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Environmental Orientation, Green Supply Chain Management, and Firm Performance: Empirical Evidence from Chinese Small and Medium-Sized Enterprises

Author

Listed:
  • Xiangzhi Bu

    (Department of Business Administration, Business School, Shantou University, Shantou, Guangdong 515063, China)

  • Wilson V.T. Dang

    (Department of Business Administration, Dong Nai Technology University, Bien Hoa, Dong Nai 810000, Vietnam)

  • Jianming Wang

    (School of Business Administration, Zhejiang University of Finance & Economics, Hangzhou 310018, China)

  • Qiu Liu

    (Department of Business Administration, Business School, Shantou University, Shantou, Guangdong 515063, China)

Abstract

This study investigates the relationship between environmental orientation and firm performance with the mediating role of green supply chain management (GSCM). This study uses a survey questionnaire to collect data from 247 CEOs from Chinese small and medium-sized enterprises (SMEs). Structural equation modeling is used to analyze data and test hypotheses. Empirical results show that internal and external environmental orientations are positively related to the three elements of GSCM, namely, environmental selection, monitoring, and collaboration with suppliers which are also positively related to firm performance. In addition, results show that environmental selection, monitoring, and collaboration with suppliers mediates the relationship between internal and external environmental orientations and firm performance. The findings provide important implications for academic researchers and business managers in planning and implementing environmental strategies. In terms of theoretical implications, this study sheds a new light to current knowledge about the effect of environmental orientation on GSCM and firm performance of SMEs. This study also provides empirical evidence to clarify the mediating mechanism of GSCM in the link between environmental orientation and firm performance of SMEs. In terms of practical implications, this study provides knowledge for managers of SMEs to better understand the important role of environmental orientation and green supply chain management. Findings of this study provide knowledge for managers of SMEs to make their business policies better.

Suggested Citation

  • Xiangzhi Bu & Wilson V.T. Dang & Jianming Wang & Qiu Liu, 2020. "Environmental Orientation, Green Supply Chain Management, and Firm Performance: Empirical Evidence from Chinese Small and Medium-Sized Enterprises," IJERPH, MDPI, vol. 17(4), pages 1-17, February.
    • Handle: RePEc:gam:jijerp:v:17:y:2020:i:4:p:1199-:d:320185
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    References listed on IDEAS

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