Green Supply Chain Management Practices and Determinant Factors: A Quantitative Study on Small and Medium Enterprises Using Structural Equation Modeling
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Abstract
Considering the prominence of green supply chain management (GrSCM) research has developed expressively in this field. However, there is a dearth of studies from emerging economies comprised of modelling and empirical testing of hypotheses. Moreover, the literature is lacking the empirical evidence on the determinants of GrSCM practices by small and medium enterprises (SMEs) especially in the case of Pakistan. The literature has yet to determine what green practices are being adopted by SMEs in Pakistan, an elucidation why GrSCM practices are adhered, what construct is appropriate to evaluate adoption of GrSCM practices by SMEs in Pakistan, and whether mediation of internal factors exits between the relationship of GrSCM practices and external pressure.
This dissertation uses Structural Equation Modelling (SEM) to investigate GrSCM practices adoption, the appropriate construct for evaluating green practices, and examining three potentially important determinants in Pakistani SMEs. With the data collected in two stages from the SMEs sector of Pakistan, exploratory factor analysis (EFA) revealed a three-dimension structure for measuring the GrSCM practices. Subsequently, the confirmatory factor analysis (CFA) was carried out on two measurement models (i.e. first and second order) of GrSCM adoption based on EFA. The empirically outcomes advocates that both models for GrSCM adoption are valid and reliable, however the second order model has better fit indices. The SEM testing shows significant results for mediation of internal factors in the hypothesized relationship among the GrSCM practices and external pressures. For academicians and supply chain mangers these results yield several exciting theoretical and practical implications.