The Effect Of Green Supply Chain Management On Sustainable Business Performance : The Green Airport Suppliers' Perspective
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Date
2014
Authors
Ahmad Kamal, Alia Nadhirah
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
As awareness on the damaging impacts that airport industry brings to the environment increases, more airports around the globe have enthused in establishing operations that are more eco-friendly including Malaysia‘s airports. Green supply chain management (GSCM) is one significant movement towards sustainability that has been adopted in many industries worldwide and it involves stakeholder integration. Similarly, GSCM has received increasing adoption among service industries especially the airport industry. Realizing the importance of incorporating the upstream members in establishing GSCM in Malaysia‘s airport industry, the members have to be convinced that practicing GSCM would provide numerous benefits on their sustainable business performance. Therefore, this study is noteworthy in which it attempted to analyse the relationship between GSCM and suppliers sustainable business performance of Malaysia Airports Holdings Berhad (MAHB). An online survey was administrated to suppliers provided by MAHB and 77 sets of questionnaire were analysed through structural equation modelling (SEM) with PLS and IBMSPSS. The findings have also proven that from the suppliers‘ perspective, green supply chain management practices facilitates sustainable business performance. It was found that while GSCM does not only help the local firm to achieve its environmental objectives in total, but GSCM has also positively influenced suppliers to increase financial performance while minimising their operational impacts to the environment. To a certain extent, GSCM has increased suppliers‘ operational performance and position the suppliers as more agile in the market. Nevertheless, GSCA as a mediating factor was only significant for green purchasing. Further research should be carried out to study the impact of GSCA on GSCM by identifying other elements of GSCA and extended to different types of organizations.
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Keywords
Green supply chain management , significant movement towards sustainability