Relationship Between Institutional Pressures, Green Supply Chain Management Practices and Business Performance: An Empirical Research on Automobile Industry

With environmental pollution, resource waste and ecological imbalance gradually become the focus of global attention, green supply chain management (GSCM) has become an important strategic choice to reduce the environmental impact and improve operational performance so that enterprises can achieve sustainable development. Based on the institutional theory, this paper analyzes which institutional pressures motivate manufacturers to implement GSCM, and which business performance is positively affected by GSCM, and how institutional pressures influence on business performance. The moderating effect of enterprise scale and time of GSCM implementation on the relationship between GSCM practices and business performance is studied. Based on the questionnaire survey data in 224 manufacturers in automobile industry, the empirical research provides evidence that (a) institutional pressures have significant positive impact on GSCM practices and business performance, (b) GSCM practices also have significant positive impact on enterprise environment, economy and operational performance, and (c) enterprise scale and practice time both positively moderate the relationship between GSCM practices and business performance.