The impact of internal and external green supply chain management activities on performance improvement: evidence from the automobile industry

Abstract

Although the significance of green supply chain management activities on corporation sustainable development has been highlighted in the literature, the potential inter-dependencies between these activities and corporation performance have not been investigated by considering cooperation moderation. The purpose of this research is to examine internal and external Green Supply Chain Management (GSCM) activity on automobile performance: Environmental performance, operational performance, positive economic performance, and negative economic performance. Using survey data from foreign-owned company A with 117 manufacturing firms and domestic company B with 94 manufacturing firms, a significant relationship between GSCM and corporation performance has been found. For foreign-owned automobile companies, internal organizational activity has the greatest influence on operational performance, and promotes corporate value and corporation with outside. However, for domestic automobile companies with the advanced green concept, Eco-design exerts the biggest effect on environmental performance, and also brought a negative economic impact on corporate performance. Moreover, although both corporate social responsibility (CSR) and creating shared value (CSV) promotion could influence the corporation with consumers and suppliers, CSV promotion has a more positive influence on cooperation with consumers than that CSR. These findings have important implications for designing GSCM strategic plans for the automotive industry in developing countries.

Keywords

• Green supply chain management
• Structural equation modeling
• Sustainable performance
• Automobile industry