The impact of firm size, firm age and environmental management certification on the relationship between green supply chain practices and corporate performance

Abstract

Purpose The purpose of this paper is to explore if control variables have any impact on corporate performance when implementing green supply chain management practices. The research in particular examines the impact of firm size, firm age and possession of environmental management system (EMS) certification as control variables on different dimensions of the corporate performance. Design/methodology/approach The research design consists of a comprehensive literature review, followed by an empirical questionnaire based survey with responses of 117 participant organizations proceeded by a comprehensive statistical analysis to validate the developed theoretical framework and contribute to both practical and methodological approach. This study investigates the impact of each of these three control variables on four dimensions of corporate performance using multiple regression analysis. Findings The research found that there is positive relationship between firm size and environmental performance, economic performance and social performance but not with operational performance. The study also found that a certified EMS within UAE firms is having a positive impact on all four performance dimensions while firm age does not have any relationship with any of the four performance outcomes. Research limitations/implications The research provides guidance for supply chain managers in the UAE and other similar emerging market in order to better understand the relationship between control variables, impact and performance, on corporate outcome. The paper also describes relevant strategies that should be taken into consideration by these managers in order to build their sustainable supply chain. The research contributes to social dimensions of supply chain sustainability on how resilient green strategies are important for supply chain stakeholders during uncertain conditions so that it can respond to uncertain changes in order to contribute to corporate social responsibility. Some of the limitations of this research include the geographic coverage of the study region and other methodological limitation. Originality/value This research is the first of its kind in the UAE region to assess the link between firm control variables and its impact on green supply chain management practices; which are less studied in the green supply chain literature. While there might be few other studies that addressed and uncovered the relationship between implementing green supply chain management practices and corporate performance, however, no study has attempted to find out if firm size, firm age and possession of EMS would have any impact on the green supply chain practices and corporate performance relationship. The research was conducted in an emerging economy to understand the relationship better. A series of recommendations are also provided for firms interested in improving their environmental performance while implementing green supply chain practices.