Institutional Pressures, Green Supply Chain Management Practices on Environmental and Economic Performance: A Two Theory View

Amer Saeed,Saviour Nubuor,Yun Jun,Mahabaduge Jayasuriya,Hewawasam Priyankara

doi:10.3390/su10051517

Abstract

The adoption of green practices within and outside organizational boundaries is imperative to ascertain environmental and economic performance goals. This article examined whether internal and external green supply chain management (GSCM) practices have the same or different kinds of regulatory, market, or competitive pressures. We employed institutional theory to identify different kinds of pressures, and resource dependence theory to explore the impact of internal and external GSCM practices on performance. An empirical study was conducted by collecting data through a structured questionnaire administered in Pakistan to the executives in the manufacturing industry. A total of 207 responses were used for data analysis by employing the partial least squares structural equation modeling (PLS-SEM) method. Normative pressures were found to be the most significant in both internal and external GSCM practices, while coercive and mimetic pressures positively affected internal and external GSCM practices, respectively. Internal GSCM practices proved to be more significant in improving environmental performance, and also had a substantial impact on external GSCM practices. In contrast, External GSCM practices had a significant positive effect on economic performance, while environmental performance also contributed to improving economic performance. The theoretical and managerial implications are discussed for academics, policymakers, and industry practitioners.

Highlights

Environmental issues such as global warming, depletion of natural resources, and ever-increasing air and water pollution have attracted the significant attention of governments, nongovernment organizations (NGOs), business communities, and masses across the globe [1,2,3,4]
The results further revealed that internal green supply chain management (GSCM) practice did have a significant positive effect on the environmental performance of the manufacturing companies in Pakistan by supporting the hypothesis Hypothesis 4a (H4a)
The empirical results fulfilled the objectives of the study and generated sufficient evidence for practitioners to distinguish the impact of all three isomorphic pressures on internal and external GSCM practices separately

Summary

Introduction

Environmental issues such as global warming, depletion of natural resources, and ever-increasing air and water pollution have attracted the significant attention of governments, nongovernment organizations (NGOs), business communities, and masses across the globe [1,2,3,4]. These pressures led to the establishment of many climate change agreements among nations to act pro-environmentally [5]. This phenomenon has created the need to incorporate a green dimension to supply chain management (SCM) and give rise to green supply chain management (GSCM) [9], which refers to the strategic incorporation of environmental goals into organizational practices along the supply chain covering both collaborations and monitoring of ecological issues [10,11]

Objectives

Methods

Results

Discussion

Conclusion