Green market orientation and organizational performance in Taiwan’s electric and electronic industry: the mediating role of green supply chain management capability

Abstract

PurposeGreen sustainability has become a critical challenge for businesses to execute green supply chain management (GSCM). Most of the literature on GSCM emphasizes regulations as drivers and few pieces of research are conducted from an internal organizational culture view. This study aims to use the cultural perspective of market orientation (MO) and draws on both the natural resource-based view (NRBV) and dynamic capability view (DCV) to explore the relationships among green market orientation (GMO), GSCM capability and organizational performance.Design/methodology/approachA total of 1,000 survey questionnaires were distributed to the Taiwanese electronics industry and 207 valid questionnaires were collected. Data was analyzed using structural equation modeling.FindingsThe results show that GMOs have a significant positive impact on GSCM capability, environmental performance and economic performance. Moreover, GSCM capability is positively related to environmental and economic performance. The results also show that GMOs have a significant indirect influence on environmental performance and economic performance through GSCM capability.Practical implicationsThe findings of this study suggest how Taiwan’s electrical and electronic manufacturers, while faced with pressure from competitors, customers and regulations (i.e. waste electrical and electronic equipment directive, Restriction of Hazardous Substances Directive and energy-using products directives), should efficiently and effectively implement GMO and enhance GSCM capability to improve organizational performance.Originality/valueThis study fills up the gap between MO and performance indistinct relationships. It has also integrated two perspectives, namely, NRBV and DCV, to explain GSCM capability as a mediator between GMO and organizational performance relationship and to examine the relationships among GMO, GSCM capability and organizational performance.