Determinants and associated performance improvement of green supply chain management in China

Abstract

This study identifies the critical factors influencing the adoption of green supply chain practices in Chinese firms. The participating firms were classified into focal, downstream, and upstream firms. The data set was grouped in two namely aggregate which includes all the firms and independent data which consists of each firm's classification. Partial Least Squares (PLS) method was used to identify the determinants of green practices. The aggregate data show that external environmental factors (including customer pressures, regulatory pressures, government supports, and environmental uncertainty) were the most important in adopting green practices. For the focal firms, the independent data show that relative advantage, quality of human resources and customer pressure are positively associated with the adoption of green practice and they positively influence operations systems' performance. Conversely, the downstream firms are more efficient and effective when there are organizational and governmental supports. For upstream firms, the critical factors to organizational performance are compatibility, customer and regulatory pressures. In both the downstream and upstream firms, the factor complexity which denotes the lack of understanding and learning of green practices is the key barrier to implementing green practices. Knowledge of these critical factors for green supply chain management practice would help Chinese firms to become more environmentally responsible while simultaneously achieving their operational performance goals.