Green purchasing 3,229 1,021 0.905 p < 0.05 2,633 65.39% 0.921 3.33 0.83 56.9% 0.069 0.97/0.97
B6. Green innovative practices 3,247 0.916 0.818 p < 0.05 1,533 70.72% 0.892 2.74 0.74 62.6% 0.078 0.97/0.99
B7. Environmental proactivity 3,755 0.940 0.801 p < 0.05 2,537 70.84% 0.916 2.49 0.76 58.2% 0.082 0.96/0.94
Second-order EFA/CFA 0.742 p < 0.05 1,861 65.57% 0.812 3.01 0.72 62.4% 0.079 0.92/0.96
(C) THIRD DIMENSION: firm performance
C1. Operational performance 4,215 0.570 0.854 p < 0.05 1,254 64.94% 0.714 2.77 0.79 66.4% 0.067 0.97/0.99
C2. Market performance 3,741 0.870 0.813 p < 0.05 1,491 63.85% 0.744 3.25 0.81 71.2% 0.069 0.91/0.93
C3. Financial performance 3,725 0.902 0.715 p < 0.05 2,541 64.55% 0.755 3.36 0.88 59.6% 0.083 0.94/0.92
C4. Environmental 3,875 0.748 0.711 p < 0.05 2,743 72.83% 0.847 2.17 0.69 63.7% 0.078 0.97/0.97
performance
Second-order EFA/CFA 0.744 p < 0.05 2,046 69.51% 0.771 2.46 0.79 62.4% 0.078 0.94/0.99
Antecedents
practices
4031
GSCM
and effects of
were used in this study. As it can be seen on Table 3, these three factors do not have any effect
on “Green material management”. Therefore, hypotheses H1, H2 and H4 are supported by the
empirical data. The support is considered partial, but it can be easily perceived as “full support”.
Finally, three other hypotheses (H7, H12 and H13) were partially supported by the
statistical analysis: (1) “Internal environmental management” has a statistically significant
impact of three of the four measures that were used for capturing “firm performance”
(operational performance, market performance and environmental performance) (H7), (2)
“Green Innovative Practices” has a significant impact on three of these measures (operational
performance, market performance and environmental performance) (H12) and (3)
“Environmental proactivity” has a statistically significant impact on three of these
measures (operational, financial and environmental performance) (H13).
In summary:
(1) Two hypotheses were fully supported (H5, H6).
(2) Three hypotheses were fully rejected (H3, H8 and H11).
(3) Two hypotheses were supported, but this support was very week (H9, H10).
(4) Three hypotheses were partially supported; but this is almost a “full support” (H1, H2
and H4).
(5) Three hypotheses were partially supported (H7, H12 and H13).
5.2.2 First alternative model. The first alternative structural model includes the three
dimensions of the present study: (1) Drivers for adopting GSCM practices, (2) GSCM practices
and (3) firm performance (Figure 2). As mentioned earlier, second-order factor analysis was
conducted, in order to test this model.
The first alternate model fitted the data well, while the factors it includes can satisfactory
explain the variance of the main dependent factors of the study; for example, “GSCM Practices”
can be explained by 78%, while overall performance by 35%. Moreover, all the measures that
are used in order to evaluate the fit of the overall model indicate a very good fit (see Table 4).
BIJ Model fit summary
30,10
CMIN/DF 3.089
RMR 0.049
GFI 0.948
CFI 0.952
RMSEA 0.085
4036
Squared multiple correlations
Estimate
5.2.3 Second alternative model. The second alternative structural model includes only those
relationships that were found to be statistically significant (Figure 3). It must be stressed out
that various new paths were added to the model, based on modification indexes function of
IBM AMOS. This resulted in a structural model with improved fit and explanatory power.
The second alternate model also fitted the data well, while the factors it includes can
satisfactory explain the variance of the main dependent factors of the study; for example,
“operational performance” can be explained by 26%. Moreover, all the measures that are used
in order to evaluate the fit of the overall model indicate a very good fit (see Table 5).
DR_IB PR_IEM PR_ED PR_GMM PR_CC PR_GP PR_GIP PR_EP Antecedents
and effects of
0.76 0.43 0.78 0.78 0.86 GSCM
DR_EO 0.40 0.84 0.84 practices
0.57
GSCM
practices
DR_GR PER_O 4037
0.29
0.71
0.89 0.59
DR_SP PER_E
GSCM Firm
Drivers
practices performance
R2 = 0.39 R2 = 0.26
0.27 0.30
DR_SP PR_IEM PER_O
0.12
0.17
0.24 0.37
0.52 R2 = 0.14
0.40
DR_RA PER_M
0.12 0.25
R2 = 0.63
PR_GIP 0.28
R2 = 0.08
DR_CP PER_F
0.40
0.19
0.27
0.12
2
R = 0.51 R2 = 0.21
practices
4039
GSCM
and effects of
Table 6.
6.1 Implications
6.1.1 Implications to theory. This study examines the importance of green practices in supply
chain. It identifies the most crucial practices for Greek manufacturing companies, something
which can assist the industry leaders turn to the right direction. As such, this study improves
the comprehension of researchers and managers concerning which GSCM practices have the
stronger effect on performance measures. Hence, it can assist with deciding how to better
allocate limited resources, in order to transform supply chains into green entities. On a
theoretical level, this study has three main areas of implications.
Firstly, it adopts an extended three-dimensional approach and utilizes previous studies in
order to capture its research conducts (GSCM drivers, GSCM practices and GSCM outcomes).
By doing that, it answers to the call of recent previous papers (e.g. Choudhary and Sangwan,
2022; Balon, 2020; Tseng et al., 2019). Under that rationale, each construct is measured via
multiple sub-factors (e.g. GSCM practices are measured via seven sub-factors). This approach
offers a better picture of the investigated phenomenon. Hence, this study contributes to the
SCM literature by determining the role of each GSCM practice in achieving better operational,
market, financial and environmental performance in the manufacturing context. Also, it
better describes the factors that have an effect on the implementation of GSCM practices.
These arguments are supported by the empirical results of the study, which revealed that not
all sub-factors of each dimension are equally important.
Secondly, this study proved that stakeholder and customer pressure is very important for
GSCM. The pressure from regulators, suppliers, customers and societies can directly impact the
adoption of GSCM practices and indirectly impact firm performance, including environmental
performance. In the existing literature, GSCM practices and firm performance have rarely been
studied through the lens of external pressures. These findings indicate that manufacturing
companies are social entities and need to take under consideration institutional pressures if they
wish to ensure their financial, operational and market competitiveness. In line with the
institutional theory, this study argues that organizational decisions and policies depend on the
actions of regulatory and other external bodies, and business strategies must be also studied
from an institutional perspective (Kalyar et al., 2020). Despite that, the present study also
discovered that the implementation of GSCM practices and the corresponding benefits also
depend on internal pressures. That finding indicates that organizations should not be reactive,
only responding to external stakeholder pressures, but embrace a proactive approach, thus
attempting to direct their internal resources and capabilities into better managing their green Antecedents
supply chain. This approach is in line with the resource-based view of the firm. Overall, this and effects of
study verified the significance of both theories discussed above (institutional theory and RBV).
Thirdly, the present study indicated that the implementation of green practices in the
GSCM
supply chain creates a win–win scenario for both companies and societies. On the one hand, practices
manufacturers gain operational, market and financial benefits, while, on the other hand,
societies benefit from higher compliance with environmental regulations and the prevention
of harmful environmental wastes. As such, the adoption of GSCM practices is highlighted as a 4043
reasonable step forward for both companies (since they enhance firm performance) and
policy makers/societies (since they ensure environmental sustainability). These findings are
in line with the recent study of Khan et al. (2021), who argued that GSCM practices ensure
environmental sustainability, through a reduction in carbon emissions and dangerous
atmospheric particulate matters (PM 2.5).
6.1.2 Implications to practice (managerial implications). As mentioned above, the empirical
results of this study offer suggestions to public policy makers and regulators, urging them to
develop legislative activities that encourage manufacturers to adopt green practices in their
supply chain. By offering incentives that encourage the transformation of traditional supply
chains into green entities, public policy makers can affect the decisions of industry leaders
and managers. This is very important, since industry officials are the ones with the authority
to enforce environmentally-friendly changes in their internal manufacturing processes.
Moreover, leaders and managers should determine which GSCM practices have the
propensity to increase firm performance. The present study takes a step in that road, arguing
that three GSCM practices are the most significant in affecting the measures of firm
performance included in this study (operational performance, market performance, financial
performance and environmental performance).
As stated earlier, “internal environmental management” is the most significant practice of
GSCM. In that direction, organizations are urged to do the following:
(1) Ensure that senior managers are highly committed toward the principles of GSCM.
Moreover, ensure that mid-level managers have also become zealots of the principles
of the green supply chain, since their contribution in building an appropriate business
culture is vital.
(2) Develop and implement environmental compliance and green auditing programs.
Adopt an environmental management system.
(3) Offer special training to all employees concerning environmental issues.
(4) Try to attain an ISO 14000 certification. Nevertheless, focus on really adopting the
principles of such a certification and not on just “keeping the records straight”.
Since “green innovative practices” and “environmental proactivity” also have a significant
effect on “firm performance” the following proposals could be made:
(1) Employees should be encouraged to develop new and innovative green ideas in order
to enhance the environmental performance of the company.
(2) Organizations should design products with environmental-friendly packaging and
acquire an “eco-label”. Also, they should make efforts in order to be more creative in
green product development than their competitors. Finally, they should always try to
find innovative ways to reduce waste and prevent emissions.
(3) Moreover, environmental criteria should be used when starting a new project and/or
when making decisions about the production equipment.
BIJ (4) Finally, raw materials should be chosen based on their potential to minimize the
30,10 waste of the productions facilities. Also, new production processes should result in
minimal environmental emissions. When it comes to the products of the company,
they should be specifically designed to minimize their environmental impact.
Given the extremely significant role of “stakeholder pressures” in the implementation of
GSCM practices and firm performance, organizations should try to take advantage of the
4044 input provided by these groups (e.g. suppliers, customers, European and national legislators,
regulatory authorities, local communities, employees, etc.). Their “pressure” should not be
considered as a negative parameter, since it has been empirically proven to enhance the
effectiveness and financial efficiency of the organization. Therefore, special “meetings”
should be organized, in order to gather information about the environmental issues raised by
the various groups of stakeholders.
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Corresponding author
Dimitrios Chatzoudes can be contacted at: dchatzoudes@yahoo.gr
Study Methodology Sample Drivers GSCM practices Statistical analysis
El-Garaihy Survey 351 manufacturing Institutional pressure, Supplier environmental collaboration, PLS-SEM approach
et al. (2022) companies in Saudi Environmental orientation Customer environmental collaboration, Appendix
Arabia Internal environmental management,
Eco-design, Reverse logistics,
Investment recovery, Green information
technology and systems, Green
compliance, Green purchasing, Green
manufacturing and Green logistics
Amjad et al. Survey 216 medium- and large- – Eco-Design, Internal Environmental PLS-SEM approach
(2022) scale leather industries Management System, Green distribution,
in Pakistan Green purchasing and Co-operation with
customers
Laguir et al. Survey 232 French third-party Eco-efficiency Intentions, Distribution and transport, Warehousing PLS-SEM approach
(2021) logistics providers Eco-branding intentions and green building, Eco design and
packaging, Reverse logistics, Green
supply and Cooperation with customers
Abbas and Survey 478 international – Green management, Green food, Structural
Hussien quick-service Green environment and equipment Equation Modeling
(2021) restaurants in Egypt (SEM)
Kim et al. Survey 284 manufacturing Customer pressure, Supplier GSCM practices (measured via 6 items) Multiple regression
(2021) companies in capabilities analysis (PROCESS
Germany, Austria and function)
Switzerland
Huang et al. Survey 194 questionnaires Stakeholder pressure, Internal environmental management, Structural
(2021) were from Taiwan’s Corporate green resources Green procurement, Cooperation with Equation Modeling
electric and electronic customers, Ecological design, (SEM)
product manufacturers Investment waste recycling and Green
information system
Habib et al. Survey 266 textile Green entrepreneurial Internal environmental management, PLS-SEM approach
(2021) manufacturing firms in orientation, market Eco-design and Cooperation with
Bangladesh orientation and knowledge customer
management orientation
(continued )
Antecedents
practices
4053
GSCM
and effects of
literature review
Synopsis of the
Table A1.
analysis
BIJ
30,10
4054
Table A1.
Study Methodology Sample Drivers GSCM practices Statistical analysis
Kalyar et al. Survey 238 textile companies – Green manufacturing, Green purchasing, Regression analysis
(2020) in Pakistan Cooperation with customers, Eco-design (PROCESS function)
and Green Information System
Liu et al. Survey 296 manufacturing Strategic emphasis, Resource Internal coordination, Supply chain PLS-SEM approach
(2020a) companies in China commitment and coordination, Eco-design and Investment
Management support recovery
Liu et al. Survey 200 Chinese Behavioral GSCM practices Technical GSCM practices (Eco-design, Structural
(2020b) manufacturers (Internal management Green manufacturing, Reverse logistics, Equation Modeling
support, Customer Environment management tools) (SEM), Confirmatory
involvement, Supplier Factor Analysis (CFA)
involvement)
Altaf et al. Survey 54 Indian industrial Environmental performance Green purchasing, Eco-design and Canonical correlation
(2020) organizations aspects, Economics Cooperation with customers analysis, Structural
performance aspects Equation Modeling
(SEM)
Do et al. Survey 322 companies in Bac Internal awareness, GSCM practice PLS-SEM approach
(2020) Ninh Province’s Suppliers’ pressure,
industrial zones, Customers awareness and
Vietnam Regulations pressure
Ahmed et al. Survey 229 supply chain Environmental Orientation, GSCM Practices (Internal PLS-SEM approach
(2019) professionals and Institutional Pressure E-Management, Supply Chain
managers from ISO (Institutional pressure/ Partnering and Eco-design)
14000 and ISO 14001- Coercive, Institutional
certified companies pressure/Normative and
from Karachi, Pakistan Institutional pressure/
Mimetic)
Susanty et al. Survey 90 SMEs of the Internal drivers (Involvement Internal Environmental Management, PLS-SEM approach
(2018) furniture industry and support from to Green Purchasing, Customer
(Indonesia) management and employee, Cooperation with environmental
Technology, Knowledge and concern, Eco-design and Investment
Financial) recovery
(continued )
Study Methodology Sample Drivers GSCM practices Statistical analysis
Laari et al. Survey 382 top or middle Monitoring by Suppliers and Collaboration with Suppliers and Correlation analysis
(2017) managers of Finnish Customers, Sources of Customers
firms Competitive Advantage
Ali et al. Survey 84 owners of SMEs in Internal Drivers, External Green Supply Chain Management PLS-SEM approach
(2016) London Pressures Practices
Huang and Li Survey 418 CEOs or managers Social Reciprocity, Green Product Innovation, Green Structural
(2015) of information and Coordination Process Innovation Equation Modeling
communication firms Capability, Dynamic (SEM), Confirmatory
in Taiwan Capability Factor Analysis (CFA)
Lee et al. Pilot test, 133 managers of – Internal Environmental Management, Partial Least Square-
(2014) Survey Malaysian firms Eco-Design, Green Purchasing, Structural
Investment Recovery and Customer Equation Modeling
Cooperation (PLS-SEM approach)
Pondeville Survey 256 CEOs/Managers of Perceived Ecological Environmental Management Control Regression analysis
et al. (2013) Belgian manufacturing Environmental Uncertainty Systems and Corporate Environmental
firms and Perceived Stakeholder Proactivity
Pressures
Sambasivan Survey 291 Malaysian firms – Environmental Proactivity Structural
et al. (2013) Equation Modeling
(SEM), Correlation
analysis
Zhu et al. Survey 396 mid-level or senior Coercive Pressure, Normative Eco-Design, Internal Environmental Confirmatory Factor
(2013) managers of Chinese Pressure, Competitive Management, Green Purchasing, Analysis (CFA),
manufacturing firms Pressure and Institutional Customer Cooperation with Correlation Analysis
Pressure Environmental Concerns
Investment Recovery
Ateş et al. Survey 96 purchasing Customer Pressure, Proactive Environmental Strategy, Partial Least
(2012) or environmental Organizational Commitment Environmental Investments Squares (PLS)
manager of Turkish
manufacturing firms
(continued )
Antecedents
practices
4055
GSCM
and effects of
Table A1.
BIJ
30,10
4056
Table A1.
Study Methodology Sample Drivers GSCM practices Statistical analysis
Zhu et al. Survey 396 mid-level or senior – Eco-Design, Internal Environmental Correlation Analysis
(2012) managers of Chinese Management, Green Purchasing,
manufacturing firms Investment Recovery, Internal Financial
Policies and Customer Cooperation
Lee et al. Survey 223 operations/supply – Internal Environmental Management, Correlation analysis,
(2012) chain managers of Green Purchasing and Cooperation with Structural
SMEs in the electronics customers, Eco-design Equation Modeling
industry in Korea (SEM) approach
Lin and Ho Survey 322 owners or senior Technological Factors, Correlation analysis
(2011) managers of Chinese Relative Advantage,
firms Compatibility,
Organizational Support,
Human Resources Quality,
Regulatory Pressure, And
Governmental Support,
Customer Pressure and
Environmental Uncertainty
Menguc et al. Survey 325 CEOs and/or key Entrepreneurial Orientation, Proactive Environmental, Strategy Post-hoc analysis
(2010) managers of New Government Regulations and
Zealand firms Customer Environmental
Sensitivity
Aragon- Survey 108 CEOs of SMEs in Strategic Proactivity, Eco-efficient Practices, Innovative Cluster Analysis
Correa et al. Southern Spain Stakeholder Management Preventive Practices
(2008) and Shared Vision
Zhu and Survey 341 manufacturers of Market, Regulatory and Internal Environmental Management, Regression Analysis
Sarkis (2007) Chinese Competitive Institutional Green Purchasing, Eco-Design,
manufacturing firms Pressures Cooperation With Customers and
Investment Recovery
Murillo-Luna Survey 240 managers of External, Internal Barriers of Environmental Proactivity Principal Components
et al. (2007) Spanish firms Implementing Analysis, Regression
Environmental Strategies Analysis
(continued )
Study Methodology Sample Drivers GSCM practices Statistical analysis
Wisner et al. Survey 179 environmental Management Commitment, Environmental Proactivity Structural
(2006) managers of large US Strategic Planning Equation Modeling
firms (SEM), Correlation
analysis
Rao and Holt Survey 52 environmental – Outbound, Inbound and Production Structural
(2005) management Greening Equation Modeling
representatives (EMR) (SEM), Regression
or Chief Executives of analysis
South East Asian firms
Antecedents
practices
4057
GSCM
and effects of
Table A1.