The Relationship between Green Purchasing Supply Chain Initiatives that Foster the Development of Management and Firm in Malaysia

Abstract

Purpose – The purpose of this paper is to propose that the drivers and develop three dimension which is regulatory measures, customer pressure and socio-cultural responsibility that motivate firms to adopt green supply chain management into a supply chain initiatives. Green supply chain management has been acknowledged as a key factor to promote organizational sustainability. Design/methodology/approach – Data were collected through a survey questionnaire responded by 100 senior executive in the industry in Malaysia. The relationships proposed in the developed theoretical framework were represented through three hypothesis: H1- there is a significant relationship between regulatory measures and green purchasing supply chain. H2- There is a significant relationship between customer pressure and green purchasing supply chain. H3- there is a significant relationship between socia-cultural responsibility and green purchasing supply chain. Linear regression, ANOVA and Pearson correlation were used to test the hypotheses. Findings – Strong evidence was found of a positive relationship between regulatory customer pressures and socia-cultural responsibility with the green purchasing supply chain. Green purchasing was most strongly influenced and significant by customer pressures and socia-cultural responsibility, whilst regulatory measures was not strongly influenced by green purchasing supply chain and not significant. Practical Implication - Based on the findings, the regulatory measures did not influences or affect the green purchasing supply chain initiatives in the form at Malaysia this is because the firm only apply the green supply chain due to the law that required in their firm only not because of their product or environment itself. In Malaysia, monitoring of individual business behavior continues to find a high incidence of non-compliance. This may reflect surveillance effort rather than attitudes to environmental responsibility, but it suggests that business acceptance of regulatory obligations needs to be strengthened before increasing the reliance on voluntary improvement initiatives. Originality/value - The role of the drivers is crucial in motivating these firms to adopt green supply chain initiatives and facilitate their adoption. Firms in emerging countries need to realize that green supply chain initiatives can result in significant benefits to their firms, environment, and the society at large which gives them additional incentives to adopt these initiatives.