The impact of implementing green supply chain management practices on corporate performance

Purpose: The purpose of this research is to investigate the implementation of green supply chain management (GSCM) practices and its impact on corporate performance (CP). The research in particular examines the results of implementing a set of GSCM practices on different dimensions of the CP.

Design/methodology/approach: This study, being the first of its kind in the Middle East, developed a research model to test the relationship between four main GSCM practices namely, eco-design, green purchasing, environmental cooperation and reverse logistics, and four dimensions of CP: operational performance, environmental performance, economic performance and social performance, while controlling three main variables (firm size, firm age and environment management system certification). Statistical analyses were based on the data collected, through survey questionnaires. Reliability and validity of the research model were tested by the commonly accepted statistical tools. To test the hypotheses relating implementation of GSCM practice and CP, multiple regression analysis was used.

Findings: The finding of the study was that GSCM practices impact the CP dimensions differently. While none of the four GSCM practices were found to have any impact on the environmental performance, green purchasing and environmental cooperation were found to have a significant impact on the operational performance. The study found that only green purchasing plays a role in improving the economic performance, while only reverse logistics practices were found to impact the social performance of the firm positively