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Aligning supply chain strategy with corporate environmental strategy: A contingency approach


  • Wu, Tienhua
  • Jim Wu, Yen-Chun
  • Chen, Yenming J.
  • Goh, Mark


Environmental sustainability is driving firms to extend their green effort across their supply chain. However, the literature has not thoroughly examined the multiple relationships among supply chain (SC) strategy, corporate environmental (CE) strategy, and firm performance. As such, this paper, adopts an alignment perspective to empirically examine the complex links between four SC strategies and four CE strategies on 172 manufacturing firms in Taiwan. Using profile deviation analysis, it is found that overall an SC strategy when properly aligned with a CE strategy leads to improved firm performance. Specifically, a risk-hedging SC strategy should be aligned with a defensive CE strategy to yield improved firm performance. Likewise, a responsive SC strategy should be aligned with an accommodative CE strategy, and an agile SC strategy with a proactive CE strategy.

Suggested Citation

  • Wu, Tienhua & Jim Wu, Yen-Chun & Chen, Yenming J. & Goh, Mark, 2014. "Aligning supply chain strategy with corporate environmental strategy: A contingency approach," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 220-229.
  • Handle: RePEc:eee:proeco:v:147:y:2014:i:pb:p:220-229
    DOI: 10.1016/j.ijpe.2013.02.027

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    References listed on IDEAS

    1. Kumar, Sameer & Putnam, Valora, 2008. "Cradle to cradle: Reverse logistics strategies and opportunities across three industry sectors," International Journal of Production Economics, Elsevier, vol. 115(2), pages 305-315, October.
    2. Wu, Guo-Ciang & Ding, Jyh-Hong & Chen, Ping-Shun, 2012. "The effects of GSCM drivers and institutional pressures on GSCM practices in Taiwan’s textile and apparel industry," International Journal of Production Economics, Elsevier, vol. 135(2), pages 618-636.
    3. Gunasekaran, Angappa & Lai, Kee-hung & Edwin Cheng, T.C., 2008. "Responsive supply chain: A competitive strategy in a networked economy," Omega, Elsevier, vol. 36(4), pages 549-564, August.
    4. González-Benito, Javier & González-Benito, Óscar, 2005. "Environmental proactivity and business performance: an empirical analysis," Omega, Elsevier, vol. 33(1), pages 1-15, February.
    5. Yenming J. Chen & Kuo-Wei Su & Meng-Hsiang Hsu & Wen-Jin Hwang & Jau-Wen Wang, 2011. "The impact of aligning supply chain and information system strategies on performance," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 12(4), pages 309-333.
    6. Wagner, Marcus & Schaltegger, Stefan, 2004. "The Effect of Corporate Environmental Strategy Choice and Environmental Performance on Competitiveness and Economic Performance:: An Empirical Study of EU Manufacturing," European Management Journal, Elsevier, vol. 22(5), pages 557-572, October.
    7. Aragon-Correa, Juan Alberto & Matias-Reche, Fernando & Senise-Barrio, Maria Eugenia, 2004. "Managerial discretion and corporate commitment to the natural environment," Journal of Business Research, Elsevier, vol. 57(9), pages 964-975, September.
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    9. Vachon, Stephan & Klassen, Robert D., 2008. "Environmental management and manufacturing performance: The role of collaboration in the supply chain," International Journal of Production Economics, Elsevier, vol. 111(2), pages 299-315, February.
    10. Yang, Chen-Lung & Lin, Shu-Ping & Chan, Ya-hui & Sheu, Chwen, 2010. "Mediated effect of environmental management on manufacturing competitiveness: An empirical study," International Journal of Production Economics, Elsevier, vol. 123(1), pages 210-220, January.
    11. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
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    Cited by:

    1. Geng, Ruoqi & Mansouri, S. Afshin & Aktas, Emel, 2017. "The relationship between green supply chain management and performance: A meta-analysis of empirical evidences in Asian emerging economies," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 245-258.
    2. repec:spr:endesu:v:20:y:2018:i:4:d:10.1007_s10668-017-9949-1 is not listed on IDEAS
    3. Perez-Franco, R. & Phadnis, S. & Caplice, C. & Sheffi, Y., 2016. "Rethinking supply chain strategy as a conceptual system," International Journal of Production Economics, Elsevier, vol. 182(C), pages 384-396.
    4. Hussain, Safdar & Ahmed, Wasim & Rabnawaz, Ambar & Jafar, Rana Muhammad Sohail & Akhtar, Haseeb & GuangJu, Wang & Ullah, Sana & JianZhou, Yang, 2015. "Integration and Effective Supply Chain Management: A Review of Agriculture in Pakistan and China," MPRA Paper 70380, University Library of Munich, Germany.
    5. repec:eee:proeco:v:193:y:2017:i:c:p:272-280 is not listed on IDEAS
    6. repec:eee:proeco:v:193:y:2017:i:c:p:332-342 is not listed on IDEAS
    7. Bai, Chunguang & Dhavale, Dileep & Sarkis, Joseph, 2016. "Complex investment decisions using rough set and fuzzy c-means: An example of investment in green supply chains," European Journal of Operational Research, Elsevier, vol. 248(2), pages 507-521.
    8. Luzzini, Davide & Brandon-Jones, Emma & Brandon-Jones, Alistair & Spina, Gianluca, 2015. "From sustainability commitment to performance: The role of intra- and inter-firm collaborative capabilities in the upstream supply chain," International Journal of Production Economics, Elsevier, vol. 165(C), pages 51-63.


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