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LOGISTICS MANAGEMENT, MANUFACTURING STRATEGIES,

MARKETING OPPORTUNITIES AND ENVIROMENTAL


IMPLEMENTATION , PRACTICES GREEN SUPPLY CHAIN
MANAGEMENT IN MALAYSIA FIRMS

M. LETCHUMANAN A/L MALAIDOM

631214-04-5775

EXECUTIVE MASTER IN

ENGINEERING MANAGEMENT

ASIA e UNIVERSITY

2015
LOGISTICS MANAGEMENT, MANUFACTURING STRATEGIES,
MARKETING OPPORTUNITIES AND ENVIROMENTAL
IMPLEMENTATION , PRACTICES GREEN SUPPLY CHAIN
MANAGEMENT IN MALAYSIA FIRMS

M. LETCHUMANAN A/L MALAIDOM

631214-04-5775

Submitted in Partial Fulfilment of the Requirement for the

Executive Master in Engineering Management

EXECUTIVE MASTER IN

ENGINEERING MANAGEMENT

ASIA e UNIVERSITY

2015

i
DECLARATION OF ORIGINAL WORK

EXECUTIVE MASTER IN

ENGINEERING MANAGEMENT

ASIA e UNIVERSITY

“DECLARATION OF ORIGINAL WORK”

I , M. Letchumanan a/l Malaidom , I/C; 631214-04-5775.

Hereby declare that this project paper is my own work and all the sources I have
used during the academic session not been submitted to any local or overseas for any
degree or diploma .

Signature : ______________________ Date : ______________

( M. Letchumanan a/l Malaidom)

ii
LETTER OF SUBMISSION

March 2015
The Programme Coordinator
Executive Master In
Engineering Management
Asia e University.

Dear Sir,

SUBMISSION OF PROJECT PAPER.

Attached is the project paper titled “ LOGISTICS MANAGEMENT,


MANUFACTURING STRATEGIES, MARKETING OPPORTUNITIES AND
ENVIROMENTAL IMPLEMENTATION, PRACTICES GREEN SUPPLY
CHAIN MANAGEMENT IN MALAYSIA FIRMS ” to fulfil the requirement as
needed by the Asia e University .

Thank You.
Yours Sincerely ,

______________

M.Letchumanan a/l Malaidom

I/C : 631214-04-5775

iii
ACKNOWLEDGEMENT

I would like to thankful to the Almighty God for blessing and giving me the
unforeseen inspiration and strength to pull through the “Impossible to Possible”
overcoming all the constrained and hurdles in daily time allocation in working and
family life and encourage with will power in preparing to accomplish this project
paper efficiently and effectively.

In the hard works and to smoothen the research and development , without any
reservation and hesitation here then with my fullest thought would like to express the
deepest appreciation to my advisor Dr.Veera Pandiyan Kaliani Sundram who guide
me in many aspects continuous commitment to me as a student. At times when there
are confusion in an understanding the needs of the thesis topic , he support and
streamline by giving a valuable suggestion to improve the content of reports to ensure
the project paper doesn’t deviate and always focus to the intended scope .

Without forgetting, grateful thank to the Program Co-ordinator SRem for giving an
opportunity to gain knowledge and for the extended support to complete the thesis
and also to the University Malaya by providing the excellent facilities to fulfil my
Executive Master in Engineering Management.

I’m taking this opportunities to dedicate special thank to my parents , family and
lecturers be part of my memories in discussion and sharing the generous help to
support me and giving privilege of times to accomplish this final project paper .

Last but not least , pleasant gratitude to my following colleagues studying together
and giving moral support and encouragement which inspire me to learnt how to build
ourselves to be great persons in life completing project paper at the given time frame.

iv
TABLE OF CONTENTS.

CONTENTS Pages

TITLE PAGE i

DECLARATION OF ORIGINAL WORK ii

LETTER OF SUBMISSION iii

ACKNOWLEDGEMENT iv

TABLE OF CONTENTS v

LIST OF TABLES x

LIST OF FIGURES xi

ABSTRACT xii

CHAPTER 1 : INTRODUCTIONS 1

1.1 Introduction 1

1.2 Background of the Study 2

1.3 Problem Statement 3

1.4 Research Objective 4

1.5 Research Questions 5

1.6 Justification of Study 6

1.7 Scope of Study 7

1.8 Significance of Study 8

1.9 Limitation of Study 9

1.10 Conclusions of Chapter One 10

v
CHAPTER 2 : LITERATURE REVIEW 11

2.1 Introduction. 11
2.2 Previous Research. 11
2.3 The History of Green Supply Chain Management. 13
2.4 Theoretical Framework. 16
2.5 Logistics Management. 16
2.5.1 Definition of Logistics Management. 16
2.5.2 Reverse Logistics Management. 17
2.5.3 Green Procurement. 18
2.6 Manufacturing Strategies 19
2.6.1 Definition of Manufacturing Strategies . 19
2.6.2 Green Manufacturing. 21
2.6.3 Green Engineering and Re-engineering Design. 22
2.7 Marketing Opportunities. 23
2.7.1 Definition of Marketing Opportunities. 23
2.7.2 Green Marketing. 24
2.7.3 Green Marketing Strategies. 26
2.8 Environmental Implementation 27
2.8.1 Definition of Environmental Implementation. 27
2.8.2 The Green Environmental. 28
2.8.3 Lean Environmental Principle and System. 31
2.9 Green Supply Chain Management. 33
2.9.1 Definition of Green Supply Chain Management 33
2.9.2 Green Supply Chain Management Practices. 34
2.10 Conclusion of Chapter Two 36

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CHAPTER 3 : RESEARCH METHODOLOGY 38

3.1 Introduction . 38

3.2 Research Design. 38

3.3 Theoretical Framework. 39

3.4 Research Hypothesis. 40

3.5 Methodology of Study. 43

3.6 Questionnaires Design. 44

3.7 Data Collection 45

3.7.1 Primary Data 45

3.7.2 Secondary Data 46

3.8 Sampling Procedure & Technique 46

3.8.1 Sampling Method 46

3.8.2 Population & Sampling Size 47

3.9 Measurement & Scaling Technique 47

3.10 Data Analysis Technique. 47

3.10.1 Frequency Distribution 48

3.10.2 Inferential Analysis 48

3.11 Conclusion of Chapter three 48

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CHAPTER 4 : FINDINGS AND ANALYSIS 49

4.1 Introduction. 49

4.2 Response Rate. 49

4.3 Profile of Respondents. 50

4.4 Normality Test. 53

4.5 Reliability Analysis. 54

4.6 Descriptive Analysis. 55

4.6.1 Mean and Standard Deviation of Logistics Management. 56

4.6.2 Mean and Standard Deviation of Manufacturing Strategies. 57

4.6.3 Mean and Standard Deviation of Marketing Opportunities. 58

4.6.4 Mean and Standard Deviation of Environmental Implementation. 59

4.6.5 Mean and Standard Deviation of Green Supply Chain Management. 60

4.6.6 Mean and Standard Deviation of Study Variable 61

4.7 Correlation Analysis. 62

4.8 Regression Analysis. 63

4.9 Findings. 65

4.10 Conclusion of Chapter four. 66

CHAPTER 5 : RECOMMENDATIONS AND CONCLUSION 67

5.1 Introduction 67

5.2 Discussion of Findings 67

viii
5.3 Limitation of Study 69

5.4 Implication of Study 70

5.5 Recommendations. 72

5.6 Future Research. 73

5.7 Conclusion of Chapter five. 75

BIBLIOGRAPHY 76

APPENDIX 80

APPENDIX A --- QUESTIONAIRE 80

APPENDIX B ---- SPSS RESULTS 86

ix
LIST OF TABLES.

Table 4.1 : Demographic Profile. 50

Table 4.2 : Skewness and Kurtosis Test. 53

Table 4.3 : Reliability Analysis. 54

Table 4.4 : Mean and Standard Deviation of item Logistics Management. 56

Table 4.5 : Mean and Standard Deviation of item Manufacturing Management. 57

Table 4.6 : Mean and Standard Deviation of item Marketing Opportunities. 58

Table 4.7 : Mean and Standard Deviation of item Environmental Implementation. 59

Table 4.8 : Mean and Standard Deviation of item Green Supply Chain

Management 60

Table 4.9 : Descriptive Analysis. 61

Table 4.10 : Correlation Analysis. 62

Table 4.11 : Analysis on Coefficients of Determination (R2). 63

Table 4.12 : Anova. 64

Table 4.13 : Regression Analysis of Coefficients. 64

Table 4.14 : Overall Hypothesis Result and Findings. 65

x
LIST OF FIGURES.

Figure 2.1 : Theoretical Frame work 16

Figure 3.1 : Research Model / Theoretical Frame work 39

xi
ABSTRACT

LOGISTICS MANAGEMENT, MANUFACTURING STRATEGIES,


MARKETING OPPORTUNITIES AND ENVIROMENTAL
IMPLEMENTATION , PRACTICES GREEN SUPPLY CHAIN
MANAGEMENT IN MALAYSIA FIRMS

The purpose of this study is to describe the significant of the logistics management ,
manufacturing strategies, marketing opportunities and environmental implementation,
practices and identified the relationship between green supply chain management
in Malaysia firms. Firms, are starting to be aware the importance of green supply
chain management to understand and enhance organizational performance from an
environmental perspective as well as economic and operational .

The main objective of this paper is to examine the variables practices in a


manufacturing firm in Malaysia.. Likewise on research management theoretical
framework model was constructed for better interpretation and understanding of
green supply chain management.

A survey was conducted throughout 135 firms by distributed independent variable ,


dependent variable and demographic profile questionnaires. The survey sample data
was collected for statistical analysis using (SPSS) software. The sample data were
simulated and the outcome of findings through empirical model was established by
using regression analysis to verify the relationship with green supply chain
management. Using this statistical analysis, the study tries to identify the most
desirable areas of collaboration with variables performance.

In this research thesis, the overall findings of the study indicated that all the variables
is measured and impressed. The variables logistics management , manufacturing
strategies, marketing opportunities and environmental implementation, has a
significant relationship towards the green supply chain management and the
importance of ‘Green’ implementation and practices on the firms in Malaysia.

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CHAPTER ONE

INTRODUCTION

1.1 Introduction

In today’s world, rapid development in technology and environmental, people are


talking about ‘Green’ and the demand is heavily growing on firm in logistic ,
manufacturing , marketing , environmental and also on service sectors, construction,
government sectors , electronic , communication and education .In accordance
Korean President Lee’s declaration, national administration indication on the 15
August 2008 , almost all Korean R& D have focused on green growth and many
countries taken interest green growth policies which are related to climate change,
cleaner production technologies and international environmental regulations.
(International journal of production research, May 2012)

Most of the manufacturing companies create waste and pollution and its alarming and
threatening the existence of life on earth. As a consequence, these challenges and
pressures push firms need to seriously considering environmental impacts while
doing their business. Companies awareness’ is increasing to consider seriously the
importance of green supply chain management to enhance and supporting friendly
image understanding the perspective of logistics management , manufacturing
strategies, marketing opportunities and environmental implementation, as an
interrelationship aspects of social responsibility. The study therefore, is interested to
know to what extent is the involvement of Malaysian firms in the green supply chain
management.

In this chapter, discussion will be focused on identifying and stating the background
of the study, problem statement, research objective, research questions, justification
of study ,scope of study, significance of study , limitation of study and the conclusion.
In general this topic will able to give an insight of the direction of the research and its
deliverables.

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1.2 Background of the Study.

Over the past decade, Green Supply Chain Management has indicated as an
important measuring tools in an organizations around the world and the
manufacturing firm’s aiming at integrating environmental concerns in business
strategies. The public become more aware on the environmental issues where the
companies always trying know how to green manufacturing process by recycling the
produced product after use ( Vachon and Klassen , 2007) . To minimize the impact of
firm’s activities on the environment , the green supply chain management has to
improve from beginning of the process to the end of product’s for better life cycle. (
Green et al.2008 ). Thus , this create the firm’s a necessity for organization to look
into reconstruct and restructuring and enhance their strategy to sustain the business
profitability.

As a result , the manufacturing and service organizations must consider the impact of
environmental approach on business performance and the economic viability of the
firm simultaneously on the environmental performance. Success at the supply chain
level leads to success at the organizational level ( Chopra and Meindl, 2004). Since
the suppliers and customers emerge the relationship, the demand on the process ,
product and services will create an environmentally friendly and sustainability
practices throughout the supply chain. Further to that , McKone Sweet ( 2004)
claimed that the companies are under pressure to improve the social and
environmental standards wherever they can exert their influence for instance, at their
suppliers and further along in the supply chain.

GSCP has also begun to gain popularities in emerging economy countries, for
example Eltayeb et al. (2011) studied the outcomes of green supply chain initiatives
among ISO 14001 certified firms in Malaysia , whereas Zailini et al.( 2012) , carried
out a study on GSCM research in Malaysia to analyze the impact and internal and
external forces on environmental performance.

2
Customer are beginning to adjust and willingly to spend money on eco-friendly
products. One of the most important factors in the decision - making of firms the need
for green supply chain management to develop environmental strategies in all
organizations.

1.3 Problem Statement

In this current globalization challenging businesses and over the years Malaysia has
been growing rapidly measure the green supply chain management as a key Operating
Performance Indicator ( OPI ) and Management Performance Indicator (MPI) on the
firms to boost economic growth. Malaysia Department of Environment, (2008) stated
that manufacturing is the highest contributor towards environmental concerns such as
land, water and air pollution in addition to degrading of natural resources.

In order to fulfil the logistics management , manufacturing strategies, marketing


opportunities and environmental implementation, companies have often been urged
to integrate green supply chain management across the entire supply chain in order to
ensure the companies’ sustainability. Hassan , Awang and Jaafar (2006) stated that
“the challenge for the new millennium is to develop an industrial system that has
minimal socio – ecological impacts , without compromising quality of life”

Green supply chain management ( GSCM ), is defined as ‘ the integration of


environmental thinking into supply chain management ( SCM) , including product
design , material sourcing, and selection , manufacturing processes, delivery of the
final product to the consumer as well as end-of-life management of the after its useful
life’ ( Srivastava , 2007 ,p 54-55 ). Previous studies show that GSCM practices in
development nations, such as Japan, Germany and other northern European countries
are very advanced ( Gutowski ,, Murphy, Allen, Bauer, Brass and Wilff, 2005).
However , in developing countries like Malaysia ( the focus of the current study ),
GSCM is relatively new concept both in practice and research ( Rao , 2002)

3
Greening the inbound logistics or green purchasing will focus on the upstream or
inbound cooperation which involves working on environmental initiatives with the
suppliers and vendors ( Zhu and sarkis,2004: Zhu, Sarkis , and Lai, 2008b:Rao,2008;
Prime Minister Hibiscus Award ( PMHA). The green manufacturing activities include
incorporation of closed loop manufacturing to reduce or minimized emission ( Rao
,2008) and solid liquid waste ( Pagell et al ., 2007).

The 2008 environmental quality report highlighted that scheduled wastes produced by
the manufacturing industry is increasing and according to (Hassan et al.,2006), bulks
of solid waste are transferred to without treatment and within the nearest future
capacity limit of the nation’s disposal sites will be hit. Municipal Council of Penang
Island (MPPP) stated that the amount of solid waste disposed at the dumpsite has
increased by 52 per cent to 768 tonnes per day in 2006 from 505 tonnes per day in
2005.Approximately 30 per cent of all waste that is discarded is recyclable, which
implies that Penang has an opportunity to financially benefit from recyclable
materials valued at RM16.6 million per year, based on current value of recyclable
materials, which is 20 cent per kg
(www.undp.org.my).

As such the firm can use the GSCM practices to reduce their cost and improve their
performances and efficiency in their operations and marketing to remain competitive.
According to (Chau et al., 2010) and the studies mentioned above on adoption of
GSCM have been found as a source of competitive advantage and improved
performance. Therefore the study aimed at determining the various GSCM practices
and their impact on supply chain performance. Green Supply Chain Management
(GSCM) has become a critical factor to sustain.

4
1.4 Research Objective

The main research objectives is to determine and analyze the performance


relationship on the firms practices the green supply chain management integrated
with logistics management, manufacturing strategies, marketing opportunities and
environmental implementation in order to develop the green and how it’s applied.

The specific research objectives :

1.4.1 To determine the relationship between logistics management and green


supply chain management.

1.4.2 To determine the relationship between manufacturing strategies and green


supply chain management.

1.4.3 To determine the relationship between marketing opportunities and green


supply chain management.

1.4.4 To determine the relationship between environmental implementation and


green supply chain management.

1.4.5 To determine the relationship between green supply chain management and
organization management in the firms.

1.5 Research Questions

In order to achieve the objective and to foresee a determined path to fulfil the
objective, several research questions were derived. This research questions also will
concurrently give an opportunity to know about the structure of research work
covered in this study.

5
The main research questions enlighten in this research are :

1.5.1 How do the logistics management define the importance to green supply
chain management in the context of firm and industry.

1.5.2 How do the manufacturing strategies aspects contribute the improvement to


green supply chain management in the context of firm and industry.

1.5.3 How do the marketing opportunities explore business to green supply chain
management in the context of firm and industry.

1.5.4 How do the environmental implementation reducing hazardous emission or


waste to green supply chain management in the context of firm and industry.

1.5.5 How do the green supply chain management practices and influence the
performance of an organization in the context of firm and industry.

1.6 Justification of Study

The companies awareness is increasing to consider seriously the importance of green


supply chain management to enhance and supporting friendly image understanding
the perspective of logistics management , manufacturing strategies, marketing
opportunities and environmental implementation, as an interrelationship aspects of
social responsibility. The study therefore, is interested to know to what extent is the
involvement of Malaysian firms in the green supply chain management. As such the
firm can use the GSCM practices to reduce their cost and improve their performances
and efficiency in their operations and marketing to remain competitive. As a result ,
the manufacturing and service organizations must consider the impact of
environmental approach on business performance and the economic viability of the
firm simultaneously on the environmental performance. Focused on green growth
and many countries taken interest green growth policies which are related to climate
change, cleaner production technologies and international environmental regulations.
making of firms the need for green supply chain management to develop
environmental strategies in all organizations.

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1.7 Scope of Study

The main focus of this study is to ascertain and examine the relationship on the
firms practices the green supply chain management integrated with logistics
management, manufacturing strategies, marketing opportunities and environmental
implementation . Variables of the study were identified and the relationships between
these variables are depicted in a form of theoretical framework. Statistical techniques
are used to test the relationships stated in the framework. Further to that this study is
determining and analysing the contribution performance in the context of firm and
industries, define the importance and the application of logistics management, value
of manufacturing strategies, target and frequency of the marketing opportunities,
reducing consumption of material or energy by environmental implementation and
supplier and customer relationship through green supply chain management.
Although the scope of green supply chain management processes is consider wide as
it encompasses the entire processes, this study emphasising several activities generate
better understanding on an important area focuses on the possible outcomes derived
from green supply chain management practices towards the organization.

1.8 Significance of Study

The main purpose and significance of this study is to evaluate how the firms in
Malaysia can successfully establish and implement GSCM to the new knowledge by
detailing the activities involved in logistics management, manufacturing strategies,
marketing opportunities and environmental implementation. By this study the
researcher establish the awareness to the organizations the usefulness and benefits
through implementation of GSCM practices. Nowadays , most firms are starting to
realize the greater benefit of the green in their business as concern to environmental
sustainability.

This study moves into a new direction research agenda by integrating the green
concept emerge GSCM arises systematic approach to firm and becoming an

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important factor for business activities today. As such the firm can use the GSCM to
reduce their cost and improve their performances and efficiency. The proposed model
from this study which has been tested and validated will have significant implications
to identify several capabilities that could adopted and invest more through GSCM in
enhancing a firm’s operational and customer performance.

This study identifies the influence of each type of GSCM practices towards the
organization performance about the value and important of GSCM integrated to the
theoretical framework management perspective. Likewise the study disclose the
concept , significance and outcomes of GSCM practices throughout logistics ,
manufacturing, marketing and environmental , thus it can advance manager’s
understanding and importance of economic enhancement be competitive power of
GSCM in international markets.

The study even encourages Malaysia firm’s to establish appropriate policies and
strategies (Malaysia National Policy on the Environmental , 2002, Section 4.3 and 4.4
) for improving environmental integrated with logistics ,marketing and manufacturing
and emphasis to minimize pollution problems. The organization who adopt a green
philosophy will gain strong support in the community because of their goal to benefit
all society through their commitment to the environment.

By this study , firm are increasingly exploring ways to leverage GSCM systematically
evaluating the role of supplier and organization activities to enhance the flow of
goods from immediate strategies supplier through manufacturing and distribution
chain to the end user. The significance of this study , therefore , emanates from its
expected theoretical contribution to knowledge and practical contributions to open
new horizon in business and public organizations

1.9 Limitation of Study.

Although this study has an important contribution to research ,it has some limitation
that should be acknowledged and pointed out.

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First there are some associated problems with use of self- reported survey data
gathered from a single respondent per firm’s surveyed , thus raises an issue of
possible biases. Even though there is no significant evidence for unpredicted method
bias, it is possible that others types of bias including social perspective bias could
have influence the result of the study. Inherent to perpetual nature of the data may be
inflated by reporting , therefore alternative research design is recommended .As such
alternative research design could provide concrete evidence use of objective data to
analyse GSCM research.

Secondly ,problems arise in manufacturing firms that how to execute the green supply
chain management in special industrial operational institute has limited procedures.
Research to obtain companies performance have limitation on this study causes of
relation and information in the organization which could cause surveyed of spurious
result. For example , it was found that the relation to the firms with ISO 9000
certification and without ISO 14001 certification submitted in a variety of validating
procedures and the simulation of data interrupted on this study. It is noted that
segregation studies have not be implemented the use of such kind of control and less
cooperation among inter firm organization and end to limitation concern in research
design. Standardization procedures is recommended the determine the respondent
ready for any kind of researchers conduct mutual understanding .

Thirdly , unpredicted climate affected by natural disaster cause limitation to gather


information promptly especially in supply chain which has integrated throughout
performing research and collecting data industrial and manufacturing firm’s. Thus
this study provides some implication on the mediating effects among the component
of GSCM practices conducive to performance gains. However manage to divert to
those firms are willing to cooperate instantly with adaptive evolution to the changing
atmosphere by encompass relationship .

Finally , the existing studies suggest several other types of GSCM practices to
investigate organizational theory’s influence on and relationship with environmental ,
logistics, manufacturing and marketing.

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1.10 Conclusions of Chapter One
On the basic of research , this topic is to discuss an overview of green supply chain
management practices in Malaysia firms and the influence of logistics management ,
manufacturing strategies, marketing opportunities and environmental implementation,
as an interrelationship aspects of social responsibility in-line with this current
increasingly competitive business environment.

Firms awareness is increasing and it’s embarks a requirement to pursue and


implement green management practices as a strategic to demonstrate how the
internal and external factors influence the GSCM process orientation in the real
commitment and organizational structure. The study advanced the proposition that
organizational capabilities matter significantly in the adoption of GSCM practices.

According to the finding and further investigation on this topic , firms participant in
environmental and green management initiatives of manufactures such as product
return and recycling policy and incentive schemes to achieve financial objective are
promising and encourage GSCM research to focus more for the country development
to achieve nation objective. Variables of the study were identified in research
problems, objective of the study, research question, scope of study , as well as
potential contribution of the research towards the existing body of knowledge and to
the practitioner.

Yet, the adoption of GSCM has moderate barrier to overcome, the multiple
complexity and uncertainties hurdles seek to undertake GSCM practices to improve
the overall performance and competitive stance. Environmental pressure realized the
firm’s to challenge and examine and ultimately emphasising to corporate with
suppliers and customers in the implementation to emerge as an important GSCM
practices in participate with integrated management operational.

At the end of this chapter the dynamic of implementing GSCM practices


collaborating with logistic management, manufacturing management, marketing
,management and environmental management are worthwhile to pursue in future
research.

10
CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

In this chapter contain a summary of the literature review, provides information from
publication on topics related to research of the past empirical studies on the
relationship between each independent variable and dependent variable. It involves
examines and explained the relationship between logistics management ,
manufacturing strategies, marketing opportunities , environmental implementation,
and green supply chain management, implementation and practices on the firms in
Malaysia. Besides the theoretical framework , this chapter also discussed about the
definition and the benefit of adoption of “green” comprehensively the importance and
performance.

2.2 Previous Research.

Previous numerous studies show that GSCM practices in development nations, such
as Japan, Germany and other northern European countries are very advanced (
Gutowski ,, Murphy, Allen, Bauer, Brass and Wilff, 2005). However , in developing
countries like Malaysia ( the focus of the current study ), GSCM is relatively new
concept both in practice and research ( Rao , 2002).Green supply Chain Management
(GSCM) is an approach to improve performance of the process and products
according to the requirements of the environmental regulations (Hsu & Hu, 2008).
GSCM has emerged in the last few years and covers all phases of product’s life cycle
from design, production and distribution phases to the use of products by the end
users and its disposal at the end of product’s life cycle (Borade & Bansod, 2007).

11
Studies in Logistics Management shows GSCM as the purchasing function including
reduction , recycling, reuse and the substitution of materials ( Narasimhan and Carter
, 1998 ). The GSC covers wide areas of GSCM practices and SCM’s participant and
practices from green purchasing to integrated supply chains flowing from supplier , to
manufacturer, to customer, and to the reverse supply chain ( Zhu and Sarkis,2006:
Rao and Holt, 2005 )

In recent years, studies in Manufacturing Strategies shows ,in greening the


production phase, manufacturing firms should also go for green design or design for
environment (DfE) or eco-design (Rao, 2008)which is meant to address product
functionality while at the same time minimizing life-cycle environmental impact (Zhu
et al., 2008b). Eco-design is a tool that enables business to improve its environmental
performance through the reduction of environmental impact of their products,
processes and services (PMHA, n.d.). The design stage of a product is most critical
since this is the stage when materials and processes are determined thus, shaping the
impact on the natural environment. Hence, designing the product concurrently with
the supply chain is a GSCM best practice (LMI, 2005).

Previous studies in Marketing Opportunities shows, "greening" can lower the


ecological impacts of business and also increases efficiency, creates the potential
source of competitive advantages in an innovative manner (Samson ; 2008). It is
generally accepted that a company's contribution to environmentally design
technology development is dependent on an integration of environmental
requirements into industrial products and processes (Porter & Linde, 1995). GSCM as
a strategy to gain competitive advantage means the orienting empirical study shows
that there is a substantial interest amongst the firm’s to take action to decrease their
environmental impact. The goal of adding value to the business and reducing costs in
all parts of the production system is identified as key drivers in order to increase
market competitiveness.

Based on previous review in Environmental Implementation, a growing number of


companies are putting into practices the environmental management system selecting

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process that has become so general ( Testa,Iraldo et al.2009). In Malaysia,
environmental issues have become priority for the government and public
(Eltayeb,Zailani & Filho 2010).The strategy literature stresses that environmental
management can play a critical role as both a social responsibility and an important
cooperate duty ( Arlow abd Gannon, 1982). Hence, pressure from government
agencies and national or international regulators will influence the adoption of
environmentally responsible behaviour ( Delmas and Toffel,2004;
Rivera,2004;Zailani et al,2012). Narasimhan and Carter (1998) found that companies
have institutionalized environmental practices because pressure from external and
internal forces as well as awareness of the consequences of non-compliance with
environmental imperative.

2.3 The History of Green Supply Chain Management.

Historically, the study and management of industrial pollution has been a critical
issue for society since the early days of the industrial revolution. Green supply chain
management (GSCM) is an emerging field that strands out of the traditional supply
chain perspective. The “quality revolution in the late 1980’s and the supply chain
revolution in the early 1990’s” have sparked businesses to become environmentally
conscious (Srivastava, 2007, p. 53). GSCM has gained popularity with both
academics and practitioners to aim in reducing waste and preserving the quality of
product-life and the natural resources. Eco-efficiency and remanufacturing processes
are now important assets to achieve best practice (Ashley, 1993; Srivastava, 2007).
Global market demands and governmental pressures are pushing businesses to
become more sustainable (Guide & Srivastava, 1998; Gungor & Gupta, 1999).
Walton, Handfield and Melynyk (1998, p. 2) even claim that “increasing government
regulation and stronger public mandates for environmental accountability have
brought these issues into the executive suites, and onto strategic planning agendas.”

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Some of the earliest work that can be tied to today’s greening of the supply chain,
occurring before the formation of the U.S. Environmental Protection Agency , can be
traced to Ayres and Kneese ( 1996)

The key themes that came out in the literature over the last twenty years are the
concepts of: green design, green operations, reverse logistics, waste management and
green manufacturing (Guide & Srivastava, 1998; Srivastava, 2007). The very first
green supply chain came into context in 1989. Kelle and Silver’s (1989) article was
the first of this literature that developed an optimal forecasting system for
organisations to use to forecast products that can be potentially be reused. This
forecasting system, however, was highly contentious because returning individual
containers is not usually known with certainty, so therefore, their findings may
somewhat be incoherent.

The first green design literature came into context in 1991. Navin- Chandra’s (1991)
article was the first of the literature to consider the need for a green design to reduce
the impact of product waste. Works of Ashley (1993); Allenby and Richards (1994)
and Zhang, Kuo, Lu and Huang (1997) came into context and expanded the
framework of green design. Life-cycle analysis was an example of a framework that
came out of green design. Works of Arena, Mastellone and Perugini (2003), Beamon
(1999) and De Ron Penev (1995) all discussed life-cycle analysis as a framework.
Green Operations in terms of reverse logistics was an important concept that came
out of the GrSCM literature. Apart from Kelle and Silver’s (1989) article, works of
Pohlen and Farris (1992); Stock (1998) and Tibben and Limbke (2002) all provided
case studies on reverse logistics. The use of plastics and bottle recycling are
mentioned in some of these articles. Carter and Ellram, (1998); Srivastava and
Srivastava, (2005); Shih, (2001); Nagorney and Toyasaki, (2005) and Min, Ko and
Ko, (2006) are all academic perspectives of reverse logistics.

Waste management is another topic that came out of the GrSCM literature. This came
into prominence with the work of Roy and Whelan (1992). This article created a

14
standardised model for reducing electronic waste without harming the environment.
After this article, different waste management issues came into context particularly
around recycling and remanufacturing. Works like Owen (1930), Hannah and
Newman (1995);Sarkis and Cordeiro (2001) and Nagorney and Toyasaki (2005) are
all examples of trends of waste management becoming an issue.

Green Manufacturing, on the other hand, was not conceptualised until 1993 in the
work of Crainic, Gendreau and Dejax (1993). This article established a
comprehensive green supply chain model in terms of transporting containers from
land to sea and vice-versa. Ideas of green manufacturing were then developed further
by Van Der Laan and Salomon (1997); Guide and Srivastava (1998) and White,
Masanet, Rosen and Beckman (2003). There are other comprehensive reviews around
GSCM, particularly in the late 1990’s where issues such as green production and
planning and manufacturing (Bras & McIntosh, 1999; Sarkis & Cordeiro, 2001; Van
der Laan, Salomon & Dekker, 1996) and product recovery (Gungor & Gupta, 1999;
Van Der Laan et al., 1996) are discussed. Barros, Dekker, and Scholten (1998)
discuss recycling in the supply chain and Darnall, Jolley, Jason and Harnfield (2008)
critique GSCM by saying that Environmental Management Systems (EMS) are
making less progress in reducing environmental harms. Some studies, however, are of
limited focus. Van Der Laan et al. (1996) only discussed product remanufacturing and
disposal, and Zhang et al. (1997) only discussed environmental technologies and
design. Journals that are useful to GSCM are Organisations and the Natural
Environment, Business Strategy and Environment and Journal of Operations
Management. Some key authors of the field are Srivastava (2006; 2007), Gupta
(1999) and Guide (1998; 2003). Some of the famous books of GrSCM are from
Allenby and Richard’s (1994) ‘The Greening of Industrial Ecosystem’ and Preuss’s
(2005) ‘The Green Multiplier: A Study of Environmental Protection and the Supply
Chain’ and Sarkis’s (2006) ‘Greening the SupplyChain’.

15
2.4 Theoretical Framework.

Figure 2.1 : Theoretical Framework

LOGISTICS
MANAGEMENT

MANUFACTURING
STRATEGIES GREEN SUPPLY
CHAIN MANAGEMENT
MARKETING
OPPOURTUNITIES

ENVIROMENTAL
IMPLEMENTATION

Independent Variable Dependent variable

2.5 Logistics Management.

2.5.1 Definition of Logistics Management.

Logistics Management is an important part of green supply chain process that


plan , implement , control and an integrating task that coordinates all logistics
activities, as well as integrating these activities with marketing, operation
management, finance, and information technology Council of Supply Chain
Management Professionals (CSCMP, 2011). Logistics has its root from military
activities associated with moving troops into the battled. Later , the application
has moved into business field. One of the most confusing , thing is the
difference between logistics and supply chain management. Lummus et al 2001
made a clear distinction between both terms in the article named “ The

16
relationship of logistics to supply chain management : developing a common
industry definition” that, The logistics involves planning, implementation and
controlling efficient, effective flow and storage of goods and services from the
beginning point of external origin to the company and from the company to the
point of consumption for the purpose of conforming to customer requirement.

In terms of green logistics is defined as assessment of the negative impact on


environment in the process of transport, storage , handling, packaging, and
distribution processing. The evaluation indicators : transportation negative
impact on the environment is mainly in transport fuel consumption, harmful
gases emission and others, while in process storage whether it cause pollution
and destruction for the surrounding environment. Greening the inbound
logistics or green purchasing will focus on the upstream or inbound cooperation
which involves working on environmental initiatives with the suppliers and
vendors ( Zhu and sarkis,2004: Zhu, Sarkis , and Lai, 2008b:Rao,2008; Prime
Minister Hibiscus Award ( PMHA). A more managerial, less technical,
coverage of GSCM began with an emphasis on specific, deconstructive, aspects
of SCM such as logistics ( Murphy at al., 1994); Szymankiewicz, 1993 ),
purchasing ( Drumwright, 1994 ), and reverse logistics ( Barnes, 1982; Pohlen
and Farris, 1992 ). Eventually , some early efforts conceptually and
systematically integrated the purchasing, operations, marketing, logistics and
reverse logistics within an environmental focus ( Sarkis, 1995a, 1995b).

2.5.2 Reverse Logistics System.

Reverse logistics and green supply chain examine the best way to return
products back to a manufacturer to repair, reuse, recondition and disposal.
Information obtain from returned products will help makers to diagnose
production problem to avoid possible defects. Environment related issues are
also determined. Reverse logistics is the process of retrieving the product from
the end consumer for the purposes of capturing value or proper disposal .

17
Activities include collection, combined inspection, selection, sorting,
reprocessing , direct recovery, redistribution, and disposal.

Green supply chain management includes the use of a reverse logistics system
for the recovery of used materials and products. Recovery networks link a
“disposer market” of used products available for repair, remanufacturing, or
recycling with a “reuse market” which reflects the demand for these products
(Fleischmann, Beullens, Bloemhof-Ruwaard, and Van Wassenhove, 2001:
158). In general, Fleischmann, et al. (2001) find that coordinated design of the
forward and reverse logistics networks is advisable when there is a large
geographical separation between the disposer and reuse markets, significant
differences in their cost structures, and high return volumes. More broadly,
reverse logistics models typically graft the reverse logistics system onto an
existing forward logistics supply chain assuming that the pre-existing supply
chain structure is basically unaltered (e.g. Carter and Ellram, 1998; Krumwiede
and Sheu, 2002; Rogers and Tibben-Lembke, 1998). In this study we examine
how the original forward logistics system is affected and changed due to the
addition of a reverse logistics system.

2.5.3 Green Procurement.

Green procurement is defined as an environmental purchasing consisting of


involvement in activities that include the reduction, reuse and recycling of
materials in the process of purchasing. Green procurement or purchasing means
that purchasing or supply chain managers consider the issue of sustainability in
their purchasing of inputs in addition to the traditional purchasing criteria of cost,
quality, and delivery ( lambert & Cooper,2000 ).Hammer ( 2006 ) suggested
seven basic elements for green purchasing are : product content requirements,
product content restrictions, product content labelling or disclosure , supplier
questionnaires, suppliers EMSs, supplier certification, and supplier audit.

18
Purchasers can improve the environment performance of product and services by
expressing environment preference through so called “ green procurement “(
Faith-Ell,et al,2006 ). Carter ,et al.(1998) defined environmental purchasing as
consisting of purchasing involvement in activities that include the reduction,
reuse and recycling of materials. The procurement or purchasing decision will
have an impact on the green supply chain through the purchase of material that
are either recycle or reusable, or have already been recycled ( Sarkis 2003).

According to Lee( 2008), buyer is the most important influential stakeholder for
the supplier to participate in green supply chain initiatives. That showed that
green purchasing is one of the key elements for organisations to participate in
green supply chain initiatives. However , Zsidisin and Hendrick (1998)
concluded that purchasing managers are not only driver to promote and influence
the environment supply chain involvement, it is the top management’s
responsibility to prioritize the environmental concern through the entire
organisation which involve procurement, logistics, warehousing practices,
operations, marketing and governmental agencies.

2.6 Manufacturing Strategies.

2.6.1 Definition of Manufacturing Strategies.

Manufacturing Strategies is define as an environmentally beneficial innovation


needs new combinations of knowledge about product characteristics, process and
material characteristics, and technologies. The change must come from within the
firm’s aims. The key to developing innovations that will be beneficial and
profitable is an effective exchange of knowledge between the individual links
within the supply chain. To create real environmental change, firms must
develop innovations that consume fewer resources, produce less waste, and
create less environmental harm [Hervani, Helms and Sarkis, p.338].

19
The literature points out a few common methods for making the manufacturing
stage “green”: reusing, remanufacturing, and recycling. Recent environmental
management literature has suggested that an informed relationship between
supplier and manufacturer can lead to innovative and cost effective end-products.
A recent study found that Japanese automakers were operating on a productivity
twice as that of their American counterparts. The main difference in productivity

was attributed to the Japanese organizations’ lean manufacturing systems,


reducing lead-time while at the same time increasing quality [Lewis, p.960]. An
organization has to decide which methods to employ depending on the product
characteristics [Sarkis, p.400]. In contrast, manufacturers may list environmental
safety and improvement as a major priority. Manufacturing firms may need to
consider their own environmental goals, social responsibilities, and reputation to
consumers [Simpson and Power, p.61].

With the increasing awareness on the environmental sustainability issues ,


manufacturing firms in Malaysia nowadays start to think and act green . In
addition, firms need to implement wise strategies in order to compromise with
green issue without neglecting their business objectives. This study also
indicates manufacturers in Malaysia implement green purchasing, eco design and
internal green practices in their operations. Therefore the findings will help to
address the issues more appropriately and plan for better green supply chain
management initiatives in the future aligning with effort and commitment shown
by the government. A firm can employ environmentally beneficial strategies
selectively to become more competitive over the long run. Putting these
strategies into practice will require fundamental changes in core business
processes, including product development, manufacturing, and supply chain
management.

20
2.6.2 Green Manufacturing .

Green manufacturing is defined as production processes which use inputs with


relatively low environmental impacts, which are highly efficient, and which
generate little or no waste or pollution. Green manufacturing can lead to lower
raw material costs, production efficiency gains, reduced environmental and
occupational safety expenses, and improved corporate image. In accordance with
the reality of the manufacturing system, green manufacturing plan and adopt the
production technology program and process route with fewer resources
consumption, little environmental pollution as far as possible. The standards to
reach green manufacturing include no potential safety problems, no health threats
on operators or products users, not the environmental pollution, waste recycling,
waste disposal during the production process as much as possible.

Green manufacturing is a manufacturing mode designed to minimize the


environmental impact in the manufacturing processes of product ( Tan,et al.,2001),
and the adoption of green manufacturing helps to reduce waste and pollution (
Hui,et al.,2001). Environmentally responsible manufacturing processes , GSCM
practices, and their many related principles have become important strategies for
firms to achieve profit and increase market share objectives by lowering their
environmental impact and enhancing efficiency ( Zhu and Sarkis, 2006 ).

The traditional supply chain is referred to as and integrated manufacturing process


where raw materials are manufactured into final product and delivered to
customers via distribution or retail ( Beamon,1999). According to Beamon (1999) ,
due to recent changes in environmental requirements affecting manufacturing
operations, increasing attention is given to developing environmental management
( EM ) strategies for the supply chain. Thus, the green supply chain management
occur and it has become important agenda in business today.

21
2.6.3 Green Engineering and Reengineering Design

Green engineering encompasses numerous ways to improve the process and


design of product that conserve natural resources and impact the natural
environment as little as possible to make them more efficient from an
environmental standpoint. In designing of a product, the firm manufacturer
require high level of cooperation with their supplier . As an example for research
concerning cooperation of the sub-manufacturer in Eco-Design ( Stevels,2002). In
production, the company can address green engineering via several methods to
reduce consumption of a resource and energy . It is where a reuse and recycling
have provided green methods ( Duber –Smith,2005). Green engineering attempts
to achieve four goals: waste reduction, materials management, pollution

prevention and product enhancement. All four goals of green engineering


mentioned above are supported by a long-term, life cycle point of view. A life
cycle analysis is a holistic approach to consider the entirety of a product, process
or activity, encompassing raw materials, manufacturing, transportation,
distribution, use, maintenance, recycling, and final disposal.

Therefore, it is critically important to make the desire for green design and
technology known from the start. Green Engineering embraces the concept that the
decision to protect human health and the environment can have the greatest impact
and cost effectiveness when applied early to the design and development phase of
process or product. Green Engineering focuses how to achieve through science and
technology through scientist and engineers to engage in when designing new
materials, products, processes , and systems that are benign to human health and
the environment.

Re-engineering of design, is the practice of rethinking and redesigning the way


work is done to better support an organization’s mission and reduce costs. Re-
engineering emphasized a holistic focus on business objectives related to the
organization and encouraging full-scale recreation of processes and procedures
that govern how recourses are used to create products and services that meet the

22
needs of particular customers or markets, with the aim of achieving dramatic
improvement in critical measures, such as cost, quality , service and speed. The
application of green reengineering : technique , such as heat and mass integration,
to more efficiency use energy, water, and materials, thereby reducing resource
demands ; life-cycle approaches to identify opportunities for environmental
improvement and to compare environmental impacts of products; Reducing the
throughput of resources necessary to manufacture, distribute, support and service a
product through a process known as “dematerialization.” Dematerialization (e.g.,
reducing the amount of packaging or using renewable or recycled materials)
reduces the overall energy and material footprint of a product and ; Recovering
value from a product at the end of its useful life: rather than being disposed in
landfills, obsolete products and residual materials can be recovered, recycled, and
reused.

2.7 Marketing Opportunities.

2.7.1 Definition of Marketing Opportunities.

Marketing Opportunities is the most definitions of green marketing deal with


green supply chain management where it’s implemented during the product
marketing. The environmental green product which is manufactured with cost
effective requires safeguard the ecological balance and take green philosophy of
environmental protection as guide throughout the marketing process from market
research opportunity by product development, product pricing and promotion
activities, which make the development enterprises in line with consumer’s
benefit and social benefits. The involvement of firms in green practices in utmost
important to meet internal and external market and customers to grab the
business opportunities . Thus green environment in obtaining ISO 14001
certification become as a steppingstone because of requirement by their
customers.

23
2.7.2 Green Marketing .

Green marketing can be viewed as adherence to ethical and social responsibility


requirement in marketing. The antecedents of green marketing were developed
through many stages since the 1960s.The term Green Marketing came in the late
1980s and early 1990s, began in Europe in the early 1980s when certain products
were found to be harmful to the environment and society as a whole.
Consequently new types of products were created, called “Green product” that would
cause less damage to the environment .The movement paved the way for the
emergency of green market in late 1980s.

According to Peattee (2001), the evolution of green marketing can be divided


into three phases; first phase was termed as “Ecological” green marketing, to
help solve the environment problems through remedies. Second phase was
‘Environmental” Green Marketing with focus on clean technology that involved
designing of innovative new products, when take care of pollution and waste
issues. Third phase was “Sustainable” where it becomes essential for companies

to produce environment friendly products as the awareness for such products in


on the rise as customers are demanding eco-friendly products and technologies.
In this context, Narayan Lakhmi Vermuri (2008) has discussed multifaceted views
on ‘Green Marketing ‘its new hopes and challenges in the current scenario. According to
the American Marketing Association, green marketing is the marketing of
product that are presumed to be environmentally safe. Thus green marketing in
corporate a broad range of activities, including product modification, changes to
the production process, packaging changes, as well as modifying advertising.

Green marketing involves a commitment from the firm organization to deal with
environmental friendly product ( i.e.., products that do not harm society and the
environment ) and to conduct marketing activities in a way that reflect the

24
organization’s commitment to environmental responsibility through adherence to
specific controls to ensure the preservation of the natural environment. Adopting
green marketing philosophy brings an organization nearest to its clients,
particularly those who have other environmental concerns besides maintaining
the environment and rationalizing the use of natural resources.

The green marketing approach is likely to explore new horizons and excellent
opportunities for organizations that practices green marketing. This competitive
situation will lead to more profits in addition to promoting leadership in the
market, especially when they introduce environmentally friendly products and
target those who had environment trends in the market. Pride and Ferrell define
green marketing as any developing , pricing and promoting process for a product
which does not cause any damage to the natural environment. That is why green
marketing has been widely adopted by the firms would wide and the following
are the reason for widely adoption of this conception. There are basically five
reasons for which a marketer should go for to adoption of green marketing
:opportunities or competitive advantage, corporate social responsibility,
government pressure , competitive pressure and cost or profit issues.

The Green Marketing is aimed at following objective; eliminate the concept of


waste, reinvent the concept of product, make environmentalism profitable,
bringing out product modification, changing in production processes, packaging
changes and modifying advertising. After this , researchers enhance the
marketing opportunities which clearly indicate that adoption of green marketing
approach achieves many benefits for organizations and may place an
organization at the top of competitive pyramid market leadership, especially in
the context of increasing environment awareness in the market.

Green marketing is relatively a new notion to the most of the consumers.


However, the green marketing is the marketing of product that are presumed to
be environmentally safe. Therefore, it become very essential to understand the
dualism between green marketing and the growing price of the green product, so

25
that the green product can be within the reach of the consumers of different
hierarchy. Green marketing is posing some of challenges which require
innovative technology so that the ‘green products’ can fetch wider market at domestic
and international levels. It require a periodic review of the ‘green product’,
so that the products may become ‘ecological viable’ as well as ‘economical
viable’ for the consumers, especially belong to middle and low income groups.
Finally, consumers, industrial buyers and supplier need to pressurize effects on
minimize the negative effect on the environment-friendly. Green marketing
assumes even more importance and relevance in developing countries like
Malaysia.

2.7.3 Green Marketing Strategy.

In order to expand the market of green products it require some of strategies


which can be conducive to boost up the market of the green products. Those
strategies can be implemented as follows:
Product Differentiation: There is a wide range of markets which includes
retailing the manufactures have used eco-performance and it is a paramount
need to make continuous efforts which can be helpful to differentiate then

products and services using green marketing practices.. It has been observed that
the product with poor eco-performance can become target for new substitution,
as a result of this many organization are products from the competitors.
Value positioning of consumer: The organization can design environmental
products to perform as promoting and delivering the customer’s desired value of
environmental products and target relevant customer market segment can be
proved conducive to organization to differentiate.
Designing of bio-degrading prone packaging: It has been observed that
promotion of green products have been strongly influenced by the design making
of the customers. Thus it indicates that bio-degradable packing will affect in a

26
strong and moderate on their decision making. It is therefore, an imperative to the
personnel’s associated with green marketing should modify the product
packaging by making use of recycle as well as hand made paper in packaging
rather than using more mechanized material. The manufacturers, who are using
plastic for packaging should meet some of requisite standard.
Product strategy for green marketing: In order to promote marketing for green
marketing it is an urgent need to identify customer’s environmental necessities
and develop the products accordingly. It includes more environmentally
responsible packages which ensure that products meet or exceed the quality
expectation of the consumers; so that the marketers may charge higher price with
highlighting the eco-logical viability of the products.
Distribution strategy of green marketing: In this strategy of green marketing,
it is very essential to take customer support. In this case, the location must be
differentiated form the competitors. It can be achieved by promoting the in-store
activities like recycling of materials to focusing the environmental and other
related benefits.
Life cycle analysis of green marketing: Product brand is a vital aspects, which
can help to formulate plans for green marketing. It is a best tool for performing
life cycle analysis complex assessment which can make available the vital
statistics on social, environmental and economic impact of products through
the supply chain production process and after the purchase. Life cycle analysis
can inform a brand requirement to go before it claims to be sustainable.

2.8 Environmental Implementation.

2.8.1 Definition of Environmental Implementation.

Environmental Implementation can be defined as the planning and development


of environmental activities and projects that require direct involvement of an
organization whether with its suppliers or with its customers to jointly develop
environmental solutions (Geffen and Rothenberg 2000). Environmental
implementation requires an organization to invest specific resources in
cooperative activities that address environmental issues in the supply chain.

27
These activities potentially capture the added value that can emerge from
collaborative interaction among the members of a supply chain to reduce
environmental impact. As an example of this type of GSCM practices, GEMI
(2004) gave an example of the chemical management services, where a supplier
of chemicals is collaboratively working with customers at their facilities to
reduce their use of chemicals.

Environmental implementation activities also include joint planning sessions in


regard to the environment and knowledge-sharing activities, such as workshops
and seminars pertaining to management systems, leading to a reduction of waste
in the logistics process (Rao, 2002). He further pointed out that environmental
focuses less on the immediate outcome of the suppliers’ environmental efforts,
such as compliance to existing regulations, and more on the process by which
more environmentally sound operations or products might be achieved.

2.8.2 The Green Environmental.

The simplest explanation about why the green environmental matters is that, as
humans, the environment-the Earth-is our home. It is where we live, breathe, eat,
raise our children, etc. Our entire life support system is dependent on the well-

being of all of the species living on earth. This is commonly referred to as the
biosphere, a term created by Vladimir Vernadsky, a Russian scientist in the
1920s.The biosphere refers to one global ecological system in which all living
things are interdependent. For example, implementing environmentally sustainable
practices and green supply chain management has the potential to eliminate waste
and generate cost savings, leading to a stronger bottom line. In addition, with many
consumers committed to “going green,” eco-friendly businesses often benefit from
favorable public opinion and greater customer loyalty. Environmental issues
become a major concern for business as well as public organizations. Therefore,

28
efficient policies need to be designed to alleviate these issues and approach ISO
14001 certification is encouraged to implement in firm’s and organizations.

Environmental awareness is becoming increasing central to the thinking of today’s


organisations. It is now imperative that businesses incorporate a basic level of
green environmental awareness strategy into their green supply chain practices.
The growing concern of green environmental issues and the focus on businesses
pursuing green environmental practices creates the question of why some firms are
more proactive in their environmental strategies than others. The capabilities of the
green supply chain management can also affect how proactive a firm is
environmentally. The greening of the supply chain is becoming more popular and
is something that could potentially contribute to a higher level of environmental
soundness within organisations. For example, a few simple changes to how you
deal involve in environmentally friendly processes while cost saving : avoid using
materials unnecessarily, reduces liquid waste and water consumption (low-flow
plumbing, rainwater collection, drought-resistant landscaping etc.), reduces solid
waste (household garbage limits etc.), provides local recycling and composting
centers, community gardens provide chemical-free food production and gardening,
recycling of materials, low energy consumption, less production waste, clean
production technique and eliminate pollution. Other than minimizing
environmental impact, product that consuming less materials or energy would
definitely tend to be more profitable and competitive in the market.Thus ,design
for environment is an important practice to reduce impacts to environment from
their products and manufacturing processes as well as a competitive advantages for
an organisation to compete in the market.

Reflecting the importance of the foregoing considerations, the role of firms’


capabilities in the deployment of proactive environmental policies has been
emphasized by a number of prominent environmental management scholars.
Natural environment becomes a challenging issue to business organizations in
recent years as a result of global and local environmental problems. Business

29
operations, such as sourcing, manufacturing, and logistics, are believed to be
responsible for most of these problems (Beamon, 1999). These challenges and
pressures push firms to seriously considering environmental impacts while doing
their business. Green becomes a common practice to portray the environmentally-
friendly image of products, processes, systems and technologies, and the way
business is conducted (Vachon & Klassen, 2006).

The representative from SIRIM described the drivers for green supply chain
importance in environmental and initiatives in Malaysia as: In Malaysia, green
activities are for business reasons because most companies are multinational
companies and most of them are Japanese, American or European based
companies. These companies try to ensure that whatever products they export to
Europe or to US will be accepted. Especially Japanese companies are very
concerned of US or European legislations and try to comply with these
legislations. So, Malaysian companies do green supply activities so as not to loose
their business in Europe or probably in Japan. Most Malaysian companies have
green purchasing committee dealing directly with customer and look to what is the
customer requirement, and most customers come with specific requirement under
green procurement list; non-hazardous metal, recycled content, energy efficiency,
use of renewable resources or any other criteria that spelled out in green
procurement list. Also, the government promotes green activities concerning the
important of green environmental and gives financial incentives to the
manufacturers to embark on green activities. The government, represented by
department of environment, promotes a national environmental policy which
contains “green consumerism.”

Modern day businesses all aim to produce goods at a low cost while maintaining
quality, staying competitive in the global marketplace, and meeting consumer
preferences for more green environmentally friendly products. Going green
provides bottom line cost savings, as well as a competitive advantage in the

30
marketplace. It allows firm to act proactively to address new environmental
requirements from vendors and suppliers, while getting ahead of upcoming
legislation. A solid environmental program also attracts the highest quality
employees in firm and keeps those have happy and healthy. Green firm’s operate
their businesses to meet their needs, without compromising the ability of future
generations. Green et al.,(1996), studied the types of environmental, green supply
chain relations and doing impact on the environmental practices of companies and
suppliers. They found that , compared with suppliers, the customers play a larger
role in environmental impact. However, Theyel (2001) point out that those
companies that want to create added benefit need to ensure equal the involvement
for customers and suppliers. Jointly developing product with supplier can ensure
more economic benefits ( Theyel,2001 ).

2.8.3 Lean Environmental Principle and System

Lean environmental principle is the concepts on the improvements in the


entire business process as opposed to incremental improvements. It is the
business process system that can significantly improve a company’s profitability.
Lean environmental principles encourage an organisation to bring about
significant changes in their operational and cultural environment. This in turn has
a positive impact on the environmental performance of the firm reducing
pollution, waste and emissions. Lean environmental principles enable companies
to deliver with lesser resources resulting in lesser scrap and wastage. It
encourages organisations to judiciously use natural resources, such as energy,
water and forest products. Lean pushes for continuous improvement and
empowers companies to better their environment performance (Environment
Protection Agency, 2010).

When a firm is implementing Lean principles into Environmental Management


System ( EMS ), it must clearly set forth the objectives of such an initiative (Mc
Donald, 2005). The senior management must play an important and visible role

31
in implementing the Lean and green initiatives. The procedures and measures for
attaining the goals must be clearly communicated to the employees at all levels.
There must be cross functional cooperation in the organisation to learn and
benefit from mutual experience. There should be a process of acknowledging the
best practices of each unit and introducing the same at the company level. A firm
can benefit tremendously from combining the Lean and green efforts. The firm
will be seen as contributing to protecting the environment and preserving it for
future generations. It will result in reduced cost of operations, optimum
utilization of resources, reduction in wastage and better profitability for the
organisation. A key component of Lean principles is just-in-time (JIT) inventory
strategy. It can be seen that Lean principles and ISO 14001 standards have a lot
of common ground and both aim at reducing waste. Lean focuses on delivering
the maximum value to the customer using the required resources at minimizing
waste. When an organisation implements Lean, there are significant cost savings.
There is optimum utilization of resources and wastage is reduced. This has a
positive impact on the environmental performance of the firm.

Lean Environmental System is a tool for process improvement that aims at


maximizing customer value and minimizing waste (Miller, Pawloski &
Stanridge, 2010). It focuses on continuously improving the process of green
management elements to deliver maximum value to customers. Lean helps in
achieving the organizational goals and objective with fewer resources and zero
waste. Lean does not only focus individually on systems, tools, technologies,
assets and functions. It works on optimizing the overall process flow across
assets, systems, technologies and functions to deliver the best value to customers
(Lean Enterprise Institute, 2009).

Initially , lean principles were thought to be relevant only to manufacturing


companies but it’s ino longer true. Lean can be implemented successfully across
all firms or industries . To reap the full benefits of lean, the company must adopt
it as part of their business strategy (Turbide, 2005). This will result in lean
principles being implemented consistently across all the functions in the

32
organization and will have a positive impact on the overall performance. Lean
should be adopted as a way of thinking and as a way of doing business in order to
fully enjoy its benefits (Sarkar, 2007). According to Reidenbach & Goeke (2006,
pp. 1), “Rather than having cost reduction as the exclusive focus of lean thinking,
the conceptual framework of lean also has tremendous potential for increasing
top-line revenue by creating a sustainable differential value advantage for the
enterprise that deploys the concept in its entirety.”

2.9 Green Supply Chain Management.

2.9.1 Definition of Green Supply Chain Management.

Green supply chain management ( GSCM ), is defined as ‘ the integration of


environmental thinking into supply chain management ( SCM) , including
product design , material sourcing, and selection , manufacturing processes,
delivery of the final product to the consumer as well as end-of-life management
of the after its useful life’ ( Srivastava , 2007 ,p 54-55 ).

Green supply chain management also is defined as “the extension of the


traditional supply chains to include activities that aims at minimizing
environmental impacts of a product throughout its entire life cycle, such as green
design, resource saving, harmful material reduction, and product recycle or
reuse.” (Beamon, 1999). The concept of green supply chain was first arisen by
the Michigan State University in 1996 during an "environmentally responsible
manufacturing" research. It was proved to be an effective way of management by
the scholars in Michigan State University. Later they found the establishment of
green supply chain management in these enterprises such as IBM effectively
solved the conflict between economic interests of environmental protection, so
people admires it (Lu, L.Y. et al, 2007).

Green supply chain origins from the idea of supply chain management and
sustainable development theory. The green supply chain management is a system
which includes the process of material acquisition, processing, packaging,
warehousing, transportation, sale and use to the end of life treatment, recycling

33
(Bacallan, J.J. 2000). The process is guided by the principle of optimization
allocation of resources, enhancing benefits, achieving the goal of the
compatibility with the environment. It is a green system combines by the
suppliers, manufacturers, distributors, retailers, consumers, environment, rules
and cultural element. So it is necessary to establish green supply chain
management, so that the enterprise can have sustainable development (Murphy,
P.R. et al, 2003).

Green supply chain management mainly began from product design, and end in
final product recycle. It mainly includes the following 5 aspects (Sarkis, J. 1998).
We call them green procurement, green design, green manufacturing, green
distribution, green logistics, green consumption and green recycling. The
objective of green supply chain is to eliminate or minimize negative
environmental impacts (air, water, and land pollution) and waste of resources
(energy, materials, products) from the extraction or acquisition of raw materials
up to final use and disposal of products (Hervani, Helms & Sarkis, 2005).

2.9.2 Green Supply Chain Management Practices.

Green Supply Chain Management Practices has been growing as organizations


and researchers begin to realize that the management of environmental programs
and operations do not end at the boundaries of the organization. According to
Rao (2002), major companies around the world have developed and implemented
comprehensive programs to control and improve their environmental practices

across the entire supply chain. According to Vachon and Klasses (2006), the
green supply chain management practice has been lacking a comprehensive
framework until more recently the internalization or externalization framework
from the international management literature has proposed a theoretical
foundation to categorize environmental management in the supply chain. The

34
framework, which was also used recently to characterize supplier development
activities and corporate social responsibility suggests that organizations can
either conduct activities through markets (externalizing) or by incorporating
those activities within the organization hierarchy (internalizing) (Husted, 2003).
Hence, an organization’s green supply chain practices imply internalizing by
integrating its environmental management activities with other organizations in
the supply chain or externalizing environmental management in the supply chain
by employing market-based mechanisms.

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. However, there is
concern as to whether such environmental sustainability efforts will ultimately
translate into improved market share and profitability. Ultimately, manufacturing
managers are responsible for the performance of the organizations for which they
work (Green et al., 2008). He notes that the questions that will need to be asked
will include how best can they improve organizational performance within the
context of their supply chains? Success at the supply chain level leads to success
at the organizational level (Chopra and Meindl, 2004) and since customers and
governmental entities have begun to demand that processes, products, and
services be environmentally friendly, it is important that managers identify and
implement environmental sustainability practices that extend throughout the
green supply chain management.

The green supply chain management concept (and its many elements) has had
many variations over the years and has included sustainable supply network
management; supply and demand sustainability or corporate social responsibility
networks; supply chain environmental management; green purchasing and
procurement, environmental purchasing, green logistics and environmental
logistics (Linton et al., 2007). Using a similar premise, Vachon and Klassen (2006)
put forward the concept of green supply chain management practices which
comprise two sets of related yet independent environmental activities, namely:

35
environmental collaboration and environmental monitoring several activities, such
as managing reverse flows of materials and packaging, sharing environmental
management techniques and knowledge among supply chain partners, controlling
environmental risk associated with suppliers’ operations, and assuring proper
product utilization by customers (Snir, 2001).

According to Zelbst et al., (2010), business processes that must be integrated and
coordinated include in pursuit of green supply chain practices will include
purchasing, manufacturing, marketing, logistics, and information systems. Further,
strategic imperatives that must be aligned include customer focus, efficiency,
quality, and responsiveness and most recently environmental sustainability. With
competition at the supply chain level and a focus on the changing demands of final
customers, it is necessary to identify and adopt practices that yield competitive
advantage at the supply chain level which, in turn, yield improved performance for
the individual supply chain partners (Green et al., 2008).

2.10 Conclusion of Chapter Two.

The environmental problem in our world have becoming major social and economic
problems , building the green supply chain systems is demand of the use development
of human society and it is a great social and firms benefits. In this chapter summary
of the literature review, examine and explained the relationship between each
independent variable; logistics management , manufacturing strategies, marketing
opportunities , environmental implementation and dependent variable; green supply
chain management , practices on the firms in Malaysia .

Indeed, research supports the idea that proactive green supply chain management may
represent an “inimitable competitive weapon” in the business environment, one that
can deliver value for the firm. Firms commit significant resources to environmental
initiatives, and some research suggests that environmental practices in green supply
chain management shape firm performance. When firms use such practices, they can

36
potentially improve performance via processes that involve controlling wastes,
improving their reputation, and lowering overall costs

In the scope of businesses have created and adoption Green Supply Chain
Management that are in better alignment with the best interests of Logistics
Management as the purchasing function including reduction , recycling, reuse and the
substitution of materials ; Manufacturing Strategies ,in greening the production
phase, manufacturing firms should also go for green design or design for
environment; Marketing Opportunities go "greening" can lower the ecological
impacts of business and also increases efficiency, creates the potential source of
competitive advantages in an innovative manner ;and Environmental Implementation,
a growing number of companies are putting into practices the environmental
management system selecting process influence the adoption of environmentally
responsible behaviour.

Likewise from this study, reveal that green supply chain management are now
gaining momentum in Malaysia firm starting to implement green practices and it is
pursuing to continue since there are demands and several push and pull factors that
motivate firms to do so. Finally anticipating awareness in future research , the
increase of industrialization and globalization in developing countries create more
opportunities for firm’s going green in their businesses as concern to environmental
sustainability.

37
CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction.

This chapter demonstrates the methods of implementing a research work, primarily


delineating the research model, identifying the appropriate research design,
discussion on the possible data collection methods, targeting the right population
sample, formulating questionnaires and measurement of scale, and identifying the
appropriate statistical analysis techniques. To get a better understanding and to
conduct an investigation on the problem statement, a rigorous research needs to be
done. The initial part of this research will lead to information collection. Various
methods of research can be implemented; such as questionnaires, interviews,
observations and documentation review which will subsequently get this study meet it
objectives.

3.2 Research Design.

Based on the book written by Naresh K.Malhotra (2004) a research design is a


framework or blueprint for conducting the research project. It details the procedures
necessary to obtaining information needed to structure and solving the research
problem. Research design can be classified as exploratory research and conclusive
research. The research design for the study was a descriptive survey methodology
was utilized in this dissertation to collect data for use in testing the hypothesis
developed. This research design was deemed appropriate for this study because it
allowed the researcher to draw conclusions about the relationship of the GSCM
practices that lead to improvement in Malaysia firm’s performance . The advantages
of survey research design include; a great deal of information can be obtained from a
large population, survey are relatively economical, survey accuracy is high especially
when good sampling procedure are followed and survey have a unique advantage

38
among scientific methods as it is possible to check the validity of survey data, using
various statistical methods ( Kerlinger and Lee 2000).

3.3 Theoretical Framework.

Figure 3.1 : Theoretical Framework

LOGISTICS
MANAGEMENT

MANUFACTURING
STRATEGIES GREEN SUPPLY
CHAIN MANAGEMENT
MARKETING
OPPOURTUNITIES

ENVIROMENTAL
IMPLEMENTATION

Independent Variable Dependent variable

The conceptual framework contains the key factors , the variables and presumed
relationships among them ( Miles and Huberman,1994) . The main aim of this
research is to understand the independent variable and dependent variable
relationship of the firm’s organizational implementation and performance. The
formulations of the theoretical propositions illustrated on this theoretical framework
consist of four Independent Variables (IV) and Dependent Variable (DV). The
Independent variable (IV) is logistic management, manufacturing strategies,
marketing opportunities , environmental implementation and Dependent variable
(DV) green supply chain management. Theoretical framework visually elaborate wise
perspective on research of the study, identifies literature review categories and directs
research objective.

39
3.4 Research Hypothesis.

Hypothesis is a formal statement that the expected relationship between an


independent and dependent variable ( Creswell, 1994). A hypothesis is a specific,
testable prediction about what you expect to happen in your study. There are many
different ways to come up with a hypothesis. In many cases, researchers might draw a
hypothesis from a specific theory or build on previous research. However, hypotheses
are not unique to research. Hypotheses are constantly generated in the human mind as
we work to understand day-to-day phenomena. By formulating a series of reasonable
guesses of cause and effect we are able to understand and explore the events in our
surrounding environment (Leedy and Ormrod, 2001). For each relationship, there is
an assured hypothesis , indicating that there is a positive relationship between each
independent variable and the dependent variable. In this study developed four
independent variable research hypothesis and one dependent variable research
hypothesis. The developed hypothesis are :

Hypothesis 1 :
The Logistics Management has positive relationship with Green Supply Chain
Management .

Logistics Management shows GSCM as the purchasing function including reduction ,


recycling, reuse and the substitution of materials ( Narasimhan and Carter , 1998 ).
The GSC covers wide areas of GSCM practices and SCM’s participant and practices
from green purchasing to integrated supply chains flowing from supplier , to
manufacturer, to customer, and to the reverse supply chain ( Zhu and Sarkis,2006:
Rao and Holt, 2005 )

Hypothesis 2 :
The Manufacturing Strategies has positive relationship with Green Supply Chain
Management .

Manufacturing Strategies, indicate in greening the production phase, manufacturing


firms should also go for green design or design for environment (DfE) or eco-design
(Rao, 2008)which is meant to address product functionality while at the same time

40
minimizing life-cycle environmental impact (Zhu et al., 2008b). The design stage of a
product is most critical since this is the stage when materials and processes are
determined thus, shaping the impact on the natural environment. Hence, designing the
product concurrently with the supply chain is a GSCM best practice (LMI, 2005). In
the process of green production, the input and output of the manufacturing process,
enhance the humanity in manufacture, by adjusting working hours and reducing
labour intensity and other measures to enhance the work of staff enthusiasm and
creativity to increase productivity via GSCM.

Hypothesis 3 :
The Marketing Opportunities has positive relationship with Green Supply Chain
Management .

Marketing Opportunities ,has "greening" can lower the ecological impacts of business
and also increases efficiency, creates the potential source of competitive advantages
in an innovative manner (Samson ; 2008). It is generally accepted that a company's
contribution to environmentally design technology development is dependent on an
integration of environmental requirements into industrial products and processes
(Porter & Linde, 1995). GSCM as a strategy to gain competitive advantage means the
orienting empirical study shows that there is a substantial interest amongst the firm’s
to take action to decrease their environmental impact. GSCM ensure marketing is the
ecological management of sales of enterprise, which includes distribution channels
increase sales promotion with the goal of adding value to the business and reducing
costs in all parts of the production system is identified as key drivers in order to
increase market competitiveness.

Hypothesis 4 :
The Environmental Implementation has positive relationship with Green Supply
Chain Management .

Environmental Implementation, shows a growing number of companies are putting


GSCM into practices the environmental management system selecting process that
has become so general ( Testa,Iraldo et al.2009). In Malaysia, environmental issues

41
have become priority for the government and public (Eltayeb,Zailani & Filho
2010).The strategy literature stresses that environmental management can play a
critical role as both a social responsibility and an important cooperate duty ( Arlow
abd Gannon, 1982). Hence, pressure from government agencies and national or
international regulators will influence the adoption of environmentally responsible
behaviour ( Delmas and Toffel,2004; Rivera,2004;Zailani et al,2012). Narasimhan
and Carter (1998) found that companies have institutionalized environmental
practices because pressure from external and internal forces as well as awareness of
the consequences of non-compliance with environmental imperative Design for
environment (DfE) is a concept which reduces the impact to damage the environment
of products or services across its life cycle. According to Lewis and Gretsakis (2001),
the environmental impact of any product or material is “locked” into the product
during the initial design stage when materials, processes are selected. Therefore
GSCM in design stage is very important to determine if a product life cycle creates
impact to the environment.

Hypothesis 5 :
The Green Supply Chain Management practices a significant relationship to firm’s
enhancing environmental friendly awareness.

One study from Malaysia that has been carried out by Eltayeb and Zailani [33] has
identified the four key drivers or motivators to green supply chain initiatives:
Regulations, customer requirements, expected business gains, and social
responsibility. Eltayeb et al. [34] analyzed the relationship between green supply
chain initiatives and performance outcomes and identified the key initiatives (eco-
design) that have positive effect .As such the firm can use the GSCM practices to
reduce their cost and improve their performances and efficiency in their operations
and marketing to remain competitive. According to (Chau et al., 2010) and the
studies mentioned above on adoption of GSCM have been found as a source of
competitive advantage and improved performance. Therefore the study aimed at
determining the various GSCM practices and their impact on supply chain
performance. Green Supply Chain Management (GSCM) has become a critical factor
to sustain. GSCP has also begun to gain popularities in emerging economy countries,

42
for example Eltayeb et al. (2011) studied the outcomes of green supply chain
initiatives among ISO 14001 certified firms in Malaysia , whereas Zailini et al.(
2012) , carried out a study on GSCM research in Malaysia to analyse the impact and
internal and external forces on environmental performance.
responsibility. Eltayeb et al. [34] analysed the relationship between green supply
chain initiatives and performance outcomes and identified the key initiatives (eco-
design) that have positive effect .

3.5 Methodology of Study.

Methodology of study is to determine research methodology produce the best


possible result and finding in order to achieve the objective of the study. To be able to
gather the necessary data, the researcher utilized the descriptive method, using both
qualitative and quantitative approaches. The survey methods were the research
instruments used for the data-gathering from the survey questionnaire to evaluate the
challenges facing by the firm’s in Malaysia. The results of the survey were then
processed by computing the weighted mean of each survey item meet the objective of
this study are primary and secondary data.. Relevant literatures were also used to
support the gathered findings.

The credibility of findings and conclusions extensively depend on the quality of the
research design, data collection, sampling technique, data management, and data
analysis. This chapter will be dedicated to the description of the methods and
procedures done in order to obtain the data, how they will be analysed, interpreted,
and how the conclusion will be met. This section is to justify the means in which the
study was obtained and will help in giving it purpose and strength as it will then be
truthful and analytical. All these will help in the processing of the data and the
formulation of conclusions.

Specifically, this research will cover the following: the research design and method,
the respondents or subjects to be studied (which will include the sampling method),

43
the data collection instrument, and the data analysis. Questionnaire are useful tool for
investing and trends in data and frequently used with success management ,
marketing and consumer research ( Easterby-Smith,1991).

3.6 Questionnaires Design.

A well-designed questionnaire is important, the clarity and the language use to


construct the questionnaire must be taken well care. This is because the purpose of
the clear and concise questionnaire helped to get best responses from the potential
respondents. To improve the responses gathered at the end, a guide to the design of
the questionnaire (Burgess 2001) was referred in the process of getting the
questionnaire done in an efficient manner.

The survey questionnaire were distributed to the firm’s in Malaysia randomly which
consist of 135 questionnaire via email and manually to respondent. Not all the
questionnaire distributed to respondents returned with full participation, some of them
refused to joint reason being they didn’t show their interest and limited time allocated
for this survey. Out of 135 distributed questionnaire 125 respondents have
completed and return the questionnaire . The questionnaire survey form started
with an introduction page that defined the objective of the questionnaire. The
objective of the questionnaire was to gather the information from the potential
respondents for their users and preference on the development of GSCM. Before the
respondents actually taking part in the questionnaire survey, there was a brief
introductory section for them to understand the background and purpose of this
particular questionnaire and make the participants aware of the information will be
kept confidential and would not be used for any profitable activities or against them.
The questionnaire designed that has been used for this research is divided into six
section, which consists of 36 questions.

Section A contained eight personal question describing the demographic factors


which covers gender, age, working experience, annual turnover, type of industrial,
number of employee, monthly income and education. The question in this section

44
constructed used closed–ended scale. Section B to Section F questions were
constructed in the form of Likert –scale.

Section B , Section C, Section D, and Section E questions are independent variable,


Logistics management, Manufacturing Strategies, Marketing Opportunities and
Environmental Implementation and each section consists of six questions. Section F,
questions are dependent variable Green Supply Chain Management consists of four
questions. A sample of questionnaire designed can be found in Appendix .

3.7 Data Collection.

Data is mainly used to support the total research , so the collection of data is the main
part of our paper ( Lee, H ,et al,. 1997b). In this research , mainly use primary data
and secondary data. The questionnaire consists of closed ended questions designed to
elicit specific response for qualitative analysis. A likert scale was used for close –
ended questions. A questionnaire was chosen since it act as useful tool for collecting
data from respondents because of the need to provide a means of expressing their
views more openly and clearly.

3.7.1 Primary Data

Primary data also know as raw data, is mainly obtained through the interview
and survey ( Grene,V,1976 ). Primary data usually can answer question that
secondary data can’t answer, and primary data are usually more time an
credible. In this research, primary data was collected and the data was
standardized to make comparison on the survey forms which were sent to the
firm’s managers and executives using mail and manual method in this study.
By the facility of geography location, we get the primary data information
which supported the research in this thesis.

45
3.7.2 Secondary Data.

Secondary data is useful to compare with primary data to evaluate how


representative these data were of the population ( Saunders, et al,. 2009
).Secondary data is the collected data from the net and literature ( Gene,
V.1976). Before writing this thesis, first study plenty of literature about firm
organisations and green supply chain management. Most importantly,
reference are made from books and journals, which provide more elaborative
information with research base evidence. As such , it makes this research data
and information more accurate and densely.

3.8 Sampling Procedure & Technique

The sampling technique used in this study is probability sampling, which is simple
random sampling technique. Probability sampling as defined by ( Rust et al, 2010),
managing the customer experience is typically viewed as the responsibility of the
firms in most organizations .Each element in the firms do have equal probability or
chance to be selected as sample subject. Meanwhile given the nature of distribution
heavily skewed towards much smaller firms, it was necessary to adopt a sampling
approach where larger firms would be represented to a greater extend in the final
samples. As such these larger firms were the primary focus of the study and as a
result managers were randomly selected to be included in the sample from the pool of
firms. Simple random sampling technique is referred as to the collection of
information from the pool of firms of the employees or managers who are randomly
selected from the pool of larger firms or population frame.

3.8.1 Sampling Method.

In research investigation involving several hundred and even thousands of


elements, it would be practically impossible to collect data from, or test, or
examine every element. Even if it were possible, it would be prohibitive in terms
of time, cost and other human resources. Therefore, for the questionnaires

46
distribution, the researcher used the probability sampling called simple random
sampling techniques in order to select the respondent. It would be possible to
generalize the properties or the characteristic to the population elements.

3.8.2 Population & Sampling Size.

According to Uma Sekaran (2003), population refer to the entire group of people,
events, or things of interest that researcher wishes to investigate. The population
for this study refers to the customer in firms industries. Sampling size refers to a
number of units of respondents to be included in a study and determined based on
the size of the population. For the purpose of this research the sample
chosen comprises of randomly selected individuals from the selected population
and the information is then tabulated.

3.9 Measurement and Scaling Technique

In order to have significant and reliable information that appropriate with the
fieldwork study, certain proper scaling technique must be adopted. Therefore,
questionnaires should include of the following scaling :Close-Ended Question –
Likert Scale. The respondents are required to choose Strongly Disagree (1), Disagree
(2), Satisfy (3), Agree (4) and Strongly Agree (5)

3.10 Data Analysis Technique.

The process of analyzes a data and finding analysis begins after all the data and
information had been gathered through the data collection method. Through this
process, the researcher determined the influence between the variable through
inferential analysis in order to test all the research questions. Later the results of the
hypotheses testing are interpretation. Statistical Package for Social Science ( SPSS )
software is used to process and analyze more accurate and quick result with graphical
explanation. Concept analysis is the process of analysing verbal or written
communications in a systematic way to measure variables quantitatively (Polit &
Hungler 1995:209, 698).

47
3.10.1 Frequency Distribution

The purpose of the frequency distribution is to obtain a count of the number of


responses associated with different values of one variable where these amounts
are usually in percentage.

3.10.2 Inferential Analysis

The purpose of inferential analysis is to make accurate judgment and


interpretation of result through inferences of the sample population of study.
The statistical tools used will be Multivariate Regression Analysis or Pearson
Correlation Analysis.

3.11 Conclusion of Chapter three

This chapter looked at the research methodologies explain the procedure and data
collection method that had been used to gather and analyze the most important factor
that focus the relationship of logistics management, manufacturing strategies,
marketing opportunities, environmental implementation with green supply chain
management in the Malaysia firms. The primary reason for the study was to learn
through administration of questionnaire on the relationship on the variable.
Interviews and questionnaires were the main methods of data collection used to
gather relevant data to achieve the research objectives.

This chapter also highlighted the methodologies conducted in this study. It also
explained the research design, data collection method which consisted of primary and
secondary data, sampling design, constructs measurement, data processing
description and the techniques used in data analysis. The following chapter will
illustrate the results by presenting them in tables form for better understanding.

48
CHAPTER FOUR

FINDINGS AND ANALYSIS

4.1 Introduction

The data for this study was obtained through a questionnaire to respondents among
the 135 firm in Malaysia. The questionnaire covers wide scope of the research
objectives of this study. However, in this analysis and findings, the most critical and
important issues will be identified and selected that need to be tackled or resolved as
further elaborate in conclusions and recommendations in chapter 5.

4.2 Response Rate

A set of 135 questionnaire were distributed randomly to executive and managers at


the firms in Malaysia . From the number distributed , only responded 125 . However
only 120 were useable ,giving a total response rate 92.5 percent. The remaining
unusable questionnaire received were respondents who are not in need of any kind of
firm coverage.

49
4.3 Profile of Respondents.

TABLE 4.1
Demographic Profile
Categories Frequency Percentage (%)

Gender Male 79 65.5


Female 41 34.2

Age < 25 4 3.3


26 – 35 38 31.7
36 - 50 61 50.8
>. 50 17 14.2

Working Experience < 1 5 4.2


2 – 4 29 24.2
( Year )
5 - 10 58 48.3
>. 10 28 23.3
Annual Turnover < 100,000 18 15.0
100,000 - 500,000 25 20.8
(Rm)
500,000 - 5,000,000 55 45.8
>. 5,000,000 22 18.3

Type of Industrial Manufacturing 47 39.2


Electronic 34 28.3
Construction 19 15.8
Services 20 16.7

Number of Employee < 50 20 16.7


51 – 500 54 45.0
501 - 1000 35 29.2
>. 1001 11 9.2

Monthly Income < 1000 1 0.8


(Rm) 1001 – 3000 28 23.3
3001 - 5000 42 35.0
>. 5001 49 40.8

Education SPM 9 7.5


Diploma 61 50.8
Degree 39 32.5
Master / Phd 11 9.2

50
In the table 4.1 demographic profile , respondents were categorized according to eight
different demographic characteristic : gender, age, working experience, annual
turnover, type of industrial, number of employee, monthly income and education.

It’s illustrated that generally the respondent in this study were mainly male ( 65.5
percent ; 79 ) , whilst females made up of only (34.2 percent ;41) of the sample
group. This shows the male respondents are more satisfied and female respondents
is just fairly satisfied.

Apart from that , the majority age respondents are between 36 to 50 years old ( 61 ;
50.8 percent ) is comfortable and satisfied of the firm performance. The most of the
respondents between 26 to 35 years old ( 38 ; 31.7 percent ) are willing to support
towards the majority satisfactions level . Respondents above 50 years old (17 ; 14.2
percent) is average satisfied .The respondent below than 25 years old ( 4 ; 3.3 percent
) is less interest .

Since the respondent on work experience between 5 to 10 years ( 48.3 percent ; 58 )


is the highest satisfaction, work experience between 2 to 4 years ( 24.2 percent ; 29 )
is moderate satisfactory , working experience above 10 years ( 23.3percent ; 28 ) is
almost equal to moderate satisfactory, and work experience below than 1 year ( 4.2
percent ; 5 ) respondents are less interest and just begin to agree of the firm
performance.

It has also shown in the aspect of the annual turnover between Rm 500,000 to
5,000,000 ( 45.8percent ; 55 ) is the highest sales satisfaction achievement , annual
turnover between Rm 100,000 to 500,000 ( 20.8percent ; 25) is satisfactory, annual
turnover above than 5,000,000 (18.3percent ;22) is almost to get closer to satisfactory

51
and annual turnover below than Rm100,000 (15.0percent;18) is just agree to focus
the firms business .

In the categories of economic and investment, type of industrial in manufacturing


(39.2percent ; 47) is the majority satisfactory firm , type of industrial in electronic
(28.3percent ; 34) is satisfactory firm and keen in progress rapidly, type of industrial
in services (16.7percent ; 20) is average satisfied , type of industrial in construction
(15.8percent ; 19) is just equal to agree average satisfied to firms’ application in
green supply chain management.

In the scope of firms human resources employment , number of employee between


51 to 500 (45.0percent : 54) is the majority numbers of employee preferred in an
organization, number of employee between 501 to 1000 (29.2percent : 35) is average
requirement in an organization, number of employee below than 50 (16.7percent ;
20) has the needs in an organization and number of employee above than 1001
(9.2percent ; 11) is less demand in firms organization and dependent on business
requirement.

With the respect of the monthly income , the respondents having income more than
5001( 40.8 percent ; 49 ) is above satisfied , the respondents income between 3001 to
5000 ( 35.5 percent ; 42 ) are satisfied , the respondents income between 1001 to
3000 ( 23.3 percent ; 28 ) respectively satisfactory and respondents income below
than 1000 is considered below satisfactory ( 0.8 percent ; 1 ).

Among the respondent , firms having education level of graduate in diploma( 50.8
percent ; 61 ) are more satisfied, the level of graduate in degree ( 32.5 percent ; 39 )
are satisfactory and level of graduate in master/Phd (9.2percent ; 11) and level of
undergraduate SPM ( 7.5 percent ; 9) has responded fairly below average.

52
4.4 Normality Test.

TABLE 4.2

Skewness and Kurtosis Test

Variable Skewness value Kurtosis value


Statistic Std.error Statistic Std.error

Logistic Management ( LM ) -1.132 0.221 3.817 0.438

Manufacturing Strategies ( MS) -0.677 0.221 1.447 0.438

Marketing Opportunities ( MO) -0.779 0.221 1.768 0.438

Environmental Implementation ( EI ) -0.434 0.221 -0.001 0.438

Green Supply Chain Management ( GSCM ) -0.366 0.221 -0.064 0.438

A normality test was conducted to identified the distribution of the data. The various

ways to identify whether a distribution is close to normality to be useful. Meyers ,

Gamst and Gualino (2006) suggested using the statistical of Skewness and Kurtosis as

indicator to the deviation from normality.

Table 4.2 shows that three variable figures in kurtosis value statistic , manufacturing
strategies, environmental implementation and green supply chain management in
between the range of ( -1.5 to + 1.5 ) is good normality test . There are two statement
value indicate beyond the limit range, logistics management in kurtosis value statistic
is 3.817 and has high probability for extreme value, marketing opportunities in
kurtosis value statistic is 1.768 which slightly higher than limit range and to observe
the probability value. This data despite the two beyond limit range , overall
distribution and respondent is suggested good result as well.

53
4.5 Reliability Analysis.

TABLE 4.3

Reliability Analysis

Variables Cronbach Alpha

Logistic Management ( LM ) 0.712


Manufacturing Strategies ( MS) 0.676
Marketing Opportunities ( MO) 0.552
Environmental Implementation ( EI ) 0.726
Green Supply Chain Management ( GSCM ) 0.631

The reliability analysis for each measure was examined by computing its Cronbach
Alpha. The reliability of measure indicated the stability and consistency of the
instruments in measuring concept and helps to assess the goodness of measure (
Sekaran,2000 ) . Sekaran (2000 ) also suggested that the minimum acceptable
reliability is 0.60.To test the internal consistency of the measurement instrument, the
reliability analysis was conducted on the factors. For the purpose of this study, a
minimum acceptability of 0.6 ( threshold value ) was set.

There are also benchmark rule can be used with:

Cronbach’s α ≥ 0.9 0.7 ≤ α < 0.9 0.6 ≤ α < 0.7 0.5 ≤ α < 0.6 α < 0.5
alpha
Internal Excellent(High- Good (Low- Acceptable Poor Unacceptable
consistency Stakes testing) Stakes testing)

54
Result are shown in Table 4.3 , that it can be observed each of the reliability . For all
the variables, logistics management the cronbach alpha is 0.712, marketing
strategies the cronbach alpha is 0.676, environmental implementation the cronbach
alpha 0.726 and green supply chain management the cronbach alpha is 0.631
suggesting that the four items have relatively good internal consistency or reliability.
Marketing opportunities the cronbach alpha is 0.552 are poor and unacceptable
reliability .

4.6 Descriptive Analysis.

According to Coakes and Steed (2007), descriptive statistics are used to describe,
examine and summarize the main features of a collected data quantitatively.
Therefore, descriptive statistics are describing what the data shows. Basically, this is
the methods used to organize, display, describe and explain a set of data with use of
tables, graph and summary measures (Norusis, 1999, Johnson and Christense, 2000).
Respondents were asked to indicate their perceptions and agreement towards the
statement in the questionnaires, using the Seven Point Likert-Scale answers. The
scale were ranged' between 1 = strong disagree; to 5 = strongly agree. Based on their
score for each statement, researched had found the average score (mean) for each
variables. This value was then categorized to the following categories to indicate their
level of perceptions towards all variables.

55
4.6.1 Mean and Standard Deviation of Logistics Management

TABLE 4.4

Mean and Std. Dev. of items for Logistics Management

Independent Variable : Logistics Management Std.


Mean Deviation
9. satisfy customer requirement in optimize logistics flow. 3.7417 0.51003
10. reduce logistics cost by facilitate recycling packaging and 3.5833 0.72857
transportation.
11. suppliers “ ISO 14001” certification. 3.6083 0.68961
12. understanding and commitment on green supply chain 3.7833 0.75796
management between supplier and company.
13. environmental audit of supplier internal management. 3.8917 0.68349
14. purchase eco green material or product to less pollution 3.9917 0.67979
( threshold relation p > 0.7 and some survey indicate p > 0.6 : is acceptable and good )

Table 4.4 shows Mean and Standard Deviation scores for Independent Variable of
Logistics Management . As tabulated, all the items have means from 3.58 to 3.99 and
standard deviation more than 0.6 indicates that the positive logistics management
among respondents towards the green supply chain management . The highest ( std =
0.75796 and std = 0.72857 ) , employee’s of the firm shows a respect and fulfils it’s
obligations reduce logistics cost between supplier and customer . The second highest
( std = 0.68961, std = 0.68349, std= 0.67979 and std=0.51003 ) where the firm
promise to be reliable and satisfy optimize logistics flow by environmental audit to
less pollution and to bring economically beneficial results. Despite that the firm (
mean = 3.8917 ) very concerned on environmental audit of supplier internal
management and ( mean = 3.9917 ) the customer more confident that logistics
management practices purchase eco green material where the product is less
pollution.

56
4.6.2 Mean and Standard Deviation of Manufacturing Strategies

TABLE 4.5

Mean and Std. Dev. of items for Manufacturing Strategies

Independent Variable : Manufacturing Strategies Std.


Mean Deviation

15. design and produce product to meet required performance 3.8033 0.49017
with international standard.
16. production recycling and disposal reduce manufacturing 3.8033 0.71356
cost in use of clean technologies.
17. design of product for reduce consumption of material or 3.6250 0.75662
energy.
18. technique of JIT, kaizen, 5’S’ and etcetera to improve 3.7833 0.77982
manufacturing and operational.
19. a system for organizing and managing product development 3.9083 0.69809
, operational and customer relation.
20. scheduling and planning to meet outputs on time. 4.1417 0.68961

Table 4.5 shows Mean and Standard Deviation for Independent Variable of
Manufacturing Strategies . The result shows mean average 3.844. The manufacturing
strategies is highest and critical factor in building green supply chain management (
std = 0.77982 and std = 0.75662) and the firm generally emphasize technique JIT /
Kaizen / 5’S’ to improve manufacturing and operational by design product to reduce
consumption of material and energy. The firm act accordingly that the scheduling and
planning meet outputs on time ( mean = 4.1417 ) and also ensure customer relation
are maintain with proper organization system managing product development ( std =
0.69809 ) . The mean and standard deviation manufacturing strategies is more for
keeping and practices the green supply chain management in the firms operational.
performance.

57
4.6.3 Mean and Standard Deviation of Marketing Opportunities.

TABLE 4.6

Mean and Std. Dev. of items for Marketing Opportunities.

Independent Variable : Marketing Opportunities Std.


Mean Deviation

21. mutual understanding of green supply chain management


3.9000 0.52501
between company and customer.

22. mutual commitment and objective between company and


3.8167 0.66083
customer to achieve green procurement policy.

23. the philosophy that absolutely focuses on customer value. 3.8083 0.65203

24. innovation or improvement process and product benefit of


3.8500 0.70592
the green supply chain.

25. establish a competitive advantages product and expand to


4.1250 0.55855
new markets.

26. information exchange between customer and company for


4.0417 0.64032
future customer expectation.

Table 4.6 shows Mean and Standard Deviation for Independent Variable of
Marketing Opportunities . The firm effectively ( mean = 4.1250 ) establish a
competitive advantages product and expand to new market and the information
shared and exchange between customer and firm for future customer expectation (
mean = 4.0417 ). The innovation or improvement process ( std = 0.70592 ) by the
firm should initiate product benefit of the green supply chain and mutual
commitment objective between firms and customers are achieved via green
procurement policy ( std = 0.66083). The mean and standard deviation is generally
promising on what the firm is doing about understanding the philosophy increasing
the business through marketing opportunity and it does to forestall potential ones with
reinforced customer value .

58
4.6.4 Mean and Standard Deviation of Environmental Implementation.

TABLE 4.7

Mean and Std. Dev. of items for Environmental Implementation.

Independent Variable : Environmental implementation Std.


Mean Deviation

27. ‘ISO 14001’ certification. 3.6667 0.86319

28. effort to make every employee understand the importance


3.7583 0.68594
of environmental management.

29. procedure to ensure safe disposal of any waste in an


3.7250 0.68553
environmental considerate manner.

30. commitment of green supply chain management for mid –


3.6917 0.70769
level to senior management.

31. reduce use of hazardous product in manufacturing process. 4.0833 0.69310

32. reduce waste cost for processing , reuse and recycling. 4.2417 0.80956

Table 4.7 shows Mean and Standard Deviation for Independent Variable of
Environmental Implementation. The firm highly ( std= 0.86319 ) and effectively go
for ‘ISO 14001’ certification, thus reduce waste cost of processing by reuse and
recycling ( std=0.80956) as goes to ( mean=4.2417) and in the aspect of safety (
std=0.69310) reduce use of hazardous product in manufacturing process
(mean=4.0833). The firm need to encourage (std=0.68553 ) procedure to ensure safe
disposal of any waste in an environmental consider within the organization and mid-
level to senior management to commit to green supply chain management
(std=0.70769). The average (mean=3.86) seems influence adoption of environmental
implementation and support the relationship with green supply chain management
reduce waste and create awareness to firm management of reuse and recycling
processing.

59
4.6.5 Mean and Standard Deviation of Green Supply Chain Management
TABLE 4.8

Mean and Std. Dev. of items for Green Supply Chain Management

Dependent Variable : Green Supply Chain Management Std.


Mean Deviation

33. the environmental reduce waste and energy, decrease 4.0667 0.71870
hazardous material and improve consumption.
34. considering logistics of decrease costs material, energy 4.0583 0.67731
and waste.
35. manufacturing of operational increased the productivity 3.9250 0.73522
and efficiency on delivered goods on time.
36. the market opportunities and share increase focusing 4.2417 0.67358
designing and innovation satisfy customer.

Table 4.8 shows Mean and Standard Deviation for Dependent Variable of Green
Supply Chain Management. The average mean score for green supply chain
management is 4.073. This shows the customer believe the firm can ( mean=4.2417
) increase the market opportunities and share focusing designing and innovation
satisfy customer. Despite that ( mean=4.0667) concurrently suggest the
environmental reduce waste and energy enhance decrease hazardous material and
improve consumption and (mean=4.0583) considering logistics of decrease costs as
well as energy and waste. Ultimately customers relationship ( std = 0.73522 )
towards the firm in factors of manufacturing the operational increased the
productivity and efficiency on delivered goods on time. The mean and standard
deviation is excellently participate in improving the firm sustainable strategies
mediate relationships green supply chain management and firm operational
performance.

60
4.6.6 Means and Standard Deviation of Study Variable

TABLE 4.9

Descriptive Statistics

Descriptive Statistics

Variable Mean Std. Deviation

Logistics Management ( LM ) 3.7666 0.43500

Manufacturing Strategies ( MS ) 3.8456 0.42860

Marketing Opportunities ( MO) 3.9230 0.34819

Environmental Implementation ( EI ) 3.8609 0.48309

Green Supply Chain Management ( GSCM) 4.0729 0.48333

Mean - This is the arithmetic mean across the observations. It is the most widely
used measure of central tendency. It is commonly called the average. The mean is
sensitive to extremely large or small values.

Std. - Standard deviation is the square root of the variance. It measures the spread of
a set of observations. The larger the standard deviation is, the more spread out the
observations are . ( threshold relation p > 0.7 and some survey indicate p > 0.6 : is acceptable and good )

Table 4.9 descriptive statistics, describe based on the overall mean for green supply
chain management was 4.0729 ( std = 0.48333), logistics management was 3.7666 (
std = 0.43500 ), manufacturing strategies 3.8456 ( std = 0.42860 ), marketing
opportunities 3.9230( std = 0.34819 ), environmental implementation 3.8609 ( std =
0.48309 ). Based on the result, it can be summarized that all of respondents answers
falls at the point mean 3 to 4 which is they

61
agree for each statement and the standard deviation of logistics management,
manufacturing strategies, marketing opportunities ,environmental implementation and
green supply chain management is below than 0.7 or 0.6, above is not acceptable.

4.7 Correlation Analysis.

TABLE 4.10

Correlations Analysis

Variables LM MS MO EI GSCM
LM 1.000
MS .479 1.000
MO .297 .345 1.000
EI .413 .548 .370 1.000
GSCM .283 .223 .203 .543 1.000

The Pearson correlation coefficient ( r ) were computed to examine the correlation


and direction among the study variables. This analysis was also conducted to
determine the interdependency of the study variables. This correlation analysis is to
find out multi collinearity problems ( + 0.9 to – 0.9 ).If there are very high correlation
of (0.9), this indicates no more multi collinearty problem. The variable relationship
rating score of study , strong relationship ( 0.75 to 1.0 ) , above average relationship (
0.5 to 0.74 ), moderate relationship ( 0.49 to 0.25 ) and weak relationship (0.24 to 0 )

Correlation analysis among all the variables:

 The correlation between EI and MS ( 0.548 ) , GSCM and EI ( 0.543 ) is


above average relationship.

62
 Correlation between MS and LM ( 0.479 ), MO and LM ( 0.297 ) ,MO and
MS ( 0.345 ) , EI and LM ( 0.413 ) , EI and MO ( 0.370 ), GSCM and LM (
0.283 ) is moderate relationship .

 Correlation between GSCM and MS ( 0.223 ), GSCM and MO ( 0.203 ) ,


is a weak relationship

4.8 Regression Analysis.

TABLE 4.11

Analysis on Coefficient of Determination (R2)

Model R R Square Adjustable R Square


1 0.559ᵃ 0.312 0.289
a. Predictors : ( Constant) , Logistics Management, Manufacturing Strategies,
Marketing Opportunities, Environmental Implementation.
b. Dependent Variable : Green Supply Chain Management

The result of multiple regression analysis among independent and variable dependent
variable can be illustrated in Table 4.11.The model summary table shows that R ,
correlation of four independent variable which are logistics management,
manufacturing strategies, marketing opportunities, environmental implementation
with dependent variable : green supply chain management in firms’ is equal to 0.559 .
After inter – correlation R square ( 0.559 ) is generated to the adjustable square of R (
0.289 )². It means 7.5 percent of four independent variable influence on the
dependent variable. In other words , 7.5 percent of variance in firm was explained by
the independent variable and the remaining 92.5 percent cannot be explained by the
regression analysis and represent by the other variable of factor.

63
TABLE 4.12

ANOVA

Model F Sig.
1 13.066 .000ᵃ
a. Predictors: (Constant), Logistics Management, Manufacturing Strategies,
Marketing Opportunities, Environmental Implementation
b. Dependent Variable: Green Supply Chain Management

In Table 4.12 illustrate that the value 0.000 value becomes significant , it is
indicative of the presence of all the independent variable has a strong relation with
dependent variable ( p < 0.05 ). The research model is fit (good) and useful. If the
model ( p > 0.05) it should be excluded .

TABLE 4.13

Regression Analysis of Coefficientsᵃ

Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
1 (Constant) 1.978 0.490 4.040 0.000
Logistics Management 0.128 0.101 0.115 1.271 0.206
Manufacturing Strategies -0.160 0.112 -0.149 -1.511 0.133
Marketing Opportunities 0.011 0.118 0.008 0.094 0.925
Environmental Implementation 0.574 0.097 0.574 5.948 0.000

a. Dependent Variable: Green Supply Chain Management

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Regression analysis of coefficient in table 4.13 to determine the coefficient between
independent variable and dependent variable. The result from the table shows that the
Beta of logistics management is ( 0.115 ) ,followed by manufacturing strategies ( -
0.149 ) , marketing opportunities ( 0.008 ) and environmental implementation ( 0.574
) . Based on the result , environmental implementation has the highest influence on
green supply chain management in firm which is ( Beta = 0.574 ).

Since the significant value less than 0.05 ( p < 0.05 ) , more precisely only one
significant which is environmental implementation ( 0.000 ) has a strong influence
towards green supply chain management. Other three significant value more than
0.05 ( p > 0.05 ) is not influencing green supply chain management which is logistics
management ( 0.206 ), manufacturing strategies ( 0.133 ) and marketing opportunities
( 0.925 ). All this three independent variable is considered rejected due to less p-
value or significant value.

The regression analysis is conducted to fulfil some other research objective in this
study which to examine the relationship between logistics management,
manufacturing strategies, marketing opportunities and environmental implementation
with green supply chain management in firm . Based on the regression analysis
results, it can be concluded that environmental implementation is the factor that
mostly influence green supply chain management with the t-value ( 5.948 ) the
highest among all variable.

The regression analysis for research model between independent variable logistics
management, manufacturing strategies, marketing opportunities and environmental
implementation and dependent variable green supply chain management to the
relationship ( B ) unstandardized coefficient.

Regression models involve the following variable :

 The unknown parameters ,denotes as β which may represent a scalar or a


vector .
 The independent variable , X.

65
 The dependent Variable , Y

I various fields of application, different terminologies are used in the place of


dependent and independent variables.. A regression model relates Y to a function of
X and β

Research Model : Y = β₀ + β₁ X₁ + β₂ X₂ + β₃ X₃ + β₄ X₄
Model Significant : Y = 1.978 + 0.128 X₁ + 0.160 X₂ + 0.011 X₃ + 0.574 X₄

4.9 Findings.

The finding concluded from regression analysis of coefficients table 4.13


significant value.

TABLE 4.14

Overall Hypothesis Result and Findings

Research objective Hypotheses constructed Results

To determine the relationship The environmental ACCEPTED : because p-


between environmental implementation has positive value/significant value
implementation and green relationship with green supply is less than 0.05
supply chain management. chain management. ( EI = 0.000 )

To determine the relationship The logistics management has REJECTED : because p-


between logistics management positive relationship with green value/significant value
and green supply chain supply chain management. is not less than 0.05
management. ( LM = 0.206 )

To determine the relationship The manufacturing strategies REJECTED: because p-


between manufacturing has positive relationship with value/significant value
strategies and green supply green supply chain is not less than 0.05
chain management. management. ( MS = 0.133 )

To determine the relationship The marketing opportunities has REJECTED: because p-


between marketing positive relationship with green value/significant value
opportunities and green supply supply chain management. is not less than 0.05
chain management. ( MO = 0.925 )

65
4.10 Conclusion of Chapter four.

In this chapter, data analysis methods, study results and a discussion of the firm
survey and findings have been presented. Data findings were described as correlations
to the study variables and presented as tabulations. This study has demonstrated the
measurement of the relationship between customer and firms in Malaysia .The
researchers and strategies focusing on dependent variable green supply chain
management and independent variable logistics management, manufacturing
strategies, marketing opportunities and environmental implementation.

To satisfy customer requirement in optimize logistics management, the firm shows


concern the supplier obtain ‘ISO 14001’ for purchase eco green material or product
to less pollution. Manufacturing strategies has advanced customer relations with
firm by tailoring design and produce product to meet required performance with
international standard.

Environmental implementation predispose customers to stay with a commitment of


green supply chain management of firms effort to make every employee and mid-
level management understand the important of environmental management. Likewise
a system organizing and managing product development in operational reduce
manufacturing cost in use of clean technologies through technique of JIT, Kaizen and
5’S’ .

Marketing opportunities encourage customer and firm share information between


customer and firm management and promising increasing the business through
marketing to achieve green procurement policy. Green supply chain management
make the firm increasing business growth not only for the firms but also to
Malaysia economy.

66
CHAPTER FIVE

RECOMMENDATIONS AND CONCLUSION

5.1 Introduction

This chapter provide a comprehensive recommendations and conclusion of the entire


dissertation. In essence, the chapter presents the summary of research objectives,
research questions, purpose of conducting the research and conceptual framework
applied. Accordingly, the chapter presents a summary of review of available literature
and studies, methodology used for the data collection and survey instrument, analysis
and interpretations of the research findings and finally the discussion of the those
findings that have been gathered from the survey respondents.

This survey was conducted about three months and the researcher took an opportunity
to deliver suggestion to the firms in Malaysia, the ‘green’ awareness and
subsequently the practices of green supply chain management identified the
relationship with logistics management, manufacturing strategies, marketing
opportunities and environmental implementation. Lastly , the chapter presents the
discussion of findings, limitation of study, implication of study, recommendation,
future research and conclusion.

5.2 Discussion of Findings.

This study explored how the theoretical framework model was constructed for better
interpretation and understanding the variables practices in Malaysia firms. The main

67
objective of this paper is to examine the performance relationship on the firms
practices the green supply chain management integrated with logistics management,
manufacturing strategies, marketing opportunities and environmental implementation
in order to develop the green and how it’s applied. Firms, are starting to be aware the
importance of green supply chain management to understand and enhance
organizational performance from an environmental perspective as well as economic
and operational .

A survey was conducted throughout 135 firms by distributed independent variable ,


dependent variable and demographic profile questionnaires. From the number
distributed , only responded 125 . However only 120 were useable ,giving a total
response rate 92.5 percent. The remaining unusable questionnaire received were
respondents who are having difficulties in time management. The survey sample
data was collected for statistical analysis using (SPSS) software. The sample data
were simulated and the outcome of findings through empirical model was
established by using regression analysis to verify the relationship with green supply
chain management. Using this statistical analysis, the study tries to identify the most
desirable areas of collaboration with variables performance.

In this respect, it was noted that the majority of respondents are male and most of
them age between 36 to 50 years old. It is normal for males to dominate this firm
sectors and the females shows they are coming closer eventually in electronic
industrial. It is also important to note that the majority respondents having diploma
50.8 percent in a education level with working experience between 5 to 10 years and
obtain monthly income RM 3001 to RM 5000. As portrayed in the demographic
profile, majority type of industrial is manufacturing firm frequency of 47 which
cover 39.2 percent , number of employee majority between 51 to 500 and the
highest annual turnover between RM500,000 to RM5,000,000.

68
The normality test shows good in manufacturing strategies, environmental
implementation and green supply chain management in between the range of ( -1.5
to + 1.5 ). Logistics management and marketing opportunities is not good which
beyond the limit range and has high probability for extreme value. Furthermore the
result from regression analysis has concluded that environmental implementation is
the factor that mostly influence green supply chain management with the t-value (
5.948 ) the highest among all variable

Discussion from previous chapter all the hypothesis well supported and the result of
the hypotheses testing are interpreted used process analysis Statistical Package for
Social Science ( SPSS) .Through this process, the researcher determined the influence
between the variable through inferential analysis in order to test all the research
questions. The overall hypothesis result and findings shows the logistics management,
manufacturing strategies, and marketing opportunities relationship with green supply
chain management indicated poor result because the p-value or significant value is
not less than 0.05 ( p < 0.05). The only accepted result is the relationship between
environmental implementation and green supply chain management because p-value
or significant value is less than 0.05 (p < 0.05)

According to the finding and further investigation on this topic , firms participant in
environmental and green management initiatives of manufactures such as product
return and recycling policy and incentive schemes to achieve financial objective are
promising and encourage GSCM research to focus more for the country development
to achieve nation objective.

5.3 Limitation of Study.

First, besides the mail questionnaires method that used in the data collection may be
bias due to variety factors such as questionnaires may pass to different target

69
respondents and they had limited understandings about GSCM. It would therefore be
useful to include interviews, site visits and documents research to increase the
research validity (Lee, 2009). The focus on ISO14001 certified manufacturing firm in
Malaysia excluded those organizations without formal environmental management
certification but may have well developed environmental programs. Hence, the
findings cannot be generalized to all organizations in Malaysia. As cited in (Zhu et
al., 2007a, b), large sample size assist comparison of the result between sectors
(Eltayeb et al., 2010). Thus, future research should include a larger sample and this
would allow detailed cross-sectorial comparisons too.

Secondly ,problems arise in manufacturing firms that how to execute the green supply
chain management in special industrial operational institute has limited procedures.
Research to obtain companies performance have limitation on this study causes of
relation and information in the organization which could cause surveyed of spurious
result.

Thirdly , unpredicted climate affected by natural disaster cause limitation to gather


information promptly especially in supply chain which has integrated throughout
performing research and collecting data industrial and manufacturing firm’s

5.4 Implication of Study.

By this study , firm are increasingly exploring ways to leverage GSCM systematically
evaluating the role of supplier and organization activities to enhance the flow of
goods from immediate strategies supplier through manufacturing and distribution
chain to the end user. The public become more aware on the environmental issues
where the companies always trying know how to green manufacturing process by
recycling the produced product after use ( Vachon and Klassen , 2007) .

70
Organizations actively take proactive steps through green supply chain to make
sustainable development a reality (Eltayeb & Zailani, 2009). Hence, by using the
derived results in analysis, the firm focus on GSCM practices that have positive
influence on organizational performance. GSCM as a strategy to minimize the
negative impact on the environment through activities within the organization and
supply chain. It also prioritize cooperation with supplier and customer in the product
development process[19] Vachon and Klassen (2006A)[12]. Also minimize the
impact of firm’s activities on the environment , the green supply chain management
has to improve from beginning of the process to the end of product’s for better life
cycle. ( Green et al.2008 ). The green manufacturing activities include incorporation
of closed loop manufacturing to reduce or minimized emission ( Rao ,2008) and
solid liquid waste ( Pagell et al ., 2007).

GSCM has also begun to gain popularities in emerging economy countries, for
example Eltayeb et al. (2011) studied the outcomes of green supply chain initiatives
among ISO 14001 certified firms in Malaysia , whereas Zailini et al.( 2012) , carried
out a study on GSCM research in Malaysia to analyse the impact and internal and
external forces on environmental performance. The marketing approach has emerged
in response to a global increase in concern about protecting consumer rights, and a
concurrent growth of organized movements to address environmental trends in such a
way that people will be protected and assured a clean and safe environment in which
to live.

Marketing approach is likely to open new horizons and good opportunities for
organizations that practice green marketing. This, in turn, is likely to provide
organizations with the ability to avoid traditional competition and to thereby achieve
competitive leadership in the market, especially when they introduce environmentally
friendly products and target those who had environmental trends in the market. This
competitive situation will lead to more profits in addition to promoting a good
reputation and meeting the owners’ needs.

71
5.5. Recommendations.

This section eventually encourage the researcher prepared several recommendation


to the organization, specifically the firms in Malaysia . The recommendation
suggested based on the chapter 4, own finding , observation and ideas that could help
relate to firms. Recommendation in this study :

 Evaluate the survey form to justified the intent of questionnaire should


relevant and ease the respondent feedback in due time capacity. The
distribution questionnaire need to increase up to 300 for efficient data
collection and more accurate finding can be captured . Thus will assist
tabulate broadly the population of research and findings.

 Review the independent variable categories and should add more independent
variable than this study. This will give more scope of study and can broad the
researcher bigger perspective view understanding the needs of the firm
objective to achieve the higher level of satisfaction.

 Develop and implement demographic profile criteria more specific and


increase the element of finding . This to conclude effective of the firm internal
staffs speciality which useful to determine the organization knowledge
understanding the environmental needs.

 Enlighten to the type of industrial the important of green environmental that


could save the country pollution and cost saving through green supply chain
management . Brief to the firm , the government objective in EMS to protect
pollution and encourage the environmental implementation.

 Increasing awareness on the environmental sustainability issues and an


environmentally beneficial innovation with combinations of knowledge about
product characteristics, process and material characteristics, and technologies
in Malaysia firms.

72
 Researcher to improvise an open concept relationship in terms of
communication with the respondent to be more friendly and eliminate
suspicious and doubt on the survey that been conducted . This is the hurdles
normally researcher foreseen and should consolidate appropriate mechanisms
to smoothed the process of survey topic.

 Interaction with respondent , e-mail may not yet be a pervasive enough


medium to effectively use for contacting. Until such time as that could
changes, it is recommended that this method to be reviewed or avoided.

5.6. Future Research.

This future research continues to find what this and other studies have alluded to, it
may be useful to address the issue more actively by raising awareness .Beyond
addressing the limitations listed in the previous section, future research possibilities
based on the findings from this dissertation are interesting and exciting. Possible
future research paths concentrate on theoretical issues, investigation of new
conceptual questions, and the execution of new empirical studies to improve upon the
conclusions of the findings.

Additional variables in the model could be explained through the hypothesized


relationships, between green strategies and green practices in the firm and between
green practices and firm performance (Aragon-Correa and Sharma 2003). Other
studies could be conducted that look at firm size and industry type, to assess if there
are differences among groups that make up these demographics. For example, how
does the theoretical model change when the sample is split into large firms and small
or medium sized firms and how compared. Does current firm and newer firm show a
greater propensity toward the existence of orientations practices green supply chain
management is increase or decrease in firm with greater global presence.

73
In the external validity, this research need further investigation and examine
additional empirical research to test the primary components of external validity,
namely statistical generalizability, regression analysis , and situational replicability
(Ferber1977; Lynch 1982). One way to do this is by expanding the sample to include
the firms related study could investigate the differences between industrialized,
newly industrialized, and developing firms in Malaysia. Another way to assess the
external validity of research is to triangulate methods to see if the findings of different
research methodologies are consistent with one another (McGrath 1982). Qualitative
research would be one such methodology.

Qualitative research could help improve the operationalization of the GSCM


construct through the development of a more valid and reliable scale. GSCM has been
operationalized by several authors, including Zhu et al. (2008a), Rao (2002), and
Zsidisin and Hendrick (1998). The scales for GSCM in this dissertation were taken
from Zhu et al.(2008a) because of its replication in more than one study.

Another phenomenon that could be pursued using qualitative research methodology is


exploring organization behaviour toward GSCM practices between logistics
management, manufacturing strategies, marketing opportunities and environmental
implementation. Sustainability is an emerging issue in GSCM and has been at the
forefront of considerable research in recent years (Carter and Rogers2008). However,
emerging issues can become main stream or exist only as trends, with the former
becoming relevant in the literature and assimilated into practitioner’s strategies and
operations, and the latter eventually becoming obsolete (Pagell and Wu 2009).
Understanding organizational behaviour toward the longevity of environmental and
sustainability issues in GSCM would give greater insight into the number and types
of resources dedicated to these areas in the firms.

Qualitative research could also be used to gain insight into the origins of corporate
orientations. The theoretical model in this dissertation relied heavily on two

74
orientations to help explain the use of GSCM practices in the firm and their
outcomes. Extending the research using longitudinal survey data to see how green
SCM practices are evolving in firms would be another interesting and worthwhile
research project. This project could be linked with qualitative studies to see how
closely organizational behaviour about logistics management, manufacturing
strategies, marketing opportunities and environmental implementation follow
patterns of firm investment in GSCM practices. Longitudinal data could also be
collected using secondary sources such as annual reports, press releases, corporate
sustainability reports, and other public information.

5.7 Conclusion of Chapter Five.

The finding from this study reveal that GSCM has broad foundation for an on going
program of research concerning the integration of environmental and economic
concerns gaining momentum in Malaysia. This study is unique from previous
research by helping to explain the role GSCM plays in the firm, its antecedents and its
outcomes. Firm are starting to implement green practices and it is likely to continue
since there are demands and several push and pull factors that motivate them to do so.
GSCM practices adoption differs between firms depending on their product and
services. Basically, firm get involved with green purchasing and implement internal
green practices as their effort to support the greening of the supply chain.
Nevertheless, some firms adopt reverse logistics , eco design and cooperate with their
chain partners in maintaining green business strategy. Although GSCM approaches
are still relatively new in Malaysia, it has started to be implemented by manufacturing
firms in Malaysia.

75
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79
APPENDIX -A

QUESTIONNAIRE

80
A Survey on Logistics Management, Manufacturing Strategies, Marketing
Opportunities, and Environmental Implementation, practices Green Supply
Chain Management in Malaysia firms

Dear Sir/Madam,

This survey examines various aspects of supply chain practice between your firm and
external (supplier and customer). Your participation is critical to the success of the
study. All responses will be kept confidential and will not traceable to individual
respondent. There are no right or wrong answer to the following questions. We are
only interested in your assessment of your organization’s activities.

You will be asked questions concerning the company’s current business practice. If
you are unable to complete the questionnaire yourself, please entrust the task to
another who is knowledgeable about supply chain integration, firm performance and
supply chain performance. The questionnaire should take about 20 minutes to
complete. Kindly spare a few minutes from your busy schedule to complete the
questionnaire as your participation is of value to this study.

Once you have completed the questionnaire, please email it directly to me . Thank
you in advance for your kind cooperation and in case of enquiry, please do not
hesitate to contact the undersigned.

M.Letchumanan Malaidom
Executive Masters ( Asia e University )
No 9, Jalan SS3 ,
Taman Seri Selandang

Tel: 019-3359141

Email: letchvishnu@gmail.com

81
SECTION A : Demographic Profile
Please tick ( / ) at the appropriate box.

1. Gender .

Male Female

2. Age.
< 25 26 - 35

36 - 50 >. 50
3. Working Experience ( Year )
< 1 2 - 4

5 - 10 >. 10

4. Annual Turnover .
< 100,000 100,000 - 500,000

501,000 - 5,000,000 >. 5,000,000

5. Type of Industrial .
Manufacturing Electronic

Construction Service

6. Number of Employee.
< 50 51 - 500

501 - 1000 >. 1001

7. Monthly Income ( RM ).
<. 1000 1001 - 3000

3001 - 5000 >. 5001


8. Education.
SPM Diploma

Degree Master / Phd

82
Please tick ( / ) an appropriate level of agreement on the following statements based
on your experience :

1. = Strongly Disagree.
2. = Disagree.
3. = Satisfy.
4. = Agree.
5. = Strongly Agree

SECTION B : Logistics Management

Code Q-No. Questions 1 2 3 4 5

LM 1 9 Satisfy customer requirement in optimize logistics flow.

LM 2 10 Reduce logistics cost by facilitate recycling packaging


and transportation.

LM 3 11 Supplier “ISO 14001” certification.

LM 4 12 Understanding and commitment on green supply chain


management between supplier and company

LM 5 13 Environmental audit of supplier internal management

LM 6 14 Purchase eco green material of product to less pollution

SECTION C : Manufacturing Strategies

Code Q-No. Questions 1 2 3 4 5

MS 1 15 Design and produce product to meet required


performance with international standard.

MS 2 16 Production recycling and disposal reduce manufacturing


cost in use of clean technologies.

MS 3 17 Design of product for reduce consumption of material or


energy.

MS 4 18 Technique of JIT, Kaizen, 5’S’ and etcetera to improve


manufacturing and operational.

MS 5 19 A system for organizing and managing product


development, operational and customer relation.

MS 6 20 Scheduling and planning to meet outputs on time.

83
SECTION D : Marketing Opportunities

Code Q-No. Questions 1 2 3 4 5

MO 1 21 Mutual understanding of green supply chain


management between company and customer

MO 2 22 Mutual commitment and objective between company and


customer to achieve green procurement policy.

MO 3 23 The philosophy that absolutely focuses on customer


value.

MO 4 24 Innovation or improve process and product benefit of the


green supply chain.

MO 5 25 Establish a competitive advantages product and expand


to new markets.

MO 6 26 Information exchanges between customer and company


for future customer expectation.

SECTION E : Environmental Implementation

Code Q-No. Questions 1 2 3 4 5

EI 1 27 ‘ISO’ 14001 Certification

EI 2 28 Effort to make every employee understand the


importance of environmental management.

EI 3 29 Procedure to ensure safe disposal of any waste in an


environmental considerate manner.

EI 4 30 Commitment of green supply chain management for


mid-level to senior managers.

EI 5 31 Reduce use of hazardous product in manufacturing


process.

EI 6 32 Reduce waste cost for reprocessing , reuse and recycling.

84
SECTION F : Green Supply Chain Management

Code Q-No. Questions 1 2 3 4 5

GSCM 1 33 The environmental reduce waste and energy ,


decrease hazardous material and improve
consumption.

GSCM 2 34 Considering logistics of decrease cost material,


energy and waste.

GSCM 3 35 Manufacturing of operational increased the


productivity and efficiency on delivered goods on
time.

GSCM 4 36 The market opportunities and share increase focusing


designing and innovation satisfy customer.

YOUR KIND COOPERATION AND PARTICIPANT IS MUCH APPRECIATED

THANK YOU VERY MUCH

85
APPENDIX -B

SPSS RESULTS

86
SPSS ANALYSIS : 4.1 Demographic Profile

Frequency Table : Statistics


gen age work_ annual_ type_ Number mnthly_ edu
exp trnov indtry _emp inco
Valid 120 120 120 120 120 120 120 120
N
Missing 0 0 0 0 0 0 0 0
Mean 1.3417 2.7583 2.9083 2.6750 2.1000 2.3083 3.1583 2.4333
Std. Deviation .47626 .73331 .79912 .94524 1.10309 .85794 .80956 .76404

Frequency Table : Gender

Frequency Percent Valid Cumulative


Percent Percent
Male 79 65.8 65.8 65.8
Valid Female 41 34.2 34.2 100.0
Total 120 100.0 100.0

87
Frequency Table : Age

Frequency Percent Valid Cumulative


Percent Percent
<25 4 3.3 3.3 3.3
26-35 38 31.7 31.7 35.0
Valid 36-50 61 50.8 50.8 85.8
>50 17 14.2 14.2 100.0
Total 120 100.0 100.0

88
Frequency Table : Working Experience

Frequency Percent Valid Cumulative


Percent Percent
<1 5 4.2 4.2 4.2
2-4 29 24.2 24.2 28.3
Valid 5-10 58 48.3 48.3 76.7
>10 28 23.3 23.3 100.0
Total 120 100.0 100.0

89
Frequency Table : Annual Turnover

Frequency Percent Valid Cumulative


Percent Percent
<100,000 18 15.0 15.0 15.0
100,000-500,000 25 20.8 20.8 35.8
Valid 501,000-5,000,000 55 45.8 45.8 81.7
>5,000,000 22 18.3 18.3 100.0
Total 120 100.0 100.0

90
Frequency Table : Type Industrial

Frequency Percent Valid Cumulative


Percent Percent
Manufacturing 47 39.2 39.2 39.2
Electronic 34 28.3 28.3 67.5
Valid Construction 19 15.8 15.8 83.3
Service 20 16.7 16.7 100.0
Total 120 100.0 100.0

91
Frequency Table : Number of Employee

Frequency Percent Valid Cumulative


Percent Percent
<50 20 16.7 16.7 16.7
51-500 54 45.0 45.0 61.7
Valid 501-1000 35 29.2 29.2 90.8
>1001 11 9.2 9.2 100.0
Total 120 100.0 100.0

92
Frequency Table : Monthly Income

Frequency Percent Valid Cumulative


Percent Percent
<1000 1 .8 .8 .8
1001-3000 28 23.3 23.3 24.2
Valid 3001-5000 42 35.0 35.0 59.2
>5000 49 40.8 40.8 100.0
Total 120 100.0 100.0

93
Frequency Table : Education

Frequency Percent Valid Cumulative


Percent Percent
SPM 9 7.5 7.5 7.5
Diploma 61 50.8 50.8 58.3
Valid Degree 39 32.5 32.5 90.8
Master/Phd 11 9.2 9.2 100.0
Total 120 100.0 100.0

94
SPSS ANALYSIS : 4.4 Normality Test – Skewness and Kurtosis test

Frequency : Statistics

LM MS MO EI GSCM
Valid 120 120 120 120 120
N
Missing 0 0 0 0 0
Skewness -1.132 -.677 -.779 -.434 -.366
Std. Error of Skewness .221 .221 .221 .221 .221
Kurtosis 3.817 1.447 1.768 -.001 -.064
Std. Error of Kurtosis .438 .438 .438 .438 .438

Logistics Management ( LM )
Frequency Percent Valid Cumulative
Percent Percent
2.00 2 1.7 1.7 1.7
2.67 2 1.7 1.7 3.3
3.00 2 1.7 1.7 5.0
3.17 3 2.5 2.5 7.5
3.33 10 8.3 8.3 15.8
3.50 13 10.8 10.8 26.7
3.67 19 15.8 15.8 42.5
Valid 3.83 24 20.0 20.0 62.5
4.00 24 20.0 20.0 82.5
4.17 11 9.2 9.2 91.7
4.33 5 4.2 4.2 95.8
4.50 2 1.7 1.7 97.5
4.67 2 1.7 1.7 99.2
4.83 1 .8 .8 100.0
Total 120 100.0 100.0

95
Manufacturing Strategies : (MS)
Frequency Percent Valid Cumulative
Percent Percent
2.50 1 .8 .8 .8
2.67 4 3.3 3.3 4.2
3.00 2 1.7 1.7 5.8
3.17 2 1.7 1.7 7.5
3.33 5 4.2 4.2 11.7
3.50 11 9.2 9.2 20.8
3.67 15 12.5 12.5 33.3
Valid 3.83 27 22.5 22.5 55.8
4.00 22 18.3 18.3 74.2
4.17 12 10.0 10.0 84.2
4.33 13 10.8 10.8 95.0
4.50 2 1.7 1.7 96.7
4.67 3 2.5 2.5 99.2
5.00 1 .8 .8 100.0
Total 120 100.0 100.0

96
Marketing Opportunities : (MO)
Frequency Percent Valid Cumulative
Percent Percent
2.67 1 .8 .8 .8
2.83 1 .8 .8 1.7
3.00 2 1.7 1.7 3.3
3.17 1 .8 .8 4.2
3.33 5 4.2 4.2 8.3
3.50 3 2.5 2.5 10.8
3.67 14 11.7 11.7 22.5
Valid
3.83 27 22.5 22.5 45.0
4.00 36 30.0 30.0 75.0
4.17 8 6.7 6.7 81.7
4.33 15 12.5 12.5 94.2
4.50 5 4.2 4.2 98.3
4.67 2 1.7 1.7 100.0
Total 120 100.0 100.0

97
Environmental Implementation : (EI)
Frequency Percent Valid Cumulative
Percent Percent
2.67 3 2.5 2.5 2.5
2.83 2 1.7 1.7 4.2
3.00 6 5.0 5.0 9.2
3.17 4 3.3 3.3 12.5
3.33 6 5.0 5.0 17.5
3.50 6 5.0 5.0 22.5
3.67 13 10.8 10.8 33.3
Valid 3.83 24 20.0 20.0 53.3
4.00 18 15.0 15.0 68.3
4.17 14 11.7 11.7 80.0
4.33 8 6.7 6.7 86.7
4.50 11 9.2 9.2 95.8
4.67 2 1.7 1.7 97.5
4.83 3 2.5 2.5 100.0
Total 120 100.0 100.0

98
Green Supply Chain Management : (GSCM)
Frequency Percent Valid Cumulative
Percent Percent
2.75 2 1.7 1.7 1.7
3.00 2 1.7 1.7 3.3
3.25 6 5.0 5.0 8.3
3.50 11 9.2 9.2 17.5
3.75 14 11.7 11.7 29.2
Valid 4.00 32 26.7 26.7 55.8
4.25 19 15.8 15.8 71.7
4.50 17 14.2 14.2 85.8
4.75 14 11.7 11.7 97.5
5.00 3 2.5 2.5 100.0
Total 120 100.0 100.0

99
SPSS ANALYSIS : 4.3 Reliability Analysis

Logistics management (LM)

Case Processing Summary


N %
Valid 120 100.0
a
Cases Excluded 0 .0
Total 120 100.0
a. Listwise deletion based on all variables in
the procedure.

Reliability Statistics :
Cronbach's N of
Alpha Items
.712 6

100
Manufacturing Strategies (MS)

Case Processing Summary


N %
Valid 120 100.0
a
Cases Excluded 0 .0
Total 120 100.0
a. Listwise deletion based on all variables in
the procedure.

Reliability Statistics
Cronbach's N of
Alpha Items
.676 6

Marketing Opportunities (MO)

Case Processing Summary


N %
Valid 120 100.0
a
Cases Excluded 0 .0
Total 120 100.0
a. Listwise deletion based on all variables in
the procedure.

Reliability Statistics
Cronbach's N of
Alpha Items
.552 6

101
Environmental Implementation (EI)

Case Processing Summary


N %
Valid 120 100.0
a
Cases Excluded 0 .0
Total 120 100.0
a. Listwise deletion based on all variables in
the procedure.

Reliability Statistics
Cronbach's N of Items
Alpha
.726 6

Green Supply Chain Management (GSCM)

Case Processing Summary


N %
Valid 120 100.0
a
Cases Excluded 0 .0
Total 120 100.0
a. Listwise deletion based on all variables in
the procedure.

Reliability Statistics
Cronbach's N of
Alpha Items
.631 4

102
SPSS ANALYSIS : 4.4 Mean and Standard Deviation of Logistics Management

Descriptive Statistics (LM )


N Minimum Maximum Mean Std. Deviation
LM1 120 2.00 5.00 3.7417 .51033
LM2 120 1.00 5.00 3.5833 .72857
LM3 120 1.00 5.00 3.6083 .68961
LM4 120 1.00 5.00 3.7833 .75796
LM5 120 2.00 5.00 3.8917 .68349
LM6 120 2.00 5.00 3.9917 .67979
Valid N (listwise) 120

SPSS ANALYSIS : 4.5 Mean and Standard Deviation of Manufacturing


Strategies
Descriptive Statistics (MS)
N Minimum Maximum Mean Std. Deviation
MS1 120 3.00 5.00 3.8083 .49017
MS2 120 1.00 5.00 3.8083 .71356
MS3 120 1.00 5.00 3.6250 .75662
MS4 120 1.00 5.00 3.7833 .77982
MS5 120 2.00 5.00 3.9083 .69809
MS6 120 1.00 5.00 4.1417 .68961
Valid N (listwise) 120

SPSS ANALYSIS : 4.6 Mean and Standard Deviation of Marketing


Opportunities.
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
MO1 120 2.00 5.00 3.9000 .52501
MO2 120 2.00 5.00 3.8167 .66083
MO3 120 2.00 5.00 3.8083 .65203
MO4 120 2.00 5.00 3.8500 .70592
MO5 120 3.00 5.00 4.1250 .55855
MO6 120 2.00 5.00 4.0417 .64032
Valid N (listwise) 120

103
SPSS ANALYSIS : 4.7 Mean and Standard Deviation of Environmental
Implementation.

Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
EI1 120 2.00 5.00 3.6667 .86319
EI2 120 2.00 5.00 3.7583 .68594
EI3 120 2.00 5.00 3.7250 .68553
EI4 120 2.00 5.00 3.6917 .70765
EI5 120 2.00 5.00 4.0833 .69310
EI6 120 1.00 5.00 4.2417 .80956
Valid N (listwise) 120

SPSS ANALYSIS : 4.8 Mean and Standard Deviation of Green Supply


Chain Management

Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
GSCM1 120 2.00 5.00 4.0667 .71870
GSCM2 120 2.00 5.00 4.0583 .67731
GSCM3 120 2.00 5.00 3.9250 .73522
GSCM4 120 3.00 5.00 4.2417 .67358
Valid N (listwise) 120

SPSS ANALYSIS : 4.9 Descriptive Analysis

Statistics
LM MS MO EI GSCM
Valid 120 120 120 120 120
N
Missing 0 0 0 0 0
Mean 3.7666 3.8456 3.9230 3.8609 4.0729
Std. Deviation .43500 .42860 .34819 .48309 .48333

104
SPSS ANALYSIS : 4.10 Correlation Analysis

Correlations
LM MS MO EI GSCM
Pearson Correlation 1 .479** .297** .413 **
.283**
LM Sig. (2-tailed) .000 .001 .000 .002
N 120 120 120 120 120
**
Pearson Correlation .479 1 .345** .548 **
.223*
MS Sig. (2-tailed) .000 .000 .000 .014
N 120 120 120 120 120
**
Pearson Correlation .297 .345** 1 .370 **
.203*
MO Sig. (2-tailed) .001 .000 .000 .026
N 120 120 120 120 120
**
Pearson Correlation .413 .548** .370** 1 .543**
EI Sig. (2-tailed) .000 .000 .000 .000
N 120 120 120 120 120
**
Pearson Correlation .283 .223* .203* .543 **
1
GSC
Sig. (2-tailed) .002 .014 .026 .000
M
N 120 120 120 120 120
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).

SPSS ANALYSIS : Test Analysis and Regression

Variables Entered/Removeda

Mode Variables Variables Method


l Entered Removed
EI, MO, LM,
1 . Enter
MSb
a. Dependent Variable: GSCM
b. All requested variables entered.

105
SPSS ANALYSIS : 4.11 Analysis on Coefficient of Determination ( R2)

Model Summary
Mode R R Square Adjusted R Std. Error of the
l Square Estimate
1 .559a .312 .289 .40768
a. Predictors: (Constant), EI, MO, LM, MS

SPSS ANALYSIS : 4.12 Anova

ANOVAa
Model Sum of df Mean F Sig.
Squares Square
Regression 8.686 4 2.172 13.066 .000b
1 Residual 19.113 115 .166
Total 27.799 119
a. Dependent Variable: GSCM
b. Predictors: (Constant), EI, MO, LM, MS

SPSS ANALYSIS : 4.13 Analysis on Coefficient of Determination ( R2)

Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) 1.978 .490 4.040 .000
LM .128 .101 .115 1.271 .206
1 MS -.169 .112 -.149 -1.511 .133
MO .011 .118 .008 .094 .925
EI .574 .097 .574 5.948 .000
a. Dependent Variable: GSCM

106

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