Abstract
This paper illustrates the application of Structural Equation Modelling (SEM) to understand the green supply chain management (GSCM) practices relating to Micro Small Medium Enterprises (MSME) in India. Path Analysis as a special case of SEM has been used here in seeing that the sample moment matrix of our multivariate data fails to be positive definite. Although the research in the area of GSCM has grown in recent years, the literature has yet to furnish an accepted explanation for why green practices are to be manifested in supply chain management given external and internal pressures. This research intends to study whether the greening scores measure a common construct called GSCM and whether external and internal pressures due to stakeholders have any influence on GSCM practices when differences are controlled for different types of MSME and different nature of industries of MSME in India. This study confirms and validates that the lower level of GSCM involvement of Indian MSME can be attributed to lack of the necessary external and internal pressures.
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