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Being good at being good—The mediating role of an environmental management system in value‐creating green supply chain management practices

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  • Maria Jell‐Ojobor
  • Aveed Raha

Abstract

This study adopts a resource‐based view to explain the complementary role of the corporate structure in the value creation of green supply chain management (GSCM) practices. Using 8‐year panel data collected from 317 US international manufacturers, we analyze the influence of GSCM practices on corporate financial performance (CFP) and the mediating role of a certified environmental management system (EMS) in this relationship. We show that GSCM practices have a positive impact on accounting‐based financial performance, meaning, return on assets (ROA) and return on equity (ROE). In contrast, firms that implement GSCM practices and a certified EMS simultaneously achieve a higher market valuation in terms of Tobin's Q in addition to a higher ROA and ROE in the following year. Our study demonstrates that, through their synergistic combination with a firm's complementary EMS, utilizing GSCM practices can result in intangible assets as sources of long‐term financial benefits. Our results have several theoretical and managerial implications. They also address the limitations of the prior use of varying survey‐based items for internal and external GSCM practices and add nuance to the existing GSCM practices in the literature.

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  • 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.
    • Handle: RePEc:bla:bstrat:v:31:y:2022:i:5:p:1964-1984
    DOI: 10.1002/bse.2993
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    2. Tiantian Wang & Kamisah Ismail & Khairul Saidah Abas Azmi, 2022. "The Rise of MCS and EMA in the Sustainable Field: A Systematic Literature Analysis," Sustainability, MDPI, vol. 14(24), pages 1-12, December.
    3. Agus Joko Pramono & Suwarno & Firdaus Amyar & Renny Friska, 2023. "Sustainability Management Accounting in Achieving Sustainable Development Goals: The Role of Performance Auditing in the Manufacturing Sector," Sustainability, MDPI, vol. 15(13), pages 1-13, June.
    4. Trujillo-Gallego, Mariana & Sarache, William & Sousa Jabbour, Ana Beatriz Lopes de, 2022. "Digital technologies and green human resource management: Capabilities for GSCM adoption and enhanced performance," International Journal of Production Economics, Elsevier, vol. 249(C).

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