A structural analysis of greening the supplier, environmental performance and competitive advantage

Voon Hsien Lee, Keng Boon Ooi, Alain Yee Loong Chong, Binshan Lin

Research output: Journal PublicationArticlepeer-review

80 Citations (Scopus)

Abstract

A clear research need has been identified to confirm the structural relationships between greening the supplier, enhanced environmental performance and improved competitive advantage, to provide an impetus for firms to green their suppliers. A mail survey was conducted and empirical data of 119 ISO 14001 manufacturing firms in Malaysia was gathered for this study. Structural equation modelling technique was applied in this research article. Results from the analysis, reveal the existence of a positive and significant linkage between green suppliers with both environmental performance and competitive advantage. At the same time, environmental performance has also been shown to positively and significantly affect competitive advantage; while environmental performance plays a partial mediating role between greening the supplier and competitiveness. Such significant finding is especially essential for the manufacturing sector registered with ISO 14001 who intend to enhance their environmental performance and carve a niche competitive edge in the business arena.

Original languageEnglish
Pages (from-to)116-130
Number of pages15
JournalProduction Planning and Control
Volume26
Issue number2
DOIs
Publication statusPublished - 25 Jan 2015
Externally publishedYes

Keywords

  • Malaysia
  • competitive advantage
  • environmental performance
  • greening the supplier

ASJC Scopus subject areas

  • Computer Science Applications
  • Strategy and Management
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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