Drivers of green supply chain initiatives and performance

Abstract

Purpose The purpose of this paper is to explore how internal and external factors simultaneously drive firms to adopt green supply chain (GSC) initiatives and to construct a comprehensive research model by drawing upon institutional theory, stewardship theory, and view of performance. Design/methodology/approach The data collected from 380 manufacturers in the electrical and electronics industries in Taiwan were analyzed via structural equation modeling and bootstrapping. Findings First, institutional pressures affect the GSC initiatives of firms. Second, institutional pressures influence the environmental stewardship behaviors (ESBs) of managers. Third, the ESBs of managers affect the GSC initiatives of firms. Fourth, the GSC initiatives of firms influence their environmental performance, economic performance, and competitiveness. Fifth, the bootstrapping results reveal that institutional pressures indirectly affect the GSC initiatives of firms through the ESBs of managers. Research limitations/implications Environmental sustainability has intensified the need for firms to develop a corporate culture. Future research can investigate the relationship among the institutional pressures, greening corporate culture, and GSC initiatives of firms. Practical implications Those managers facing institutional pressures must continually focus on the effects of external factors on the GSC initiatives of their firms. They must also increase their commitment and support to such initiatives to attain favorable levels of environmental performance, economic performance, and competitiveness. Originality/value This study integrates four streams of literature on institutional theory, stewardship theory, GSC initiatives, and view of performance. Apart from analyzing field- and organization-level data simultaneously, this paper is also the first to demonstrate the relationships among institutional pressures, ESBs of managers, GSC initiatives, and firm performance.