Green supply chain practices and company performance in Portuguese manufacturing sector

Abstract

AbstractGreen supply chain management is an important organizational approach to reducing strain on the environment. Many companies are under pressure from customers, media, governments, and investors, among others, to implement green practices. This exploratory paper investigates the relationships between internal and external green practices of eight Portuguese companies from different industrial sectors and their impact on economic and environmental performance. The relationship was analyzed based on the data collected from 22 semi‐structured interviews with general managers, procurement and environmental/safety managers, and through secondary data collected from reports, websites and companies' internal documentation. The analysis identifies the most important green practices considered by managers, as well as the performance measures that are most appropriate and most widely used to evaluate the influence of green practices on corporate performance. A conceptual model was derived to assess the influence of green practices on focal company economic and environmental performance. The results support four of five propositions of this research, and it is possible to conclude that the companies believe that with the adoption of green supply chain practices, they can be more competitive in the market. Due to the scope of the green practices, the relationship between green practices and economic performance was inconclusive. Internal and external green supply chain practices contribute to improved environmental performance because for all companies, there is a positive relationship between green practices and environmental performance in terms of energy, water consumption, waste, and air emissions reduction.