Building sustainable performance through green supply chain management

Abstract

PurposeThe aim of this research is to examine the relationship between green supply chain management and sustainability performance in a manufacturing context.Design/methodology/approachA survey approach was adopted to collect data from 163 manufacturing organizations to test the research hypotheses. A structural equation modeling (SEM) using the technique of path analysis with bootstrapping is used to test the hypothesized relationships.FindingsThe research findings provide supporting evidence for the importance of implementing green supply chain management (GSCM) as a holistic system that includes internal and external green practices. Besides, the findings highlight the direct effect of GSCM on environmental, social and operational performance. Finally, the findings provide supporting evidence that GSCM could only be translated into better economic returns through the improvement of environmental and operational performance.Research limitations/implicationsThe nature of the surveyed sample and the use of a single informant might limit the ability to generalize the research findings outside the research context.Practical implicationsThe research findings help managers understand that GSCM must be implemented as a holistic system and that the real benefits of its implementation extend beyond the mere environmental benefits to include operational, social as well as economic benefits.Originality/valueThe paper’s contribution to knowledge is twofold. First, the study identifies how GSCM is conceptualized and how its effect is translated into improved economic performance. Second, the research explains the contradicting findings in previous studies regarding the relationship between GSCM and economic performance.