Implementation of strategic green orientation in supply chain

Abstract

Purpose The purpose of this paper is to present a research model that defines the inter‐relationships between strategic green orientation, integrated product development, supply chain coordination, green performance outcomes and business unit performance. This paper aims to address innovation issues by integrating strategic orientation, internal business practices, supply chain coordination, and performance outcomes measures. Design/methodology/approach The international data of 711 firms accessed through the International Manufacturing Strategy Survey (IMSS IV) are used to validate this model. Findings A firm's strategic green orientation involves past green practices, implementation of innovative environment improvement program and future commitment for environmental practices. This strategic green orientation is supported by a set of inter‐organizational innovation practices such as integrated product development practices, effective coordination of supply chain network and relevant and measurable performance outcomes. Originality/value The model, variables, empirical tests and results in this paper suggest a new understanding about strategic green orientation and its relationships with product development practices and supply chain coordination. The framework is intended both to explicitly inform senior executives of the importance of inter‐organizational innovation practices such as strategic green orientation in terms of past, present and future practices as well as to the factors that effectively implement such strategic direction and commitment. It is also intended to provide a lens with which further research can be directed to enhance environmental reputation and outcomes of firms through new product development practices and supply chain network coordination and the sustainable long‐term competitive advantages of the firms.