The Role of Green Strategy Adoption in Driving Green Supply Chain Management Practices

Abstract

In the current highly competitive market, most organizations are moving away from reactive and compliance-based to proactive environmental management. This proactive approach to environmental management calls for taking a strategic approach to adoption of green practices beyond an organization’s internal borders. In this respect, incorporating green practices into a firm’s supply chain has attracted interest of operations management scholar and practitioners. The influence of external pressures on the adoption of green supply chain management (GSCM) practices has been established in the literature. This research posits that the adoption of GSCM practices is also driven by a firm’s internal strategic factors including its key resources and competitive strategy. It also suggests that these direct effects are further mediated by the green strategies (GSs) adopted in companies. Theoretically, these relationships are supported by combining the institutional theory with the natural resource-based view. A structural equation modeling is applied to formulate and analyze the relationships and the mediating effect using a survey data collected from 139 ISO14001-certified manufacturers in Malaysia. The results verified the mediating effect of GS adoption on the relationship between internal and external strategic factors, and GSCM practices. This research has made an original contribution to knowledge by bridging the fields of strategic environmental management and GSCM.

Citation

Masoumik, S.M. and Abdul-Rashid, S.H. (2021), "The Role of Green Strategy Adoption in Driving Green Supply Chain Management Practices", Andersen, T.J. (Ed.) Strategic Responses for a Sustainable Future: New Research in International Management (Emerald Studies in Global Strategic Responsiveness), Emerald Publishing Limited, Leeds, pp. 21-48. https://doi.org/10.1108/978-1-80071-929-320214002