A Research On The Relationship Between Green Supply Chain Management Practice And Business Performance Based On SEM

These years, along with ecological destruction and lack of resources, the public's environmental awareness is increasing. Green supply chain management has become an important method of business management. In the highly competitive domestic and foreign markets, Chinese enterprises must improve the product' environment quality to expand the market. Green supply chain management theory and business practice in our country are still in the initial stage, and develop very slowly. The reason is that green supply chain management usually requires a high investment, but these inputs does not improve the short term performance obviously, which lead to a lack of enthusiasm. Therefore, exploring the relationship between green supply chain management practice and the changes in performance has become necessary to further impetus the implementation of green supply chain management.The research question and frame are proposed after our study of both domestic and foreign literatures of green supply chain management and the current situation of environmental management in China. Based on domestic and foreign literatures, this paper holds that green supply chain management practice include four aspects, that is, the internal environmental management, environmental cooperation with supply chain partners, green design and investment recovery. After the implementation of Green Supply Chain, business performance improves in aspects of social performance, positive economic performance and negative economic performance. Then, some assumptions are proposed on the relationship between green supply chain management practice and the enterprise performance. Based on this, the questionnaire is designed and survey is did. To the 136 collected valid questionnaires, we firstly carry out the descriptive statistical analysis by SPSS17.0 to form a perceptions. Then using SPSS17.0 and LISREL statistical software, we check the validity and reliability of the collected data. The result shows that the questionnaire has a good reliability. After that, we do data fitting analysis with Full Structural Equation Model. We judge the model fitting result and modify the model again and again until we get a satisfy model, according to which the hypothesis are verified. The final model shows that all aspects of green supply chain practices have positive effects at different extent (display as different coefficient in the model) to business performance. Finally, the research results are discussed and the countermeasures are proposed from the perspective of both business and government to accelerate the implementation of green supply chain management.The study result provides a strong support for enterprise to identify the relationship between supply chain management practice and business performance, and also supplies some reference to the government to take further measures.