Green Supply Chain Management Efforts of First-Tier Suppliers on Economic and Business Performances in the Electronics Industry

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Abstract
Green supply chain management (GSCM) has a necessary goal of performing a firm’s social and environmental responsibilities, and SMEs employ GSCM practices with constrained resources. SMEs need to determine which areas they need to concentrate their limited resources to result in positively noticeable economic outcomes. This study aims to identify what GSCM practices would influence economic and business profitability for first-tier suppliers in the electronics industry. Specifically, this examines whether internal environmental management (IEM), green purchasing (GP), cooperation with customers (CC), and eco-design (ECO) have a role in enhancing an organization’s economic performance (ECP) and business performance (BP). Survey data from 193 South Korean electronics firms were collected to test the proposed model. The survey responses were analyzed using structural equation modeling (SEM). The results of the present study showed that IEM, CC, and ECO of the responding SMEs had direct positive influences on ECP. Moreover, economic performance has a statistically significant influence on BP. However, GP did not show a significant relationship with ECP. This study investigated first-tier suppliers within the electronics industry and identified what GSCM practices would be important in improving the performances of SME manufacturing companies.

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