Evaluation of relationships between GSCM practices and SCP using SEM approach: an empirical investigation on Iranian automobile industry

Abstract

Today, in advanced companies, the supply chain managers have attempted to use green logistics in order to improve the environmental performance in the whole supply chain. This could be taken as a strategic key to achieve the stable competitive advantage. Based on an environmental perspective, the Supply Chain Performance (SCP) can be enhanced through making utility and satisfaction for stakeholder. The purpose of the present study is to evaluate the impacts of Green Supply Chain Management (GSCM) practices on economic, environmental, and operational performance in Iranian automobile industry by using a Structural Equation Modeling (SEM). To do so, a model with four hypotheses has been proposed which illustrates the relationship between GSCM practices and SCP in terms of their indices. GSCM practices include four factors: the supplier management, the product recycling, the organizational involvement, and the product lifecycle management. In addition, SCP includes four aspects, namely the environmental performance, the positive economic performance, the negative economic performance, and the operational performance. To collect data in the practical area, questionnaires and field researches were used, then the proposed model has been analyzed and confirmed by applying Pearson Correlation Coefficient and SEM. The confirmation of the research hypotheses showed that the improvement of GSCM practices in Iranian automobile industry has positively promoted the SCP with the prediction rate of 70.56% and in the 95% confidence level. After implementing this model in Saipa automobile company as a case study cooperating with more than 1000 suppliers, the decision processes were enhanced so as to create sustainable value chain, develop opportunities for customers, produce sustainable benefits for both shareholders and employees regarding the organization involvement, the product lifecycle management, the product recycling and the suppliers management. Using this model, the Iranian automobile companies’ managers also manage effectively to create sustainable values for stakeholders through creating positive economical, operational and environmental impacts on its own value chain performance.