Green supply chain management practices: impact on performance

Abstract

Purpose: The aim is to contribute significantly to the first wave of empirical investigations related to the impact of green supply chain management (GSCM) practices on performance. The paper also aims to theorize and empirically assess a comprehensive GSCM practices and performance model. The model incorporates green supply chain practices that link manufacturers with supply chain partners (both suppliers and customers) to support environmental sustainability throughout the supply chain. Design/methodology/approach: Data collected from 159 manufacturing managers were analyzed using a structural equation modeling methodology. Manufacturing managers provide data reflecting the degree to which their organizations work with suppliers and customers to improve environmental sustainability of the supply chain. Findings: Generally, the adoption of GSCM practices by manufacturing organizations leads to improved environmental performance and economic performance, which, in turn, positively impact operational performance. Operational performance enhances organizational performance. Research limitations/implications: As a first wave empirical investigation of the impact of GSCM practices on performance, the study is by necessity exploratory. Practical implications: Practitioners are provided with a framework for assessing the synergistic impact of GSCM practices on performance. Internal environmental management and green information systems are identified as necessary precursors to the implementation of green purchasing, cooperation with customers, eco‐design, and investment recovery. Originality/value: A comprehensive GSCM practices performance model is proposed and empirically assessed. The results of this investigation support the proposition that GSCM practices are both environmentally necessary and good business. A structured two‐wave approach to the implementation of GSCM practices is recommended.