Greening the supply chain: unveiling its impact on operational performance in Malaysian SMEs
Article Sidebar
Main Article Content
Abstract
There is a growing focus on integrating green supply chain management (GSCM) to improve environmental impact and operational performance. This study examines the effect of the adoption of GSCM on the operational performance of SMEs in Malaysia. A survey methodology using a five-point Likert scale questionnaire was employed to collect data from small and medium-sized enterprises (SMEs). In this study, the questionnaire assessed the adoption and perceived effectiveness of GSCM, including green procurement, warehousing and green building, distribution strategies and transportation execution, and internal environmental management, as well as their influence on operational performance. Of the 170 distributed questionnaires, 127 valid responses were collected and analyzed. The research findings offer valuable insights for SMEs aiming to enhance their environmental and operational outcomes through sustainable practices. This study provides originality by focusing on the adoption and impact of GSCM practices among SMEs in Malaysia. This context has been underexplored in existing literature. While much research has concentrated on large corporations, this study uniquely examines SMEs and their operational performance in terms of GSCM adoption in an emerging country context. Thus, this study provides empirical insights into the effectiveness of specific GSCM practices, contributing valuable insights to academia and industry.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Ahmad, A. F., & Karadas, G. (2021). Managers' perceptions regarding the effect of leadership on organizational performance: mediating role of green supply chain management practices. Sage Open, 11(2), 21582440211018686. https://doi.org/10.1177/21582440211018686
Ahmed, W., Najmi, A., & Khan, F. (2019). Examining the impact of institutional pressures and green supply chain management practices on firm performance. Management of Environmental Quality: An International Journal, 31(5), 1261-1283. https://doi.org/10.1108/MEQ-06-2019-0115
Ahsan, T., Al-Gamrah, B., & Mirza, S. S. (2022). Economic policy uncertainty and sustainable financial growth: Does business strategy matter? Finance Research Letters, 46, 102381. https://doi.org/10.1016/j.frl.2021.102381
Akbulut, H., & Burcin Yereli, A. (2023). A new look at the pollution halo hypothesis: The role of environmental policy stringency. Estudios de Economia, 50(1), 31-54. https://doi.org/10.4067/S0718-52862023000100031
Allam, D., Elseify, E., Youssef, A., & Khourshed, N. (2021). The relationship between green supply chain management and profitability. OALib, 08(02), 1-15. https://doi.org/10.4236/oalib.1105892
Alzoubi, H. M., Ahmed, G., Al-Gasaymeh, A., & Kurdi, B. A. (2020). Empirical study on sustainable supply chain strategies and its impact on competitive priorities: The mediating role of supply chain collaboration. Management Science Letters, 10(3), 703-708. https://doi.org/10.5267/j.msl.2019.9.008
Argiyantari, B., Simatupang, T. M., & Basri, M. H. (2022). Transportation performance improvement through lean thinking implementation. International Journal of Lean Six Sigma, 13(3), 622-647. https://doi.org/10.1108/IJLSS-06-2020-0075
Arora, A., Arora, A. S., Sivakumar, K., & Burke, G. (2020). Strategic sustainable purchasing, environmental collaboration, and organizational sustainability performance: the moderating role of supply base size. Supply Chain Management: An International Journal, 25(6), 709-728. https://doi.org/10.1108/SCM-07-2019-0284
Arunmozhi, M., Venkatesh, V. G., Arisian, S., Shi, Y., & Sreedharan, V. R. (2022). Application of blockchain and smart contracts in autonomous vehicle supply chains: an experimental design. Transportation Research Part E: Logistics and Transportation Review, 165, 102864. https://doi.org/10.1016/j.tre.2022.102864
Bag, S., Dhamija, P., Bryde, D. J., & Singh, R. K. (2022). Effect of eco-innovation on green supply chain management, circular economy capability, and performance of small and medium enterprises. Journal of Business Research, 141(March), 60-72. https://doi.org/10.1016/j.jbusres.2021.12.011
Bakar, M. F. A., Talukder, M., Quazi, A., & Khan, I. (2020). Adoption of sustainable technology in the Malaysian SMEs sector: does the role of government matter? Information, 11(4), 215. https://doi.org/10.3390/info11040215
Balasubramanian, S., Shukla, V., & Chanchaichujit, J. (2020). Firm size implications for environmental sustainability of supply chains: evidence from the UAE. Management of Environmental Quality: An International Journal, 31(5), 1375-1406. https://doi.org/10.1108/MEQ-01-2020-0004
Bari, N., Chimhundu, R., & Chan, K.-C. (2022). Dynamic capabilities to achieve corporate sustainability: a roadmap to sustained competitive advantage. Sustainability, 14(3), 1531. https://doi.org/10.3390/su14031531
Baskaran, A., Chandran, V. G. R., & Rajaghantham, D. (2023). Exploring SME environmental behaviour and practice: the case of Malaysia. Development Policy Review, 41(5), e12698. https://doi.org/10.1111/dpr.12698
Bekrar, A., Cadi, A. A. E., Todosijevic, R., & Sarkis, J. (2021). Digitalizing the closing-of-the-loop for supply chains: a transportation and blockchain perspective. Sustainability, 13(5), 2895. https://doi.org/10.3390/su13052895
Burke, H., Zhang, A., & Wang, J. X. (2023). Integrating product design and supply chain management for a circular economy. Production Planning & Control, 34(11), 1097-1113. https://doi.org/10.1080/09537287.2021.1983063
Choudhary, A., De, A., Ahmed, K., & Shankar, R. (2021). An integrated fuzzy intuitionistic sustainability assessment framework for manufacturing supply chain: a study of UK based firms. Annals of Operations Research. https://doi.org/10.1007/s10479-019-03452-3
Chueamuangphan, K., Kashyap, P., & Visvanathan, C. (2020). Packaging waste from e-commerce: consumers' awareness and concern. In Ghosh, S. (ed.) Sustainable Waste Management: Policies and Case Studies (pp. 27-41). Springer Singapore. https://doi.org/10.1007/978-981-13-7071-7_3
Cohen, J. (2013). Statistical power analysis for the behavioral sciences. Routledge. https://doi.org/10.4324/9780203771587
Ercantan, O., & Eyupoglu, S. (2022). How do green human resource management practices encourage employees to engage in green behavior? Perceptions of university students as prospective employees. Sustainability, 14(3), 1718. https://doi.org/10.3390/su14031718
Eti, S., Dincer, H., Yuksel, S., Uslu, Y. D., Gokalp, Y., Kalkavan, H., Mikhaylov, A., & Pinter, G. (2023). Determination of priority criteria in green building transformation: an analysis on the service industry. Research in Globalization, 7, 100164. https://doi.org/10.1016/j.resglo.2023.100164
Fan, J., Mehmood, S., Hussain, I., Nazir, S., & Basit, A. (2023). Transport infrastructure environmental performance: The role of stakeholders, technological integration, government policies and lean supply chain management. Frontiers in Environmental Science, 11, 1322466. https://doi.org/10.3389/fenvs.2023.1322466
Faul, F., Erdfelder, E., Buchner, A., & Lang, A.-G. (2009). Statistical power analyses using G*Power 3.1: tests for correlation and regression analyses. Behavior Research Methods, 41(4), 1149-1160. https://doi.org/10.3758/BRM.41.4.1149
Gilani, I. E., Sayadi, S., Zouari, N., & Al-Ghouti, M. A. (2023). Plastic waste impact and biotechnology: exploring polymer degradation, microbial role, and sustainable development implications. Bioresource Technology Reports, 24, 101606. https://doi.org/10.1016/j.biteb.2023.101606
Herbes, C., Beuthner, C., & Ramme, I. (2020). How green is your packaging-a comparative international study of cues consumers use to recognize environmentally friendly packaging. International Journal of Consumer Studies, 44(3), 258-271. https://doi.org/10.1111/ijcs.12560
Hong, J., Zheng, R., Deng, H., & Zhou, Y. (2019). Green supply chain collaborative innovation, absorptive capacity and innovation performance: Evidence from China. Journal of Cleaner Production, 241, 118377. https://doi.org/10.1016/j.jclepro.2019.118377
Hulla, M., Herstatter, P., Wolf, M., & Ramsauer, C. (2021). Towards digitalization in production in SMEs - a qualitative study of challenges, competencies and requirements for trainings. Procedia CIRP, 104, 887-892. https://doi.org/10.1016/j.procir.2021.11.149
Ibiyemi, A., Adnan, Y. M., Daud, M. N., Olanrele, S., & Jogunola, A. (2019). A content validity study of the test of valuers' support for capturing sustainability in the valuation process in Nigeria. Pacific Rim Property Research Journal, 25(3), 177-193. https://doi.org/10.1080/14445921.2019.1703700
Ibrahim, M. D., Pereira, M. A., & Caldas, P. (2024). Efficiency analysis of the innovation-driven sustainable logistics industry. Socio-Economic Planning Sciences, 96, 102050. https://doi.org/10.1016/j.seps.2024.102050
Isa, N. M., Sivapathy, A., & Kamarruddin, N. N. A. (2021). Malaysia on the way to sustainable development: circular economy and green technologies. In Sergi, B. S. & Jaaffar, A.R. (Eds.) Modeling economic growth in contemporary Malaysia (pp. 91-115). Emerald Publishing Limited. https://doi.org/10.1108/978-1-80043-806-420211009
Jain, S., Kalapurackal, J. J., Balaji, V., & M, S. (2024). Green manufacturing and performances in apparel export industry: mediating role of green innovation. Environmental Research, Engineering and Management, 80(3), 99-110. https://doi.org/10.5755/j01.erem.80.3.36398
Khan, M. T., Idrees, M. D., Rauf, M., Sami, A., Ansari, A., & Jamil, A. (2022). Green supply chain management practices' impact on operational performance with the mediation of technological innovation. Sustainability, 14(6), 3362. https://doi.org/10.3390/su14063362
Kim, D., Na, J., & Ha, H.-K. (2024). Exploring the impact of green logistics practices and relevant government policy on the financial efficiency of logistics companies. Heliyon, 10(10), e30916. https://doi.org/10.1016/j.heliyon.2024.e30916
Kumar, N., Brint, A., Shi, E., Upadhyay, A., & Ruan, X. (2019). Integrating sustainable supply chain practices with operational performance: an exploratory study of Chinese SMEs. Production Planning & Control, 30(5-6), 464-478. https://doi.org/10.1080/09537287.2018.1501816
Kumar, R. R., & Alok, K. (2020). Adoption of electric vehicle: a literature review and prospects for sustainability. Journal of Cleaner Production, 253, 119911. https://doi.org/10.1016/j.jclepro.2019.119911
Li, Q., Long, R., Chen, H., Chen, F., & Wang, J. (2020). Visualized analysis of global green buildings: development, barriers and future directions. Journal of Cleaner Production, 245, 118775. https://doi.org/10.1016/j.jclepro.2019.118775
Li, X., & Chen, F. (2021). Impact of logistics development on economic growth: an empirical research from Guangdong Province in China. Complexity, 2021(1), 9950935. https://doi.org/10.1155/2021/9950935
Lin, C.-Y., Alam, S. S., Ho, Y.-H., Al-Shaikh, M. E., & Sultan, P. (2020). Adoption of green supply chain management among SMEs in Malaysia. Sustainability, 12(16), 6454. https://doi.org/10.3390/su12166454
Loufrani, F. S., & Aldebert, B. (2020). A multilevel approach to competence management in innovative small and medium-sized enterprises (SMEs): Literature review and research agenda. Employee Relations: The International Journal, 43(2), 507-523. https://doi.org/10.1108/ER-04-2020-0173
Loza Adaui, C. R., Schmiedeknecht, M. H., SteinbiB, K., & Frohlich, E. (2024). Circular economy in sustainable supply chains: presenting a global perspective on challenges, concepts and cases. In E. Frohlich, K. SteinbiB, M. H. Schmiedeknecht, & C. R. Loza Adaui (Eds.), Circular Economy in Sustainable Supply Chains (pp. 1-18). Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-70749-0_1
Mallikarathna, D. H. K., & Silva, C. W. C. (2019). The impact of green supply chain management practices on operational performance and customer satisfaction. In Proceedings of the International Conference on Industrial Engineering and Operations Management, Bangkok, Thailand, March 5-7, 2019 ( pp. 2656-2667).
Manzoor, B., Othman, I., Gardezi, S. S. S., Altan, H., & Abdalla, S. B. (2021). BIM-based research framework for sustainable building projects: a strategy for mitigating bim implementation barriers. Applied Sciences, 11(12), 5397. https://doi.org/10.3390/app11125397
Mardani, A., Kannan, D., Hooker, R. E., Ozkul, S., Alrasheedi, M., & Tirkolaee, E. B. (2020). Evaluation of green and sustainable supply chain management using structural equation modelling: a systematic review of the state-of-the-art literature and recommendations for future research. Journal of Cleaner Production, 249, 119383. https://doi.org/10.1016/j.jclepro.2019.119383
Masoomi, B., Sahebi, I. G., Arab, A., & Edalatpanah, S. A. (2023). A neutrosophic enhanced best-worst method for performance indicators assessment in the renewable energy supply chain. Soft Computing, 27(24). https://doi.org/10.1007/s00500-023-09459-0
Micheli, G. J. L., Cagno, E., Mustillo, G., & Trianni, A. (2020). Green supply chain management drivers, practices and performance: A comprehensive study on the moderators. Journal of Cleaner Production, 259, 121024. https://doi.org/10.1016/j.jclepro.2020.121024
Nazir, S., Zhaolei, L., Mehmood, S., & Nazir, Z. (2024). Impact of green supply chain management practices on the environmental performance of manufacturing firms considering institutional pressure as a moderator. Sustainability, 16(6), 2278. https://doi.org/10.3390/su16062278
Oloruntobi, O., Mokhtar, K., Mohd Rozar, N., Gohari, A., Asif, S., & Chuah, L. F. (2023). Effective technologies and practices for reducing pollution in warehouses-A review. Cleaner Engineering and Technology, 13, 100622. https://doi.org/10.1016/j.clet.2023.100622
Perotti, S., & Colicchia, C. (2023). Greening warehouses through energy efficiency and environmental impact reduction: a conceptual framework based on a systematic literature review. The International Journal of Logistics Management, 34(7), 199-234. https://doi.org/10.1108/IJLM-02-2022-0086
Pielsticker, D. I., & Hiebl, M. R. W. (2020). Survey response rates in family business research. European Management Review, 17(1), 327-346. https://doi.org/10.1111/emre.12375
Pintuma, S., Moryadee, C., Chamsuk, W., Phochanikorn, P., & Shaharudin, M. R. (2024). The mediating role of green supply chain and supply chain collaborative innovation. Jurnal Pengurusan, 70. https://doi.org/10.17576/pengurusan-2024-70-1
Rajkiran, C., & Almeida, S. M. (2024). Unveiling green supply chain practices: a bibliometric analysis and unfolding emerging trends. Organizations and Markets in Emerging Economies, 15(2(31)), 378-417. https://doi.org/10.15388/omee.2024.15.18
Ren, X., Li, C., Ma, X., Chen, F., Wang, H., Sharma, A., Gaba, G. S., & Masud, M. (2021). Design of multi-information fusion based intelligent electrical fire detection system for green buildings. Sustainability, 13(6), 3405. https://doi.org/10.3390/su13063405
Rovetta, A., & Mansournia, M. A. (2024). P>0.05 Is Good: The NORD-h protocol for several hypothesis analysis based on known risks, costs, and benefits. Journal of Preventive Medicine and Public Health, 57(6), 511-520. https://doi.org/10.3961/jpmph.24.250
Rubel, M. R. B., & Rimi, N. N. (2022). Sustainable performance of green garment organizations in Bangladesh: effect of green supply chain management. Dhaka University Journal of Management, 14(1). https://doi.org/10.57240/DUJM140101
Saccenti, E., Hendriks, M. H. W. B., & Smilde, A. K. (2020). Corruption of the Pearson correlation coefficient by measurement error and its estimation, bias, and correction under different error models. Scientific Reports, 10(1), 438. https://doi.org/10.1038/s41598-019-57247-4
Sahoo, S., & Vijayvargy, L. (2021). Green supply chain management practices and its impact on organizational performance: evidence from Indian manufacturers. Journal of Manufacturing Technology Management, 32(4), 862-886. https://doi.org/10.1108/JMTM-04-2020-0173
Saini, N., Malik, K., & Sharma, S. (2023). Transformation of supply chain management to green supply chain management: certain investigations for research and applications. Cleaner Materials, 7, 100172. https://doi.org/10.1016/j.clema.2023.100172
Saleheen, F., & Habib, Md. M. (2023). Embedding attributes towards the supply chain performance measurement. Cleaner Logistics and Supply Chain, 6, 100090. https://doi.org/10.1016/j.clscn.2022.100090
Santino, C. N., de Oliveira Fontes, C. H., Rodriguez, J. L. M., & Filho, S. A. (2022). Model for analyzing the critical variables of an industrial process using fuzzy inference system and Likert scale. Arabian Journal for Science and Engineering, 1-14. https://doi.org/10.1007/s13369-021-06364-2
Santoso, A. I., Asrul, Saifuloh, N. I., & Andi Muhammad Sadli. (2024). Ways to enhance the performance of an organization: teachings from PT Pupuk Indonesia Logistik (PILOG). Journal of Managerial Sciences and Studies, 2(1), 59-66. https://doi.org/10.61160/jomss.v2i1.40
Sarkar, B., Tayyab, M., Kim, N., & Habib, M. S. (2019). Optimal production delivery policies for supplier and manufacturer in a constrained closed-loop supply chain for returnable transport packaging through metaheuristic approach. Computers & Industrial Engineering, 135, 987-1003. https://doi.org/10.1016/j.cie.2019.05.035
Shah, N., & Soomro, B. A. (2021). Internal green integration and environmental performance: the predictive power of proactive environmental strategy, greening the supplier, and environmental collaboration with the supplier. Business Strategy and the Environment, 30(2), 1333-1344. https://doi.org/10.1002/bse.2687
Sileyew, J. K. (2020). Research Design and Methodology. In Abu-Taieh, E.,El-Mouatasim, A., & Al-Hadid, I. H. (Eds.). Cyberspace. IntechOpen. https://doi.org/10.5772/intechopen.85731
Singhania, M., & Saini, N. (2021). Demystifying pollution haven hypothesis: role of FDI. Journal of Business Research, 123, 516-528. https://doi.org/10.1016/j.jbusres.2020.10.007
Sinkovics, N., Sinkovics, R. R., & Archie-Acheampong, J. (2021). Small- and medium-sized enterprises and sustainable development: In the shadows of large lead firms in global value chains. Journal of International Business Policy, 4(1), 80-101. https://doi.org/10.1057/s42214-020-00089-z
SME Corp. (2024). Companies listed on Bursa Malaysia. SME Corp. Malaysia. Retrieved from https://smecorp.gov.my/index.php/en/slides/9-uncategorised/305-e50-companies-listed-on-bursa-malaysia
Soni, G., & Kodali, R. (2012). Evaluating reliability and validity of lean, agile and leagile supply chain constructs in Indian manufacturing industry. Production Planning & Control, 23(10-11), 864-884. https://doi.org/10.1080/09537287.2011.642207
Stekelorum, R., Laguir, I., Gupta, S., & Kumar, S. (2021). Green supply chain management practices and third-party logistics providers' performances: A fuzzy-set approach. International Journal of Production Economics, 235, 108093. https://doi.org/10.1016/j.ijpe.2021.108093
Tantan, M., & Akdag, H. C. (2023). The effect of green supply chain management practices on the sustainability performance of Turkish shipyards. Sustainability, 15(8), 6677. https://doi.org/10.3390/su15086677
Tarigan, Z. J. H., Siagian, H., & Jie, F. (2021). Impact of enhanced enterprise resource planning (ERP) on firm performance through green supply chain management. Sustainability, 13(8), 4358. https://doi.org/10.3390/su13084358
Thanki, S., & Thakkar, J. J. (2019). An investigation on lean-green performance of Indian manufacturing SMEs. International Journal of Productivity and Performance Management, 69(3), 489-517. https://doi.org/10.1108/IJPPM-11-2018-0424
Tseng, M.-L., Islam, M. S., Karia, N., Fauzi, F. A., & Afrin, S. (2019). A literature review on green supply chain management: trends and future challenges. Resources, Conservation and Recycling, 141, 145-162. https://doi.org/10.1016/j.resconrec.2018.10.009
Wen, B., Musa, S. N., Onn, C. C., Ramesh, S., Liang, L., Wang, W., & Ma, K. (2020). The role and contribution of green buildings on sustainable development goals. Building and Environment, 185, 107091. https://doi.org/10.1016/j.buildenv.2020.107091
Wong, C. Y., Wong, C. W. Y., & Boon-itt, S. (2020). Effects of green supply chain integration and green innovation on environmental and cost performance. International Journal of Production Research, 58(15), 4589-4609. https://doi.org/10.1080/00207543.2020.1756510
Wungkana, F. A., Siagian, H., & Tariga, Z. J. H. (2023). The influence of eco-design, green information systems, green manufacturing, and green procurement on manufacturing performance. International Journal of Data and Network Science, 7(3), 1045-1058. https://doi.org/10.5267/j.ijdns.2023.6.001
Yang, Y., Chen, J., Lee, P. K. C., & Cheng, T. C. E. (2023). How to enhance the effects of the green supply chain management strategy in the organization: a diffusion process perspective. Transportation Research Part E: Logistics and Transportation Review, 175, 103148. https://doi.org/10.1016/j.tre.2023.103148
Yee, F. M., Shaharudin, M. R., Ma, G., Zailani, S. H. M., & Kanapathy, K. (2021). Green procurement capabilities and practices towards firm's triple bottom line in Malaysia. Journal of Cleaner Production, 307, 127268. https://doi.org/10.1016/j.jclepro.2021.127268
Yin, S., Wu, J., Zhao, J., Nogueira, M., & Lloret, J. (2024). Green buildings: requirements, features, life cycle, and relevant intelligent technologies. Internet of Things and Cyber-Physical Systems, 4, 307-317. https://doi.org/10.1016/j.iotcps.2024.09.002
Zhou, B., Siddik, A. B., Zheng, G.-W., & Masukujjaman, M. (2023). Unveiling the role of green logistics management in improving SMEs' Sustainability performance: do circular economy practices and supply chain traceability matter? Systems, 11(4), 198. https://doi.org/10.3390/systems11040198
Zimon, D., Madzik, P., Dellana, S., Sroufe, R., Ikram, M., & Lysenko-Ryba, K. (2021). Environmental effects of ISO 9001 and ISO 14001 management system implementation in SSCM. The TQM Journal, 34(3), 418-447. https://doi.org/10.1108/TQM-01-2021-0025