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

    92 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

    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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