Examining the inter-relationship among competitive market environments, green supply chain practices, and firm performance

Purpose: The purpose of this paper is to assess the impact of competitive market environments on the firm’s decision to adopt green supply chain management (GSCM) practices, while checking to see if the firm’s commitment to particular types of GSCM practices improves its performance. Design/methodology/approach: To confirm a positive link between the firm’s GSCM practices to its performance, the authors collected the data from 322 Korean firms via questionnaire surveys and then analyzed these data using the structural equation model. Findings: Among various types of GSCM practices, green purchasing has the greatest impact on both manufacturing and marketing performances. Also, internal environmental management positively influenced both manufacturing and marketing performances, whereas cooperation with customers and reverse logistics had no significant impact on the firm’s manufacturing and marketing performances. Originality/value: To provide a practical advice for firms which are hesitant to embrace green supply chain practices due to skeptical views about their true managerial benefits, this paper discerned more effective GSCM practices from less effective GSCM practices. In so doing, this paper is one of the few studies which pinpointed what types of specific GSCM practices are most effective in enhancing firm performance.