The Effects of Green SCM Implementation on Business Performance in SMEs: A Longitudinal Study in Electronics Industry

Abstract

The evolution of green supply chain management (GSCM) in small and medium-sized enterprises (SMEs) remains underexplored in the literature. Specifically, this study assesses the changes in the effects of GSCM implementation on employee job satisfaction, operational and relational efficiency, and business performance of SMEs that serve as suppliers to large buying firms. The present study collected survey data from 193 electronics manufacturers in South Korea twice in a seven-year time gap, evaluated the reliability and the validity of individual measures, and employed structural equation modeling (SEM) to test the model hypotheses. The results commonly found in the two studies with the time gap are (1) the positive effects of GSCM implementation on employee job satisfaction and operational and relational efficiency, (2) the positive effects of both operational and relational efficiency on business performance, and (3) the positive relationship between operational efficiency and relationship efficiency. Moreover, the positive effect of employee job satisfaction on business performance is found only in the latter study (Study II). The results suggest that GSCM implementation is a critical factor for SME suppliers to establish sustainable long-term relationships with buying firms in the electronics industry, and it also helps manufacturers improve employee job satisfaction and operational efficiency over time. The present study is believed to enhance an understanding of key factors in association with GSCM that positively influences the business performance of SME suppliers.