In recent years, environmental sustainability has become a key managerial issue, and both researchers and practitioners are devoting increased attention to the topic as they face the challenge of achieving a balance between environmental and business ...
In recent years, environmental sustainability has become a key managerial issue, and both researchers and practitioners are devoting increased attention to the topic as they face the challenge of achieving a balance between environmental and business needs. In this context, green supply chain management serves two crucial purposes, helping companies be competitive and also allowing them to pursue environmental responsibility.
Green supply chain management encompasses various ecologically responsible practices designed to incorporate environmental considerations into decision making at each stage of a firm’s materials management and logistical functions through post-consumer disposal. In essence, green supply chain management involves integrating environmental concerns into product flows within and beyond organizational boundaries. It is becoming an increasingly popular tool for manufactures to cope with environmental demands of various stakeholders.
Dimaggio and Powell(1983) stated that a company’s business strategies were affected by its institutional environment, which included key suppliers, resource and product consumers, regulatory agencies and competitors. According to institutional theory, a company’s behaviors were affected by the restriction, expectation and influence of institutional members. Institutional pressures would increase the willingness of companies to implement and improve environmental management and affect the efficiency of resources used in the environmental management(Clemens and Douglas, 2006; Menguc et al., 2010)
Institutional theory may explain how external drivers promote green supply chain management practices. However, there is still remaining question. It was shown that both external drivers and internal resources drive environmental management practices, but it is unclear how external and internal factors interactively promote green supply chain management practices(Rogers et al., 2007; Sarkis et al., 2011).
This empirical study based on Institutional Theory investigates the relationships between green supply chain management practices (internal environmental management systems, eco-design, investment recovery, customer management, supplier management) and environmental performance. It also examines moderating effects by institutional pressures and internal conflicts. Through moderated regression analysis and sub-group analysis, the results of this research are presented. Subsequently, the theoretical and practical implications of this study are discussed. Finally, limitations and future developments are presented.