Effect of Green Supply Chain Management Practices on Environmental Performance: Case of Mexican Manufacturing Companies

Managers implement several Green Supply Chain Management (<i>GSCM</i>) practices to improve sustainability and economic performance, such as environmental management systems (<i>EMS</i>), eco-design (<i>ED</i>), source reduction (<i>SR</i>) and attendi...

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Bibliographic Details
Main Authors: Jorge Luis García Alcaraz, José Roberto Díaz Reza, Karina Cecilia Arredondo Soto, Guadalupe Hernández Escobedo, Ari Happonen, Rita Puig I Vidal, Emilio Jiménez Macías
Format: Article
Language:English
Published: MDPI AG 2022-05-01
Series:Mathematics
Subjects:
Online Access:https://www.mdpi.com/2227-7390/10/11/1877
Description
Summary:Managers implement several Green Supply Chain Management (<i>GSCM</i>) practices to improve sustainability and economic performance, such as environmental management systems (<i>EMS</i>), eco-design (<i>ED</i>), source reduction (<i>SR</i>) and attending to external environmental management (<i>EEM</i>) requirements; however, the relationship among them requires a deep study. This paper reports the case of the Mexican maquiladora industry, analyzing the main relationships among <i>GSCM</i> practices with environmental impact (<i>EI</i>) and environmental cost savings (<i>ECS</i>). The analysis reports three structural equation models (SEM) developed as simple, second-order, and mediating models. Those relationships are tested using 160 responses to a survey applied to the Mexican maquiladora industry and with partial least squares algorithms (PLS), where conditional probabilities for different scenarios in latent variables are also reported. Findings indicate that <i>EMS</i> has a direct effect on <i>EI</i> (β = 0.442) and <i>ECS</i> (β = 0.227), indicating that <i>EMS</i> reduces <i>EI</i> and cost associated with the production process; however, <i>ED</i> has no direct effect on <i>EI</i> (β = 0.019) and <i>ECS</i> ((β = 0.006), and it can be due to the maquiladora nature as foreign companies focused on manufacturing and not to product design.
ISSN:2227-7390