Green supply chain practices in the plastics industry in Portugal. The moderating effects of traceability, ecocentricity, environmental culture, environmental uncertainty, competitive pressure, and social responsibility

Abstract

The proper use of resources in an industrial environment is crucial for the sustainability of the industry and the planet. As the supply chain is important for improving companies’ environmental performance, this article measures the impact of green supply chain management (GSCM) practices on the environmental performance of companies in the plastics industry in Portugal. Environmental culture, environmental uncertainty, competitive pressure, ecocentricity, social responsibility in procurement and value chain traceability were used to moderate the relationship between GSCM and environmental performance. Using seven regression models via partial least squares structural equation modeling, it was possible to test the six moderators referred to above. The results demonstrate that GSCM practices have a positive impact on companies’ environmental performance; however, the moderating effects tested proved not to be statistically significant. The immediate consequences for firms are clear: it is mandatory for them to implement an environmental, ecocentric culture if they want to manage the socio-environmental challenges of procurement and the traceability of the supply chain; only then will they be able to deal with both environmental uncertainty and the competitive pressures of supply chain sustainability. The biggest current challenges lie in the rational use of plastic resources and their reuse, either by the industry or by the end user, in terms of conscientious consumption and correct routing for their reuse. According to the natural resource-based theory, it is possible to claim that firms have capabilities but lack the resources to cope with environmental challenges they are facing to properly internalize the changes and to implement them across the supply chain.