Do environmental collaboration and monitoring enhance organizational performance?

Abstract

Purpose The purpose of this paper is to contribute significantly to the first wave of empirical investigations related to the impact of green supply chain management practices on environmental and organizational performance from a manufacturer's perspective within a supply chain context. Design/methodology/approach An environmental collaboration and monitoring performance model is theorized and assessed following a structural equation methodology. Data were collected from 159 manufacturing managers through an on‐line survey. Findings Environmental collaboration and monitoring practices among supply chain partners are found to lead to improved environmental performance and organizational performance. Research limitations/implications As a first wave investigation of the impact of green supply chain management practices on performance, the study is somewhat exploratory. Practical implications Practitioners are provided with a framework for assessing the impact of environmental collaboration and monitoring practices among supply chain partners on environmental performance and organizational performance. The study provides evidence that green supply chain practices lead to improved environmental and organizational performance. Social implications The results also have important societal implications. While green supply chain management practices enhance the economic sustainability of the firm, they also positively impact society through improvements to the overall environment. Originality/value The results of this investigation support the proposition that implementation of environmental collaboration and monitoring practices by supply chain partners are both environmentally necessary and good business. The paper provides manufacturing managers with a structured approach to improving both environmental and organizational performance through environmental collaboration and monitoring with customers and suppliers.