Abstract

The purpose of this study is to integrate the Diffusion of Innovation (DOI) theory and Technology, Organization and Environment (TOE) theory to examine the factors that affect the adoption of green supply chain management (GSCM) practices among SMEs in Malaysia. Twelve hypotheses were developed based on the integrating theories in technology adoption context. In this study, data were collected through questionnaire survey on the SMEs in Klang Valley Malaysia. A total of 298 responses were analyzed. The regression analysis method was used to test the hypothetical relationships among technological, organizational and environmental factors and SMEs’ intention to adopt GSCM practices. Research findings show that perceived relative advantage, perceived cost, top management support, complexity, compatibility, firms size, customer pressure, regulatory pressure and the quality of human resources are statistically significant factors influencing GSCM adoption among SMEs in Malaysia. However, observability and governmental support do not have significant effects on GSCM adoption intention. According to research findings, some implications which are valuable to academics and practitioners are also addressed. This study can serve as a guideline for successful implementation of GSCM among the SMEs in an emerging country.

Highlights

  • The global industrialization has increased energy and material consumption, and led to various environmental concerns such as higher carbon emissions, toxic pollution and chemical spills

  • We proposed an integration model based on TOE and Diffusion of Innovation (DOI) theory to explore the factors that affect the adoption intention of green supply chain management (GSCM) practices among SMEs in Malaysia

  • Through the conceptual lens of DOI and TOE, this paper identified the theoretical gap and bridged the different perspectives and scopes of research by exploring the influences of technological, organizational and environmental characteristics on the GSCM adoption intention among Malaysian SMEs

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Summary

Introduction

The global industrialization has increased energy and material consumption, and led to various environmental concerns such as higher carbon emissions, toxic pollution and chemical spills. Firms all over the world in various industries are becoming increasingly concerned about environmental degradation. They have realized that the adoption of green technology in business operations has greater benefits and affects suppliers and customers’ relationships within firms. To manage environmental pressures from a variety of stakeholders, several firms begin to implement green supply chain management (GSCM). Zhu et al [3] stated that GSCM has appeared as a way to associate elements of supply chain management and environmental management. Srivastava [4] argued that the whole product life cycle has taken the design stage of the product to end-of-life management into consideration

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