Do environmental collaboration and monitoring enhance organizational performance?
| Published date | 09 March 2012 |
| DOI | https://doi.org/10.1108/02635571211204254 |
| Pages | 186-205 |
| Date | 09 March 2012 |
| Author | Kenneth W. Green,Pamela J. Zelbst,Vikram S. Bhadauria,Jeramy Meacham |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
Do environmental collaboration
and monitoring enhance
organizational performance?
Kenneth W. Green, Jr
Department of Management,
Marketing, and Management Information Systems, College of Business,
Southern Arkansas University, Magnolia, Arkansas, USA
Pamela J. Zelbst
Department of Management and Marketing,
College of Business Administration, Sam Houston State University,
Huntsville, Texas, USA, and
Vikram S. Bhadauria and Jeramy Meacham
Department of Management,
Marketing, and Management Information Systems, College of Business,
Southern Arkansas University, Magnolia, Arkansas, USA
Abstract
Purpose – The purpose of this paper is to contribute significantly to the first wave of empirical
investigations related to the impact of green supply chain management practices on environmental
and organizational performance from a manufacturer’s perspective within a supply chain context.
Design/methodology/approach – An environmental collaboration and monitoring performance
model is theorized and assessed following a structural equation methodology. Data were collected
from 159 manufacturing managers through an on-line survey.
Findings – Environmental collaboration and monitoring practices among supply chain partners are
found to lead to improved environmental performance and organizational performance.
Research limitations/implications – As a first wave investigation of the impact of green supply
chain management practices on performance, the study is somewhat exploratory.
Practical implications – Practitioners are provided with a framework for assessing the impact of
environmental collaboration and monitoring practices among supply chain partners on environmental
performance and organizational performance. The study provides evidence that green supply chain
practices lead to improved environmental and organizational performance.
Social implications – The results also have important societal implications. While green supply
chain management practices enhance the economic sustainability of the firm, they also positively
impact society through improvements to the overall environment.
Originality/value – The results of this investigation support the proposition that implementation of
environmental collab oration and monitorin g practices by supply chain p artners are both
environmentally necessary and good business. The paper provides manufacturing managers with a
structured approach to improving both environmental and organizational performance through
environmental collaboration and monitoring with customers and suppliers.
Keywords Supply chain management, Informationsystems, Organizational performance,
Environmentalperformance, Green supply chain managementpractices, Environmental collaboration,
Environmentalmonitoring, Green information systems
Paper type Research paper
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0263-5577.htm
IMDS
112,2
186
Received 3 May 2011
Revised 12 September 2011
Accepted 12 September 2011
Industrial Management & Data
Systems
Vol. 112 No. 2, 2012
pp. 186-205
qEmerald Group Publishing Limited
0263-5577
DOI 10.1108/02635571211204254
1. Introduction
As both internal and external pressures build to force firms to adopt and maintain
environmentally friendly processes and to produce environmentally friendly pro ducts
and services, manufacturers must consider the impact of such an environmental
approach on business performance and the economic viability of the firm, as well as
on the environmental performance of the firm (Elliot, 2011; Leo
´n-Soriano et al., 2010).
This “green” approach requires that manufacturers, suppliers, and customers wi thin
supply chains work together to develop environmental solutions and monitor the
implementation of those solutions (Gnoni et al., 2011). Green supply chain management
practices have been developed as practical means to implement an environmentally
focused strategy (Vachon and Klassen, 2006a; Zhu et al., 2008). Whether green supply
chain management practices, such as environmental collaboration and environmental
monitoring among supply chain partners, are likely to bolster organizational
performance is a concern.
This study builds on the green supply chain management scale development work
of Vachon and Klassen (2006a) and Zhu et al. (2008). We extend their work by
developing and empirically testing an environmental collaboration and monitoring
performance model. The model takes a manufacturer’s perspective within a supply
chain context. The focal constructs in the model are environmental collaboration with
suppliers and customers and environmental monitoring of suppliers and by customers.
Generally, we propose that manufacturing organizations should formally adopt
environmental sustainability as a strategic imperative and modify existing
information systems to monitor environmental sustainability practices and
outcomes before adopting collaboration and monitoring practices with suppliers and
customers.
We believe that this study is original on several counts. First, it is our purpose to
establish whether it is “good business” to adopt environmental practices in collaboration
with supply chain partners. Second, we theorize and assess a structural model that
incorporates antecedents to and consequences of environmental collaboration and
monitoring. Third, based on the results of model assessment, we describe a structured
approach to improving environmental and organizational performance through
environmental collaboration and monitoring.
2. Literature review and hypotheses
As customers begin to demand that products and services be provided without
damaging the environment, managers will make decisions that support the integration
and coordination of environmental practices throughout the supply chain (Vachon and
Klassen, 2006a, 2007). Competitive advantage can be gained through adoption of an
environmental strategy and implementation of environmental collaboration and
monitoring practices (Sen, 2009).
The broad view of sustainable supply chain management incorporates the concepts
of economic, social, and environmental performance (Carter and Easton, 2011; Carter
and Rogers, 2008). The literature related to sustainable supply chain management is
relatively well developed (Carter and Easton, 2011; Carter and Rogers, 2008). Klassen
(1993) argues for integrating environmental issues into the mainstream of supply chain
management. Linton et al. (2007) assert that the focus of environmental management
has moved from the organization level to the supply chain level.
Environmental
collaboration and
monitoring
187
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