IDEAS home Printed from https://ideas.repec.org/a/jfr/ijfr11/v10y2019i3p371-379.html
   My bibliography  Save this article

Green Supply Chain Management (GSCM) Practices for Sustainability Performance: An Empirical Evidence of Malaysian SMEs

Author

Listed:
  • Zarinah Abdul Rasit
  • Maisurah Zakaria
  • Marshita Hashim
  • Aliza Ramli
  • Muzrifah Mohamed

Abstract

Environmental issues have been critical concern among the current businesses as various business activities might pose significant threats to the environment. Incorporating environmental aspects in business operations is perceived to be able to create value and to achieve sustainable business performance. The manufacturing sector is the key contributor to the country¡¯s high pollution index. Green Supply Chain Management (GSCM) practices have become more prevalent in this sector in managing the environmental issues for the effectiveness of their production requirement. Nevertheless, the small and medium enterprises (SMEs) mainly are less likely to embark on environmental practices as compared to large organisations. The establishment of certified environmental management systems (EMS) is considered as a strategic management approach that defines how organisations will address their impact on the natural environment guided by ISO 14001 as a framework. This study provides empirical evidence examining the extent of GSCM practices among the SMEs through the possession of ISO 14001 and examines the impact on sustainability performance. Data were analysed using regression analyses. Results indicate that GSCM practices have a significant positive relation with sustainability performance. Eco-design practices and environmental cooperation have a positive relationship with sustainability performance. There is no relationship between green purchasing and reverse logistics practices with sustainability performance. These results imply that Malaysian SMEs adopt GSCM practices mostly through eco-design and robust cooperation among departments in dealing with environmental issues. Green practices and reverse logistics practices are still new for SMEs and do not contribute to achieving better performance.

Suggested Citation

  • Zarinah Abdul Rasit & Maisurah Zakaria & Marshita Hashim & Aliza Ramli & Muzrifah Mohamed, 2019. "Green Supply Chain Management (GSCM) Practices for Sustainability Performance: An Empirical Evidence of Malaysian SMEs," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(3), pages 371-379, May.
    • Handle: RePEc:jfr:ijfr11:v:10:y:2019:i:3:p:371-379
    DOI: 10.5430/ijfr.v10n3p371
    as

    Download full text from publisher

    File URL: http://www.sciedu.ca/journal/index.php/ijfr/article/view/15534/9639
    Download Restriction: no
    File URL: http://www.sciedu.ca/journal/index.php/ijfr/article/view/15534
    Download Restriction: no
    File URL: https://libkey.io/10.5430/ijfr.v10n3p371?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mubeen Asif & Faisal Asghar & Amna Younis & Amir Mahmood & Li Zheng Wang, 2018. "The Role of Social Entrepreneurship in Pakistan and its Impact on Economy," International Journal of Business, Economics and Management, Conscientia Beam, vol. 5(5), pages 117-127.
    2. Thomas Aduojo Audu, 2018. "Effects of Teaching Methods on Basic Science Achievement and Spatial Ability of Basic Nine Boys and Girls in Kogi State, Nigeria," Current Research in Agricultural Sciences, Conscientia Beam, vol. 6(4), pages 149-155.
    3. I Wayan Budi Artha & Bambang Mulyana, 2018. "The Effect of Internal and External Factors of Companies on Profitability and its Implications on Stock Price Index of State-Owned Banks," The Economics and Finance Letters, Conscientia Beam, vol. 5(2), pages 58-71.
    4. Hrabrin Bachev, 2018. "Management and Agrarian Sustainability-Impact of Institutions in Bulgaria," International Journal of Management and Sustainability, Conscientia Beam, vol. 7(2), pages 113-142.
    5. Thomas Aduojo Audu, 2018. "Effects of Teaching Methods on Basic Science Achievement and Spatial Ability of Basic Nine Boys and Girls in Kogi State, Nigeria," Humanities and Social Sciences Letters, Conscientia Beam, vol. 6(4), pages 149-155.
    6. ARUNA, Justina Olufunke, 2018. "Trends in Child Sexual Molestation, Rape and Incest: A View from South West Nigeria," Current Research in Agricultural Sciences, Conscientia Beam, vol. 6(4), pages 137-148.
    7. Minkyun Kim & Sangmi Chai, 2017. "Implementing Environmental Practices for Accomplishing Sustainable Green Supply Chain Management," Sustainability, MDPI, vol. 9(7), pages 1-17, July.
    8. Zhu, Qinghua & Sarkis, Joseph & Cordeiro, James J. & Lai, Kee-Hung, 2008. "Firm-level correlates of emergent green supply chain management practices in the Chinese context," Omega, Elsevier, vol. 36(4), pages 577-591, August.
    9. Arimura, Toshi H. & Darnall, Nicole & Katayama, Hajime, 2011. "Is ISO 14001 a gateway to more advanced voluntary action? The case of green supply chain management," Journal of Environmental Economics and Management, Elsevier, vol. 61(2), pages 170-182, March.
    10. Mubeen Asif & Faisal Asghar & Amna Younis & Amir Mahmood & Li Zheng Wang, 2018. "The Role of Social Entrepreneurship in Pakistan and its Impact on Economy," International Journal of Business, Economics and Management, Conscientia Beam, vol. 5(5), pages 117-127.
    11. Bahareh Ahmadinejad & Hadi Najafi Asli, 2018. "Has Word of Mouth Advertising in Cyberspace Affected Iran's 2017 Presidential Elections?," Humanities and Social Sciences Letters, Conscientia Beam, vol. 6(3), pages 84-92.
    12. I Wayan Budi Artha & Bambang Mulyana, 2018. "The Effect of Internal and External Factors of Companies on Profitability and its Implications on Stock Price Index of State-Owned Banks," The Economics and Finance Letters, Conscientia Beam, vol. 5(2), pages 58-71.
    13. Nicole Darnall & G. Jason Jolley & Robert Handfield, 2008. "Environmental management systems and green supply chain management: complements for sustainability?," Business Strategy and the Environment, Wiley Blackwell, vol. 17(1), pages 30-45, 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. Kaihan Yang & Ai Chin Thoo, 2023. "Visualising the Knowledge Domain of Reverse Logistics and Sustainability Performance: Scientometric Mapping Based on VOSviewer and CiteSpace," Sustainability, MDPI, vol. 15(2), pages 1-23, January.

    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. Sheikh Muhammad Hizam & Waqas Ahmed, 2019. "A Conceptual Paper on SERVQUAL-Framework for Assessing Quality of Internet of Things (IoT) Services," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 387-397, August.
    2. Hisham Alidrisi, 2021. "Measuring the Environmental Maturity of the Supply Chain Finance: A Big Data-Based Multi-Criteria Perspective," Logistics, MDPI, vol. 5(2), pages 1-24, April.
    3. Jabbour, Ana Beatriz & Jabbour, Charbel & Govindan, Kannan & Kannan, Devika & Arantes, Ariana Fernandes, 2014. "Mixed methodology to analyze the relationship between maturity of environmental management and the adoption of green supply chain management in Brazil," Resources, Conservation & Recycling, Elsevier, vol. 92(C), pages 255-267.
    4. Grekova, K. & Bremmers, H.J. & Trienekens, J.H. & Kemp, R.G.M. & Omta, S.W.F., 2014. "Extending environmental management beyond the firm boundaries: An empirical study of Dutch food and beverage firms," International Journal of Production Economics, Elsevier, vol. 152(C), pages 174-187.
    5. Guo Li & Ming K. Lim & Zhaohua Wang, 2020. "Stakeholders, green manufacturing, and practice performance: empirical evidence from Chinese fashion businesses," Annals of Operations Research, Springer, vol. 290(1), pages 961-982, July.
    6. Fahimnia, Behnam & Sarkis, Joseph & Davarzani, Hoda, 2015. "Green supply chain management: A review and bibliometric analysis," International Journal of Production Economics, Elsevier, vol. 162(C), pages 101-114.
    7. Fahimnia, Behnam & Sarkis, Joseph & Eshragh, Ali, 2015. "A tradeoff model for green supply chain planning:A leanness-versus-greenness analysis," Omega, Elsevier, vol. 54(C), pages 173-190.
    8. Artitzar Erauskin‐Tolosa & Eugenio Zubeltzu‐Jaka & Iñaki Heras‐Saizarbitoria & Olivier Boiral, 2020. "ISO 14001, EMAS and environmental performance: A meta‐analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1145-1159, March.
    9. Naseem Ahamed & Nitya Nand Tripathi, 2023. "Financial Performance as a Determinant of The Cost of Capital: An Empirical Study on Listed Companies in India," Capital Markets Review, Malaysian Finance Association, vol. 31(2), pages 69-87.
    10. Wu, Guo-Ciang & Ding, Jyh-Hong & Chen, Ping-Shun, 2012. "The effects of GSCM drivers and institutional pressures on GSCM practices in Taiwan’s textile and apparel industry," International Journal of Production Economics, Elsevier, vol. 135(2), pages 618-636.
    11. Zhaojun Yang & Jun Sun & Yali Zhang & Ying Wang, 2018. "Peas and carrots just because they are green? Operational fit between green supply chain management and green information system," Information Systems Frontiers, Springer, vol. 20(3), pages 627-645, June.
    12. Roy, Vivek & Silvestre, Bruno S. & Singh, Shubham, 2020. "Reactive and proactive pathways to sustainable apparel supply chains: Manufacturer's perspective on stakeholder salience and organizational learning toward responsible management," International Journal of Production Economics, Elsevier, vol. 227(C).
    13. Zhaojun Yang & Jun Sun & Yali Zhang & Ying Wang, 0. "Peas and carrots just because they are green? Operational fit between green supply chain management and green information system," Information Systems Frontiers, Springer, vol. 0, pages 1-19.
    14. Tiberio Daddi & Iñaki Heras‐Saizarbitoria & Luca Marrucci & Francesco Rizzi & Francesco Testa, 2021. "The effects of green supply chain management capability on the internalisation of environmental management systems and organisation performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(4), pages 1241-1253, July.
    15. Sulaiman Sajilan & Erlane K. Ghani & Siti Maimunah & Retno Martanti Endah Lestari, 2019. "The Relationship of Environmental Uncertainty, AIS Efficiency and Energy Efficiency with Environmental and Operational Performance in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 371-378.
    16. Maria Jell‐Ojobor & Aveed Raha, 2022. "Being good at being good—The mediating role of an environmental management system in value‐creating green supply chain management practices," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 1964-1984, July.
    17. Kimitaka Nishitani & Katsuhiko Kokubu & Takehisa Kajiwara, 2016. "Does low-carbon supply chain management reduce greenhouse gas emissions more effectively than existing environmental initiatives? An empirical analysis of Japanese manufacturing firms," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(1), pages 33-60, February.
    18. Zhaojun Yang & Jun Sun & Yali Zhang & Ying Wang, 2020. "Synergy between green supply chain management and green information systems on corporate sustainability: an informal alignment perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(2), pages 1165-1186, February.
    19. Zhang, Bin & Wang, Zhaohua, 2014. "Inter-firm collaborations on carbon emission reduction within industrial chains in China: Practices, drivers and effects on firms' performances," Energy Economics, Elsevier, vol. 42(C), pages 115-131.
    20. Jabbour, Ana Beatriz Lopes de Sousa & Frascareli, Fernanda Cortegoso de Oliveira & Jabbour, Charbel José Chiappetta, 2015. "Green supply chain management and firms’ performance: Understanding potential relationships and the role of green sourcing and some other green practices," Resources, Conservation & Recycling, Elsevier, vol. 104(PB), pages 366-374.

    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:jfr:ijfr11:v:10:y:2019:i:3:p:371-379. 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: Gina Perry (email available below). General contact details of provider: http://ijfr.sciedupress.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.