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Implementation of green supply chain management: Impact on performance outcomes in small- and medium-sized electrical and electronic firms

Sung Tae Kim, University of Nebraska - Lincoln

Abstract

Globalization has expanded markets and accelerated technological development. Many developing countries have established competitive advantage by opening their economies to the global economy. Companies in developed countries have benefited lower production and service costs by moving their production facilities and business departments offshore. Rapid economic growth due to globalization, which has improved the quality of our lives, has also caused environmental issues.^ To alleviate a trade-off between economic development and environmental protection, world’s leading nations have established environmental protection laws. Recent environmental incidents occurring in the upstream of the supply chains of global firms caused not only financial damage to the firms but also damage to the firms’ reputation. These anecdotes raised the alarm to the large buying companies how important supplier selection and support are. ^ Supplier firms that are capable of environmental management could create potential business opportunities because large global firms are seeking such suppliers with environmental management capabilities worldwidely. These suppliers with the adoption of green supply chain management (GSCM) practices would be more sustainable to keep and extend their current contracts.^ The two primary research tasks of this study are: (1) to evaluate dimensions of green supply chain management practice implementation, and (2) to examine the relationship between the GSCM practice implementation and firms’ business performance including direct and indirect effects.^ Survey questionnaires were mailed to 223 small- and medium-sized electrical/electronic firms in Korea that were contacted in advance for the survey participation and all of them responded. This study analyzed collected data using structural equation modeling (SEM) to test hypotheses.^ The study provides evidence that: (1) GSCM practice implementation has a positive relationship with employees’ job satisfaction, firms’ operational efficiency, and relational efficiency between the suppliers and buying firms; (2) operational and relational efficiencies have direct impacts on business performance; and (3) employees’ job satisfaction, firms’ operational efficiency, and relational efficiency between the suppliers and buying firms have a mediation effect on the relationship between GSCM practice implementation and business performance. However, the results of this study did not find a direct link between GSCM practice implementation and business performance.^

Subject Area

Business Administration, Management|Environmental Management

Recommended Citation

Kim, Sung Tae, "Implementation of green supply chain management: Impact on performance outcomes in small- and medium-sized electrical and electronic firms" (2010). ETD collection for University of Nebraska - Lincoln. AAI3412875.
http://digitalcommons.unl.edu/dissertations/AAI3412875

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