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Peer reviewed
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Chan, Ricky Y.K.; He, Hongwei; Chan, Hing Kai; Wang, William Y.C.
Industrial marketing management, 05/2012, Volume: 41, Issue: 4Journal Article
This study proposes and empirically tests a model delineating the relationship among environmental orientation, green supply chain management (GSCM) activities (green purchase, customer cooperation and investment recovery) and corporate performance. Based on responses from 194 foreign invested enterprises operating in China, this study has generated several important findings. First, it demonstrates that while both internal and external environmental orientations exert a positive and significant influence on the practice of green purchase and customer cooperation, internal environmental orientation further serves as a significant driver for the practice of investment recovery. Second, it shows that the practice of these three major GSCM activities, in turn, significantly enhances corporate performance. Last, the study reveals that competitive intensity strengthens the positive influence of customer cooperation on corporate performance. Overall, the findings explicate the importance for firms, in particular those operating in a highly competitive market condition, to nurture a pro-environmental corporate culture and improve their sensitivity to salient external stakeholders' environmental demands so as to pursue greener supply chain management. ► The relationship among environmental orientation, green supply chain management and corporate performance is examined. ► Internal and external environmental orientations positively influence green purchase and customer cooperation. ► Internal environmental orientation also positively affects investment recovery. ► Environmental orientation enhances corporate performance via green supply chain management practices. ► Competitive intensity further strengthens the positive influence of customer cooperation on corporate performance.
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