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To cite this document: Kenneth W. Green Jr, Pamela J. Zelbst, Jeramy Meacham, Vikram S. Bhadauria, (2012),"Green supply chain
management practices: impact on performance", Supply Chain Management: An International Journal, Vol. 17 Iss: 3 pp. 290 - 305
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Pamela J. Zelbst
Department of Management and Marketing, Sam Houston State University, Huntsville, Texas, USA, and
1. Introduction
Supply chain management (SCM) requires the integration
and coordination of business processes and strategy alignment
throughout the supply chain for the purpose of satisfying the
final customers of the supply chain (Green et al., 2008, 2006;
Cohen and Roussel, 2005; Ho et al., 2002). Business
processes that must be integrated and coordinated include
purchasing, manufacturing, marketing, logistics, and
information systems. Strategic imperatives that must be
aligned include customer focus, efficiency, quality, and
responsiveness (Zelbst et al., 2010), and most recently
environmental sustainability. With competition at the supply
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290
and Klassen, 2006; Wee and Quazi, 2005). King and Lenox
(2001) raise the question of whether or not embracing
environmental sustainability really pays. They do not find a
strong and conclusive link between environmental
sustainability practices and environmental and financial
performance and call for further empirical investigation.
The existing research provides some direction but remains
inconclusive (Rao and Holt, 2005; Zhu and Sarkis, 2004).
H1.
2.2 Hypotheses
2.2.1 Internal environmental management and green information
systems
Once firms adopt environmental sustainability as a strategic
imperative, they can proceed to develop green information
systems capabilities. Information systems are essential for
creation, maintenance, and survival of supply chains.
Figure 1 Comprehensive green supply chain management practices performance model with hypotheses
292
Definition
Internal environmental management is the practice of developing green supply chain management as a strategic
organizational imperative through commitment and support of the imperative from senior and mid-level
managers (Zhu et al., 2008a)
Green information systems are information systems that have been modified and are used to monitor
environmental practices and outcomes (Esty and Winston, 2006)
Green purchasing focuses on cooperating with suppliers for the purpose of developing products that are
environmentally sustainable (Zhu et al., 2008a; Carter and Carter, 1998)
Cooperation with customers requires working with customers to design cleaner production processes that
produce environmentally sustainable products with green packaging (Zhu et al., 2008a)
Eco-design requires that manufacturers design products that minimize consumption of materials and energy, that
facilitate the reuse, recycle, and recovery of component materials and parts, and that avoid or reduce the use of
hazardous products within the manufacturing process (Zhu et al., 2008a)
Investment recovery requires the sale of excess inventories, scrap and used materials, and excess capital
equipment (Zhu et al., 2008a)
Environmental performance relates the ability of manufacturing plants to reduce air emissions, effluent waste,
and solid wastes and the ability to decrease consumption of hazardous and toxic materials (Zhu et al., 2008a)
Economic performance relates to the manufacturing plants ability to reduce costs associated with purchased
materials, energy consumption, waste treatment, waste discharge, and fines for environmental accidents (Zhu
et al., 2008a).
Operational performance relates to the manufacturing plants capabilities to more efficiently produce and deliver
products to customers (Zhu et al., 2008a)
Financial and marketing performance of the organization as compared to the industry average (Green and Inman,
2005)
Investment recovery
Environmental performance
Economic performance
Operational performance
Organizational performance
and
and
and
and
H3a.
H3b.
H3c.
H3d.
and positively
and positively
and positively
and positively
H4a.
H4b.
H4c.
H4d.
3. Methodology
The GSCM practices performance model is theorized and the
constructs included in the model are defined and described
with a focus on manufacturing organizations. Considering this
manufacturing focus, data were collected from a sample of
plant-level managers working for US manufacturing
organizations. It should be noted that the GSCM practices
and environmental performance scales were originally
assessed for validity using a sample of Chinese
manufacturers (Zhu et al., 2008a). Zhu et al. (2008a)
recommend that validation of measurement scales be fully
established through a series of studies testing the scales across
industries and countries. The US sample provides an
important contrast to the Chinese sample supporting
validation and generalization. While we appreciate the
importance of considering the environmental impact of
processes and products as they extend fully through firstorder and second-order supply chains as emphasized by
Svensson (2007) and Preuss (2001), we necessarily adopt a
more limited view of the supply chain incorporating
manufacturing firms, immediate suppliers, and immediate
customers for practical reasons. The available GSCM
practices
measurement
scales
support
surveying
manufacturers concerning environmental relationships with
immediate suppliers and customers. The data were collected
during the spring of 2010 via an on-line data service
(Zoomerang through MarketTools, Inc.) following a data
collection process similar to the one employed by Inman et al.
(2009). This data collection process was managed by
Zoomerang and was structured to ensure unique responses
Title
Plant manager
Operations manager
Purchasing manager
Logistics manager
Sales manager
Engineering manager
Industrial waste manager
Supply chain manager
Information systems manager
Total
Industry category
Food manufacturing
Beverage and tobacco product manufacturing
Textile mills
Apparel manufacturing
Leather and allied product manufacturing
Wood product manufacturing
Paper manufacturing
Printing and related support activities
Petroleum and coal products manufacturing
Chemical manufacturing
Plastics and rubber products manufacturing
Nonmetallic mineral product manufacturing
Primary metal manufacturing
Fabricated metal product manufacturing
Machinery manufacturing
Computer and electronic product manufacturing
Electrical equipment, appliance, and component
manufacturing
Transportation equipment manufacturing
Furniture and related product manufacturing
Miscellaneous manufacturing
Total
Mean years in current position
Mean number of plant employees
Mean number of firm employees
35
52
12
7
14
16
1
7
15
159
8
4
1
2
1
9
4
9
2
8
13
2
10
25
8
6
6
5
1
35
159
10.85
497.37
15,573.27
Alpha
0.947
Standardized coefficients
t-values
0.92
0.92
0.86
0.86
15.02
14.89
13.44
13.36
0.88
0.88
0.85
0.91
0.91
14.08
14.02
13.20
14.70
14.68
0.85
0.88
0.88
0.89
0.91
13.32
13.91
14.07
14.38
14.87
0.90
0.90
0.92
0.89
14.43
14.43
15.18
14.28
0.81
0.93
0.97
12.11
15.00
13.44
0.78
0.79
0.80
11.10
11.29
11.53
0.83
0.83
0.85
0.91
12.62
12.74
13.09
14.69
0.87
0.92
0.81
13.57
14.87
12.04
0.77
0.92
0.89
11.20
14.84
13.95
0.90
0.93
0.88
0.82
14.30
15.19
13.88
12.52
0.956
0.953
0.956
0.903
0.816
0.920
0.904
0.895
0.938
Notes: Chi-square ratio 1:507; RMSEA 0:057; NFI 0:971; NNFI 0:988; CFI 0:990; IFI 0:990
4. Results
Minimum
Maximum
Mean
Std deviation
Skewness
Kurtosis
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
3.201
3.198
2.909
3.222
3.421
3.776
3.539
3.294
3.637
3.384
1.294
1.102
1.319
1.341
1.279
1.147
1.030
1.177
1.016
0.924
20.278
20.301
20.012
20.235
20.493
20.916
20.607
20.391
20.584
20.289
21.026
20.542
21.161
21.188
20.828
20.032
0.119
20.684
20.005
0.139
297
IEM
GIS
GP
CWC
ED
IR
ENP
ECP
OPP
ORP
IEM
GIS
GP
CWC
ED
IR
ENP
ECP
OPP
ORP
1
0.665 *
0.715 *
0.694 *
0.610 *
0.550 *
0.657 *
0.625 *
0.547 *
0.423 *
1
0.783 *
0.732 *
0.599 *
0.496 *
0.666 *
0.663 *
0.547 *
0.435 *
1
0.828 *
0.680 *
0.562 *
0.665 *
0.616 *
0.553 *
0.436 *
1
0.704 *
0.568 *
0.748 *
0.625 *
0.532 *
0.391 *
1
0.629 *
0.691 *
0.512 *
0.482 *
0.330 *
1
0.640 *
0.533 *
0.543 *
0.332 *
1
0.736 *
0.657 *
0.316 *
1
0.662 *
0.382 *
1
0.557 *
Notes: * indicates significance at the 0.01 level; IEM Internal environmental management; GIS Green information systems; GP Green purchasing;
CWC Cooperation with customers; ED Eco-design; IR Investment recovery; ENP Environmental performance; ECP Economic performance; OPP
Operational performance; ORP Organizational performance
Figure 2 Comprehensive green supply chain management practices performance model with SEM results
Std coefficients
Support
0.72 *
0.39 *
0.39 *
0.45 *
0.52 *
H1: supported
H2a: supported
H2b: supported
H2c: supported
H2d: supported
0.59 *
0.54 *
0.36 *
0.22 *
H3a: supported
H3b: supported
H3c: supported
H3d: supported
20.04ns
0.40 *
0.49 *
20.10ns
H4b: supported
H5b: not supported
0.24 *
20.23 *
H4c: supported
H5c: not supported
0.32 *
0.04ns
H4d: supported
H5d: not supported
0.76 *
0.28 *
20.19ns
H6a: supported
H6b: supported
H6c: not supported
0.52 *
0.10ns
H7a: supported
H7b: not supported
0.68 *
H8: supported
* Significant
5. Conclusions
5.1 Discussion of findings
We theorize and assess a comprehensive GSCM practices
model. While all of the individual hypotheses are not
299
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