Title

The impact of implementing green supply chain management practices on corporate performance

RIS ID

107957

Publication Details

Younis, H., Sundarakani, B., Vel, P. 2016, 'The impact of implementing green supply chain management practices on corporate performance', Competitiveness Review, vol. 26, no. 3, pp. 216-245.

Abstract

Purpose The purpose of this research is to investigate the implementation of green supply chain management (GSCM) practices and its impact on corporate performance (CP). The research in particular examines the results of implementing a set of green supply chain management practices on different dimensions of the corporate performance. Design/methodology/approach This study being first of its kind in the middle east, developed a research model to test the relationship between four main GSCM practices namely: eco design, green purchasing, environmental cooperation and reverse logistics and four dimensions of corporate performance: operational performance, environmental performance, economic performance and social performance, while controlling three main variables (firm size, firm age, and Environment Management System certification). Statistical analyses were based on the data collected, through survey questionnaires, from 117 firms in the manufacturing industry in UAE. Reliability and validity of the research model were tested by the commonly accepted statistical tools. To test the hypotheses relating implementation of GSCM practice and corporate performance, multiple regression analysis was employed. Findings The finding of the study was that GSCM practices impact the corporate performance dimensions differently. While none of the four GSCM practices were found to have any impact on the environmental performance, green purchasing and environmental cooperation were found to have a significant impact on the operational performance. The study found that only green purchasing plays a role in improving the economic performance while only reverse logistics practices were found to impact the social performance of the firm positively. Research limitations/implications Research on GSCM is still at the nascent stage. Further refinement of the survey to differentiate between different manufacturing industries might be needed. Generalizability of the findings is also limited because of data collected from manufacturing firms in UAE. This research provides important insights. The findings of this research are generally consistent with prior studies in other parts of the world. Firms in manufacturing industry in UAE believe that GSCM practices help the company design and develop better products which in turn increase the company chances in selling its products in international markets while at same time improve the average profit and market share. It was also found that UAE firms believe that implementation of GSCM practices help improve the corporate image, enhance employees' job satisfaction and improve employees' health and safety. Practical implications Implementation of green supply chain management practices improves the corporate performance in different ways. Supply chain managers are required to decide on the corporate performance dimension they want to improve and accordingly select the appropriate green supply chain management practices mix that leads to the desired level of improvement. Originality/value Although few earlier researches studied the impact of GSCM on corporate performance, this study is different and makes a unique contribution by offering a holistic view of the impact of implementing four main green supply chain management practices on all dimensions of corporate performance. The study offers some insights on the type of GSCM practices the firm needs to adopt to improve the targeted performance dimension.

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Link to publisher version (DOI)

http://dx.doi.org/10.1108/CR-04-2015-0024