Drivers of Performance Indicators for Success of Green SCM Strategy and Sustainability Performance: The Mediator Role Innovation Strategy

Drivers of Performance Indicators for Success of Green SCM Strategy and Sustainability Performance: The Mediator Role Innovation Strategy

Ahmad Rajaa Al-Batayneh, Amineh A. Khaddam, Hani Jaza'a Irtaimeh, Suliman Raja Al-Batayneh
DOI: 10.4018/IJSSMET.2021090102
OnDemand:
(Individual Articles)
Available
$37.50
No Current Special Offers
TOTAL SAVINGS: $37.50

Abstract

This study sought to identify drivers of performance improvement indicators for GSCM strategy in Alban Al-Youm Company in Jordan and hence the impact of this strategy on sustainability performance through innovation strategy. Quantitative data were collected from a sample of participants from Alban Al-Youm Company in Jordan by a questionnaire-base survey to analyze research hypotheses via structural equation modeling (SEM). GSCM strategy success depends on pivotal drivers of performance improvement indicators. Eighteen significant drivers were identified in the current study. Moreover, the results found that GSCM strategy success exerted a significant effect on both innovation strategy and sustainability performance. Principally, innovation strategy mediated the effect of GSCM strategy on sustainability performance. This study is the first one to address performance indicators of GSCM practices in the dairy industry sector in Jordan. The study added knowledge value on the assessment of GSCM strategy performance, its impact on sustainability performance through innovation strategy.
Article Preview
Top

Introduction

The term sustainable or green supply chain refers to the idea of integrating sustainable environmental processes into the traditional supply chain (Khan, 2018). Which include critical activities like selecting suppliers and purchasing material, product/services design, product manufacturing and assembling, product distribution and other supply chain activities considering maintaining the environment quality. Forthermore, Nedaei (2018) noted that the actual scheduling methods can be achieved through transmission the jobs to staffs for specified time periods, which can also assistance the administrators attaining the full potential of their supply chains.

Firms, particularly industrial ones, are under pressure from stakeholders and shareholders to signal their sustainability and responsibility (Grant & Shaw, 2019). Moreover, Felfel et al. (2017) addressed that the tactical level of the supply chain planning attempts simultaneously to maximize the income and improve the high quality level related to product. by develop an integrated multi-site planning approach that takes into account the coordination between the several units of the supply chain.

The most common trend among companies in this context is the application of green supply chains (GSCM) practices. However, companies may face problems that damage their reputation even though they are not the main cause of these problems, particularly in the context of sustainability (Zhu et al., 2019). There are many examples of companies that have had problems in the market because of errors caused by supply chain partners rather than the company itself. For this reason, companies should review the performance indicators used to measure GSCM practices performance.

Hence, scholars from different countries with diverse economies pay great attention to green supply chains (GSCM) practices studying numerous issues like benchmarking of SCSM-related constructs such as risk management (Mangla et al., 2018), performance model utilized to determine the practices of GSC management practices that support firms’ environmental sustainability (Sahu et al., 2018). Attention to supply chains is not only the concern of researchers but also the government, suppliers, customers, communities and other organizations (Batayneh & Abu-Hussien, 2016; Seman et al., 2018). GSCM, which fall under corporate environmental practice, is very important for environmental performance improvement due to the fact that the adoption of such an environmental sustainability effort, i.e., GSCM, should results in increased firm’s profitability and market share (Seman et al., 2018).

Zhu et al. (2019) called all firms to implement GSCM practices effectively in order to avoid risks. Meeting what was stated in the previous statement means that firms should pay more attention to the practices of their supply chains. A postulated solution for ineffectively implemented practices of GSCM is the control of suppliers’ environmental performance. As Makower (2015, cited in Zhu et al., 2019: 59) stated “92 percent of environmental damages are indirectly generated from its [firm] suppliers”. Consequently, a relatively recent vein of the literature aimed at proposing models for performance measures related to environmental benchmarking on the basis of firms’ green practices (e.g., Sangwan & Choudhary, 2018; Tuni et al., 2018; Choudhary & Sangwan, 2018; & Mor et al., 2018a). Continuously, scholars are invited to consider environmental measurements of GSCM practices. Kazancoglu et al. (2018) argued that the implementation of GSCM practices as well as performance indicators is very principal for firms to continue to exist in business competitive environment. Therefore, this study is one of the leading studies on this topic.

Complete Article List

Search this Journal:
Reset
Volume 15: 1 Issue (2024)
Volume 14: 1 Issue (2023)
Volume 13: 6 Issues (2022): 2 Released, 4 Forthcoming
Volume 12: 6 Issues (2021)
Volume 11: 4 Issues (2020)
Volume 10: 4 Issues (2019)
Volume 9: 4 Issues (2018)
Volume 8: 4 Issues (2017)
Volume 7: 4 Issues (2016)
Volume 6: 4 Issues (2015)
Volume 5: 4 Issues (2014)
Volume 4: 4 Issues (2013)
Volume 3: 4 Issues (2012)
Volume 2: 4 Issues (2011)
Volume 1: 4 Issues (2010)
View Complete Journal Contents Listing