THE INFLUENCE OF GREEN SUPPLY CHAIN MANAGEMENT PRACTICES ON FIRM

COMPETITIVENESS PERFORMANCES

Nur Syakila, UiTM

Abstract

Purpose - The purposes of this study are to examine the significance of GSCM practices- green
production, green purchasing and investment recovery towards firm competitiveness performances.
Furthermore, the green practices have to be told to the various industries to mitigate and minimize the
negative environmental impact. Therefore the employees must be aware of the green practices so that
it will encourage everyone to cooperate in it

Methodology - The method that used is quantitative research which is questionnaire. They distributed
it to respondents under the scope of manufacturing firms that using ISO 14001.541 questionnaires had
been distributed to the specific person that holds the managerial position of the company but only 100
usable questionnaires were returned and it is the only results that have been used for the entire
research. The results are based on regression analysis and equation modeling by using SPSS software.

Findings – The study finds that green production and green purchasing are positive relationship and
investment recovery are negative relationship between firm competitiveness performances.

Practical implications – Some of the implications are the positive impact on firm competitiveness
regarding green production and green purchasing. Then, to encourage firms to implement GSCM
practices in their industry and the firm can implement the 3Rs program which is reuse, reduce and
recycle in the production lines.

Originality/value - A comprehensive GSCM practices model is proposed and empirically assessed.

The results of this investigation support the proposition that GSCM practices are influence on firm
competitiveness performances.

Keywords – Firm competitiveness; green production; green purchasing; partial least squares; PLS;
manufacturing; Malaysia

Paper type – Research paper

INTRODUCTION

This research is focused on the firm competitiveness that influenced by GSCM practices. Supply
chain is the most crucial part in any business organizations (Zolait, Ibrahim, Chandran, &
Sundram, 2010). Supply chains have become more multifarious than before thus the ruthlessness
and occurrence of supply chain disruptions seems to be increasing (Thirunavukkarasu, et al.,
2014). Firm competitiveness is a capability of a firm to sustainably fulfill its double purpose:
meeting customer requirements at profit. This capability is realized through offering on the market
goods and services which customers value higher than those offered by competitors.

SCM practices are viewed from a variety of different perspectives and multi-dimensional concept.
SCMP have been defined as the set of activities undertaken in an organization to promote effective
management of its supply chain (Sundram, et al., 2011). A supply chain network, which is
necessary to provide quick responses to customer demands and preferences, affords the leverage for
companies to become competitive in the ever-changing marketplace (Rajagopal, et al., 2016).

The practice of supply chain management is a very recent phenomenon. Many organizations are
beginning to realize the benefits and problems that accompany an integrated supply chain. As
markets for the supply chain grow, so too must the supply chain. Therefore the issues in supply chain
have also increase. It can be seen when the supply chain dynamic today is changing, and companies

Electronic copy available at: https://ssrn.com/abstract=2882969

are now working with firms located all over the globe to coordinate to purchasing, manufacturing,
and logistics activities (Sundram, Atikah, & Chandran, 2016). Green supply chain management is
an integration of natural environmental worries into supply chain management by implementing
various green practices like life cycle analysis (LCA), green design, green purchasing, 3Rs
(recycling, reuse, and remanufacturing), environmental technologies, green logistics, and
collaborative practices with suppliers, distributors, and customers (Ahi & Searcy, 2013). So, GSCM
practices encompass all supply chain tasks from green purchasing to integration of life cycle
management and from manufacturer to customer. Green supply chain can be achieved through
various kinds of green practices and initiatives (Rao & Holt, 2005); (Srivastava, 2007).

Green production, which is emphasized by „reuse, reduce, recycle‟ (3Rs), will help the firm in cost
saving from direct materials and total product cost. Consequently, the firm‟s production will be more
efficient, which, in turn, will lead to increased firm competitiveness. Development of
environmentally friendly processes, products, and services requires a unified effort by all members
of the supply chain to avoid sub-optimization at the partner level (Vasileiou, K. and Morris, 2006).

Green purchasing also give the impact toward firm competitiveness. Purchasing of green materials is
a costly task but generates economic value like reduced disposal costs and improved resource
conservation and improved image for the organization (Azevedo, Carvalho, & Machado, 2011).
Green purchasing include with selecting supplier based on environmental criteria, purchase products
that must contain green environmental undesirable items evaluates suppliers based on specific
environmental criteria and evaluates the environmental aspects of is second-tier suppliers.

Investment recovery directly impacts environmental performance but does not directly impact
economic performance as hypothesized for the US sample but they found that investment recovery
positively impacts economic performance under conditions of regulatory and competitive pressures
but not market pressure. Zhu & Sarkis, (2007) did not find a positive association for investment
recovery with environmental performance for the Chinese sample.

PROBLEM STATEMENT

Competitiveness is a crucial part in every firms and organizations. It is because the influence of
green supply chain management will give competitiveness performances towards firms. A hole in the
green supply chain networks will affect the whole chain in the supply network. The causes of firm
competitiveness failed due to in some of lack in performances firm and relationship with other
practices. Any sorts of waste, either an internal or external occurrence, they are a large amount of
expenses of time and money. It can be improve through more efficient supply chain (Akmal, Sofiah,
Sundram & Bhatti, 2015).

GSCM practices have lack of conformity in the present literature pertaining to their causal and
direction of causality between the practices (Mitra & Datta, 2014). For instance, (Zhu & Sarkis,
2004) discovered no causal association between external GSCM and green design. On the other
hand, Zailani et al. (2012) found no causal connection between the eco-purchasing and sustainable
eco-packaging.

Some of authors had contended GSCM give improvement to the firm. Environmental
competitiveness is derived from environmental performance which means, the firms achieve a
certain environmental standard that stresses environmental protection, improved use of resources and
energy efficiency (Bendavid-Val and Perine, 2003). Thus, the experts in the industry need to have a
thorough review in solving these issues from different perspectives so that we can identify these
problems.

Electronic copy available at: https://ssrn.com/abstract=2882969

LITERATURE REVIEW

Firm Competitiveness Performances

Competitiveness of firms has been studied in the interdisciplinary fields of strategy, operations and
economic (Ambastha & Momaya, 2004). Although firm competitiveness is a very popular term
among practitioners and academicians, there is no agreement on its meaning. In the academic
literature, the term “firm competitiveness” has been defined in several ways. Porter defines
competitiveness as the ability of a given firm to successfully compete in a given business
environment. Lall defines firm competitiveness as the ability of a firm to do better than benchmark
companies in terms of profitability, sales, or market share. In terms of the firm performance
measurement, we examine whether the aggregate performance of a firm, as assessed by operations
excellence, revenue growth, and customer relationships, is influenced by supply chain practices.
Many managers now realize that actions taken by one member of the chain can influence the
profitability of all others (Ibrahim, et al., 2010).

Green Production Practices

The greening of industry largely refers to the greening of production, as pollutants are largely
generated during the production process of goods and services. To achieve the efficient use of raw
materials, conservation of water and energy and reduce or minimize the generation of pollution and
waste, among the concepts being implemented right now are cleaner production, total quality
environmental management, eco-efficiency and lean production.

By broadening the responsibility of manufacturers, the companies try to integrate environmental

considerations in their product design, choice of raw materials, technology and even their suppliers
and business partners. Further, to make greening of production a reality, the participation and
involvement of workers in the organization also has to become reality.

Green Purchasing Practices

Green purchasing is defined as an environmentally-conscious purchasing practice that reduces

sources of waste and promotes recycling and reclamation of purchased materials without adversely
affecting performance requirements of such materials. This study focus on the relationship between
green purchasing management, understood to be the effort a firm makes to form a panel of
environmentally conscious suppliers, and the operating performance of the purchasing function,
understood to be the ability to ensure suppliers provide products and services of greater quality, with
shorter delivery times and at a lower cost.

Investment Recovery

United States and European enterprises have considered investment recovery as a critical aspect of
GSCM (Zsidisin, G.A., Hendrick, 1998) and CLSC (Thierry, Salomon, Van Nunen, & Van
Wassenhove, 1995). Investment recovery typically occurs at the back end of the supply chain cycle
or as a method to „„close the loop‟‟. Numerous new terms such as Global Supply Chain, Third Party
Logistics, Green Logistics, E-Logistics and Reverse Logistics are becoming issues that have to be
deal with by all companies, local, multinational and global. Lately Reverse Logistics start to get
attention by most of the firms (Rajagopal, Sundram, & Babudass 2015). In China, investment
recovery continues to grow, where pressures from the government has shifted focus from resource
subsidies to levying taxes for some resources such as coal and natural gas (Zhu, Q., Cote, 2002).

Electronic copy available at: https://ssrn.com/abstract=2882969

RESEARCH MODEL AND HYPOTHESES

INDEPENDENT VARIABLES DEPENDENT VARIABLES

GREEN
PRODUCTION
H1

FIRM
GREEN
COMPETITIVENESS
PURCHASING
PERFORMANCES
H2

INVESTMENT
RECOVERY
H3
Figure 1: Theoretical Framework

RELATIONSHIP BETWEEN GPD AND FCP

The ability of organizations to manage their environmental performance is emerging as a strategic

issue for firms (Henri & Journeault, 2008).

H1: There is relationship between green production practices and firm competitiveness
performances.

RELATIONSHIP BETWEEN GPC AND FCP

The terms “purchasing” and “procurement” are often used interchangeably within discussions about
the buying activities of companies (Noraizah, et al., 2016). We focus on the relationship between
green purchasing management, understood to be the effort a firm makes to form a panel of
environmentally conscious suppliers, and the operating performance of the purchasing function,
understood to be the ability to ensure suppliers provide products and services of greater quality, with
shorter delivery times and at a lower cost.

It is posited here that this relationship is stronger and, therefore, green purchasing management may
be more fruitful, when the purchasing function forges stable and lasting bonds with suppliers and
when this function is strategically integrated within the organization.

H2: There is relationship between green purchasing practices and firm competitiveness.

RELATIONSHIP BETWEEN IRP AND FCP

Investment recovery in China seems to have received much less attention than developed countries
such as the US and Germany, which have more mature waste management policies and recycling
systems.

To attract more investment, industrial zones in China provide subsidies for enterprises to cover solid
waste disposal. Since treatment for waste recovery can be expensive, many Chinese enterprises
consider investment recovery such as material recycling and recovery as costly (Zhu & Sarkis,
2004). Moreover, recycling and recovery sometimes are difficult in China due to the lack of
recycling systems and relevant technologies.

On the other hand, investment recovery had no significant relationship with firm competitiveness.
One of the possible reasons may be due to the low implementation and monetary restriction. The
overall framework for investment recovery is expensive. Firms may not look at the whole value
chain and the long run benefit.

H3: There is no relationship between investment recovery practices and firm competitiveness
performances.

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RESEARCH METHODOLOGY AND RESULT

Questionnaire design, pilot study and sampling

Questionnaires are one of the most widely used means of collecting data, and therefore many novice
researchers in business and management and other areas of the social sciences associate research
with questionnaires. Questionnaires help gather information on knowledge, attitudes, opinions,
behaviors, facts, and other information. This intention is to highlight the value and analytical tools
that have been use by the past researcher, which can be, adopt in this research study (Bhatti and
Sundram, 2015).

There are many other sources of advice on designing and using research questionnaires that you
could also consult. First, there are many research methods textbooks that offer a basic grounding in
research methods (Bryman, A. and Bell, 2011); (Collis, J. and Hussey, 2009); (Cresswell, 2008);
(Denscombe, 2010);(Easterby-Smith et al., 2012); (Lee, N. and Lings, 2008); (Saunders et al.,
2012); since these books have a wide scope, they only provide limited information on questionnaires
as a data collection method. Interestingly, there are only a few texts that deal specifically with
quantitative methods (Oakshott, 2009); (Swift, L. and Piff, 2010). Finally, there are a few texts
devoted specifically to questionnaires and/or surveys; amongst these (Oppenheim, 1992) is regarded
as a classic, whilst (Gillham, 2007), (Sue, V.M. and Pitter, 2012) and (Fowler, 2008) are also useful
guides.

A questionnaire was developed fieldwork was conducted to collect data on the influence of green
supply chain management on firm competitiveness performances. For the questionnaire, this study
will be using 27 type of question that can measure the GSCM on firm competitiveness performances.
A total of 541 questionnaire has been given to the list of manufacturing firm in Malaysia that were
ISO 14001 certified and listed in the Federation of Malaysian Manufacturers (FMM) directory for
2010 and the Malaysian Certified Online Database in order to obtain information and in-depth
knowledge about the influence of GSCM on firm competitiveness performances. The scope of this
study was by design limited to participants' responses within a particular time frame and they were
only given a single opportunity to respond (Akmal, Sundram, Nazura, & Atikah, 2016). At the
end of the data collection period, only 100 fully completed and useable questionnaires were used for
data analysis. Therefore the size use in this study is 100. In addition, selecting companies from
different manufacturing sector may also pose difficulties in controlling certain characteristics of
supply chain configuration such as supply chain design(Sundram et al., 2016). The entire
respondents selected are experts in certain position such as from the environment, health and safety,
operations, quality production supply chain and engineering department. All items were measured on
Likert type scales with response option ranging from 1(strongly disagree) to 5(strongly agree).

The pilot study was conducted by distributing sample questionnaires to 30 selected respondents to
pre-assess the validities of all construct by asking different senior executives to act as a judge and
sort the items as well as their understanding on the questionnaire given Sundram, Rajagopal, &
Bhatti, (2013).

All items are being assessed except for the items in demographic profile. The results were then
analyzed by using the SPSS on the reliability analysis test. As stated in the table below, all items
scores represent an excellent level of agreement since several it is considered that scores greater than
0.50 are said to be acceptable.

The sample size use in this study is about 100 which are randomly selected. This sample of 100
respondents is expected statistically projectable to the number of person holding a managerial
position, preferable environment, health and safety, supply chain and others. The sampling procedure
used for this study was the probability and non-probability sampling.

Probability sampling can be either unrestricted (simple random sampling) or restricted (complex
probability sampling) in nature (Sundram & Chandran, 2010).

5
DATA COLLECTION AND PROFILE OF RESPONDENTS

The data were collected using the self-administered approach, i.e. a mail survey is sent to
respondents through the email. Questionnaires were distributed to the respondents through e-mail
and they were asked to fill out the questionnaires on the influence of GSCM practices on firm
competitiveness. There will be a follow-up mailing and phone calls in between the first mailing
attempt. The benefit of this method includes cheaper distribution and processing fees, faster
turnaround time, more flexibility, and less paper chasing (Sundram, Chandran, and Bhatti, 2012).

First section is demographic information. This section will ask about the respondent‟s background of
work and the duration they are involved in the industry. Background section is more about the
respondents because the results will evaluate which departments are really take note about the
effectiveness of green supply chain. Second section is for independent variables of the study. The
questions will be separated into three parts according to the three types of independent variables.
There are green production, green purchasing and investment recovery. Last section in the
questionnaire is for dependent variable. This section will ask about firm competitiveness
performances.

At the end of the data collection period, a total of 100 questionnaires were collected and completed
questionnaires were used for data analysis. Therefore the size use in this study is 100.
Table 1: Job Tittle of respondents firm
Categories Frequency Percentages
Job Tittle Manager 39 39.0
Director 36 36.0
CEO/President 25 25.0

Table 2: Job Department of respondents firm

Environment 20 20.0
Health and safety 26 26.0
Operation 14 14.0
Job Department Quality 10 10.0
Production supply chain 16 16.0
Engineering 14 14.0

Table 3: Types of industry firm

Electrical/electronic 17 17.0
Basic metal 11 11.0
Rubber and plastics 13 13.0
Chemical 9 9.0
Types of Industry Infrastructure/construction 18 18.0
Textile wearing apparel 6 6.0
Wood (furniture) 8 8.0
Food and beverages 10 10.0
Others 8 8.0
Table 4: Region of firm

Northern region 21 21.0

Region Central region 28 28.0
Southern region 24 24.0
East Malaysia 27 27.0

6
Table 5: Year in business of firm

Less than 2 years 20 20.0

Year in Business 2-5 years 30 30.0
6-10 years 37 37.0
More than 10 years 13 13.0

Table 1 and Table 2 provide a profile of the respondents in the survey. Table 1 show that most of the
respondents were manager which is 39. Table 2 shows that most of the respondents were from health
and safety department which is 26. Table 3 shows that most of the respondents were from
infrastructure/constructor industry which is 18. Table 4 shows that the majority of the regions were
from central region which 18. Table 5 shows that most of the organizations have been in business
were 6-10 years which is 37.

HYPOTHESES TESTING AND RESULT

The process of analyses a data and finding analysis begins after all the data and information had been
gathered through the data collection method Bhatti, Hee, & Sundram, (2012).

Table 6 presents the mean values, standard deviations and the number of items for each variable. For
the independent variables, Green Purchasing yielded the highest mean (4.1080), followed by Green
Production (4.0750) and lastly Investment recovery (2.6100). Since green purchasing practices
yielded mean value more than 4.1, one can conclude that the respondents‟ perceptions on this variable
are mostly favourable.

ID Variable name Mean (=100) Std. No. of item

FCP Firm Competitiveness 4.0771 .7938 14

Performances

GPD Green Production 4.0750 .7957 4

Practices

GPC Green Purchasing 4.1080 .7244 5

Practices

IRP Investment Recovery 2.6100 1.0434 4

Practices

Table 6: Mean, Std. Deviation and Cronbach‟s Alpha

It is very important to study the properties of measurement scales and the tems that compose the
scales. Usage of SPSS software was done in order to ensure the variables in the model are reliable.
Most commonly used reliability test is Cronbach‟s Alpha Index. This is due to the interpretation as a
correlation coefficient and it is ranges from 0 to 1. As stated in the table below, all items scores
represent an excellent level of agreement since several it is considered that scores greater than 0.70
are said to be acceptable. According to Hair et al. (1998), the acceptance level of Cronbach Alpha
Index should exceed 0.7. Table 7 shows the Cronbach‟s alpha values for the independent and
dependent variables in this research. The result indicates that Cronbach‟s alpha value range from 0.9
to 1.0. The value for Cronbach‟s alpha of 0.7 or higher is considered acceptable. Thus, the data on
these variables are reliable and consistent with research standards.

7
 Variable name Cronbach‟s Alpha
FCP .995
GPD .978
GPC .937
IRP 1.00
Table 7: Reliability analysis

Table 8 reveals the correlation matrix of the conceptual variable. A two- tail test at 0.01 significance
level indicates that there are positive relationship among dependant variable and the independent
variables.

Variables GPD GPC IRP PQD

GPD 1.00
GPC .983** 1.00
IRP .072 .032** 1.00
PQD .999 .980 .077** 1.00
**significant at 0.01
Source: SPSS Statistics Version
Table 8: Correlation analysis

Variables Skewness value Kurtosis value

Statistics Std. Error Statistics Std Error
GPD -.589 .241 -.247 .478
GPC -.492 .241 -.388 .478
IRP .409 .299 -.299 .478
FCP -.585 .241 -.243 .478

Table 9: Normality test table

Values for skewness and kurtosis are zero if the observed distribution is exactly normal. Positive
value for skewness indicate a positive skew, while positive value for kurtosis indicates a distribution
that is peaked (leptokurtic). Negative values for skewness indicate a negative skew, while negative
values for kurtosis indicate a distribution that is flatter (platykurtic). Other descriptive statistics, such
as measures of central tendency and variability, can also be used to determine the normality of the
distribution. Table 9 shows the findings of skewness and kurtosis can be interpreted such that it is
shown that the all the variable namely, green production, green purchasing, investment recovery and
firm competitiveness performances have a negative skew of -.589, -.492, .409, and -.585 respectively,
which means that the practices have a lower distribution values except investment recovery .
Whereas, for the kurtosis it is shown that all the variables have a negative kurtosis value. It can be
conclude that the analysis have a flatter distribution.

Model Durbin-Watson
1 1.822
Table 10: Auto Corelation

A further correlation statistical run was also performed to examine if there was any significant
relationship between the three independent variables. Table 10 is shown the Durbin Watson (auto-
correlation) is a number that is tested for autocorrelation in the residuals from a statistical regression
analysis. Values approaching 0 indicate positive autocorrelation and values toward 4 indicate negative
autocorrelation. This study have analysed that the data have a positive auto-correlation.

According Sundram et al., (2016), table 11, R=0.999 and R2- value=0.999. It is also the details of
estimated coefficients, where b (constant) is none, bGPD is 1.073, bGPC is -.075 and bIRP is .002.
This indicates that there is linear relationship between the dependent variable (firm competitiveness
performance) and predictor variables (green production, green purchasing) except investment

8
recovery. Figure 2 shows the path model with beta coefficients and significant level of (0.05). Three
of independent variables are significant towards the influence of GSCM practices on firm
competitiveness performances but only investment recovery is not significant. Figure 2 shows the
path model with beta coefficient and significant levels of (0.05).

Multiple R .999
R Square .999
Adjusted R square .999
Standard Error .02756
DF 3
F 27350.146
Sig .000
Variables Beta t Significant
Constant 2.589 .011
GPD 1.073 55.320 .000
GPC -.075 -3.868 .000
IRP .002 .516 0.607
a. Predictors variables: GPD, GPC IRP
b. Constant: FCP
Table 11: Regression analysis coefficient

H1:1.073
GREEN PRODUCTION
H2= -.075 FIRM COMPETITIVENESS
GREEN PURCHASING PERFORMANCES
H3= .002
INVESTMENT RECOVERY

** significant level (0.05)

Figure 2: Path Model with Beta Coefficients and Significant Levels

Research Objectives Hypotheses Constructed Results

To identify the relationship There is a positive relationship H is accepted because p- value
between green production practices between green production <0.05
with firm competitiveness Practices with firm competitiveness
performances. performances.
To identify the relationship There have positive relationship H is accepted because p- value is
between green purchasing practices between green purchasing practices <0.05
with firm competitiveness with firm competitiveness
performances. performances.
To identify the relationship There is a negative relationship H is not accepted because p- value
between investments recovery between investment recovery is >0.05
practices with firm competitiveness practices with firm competitiveness
performances. performances.
Table 12: Overall hypotheses results and findings

RECOMMENDATIONS

As for the recommendations, several ideas and suggestions can be brought upon this research study as
the this paper discovered that the influence of GSCM practices on firm competitiveness performances
need to have a good relationship towards the green production, green purchasing and investment
recovery.

9
First and foremost, the supply and firm industry need to know the importance of applying green
supply chain practices. GSCM practices help firms in investigating their internal operations, engage
employees in environmental matters and in continuous inspection dealing with environment
improvement. The implementation of GSCM practices is expected to result in improved
environmental performance as measured by reductions in air emissions, effluent waste, solid waste,
and the consumption of toxic materials.

Secondly, in green production, firm can make cost saving from direct materials and total products cost
when emphasised by reuse, reduce and recycle. The firm‟s production will be more efficient, which in
turn will lead to increased firm competitiveness. Over the last decade the greening of production
phase has undergone a remarkable transformation in terms of playing a key role in manufacturing
organizations. This has happened because of globalization pressures, advances in information
technology and increasing competitiveness leading to a shortening of product life cycle.

Thirdly, firm can use green purchasing practices that emphasise the balancing among quality, cost,
delivery and environmental concept. However, competitiveness goes beyond a quality product
delivered on time. Rao & Holt, (2005) contended that competitiveness relates to improved quality,
efficiency, productivity and cost savings. The supplier section and evaluation will be based on the
green purchasing criteria to ensure all purchased materials contain green attributes. Green attributed
products comprise added advantages for the firms to go towards global competitiveness.

Lastly, investment recovery had no significant relationship with firm competitiveness. One of the
possible reasons may be due to the low implementation and monetary restrictions. The overall
framework for investment recovery is expensive. Firm may not look at the whole chain and the long
run benefit. In China, investment recovery continues to grow, where pressures from the government
has shifted focus from resource subsidies to levying taxes for some resources such as coal and natural
gas (Zhu, Q., Cote, 2002). So even this variable is not significant but still has a good result from other
country like china.

LIMITATION RESEARCH AND FUTURE RESEARCH

The paper has a number of limitations that suggest caution in interpreting its findings as well as
directions for future research. Firstly is difficult to obtain information. It is difficult to obtain the
information through the questionnaire because it‟s not easy to get a person holding a managerial
position to participate. Usually they don‟t have the time to give feedback or respond to the
questionnaires that have been distributed. They also refuse to participate due to some other managerial
reasons such as secrecy of their internal information.

Secondly is multiple participating manufacturing and types of industry to study. It‟s from the northern
region, central region, southern region and East Malaysia. Some types of industry were from the
electronics/electrical industry, basic metal, metal product and machinery, rubber and plastics and
others. So to get back the questionnaire from multiple manufacturing needs time and then to analyse
the questionnaire.

There are few recommendations that encourage other researcher to extend this study. A review of the
GSCM literature emphasized the need to find how GSCM practices can improve a company‟s
environmental, economic performances and as well as firm competitiveness performances. It will
provide more efficient results for this kind of study.

Firstly is to encourage more academicians to get involved in investigation of various academic fields
especially in the influence of green supply chain management on firm. By doing this study, it also will
helps personnel who involved in the manufacturing or firm industry to gain more knowledge about the
right way in order to associates well the influence of GSCM practices towards firm competitiveness
performances.

10
Secondly is recommended to other researcher to increase the range of the period study should be
carried out for a longer duration than this study so that the results become more significant, then the
researcher also can use data or the sample from other countries such in order to make comparison.

Thirdly is recommendation and suggestion does not involve the three practices that being studied in
this research. It is can also have a several practices such as reverse logistics, green design and others.
Nevertheless, it still gives important contribution for the success of firm competitiveness
performances.

Hopefully, these recommendations can give some insight for the new researchers on the influence of
green supply chain management and practices on firm competitiveness performances.

CONCLUSION

Integrating environmental measures into supply chain management has become a significant strategic
topic for many organizations. GSCM can be a noteworthy philosophy for organizations to accomplish
aims of efficient and cost-effective operation, profitability, market share and to enhance a sustainable
competitive advantage. Because of strict regulations and increased community concerns, firms need to
appropriately implement GSCM practices into their business operations. GSCM practices help firms
in investigating their internal operations, engage employees in environmental matters and in
continuous inspection dealing with environment improvement.
As a conclusion, the data was analysed by using SPSS software as mention before. All the
independent variables actually affect the dependent variable either in small or big effect and there can
also have positive or negative relationship between each other. As a result, from the result in this
study, it can be concluding that some of variable (green production and green purchasing) are
significant towards firm competitiveness performances and investment recovery is not significant
from the SPSS result.

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Sources: Created by authors

The Influence of GSCM Descriptions Sources

Practices
on Firm Competitiveness
Performances
Green Production Green topics have been researched (Charter et al., 2002; Ottman,
in marketing and engineering for 1997)
decades under concepts such as
sustainable solutions, green
products, green marketing, and
green processes

Green Purchasing Many studies have thereby (Lee et al., 2012; Zhu and Sarkis,
considered green purchasing 2007)
management to be a dimension of
green supply chain management
Investment Recovery United States and European (Zsidisin and Hendrick, 1998)
enterprises have considered
investment recovery as a critical
aspect of GSCM
Firm Competitiveness Competitiveness of firms has been (Ambastha and Momaya, 2004)
Performances studied in the interdisciplinary
fields of strategy, operations and
economic

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Items No of items
Independent variables
 Green Production
Utilised environmentally friendly raw materials in its
production.
Implements cleaner technology process for energy,
water and waste saving in its production process. 4
Takes into consideration environmental design in its
production.
Implements internal recycling of materials in its
production.
 Green Purchasing
Selects their supplier based on environmental criteria
my organization use a questionnaire to collect
information.
Make sure that its purchased products must not
contain green attributes such as recycled or reusable
items.
Make sure that its purchased products must not
contain green environmental undersirable item such as 5
lead or other hazardous or toxic materials.
Evaluates its suppliers based on specific
environmental criteria.
Evaluates the environmental aspects of its second-tier
suppliers.
 Investment recovery
Involved in sales of excess inventories/ materials.
Involved in sales of scrap and used material. 4
Involved in sales of excess capital requirement.
Involved in sales of by-product and waste.

Dependent variables
 Price
Offer competitiveness price compared to may
competitor.
Offer price as low or lower than our competitor.
Direct manufacturing cost/production cost reduced
compared my competitor. 5
Total product cost reduced compared to my
competitor.
Raw material cost reduced compared to my
competitor.
 Quality
Able to compete based on quality.
Offer products that are highly reliable as compared to
my competitor.
Offer products that durable as compared to my
competitor. 5
Offer high quality product to our customer as
compared to my competitor.
Offer product which is performance to design.
 Delivery
Deliver needed kind of product as compared to my
competitor.
Delivers customer order on time as compared to my
competitor. 4
Meeting deliver due date as compared to my
competitor.
Order fulfilment speed increased as compared to my
competitor.

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