Effects Of Green Supply Chain Management Practices On Organizational Performance: The Mediating Role Of Manufacturing Capability

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Date
2014-05
Authors
Low, Chea Huat
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Publisher
Universiti Sains Malaysia
Abstract
This project is aimed to study the relationship of GSCM practices on organizational performances and at the same time investigate whether the manufacturing capabilities serves as the mediating role between the GSCM practices and organizational performances. Four dimensions of GSCM practices were used to study the impact towards the organizational performances, while four dimensions of manufacturing capabilities were deployed to test the mediation effect. Quantitative method was used with data obtained from the questionnaires from the sample of 103 large manufacturing firms listed in the Federation of Malaysia Manufacturers (FMM). SmartPLS 2.0 software was deployed to confirm the data validity and reliability, and structural path modeling was used to examine the path relationship between the predictor variables and dependent variables and the mediation effect. The result has showed that GSCM practices significantly influencing the manufacturing capabilities. The manufacturing capabilities have significant impact towards the organizational performances. The manufacturing capabilities (cost and delivery capability) were found to have mediation effect between the relationship of GSCM practices and organizational performance. The theoretical implication of this study contributes to the literature of the GSCM practices, manufacturing capability and the organization’s performances in the manufacturing industry in Malaysia and further strengthens the resource-based view (RBV) theory whereby the GSCM practices as the inimitable resources drive the organization to achieve manufacturing capability competitive advantage. The practical implication enables the managers to adopt the GSCM practices that will influence their organizational performance.
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Keywords
Green supply chain management practices , on organizational performance
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