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Institutional Pressures, Green Supply Chain Management Practices on Environmental and Economic Performance: A Two Theory View

Author

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  • Amer Saeed

    (School of Management, Wuhan University of Technology, Wuhan 430070, China
    School of Business and Economics, University of Management and Technology, Lahore 54770, Pakistan)

  • Yun Jun

    (School of Management, Wuhan University of Technology, Wuhan 430070, China)

  • Saviour Ayertey Nubuor

    (School of Management, Wuhan University of Technology, Wuhan 430070, China
    Department of Organization and Human Resource Management, University of Ghana Business School, P.O.Box LG 78, Legon, Accra, Ghana)

  • Hewawasam Puwakpitiyage Rasika Priyankara

    (School of Management, Wuhan University of Technology, Wuhan 430070, China
    Department of Business Management, Faculty of Management Studies, Sabaragamuwa University of Sri Lanka, Belihuloya 70140, Sri Lanka)

  • Mahabaduge Prasad Fernando Jayasuriya

    (School of Management, Wuhan University of Technology, Wuhan 430070, China)

Abstract

The adoption of green practices within and outside organizational boundaries is imperative to ascertain environmental and economic performance goals. This article examined whether internal and external green supply chain management (GSCM) practices have the same or different kinds of regulatory, market, or competitive pressures. We employed institutional theory to identify different kinds of pressures, and resource dependence theory to explore the impact of internal and external GSCM practices on performance. An empirical study was conducted by collecting data through a structured questionnaire administered in Pakistan to the executives in the manufacturing industry. A total of 207 responses were used for data analysis by employing the partial least squares structural equation modeling (PLS-SEM) method. Normative pressures were found to be the most significant in both internal and external GSCM practices, while coercive and mimetic pressures positively affected internal and external GSCM practices, respectively. Internal GSCM practices proved to be more significant in improving environmental performance, and also had a substantial impact on external GSCM practices. In contrast, External GSCM practices had a significant positive effect on economic performance, while environmental performance also contributed to improving economic performance. The theoretical and managerial implications are discussed for academics, policymakers, and industry practitioners.

Suggested Citation

  • Amer Saeed & Yun Jun & Saviour Ayertey Nubuor & Hewawasam Puwakpitiyage Rasika Priyankara & Mahabaduge Prasad Fernando Jayasuriya, 2018. "Institutional Pressures, Green Supply Chain Management Practices on Environmental and Economic Performance: A Two Theory View," Sustainability, MDPI, vol. 10(5), pages 1-24, May.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:5:p:1517-:d:145610
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    14. Muddassar Sarfraz & Ilhan Ozturk & Sunghoon Yoo & Muhammad Ali Raza & Heesup Han, 2023. "Toward a new understanding of environmental and financial performance through corporate social responsibility, green innovation, and sustainable development," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-17, December.
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    18. Ahashan Habib & Yukun Bao, 2019. "Impact of knowledge management capability and green supply chain management practices on firm performance," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 8(6), pages 240-255, October.
    19. 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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