The investigation on the barriers of green supply chain adoptions among SMEs in Penang: the role of business strategic orientation as moderator
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Date
2010
Authors
Goh, Chee Wooi
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Abstract
With the rapid growth and development of the industries, global warming and depletion of
natural resources have become a concern for the society, government and the industry.
Because of that, green topic has become an important issue. Although Penang government has
put heavy resources and efforts to promote and encourage green initiatives, green supply
chain has not been widely adopted by the industries in Penang especially SMEs. Thus, the
purpose of this study is to investigate barriers that hinder SMEs in Penang from adopting
green supply chain initiatives. In addition, it also investigates the moderating effect of
business strategic orientation on the relationship between the barriers and green supply chain
initiatives. To attain its’ objectives, questionnaire approach is adopted in this study and a
sample of 92 respondents is collected through questionnaire method. SPSS statistical tool is
used to test the descriptive and regression statistics. The result shows that the adoption of
green supply chain initiatives by the SMEs in Penang is low. The reasons of low adoption of
green supply chain initiative (green purchasing) are resource barrier and attitudinal and
perception barrier. Technical barrier proves to be the factor that impedes the adoption of
design for environment by the SMEs in Penang. However, the study found no convincing
evidence to support the moderating effect of business strategic orientation on the relationship
between the barriers and green supply chain initiatives. With the results and findings in this
study, government and industry would have a better understanding of the barriers that faced
by the SMEs. That allows government as well as big corporation to take corrective actions to
drive and promote green supply chain initiatives across the entire supply chain.
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Keywords
Business Administration , Supply Chain , SMEs