IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i18p7251-d408917.html
   My bibliography  Save this article

Improving Green Market Orientation, Green Supply Chain Relationship Quality, and Green Absorptive Capacity to Enhance Green Competitive Advantage in the Green Supply Chain

Author

Listed:
  • Yu-Hsien Lin

    (Department of Urban Industrial Management and Marketing, University of Taipei, Taipei 11153, Taiwan)

  • Nisha Kulangara

    (Department of OMIS, Schulich School of Business, York University, 4700 Keele Street, Toronto, ON M3J 1P3, Canada)

  • Krista Foster

    (IT, Analytics, and Operations Department, Mendoza College of Business, University of Notre Dame, Notre Dame, IN 46556, USA)

  • Jennifer Shang

    (Joseph M. Katz Graduate School of Business and College of Business Administration, The University of Pittsburgh, Pittsburgh, PA 15260, USA)

Abstract

This study examines the influences of market orientation, supply chain relationship quality, and absorptive capacity on competitive advantage in green supply chains. We examine the intensity of these relationships in a green supply chain context. This study aims to figure out the effects of green market orientation (GMO), green supply chain relationship quality (GRQ), and green absorptive capacity (GAC) on green competitive advantage (GCA) in a supply chain. We find a significant positive association between these constructs. It highlights the importance of antecedents such as GMO, GRQ, and GAC on improving GCA. We jointly investigate the effects of GMO, GRQ, and GAC on green supply chain competitive advantage. This study uses Process Macro 2.15 to test the mediation effect between GMO and GCA. The result shows that GRQ and GAC completely mediate the relationship between GMO and GCA and that the effect sizes are 0.11 and 0.20, respectively. This study also reruns the model to clarify whether competing models are better than our model. However, the performance of such a competing model is poor. Finally, we accept our model instead of the competing model. GMO and GRQ among team managers and employees appear to contribute positively to GCA. Although GAC does not directly influence GCA, GMO has a significant total effect on GCA when intervened by GRQ and GAC. The key contribution is that green market orientation, i.e., the employee culture and the emphasis on being environmentally responsible, is a key antecedent to GRQ, GAC, and GCA. Managerial implications of the findings are listed.

Suggested Citation

  • Yu-Hsien Lin & Nisha Kulangara & Krista Foster & Jennifer Shang, 2020. "Improving Green Market Orientation, Green Supply Chain Relationship Quality, and Green Absorptive Capacity to Enhance Green Competitive Advantage in the Green Supply Chain," Sustainability, MDPI, vol. 12(18), pages 1-22, September.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:18:p:7251-:d:408917
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/18/7251/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/18/7251/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jeffrey H. Dyer, 1997. "Effective interim collaboration: how firms minimize transaction costs and maximise transaction value," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 535-556, August.
    2. Jay B. Barney & Mark H. Hansen, 1994. "Trustworthiness as a Source of Competitive Advantage," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 175-190, December.
    3. Zhou, Kevin Zheng & Brown, James R. & Dev, Chekitan S., 2009. "Market orientation, competitive advantage, and performance: A demand-based perspective," Journal of Business Research, Elsevier, vol. 62(11), pages 1063-1070, November.
    4. Lynn Fish, 2011. "Supply Chain Quality Management," Chapters, in: Dilek Onkal (ed.), Supply Chain Management - Pathways for Research and Practice, IntechOpen.
    5. Fynes, Brian & de Burca, Sean & Mangan, John, 2008. "The effect of relationship characteristics on relationship quality and performance," International Journal of Production Economics, Elsevier, vol. 111(1), pages 56-69, January.
    6. Peter J. Lane & Michael Lubatkin, 1998. "Relative absorptive capacity and interorganizational learning," Post-Print hal-02311860, HAL.
    7. John Shea, 1997. "Instrument Relevance in Multivariate Linear Models: A Simple Measure," The Review of Economics and Statistics, MIT Press, vol. 79(2), pages 348-352, May.
    8. Dominik Zimon & Jonah Tyan & Robert Sroufe, 2019. "Implementing Sustainable Supply Chain Management: Reactive, Cooperative, and Dynamic Models," Sustainability, MDPI, vol. 11(24), pages 1-22, December.
    9. Yang Chen & Guiyao Tang & Jiafei Jin & Ji Li & Pascal Paillé, 2015. "Linking Market Orientation and Environmental Performance: The Influence of Environmental Strategy, Employee’s Environmental Involvement, and Environmental Product Quality," Journal of Business Ethics, Springer, vol. 127(2), pages 479-500, March.
    10. Fynes, Brian & Voss, Chris & de Burca, Sean, 2005. "The impact of supply chain relationship quality on quality performance," International Journal of Production Economics, Elsevier, vol. 96(3), pages 339-354, June.
    11. Yu-Shan Chen & Yu-Hsien Lin & Ching-Ying Lin & Chih-Wei Chang, 2015. "Enhancing Green Absorptive Capacity, Green Dynamic Capacities and Green Service Innovation to Improve Firm Performance: An Analysis of Structural Equation Modeling (SEM)," Sustainability, MDPI, vol. 7(11), pages 1-19, November.
    12. Yu-Shan Chen & Ching-Hsun Chang & Yu-Hsien Lin, 2014. "The Determinants of Green Radical and Incremental Innovation Performance: Green Shared Vision, Green Absorptive Capacity, and Green Organizational Ambidexterity," Sustainability, MDPI, vol. 6(11), pages 1-20, November.
    13. Li, Suhong & Ragu-Nathan, Bhanu & Ragu-Nathan, T.S. & Subba Rao, S., 2006. "The impact of supply chain management practices on competitive advantage and organizational performance," Omega, Elsevier, vol. 34(2), pages 107-124, April.
    14. Yu-Shan Chen & Ching-Hsun Chang, 2013. "Enhance environmental commitments and green intangible assets toward green competitive advantages: an analysis of structural equation modeling (SEM)," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(1), pages 529-543, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhen Zhang, 2024. "Exploring the green edge: the role of market orientation and knowledge management in achieving competitive advantage through creativity," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-16, December.
    2. Abdel-Aziz Ahmad Sharabati, 2021. "Green Supply Chain Management and Competitive Advantage of Jordanian Pharmaceutical Industry," Sustainability, MDPI, vol. 13(23), pages 1-17, December.
    3. Izabela Nielsen & Sani Majumder & Eryk Szwarc & Subrata Saha, 2020. "Impact of Strategic Cooperation under Competition on Green Product Manufacturing," Sustainability, MDPI, vol. 12(24), pages 1-28, December.
    4. Raghuveer Negi & Amit Kumar Gupta & Vidhu Gaur, 2023. "Effect of green marketing orientation dimensions on green innovation and organizational performance: A mediation‐moderation analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5435-5458, December.
    5. Panagiotis Reklitis & Damianos P. Sakas & Panagiotis Trivellas & Giannis T. Tsoulfas, 2021. "Performance Implications of Aligning Supply Chain Practices with Competitive Advantage: Empirical Evidence from the Agri-Food Sector," Sustainability, MDPI, vol. 13(16), pages 1-21, August.
    6. Tai Abdulrahman Alshammari & Khalid Mhasan Alshammary & Fahad Maiyah Alshammari, 2022. "Green Product and Process Innovation, Corporate Environmental Ethics and Competitive Advantages among Manufacturing Firms in the Kingdom of Saudi Arabia," Journal of Economics and Behavioral Studies, AMH International, vol. 14(2), pages 51-61.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gema Albort-Morant & Jörg Henseler & Gabriel Cepeda-Carrión & Antonio L. Leal-Rodríguez, 2018. "Potential and Realized Absorptive Capacity as Complementary Drivers of Green Product and Process Innovation Performance," Sustainability, MDPI, vol. 10(2), pages 1-20, February.
    2. Ayça Kubra Hizarci‐Payne & İlayda İpek & Gülüzar Kurt Gümüş, 2021. "How environmental innovation influences firm performance: A meta‐analytic review," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1174-1190, February.
    3. Yueping Du & Huanhuan Wang, 2022. "Green Innovation Sustainability: How Green Market Orientation and Absorptive Capacity Matter?," Sustainability, MDPI, vol. 14(13), pages 1-20, July.
    4. Wenbo Jiang & Francesco Rosati & Huaqi Chai & Taiwen Feng, 2020. "Market orientation practices enhancing corporate environmental performance via knowledge creation: Does environmental management system implementation matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 1899-1924, July.
    5. Yali Zhang & Jun Sun & Zhaojun Yang & Shurong Li, 2018. "Organizational Learning and Green Innovation: Does Environmental Proactivity Matter?," Sustainability, MDPI, vol. 10(10), pages 1-14, October.
    6. Sanjith Gopalakrishnan & Moksh Matta & Hasan Cavusoglu, 2022. "The Dark Side of Technological Modularity: Opportunistic Information Hiding During Interorganizational System Adoption," Information Systems Research, INFORMS, vol. 33(3), pages 1072-1092, September.
    7. Ranjay Gulati & Maxim Sytch, 2008. "Does familiarity breed trust? Revisiting the antecedents of trust," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(2-3), pages 165-190.
    8. Milorad M. Novicevic & M. Ronald Buckley & Michael G. Harvey, 2000. "The Changing Role of Managers within the Supply Chain Networks: Theory and Practical Implications," American Journal of Business, Emerald Group Publishing, vol. 15(2), pages 33-42.
    9. Tulin Dzhengiz & Eva Niesten, 2020. "Competences for Environmental Sustainability: A Systematic Review on the Impact of Absorptive Capacity and Capabilities," Journal of Business Ethics, Springer, vol. 162(4), pages 881-906, April.
    10. Mert Gürlek & Muharrem Tuna, 2018. "Reinforcing competitive advantage through green organizational culture and green innovation," The Service Industries Journal, Taylor & Francis Journals, vol. 38(7-8), pages 467-491, June.
    11. Yanling Yang & Yanling Zheng & Guojie Xie & Yu Tian, 2022. "The Influence Mechanism of Strategic Partnership on Enterprise Performance: Exploring the Chain Mediating Role of Information Sharing and Supply Chain Flexibility," Sustainability, MDPI, vol. 14(8), pages 1-23, April.
    12. Yu-Shan Chen & Yu-Hsien Lin & Ching-Ying Lin & Chih-Wei Chang, 2015. "Enhancing Green Absorptive Capacity, Green Dynamic Capacities and Green Service Innovation to Improve Firm Performance: An Analysis of Structural Equation Modeling (SEM)," Sustainability, MDPI, vol. 7(11), pages 1-19, November.
    13. Tomas Cherkos Kassaneh & Ettore Bolisani & Juan-Gabriel Cegarra-Navarro, 2021. "Knowledge Management Practices for Sustainable Supply Chain Management: A Challenge for Business Education," Sustainability, MDPI, vol. 13(5), pages 1-15, March.
    14. Belén Payán‐Sánchez & Miguel Pérez‐Valls & José Antonio Plaza‐Úbeda & Diego Vázquez‐Brust, 2022. "Network ambidexterity and environmental performance: Code‐sharing in the airline industry," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1169-1183, March.
    15. Jeffrey H. Dyer & Wujin Chu, 2003. "The Role of Trustworthiness in Reducing Transaction Costs and Improving Performance: Empirical Evidence from the United States, Japan, and Korea," Organization Science, INFORMS, vol. 14(1), pages 57-68, February.
    16. Ahmad Morshedi & Navid Nezafati & Sajjad Shokouhyar, 2024. "Motivational Factors Affecting Knowledge Sharing in Steel Industry Supply Chain: A Mixed Qualitative-Quantitative Method Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 6273-6311, June.
    17. Yu-Shan Chen & Tai-Wei Chang & Hung-Xin Li & Ying-Rong Chen, 2020. "The Influence of Green Brand Affect on Green Purchase Intentions: The Mediation Effects of Green Brand Associations and Green Brand Attitude," IJERPH, MDPI, vol. 17(11), pages 1-17, June.
    18. Mark H. Hansen & Robert E. Hoskisson & Jay B. Barney, 2008. "Competitive advantage in alliance governance: resolving the opportunism minimization-gain maximization paradox," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(2-3), pages 191-208.
    19. Yongtao Song & Taiwen Feng & Wenbo Jiang, 2017. "The Influence of Green External Integration on Firm Performance: Does Firm Size Matter?," Sustainability, MDPI, vol. 9(8), pages 1-18, August.
    20. Yu‐Shan Chen & Shu‐Hsien Lin & Chun‐Yu Lin & Shu‐Tzu Hung & Chih‐Wei Chang & Ching‐Wen Huang, 2020. "Improving green product development performance from green vision and organizational culture perspectives," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 222-231, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:18:p:7251-:d:408917. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.