Research On The Relationship Between Institutional Pressure,green Supply Chain Management Practices And Firm Performance

Companies has shown growing concerns in relation to the environmental impact of their manufacturing activities,as a result of increasing concern over the environmental pollution,waste of resources and ecological imbalance.Green supply chain management(GSCM)has been considered by the manufacturers as a feasible option to reduce the environmental impact of operations while simultaneously improving their operational performance.Therefor further research on institutional pressures,performance,and environmental practices are needed.The automotive manufacturing industry is an important part of the traditional manufacturing industries,it have a significant impact on product design,production process,waste disposal and resource utilization while creating wealth and value and providing people the convenience.It is very important for automobile producers to implement green supply chain management.Based on institutional theory,this paper explores the institutional pressures,green supply chain management practices,and performance observed in suppliers of a Chinese automotive supply chain.Analysis of which pressure affects manufacturers to implement green supply chain management practices,which performance is affected by practices.We seek to examine whether the firm size and the time of practice moderate the relationship between green supply chain management practices and firm performance.The data were treated using partial least squares structural equation modeling(PLS-SEM)provided by Smart PLS software.After the analysis of more than two hundreds data from Chinese automobile producers through questionnaire survey and deep investigations,we find out that the economic,environmental and operational performance of the studied supply chain is positively related to the adoption of green supply chain management practices.In addition,the present research also identified the institutional pressures that influence this supply chain to pursue green supply chain management practices.Moreover,the results indicate that the firm size and the time of practice moderate the green supply chain management practices-performance relationships.Most of the hypotheses are supported by the empirical study,and the hypotheses which are not supported will be analyzed reasonably based on theories and practices in China.The results of this study provide managerial and the theoretical approaches for different industries in China to focus on environmental awareness by adopting green supply chain management practices.In addition,this helps increase confidence among managers and policy makers of China companies in the adoption of green supply chain management practices to improve firm performance.