The Impact of Green Supply Chain Management (GSCM) Towards Competitive Advantage and Social Performance Mediated by Innovative Capabilities
Research on green supply chain management has received attention among scholars, particularly in the manufacturing industry. One of the reasons is that green supply chain management can impact company’s competitiveness and social performance. At the same time, optimizing firm’s resources are majo...
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| Summary: | Research on green supply chain management has received attention among scholars,
particularly in the manufacturing industry. One of the reasons is that green supply chain
management can impact company’s competitiveness and social performance. At the
same time, optimizing firm’s resources are major concern for industries to reduce
emissions, boost sustainable practices and achieve competitiveness. Moreover, global
demand for sustainable products is increasing significantly which drives the company
to comply with legal regulations and growing environmental awareness. However, this
study aims to bridge this gap by providing empirical evidence to encourage firms to
implement GSCM practices and innovation capabilities to achieve a competitive
advantage significantly and improve social performance. Nevertheless, implementation
of GSCM practices is still less adopted by manufacturing firms in Malaysia since many
are not aware of its importance to sustain the business. Hence, this study was conducted
to address this gap. Specifically, this study examines the effect of GSCM practice on
innovation capabilities, a firm’s competitive advantage, and social performance.
Finally, this study explores the role of innovation capabilities as a mediator in the
relationship between GSCM practice, a firm’s competitive advantage, and social
performance. The data of this study was collected through a survey among 258 certified
ISO 14001 manufacturing firms in Malaysia. Partial Least Squares (Smart-PLS)
software was used to analyse the data and to test the hypotheses of this study. The
findings of this study revealed that all hypotheses were supported. In detail, the results
of the study indicated that there was a significant effect of GSCM practices and
competitive advantages. However, GSCM practices were found to have a positive and
significant effect on innovation capabilities and social performance. It was also found
that there was a positive and significant influence of innovation capabilities on
competitive advantages and social performance. Moreover, innovation capabilities
found to be partially mediate the relationships between GSCM practices and
competitive advantages, as well as partially mediate the relationship between GSCM
practices and social performance. In short, the findings show significant implications in
terms of the importance of green supply chain management toward company’s
competitiveness and improvement in the social performance Malaysian manufacturing
industry. Therefore, the current study recommends adopting green practices in their
manufacturing process in order to achieve competitiveness among rivals and improve
social performance. This will enhance the performance and effectiveness of the
manufacturing industry in the Malaysian context. |
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