Green Supply Chain Management Practices in SME Manufacturers : Key Drivers and Organizational Performance

Abstract

This research is aimed at investigating the drivers influencing the adoption of green supply chain management practices (GSCM practices), whilst also exploring the linkage between the GSCM practice and organizational performance of SME manufacturers in the food industry. For the study, qualitative research was conducted by first reviewing the academic literature and then, obtaining comments from experts in the field, with the purpose of developing of a survey instrument. The questionnaires were sent to entrepreneurs or representatives of Thai SMEs applying GSCM practices in the food industry, with 148 valid responses being returned. PLS-SEM was applied to assess the measurement model, which indicated that the reliability and validity were acceptable. To test the relationship among the drivers, GSCM practices and organizational performance were evaluated based on the structural model. The findings reveal that regulations, customer pressure, socio-cultural responsibility as well as competitive pressure have a positive significant effect on the implementation of GSCM practices for Thai SME food manufacturers. It is concluded that, Thai SMEs in food manufacturing could gain significantly higher organizational performance from GSCM practices in four different dimensions including environmental, economics, intangible, and operational performance.