Integrating Green Practices into Operational Performance: Evidence from Brazilian Manufacturers

Abstract

The pressures exerted by the market, society, regulators and/or clients on organisational environmental responsibility have required companies to adopt environmental management practices. Within this process, integration with suppliers and customers is important to enable companies to meet these demands, and at the same time achieve their organisational goals. Using empirical results from 117 respondents on Green Supply Chain Management (GSCM) practices among Brazilian manufacturers, we examined the impact of the adoption of green practices on operational performance. To do so, we developed a questionnaire to collect the variables on environmental practices and operational performance in manufacturing firms in Brazil, an emerging economy in which this sector accounts for 25% of its Gross Domestic Product (GDP). The results show that the adoption of GSCM between suppliers and/or customers has a positive effect on operational performance. This means companies can benefit from a green supply chain by cooperating with upstream suppliers of environmentally responsible production technology and by exchanging environmental information with them, as well as considering the views of customers and green consumers in their production processes. This study provides empirical support for managers promoting environmental practices that may lead to operational performance and sustainable growth.