Evaluating the impact of GSCM practices on Organisational performance for SMEs in Vietnam

Abstract

Green Supply Chain Management (GSCM) has become one of the key strategies for enhancing enterprises and achieving sustainable improvement. This study aims to evaluate the impact of GSCM practices on the organisational performance of SMEs in Vietnam. This study considers four GSCM practices: green product development and design, green purchasing, green production management and marketing, and green logistics. Whereas the organisation performance elements are operational performance, economic performance, and environmental performance. A set of hypotheses is proposed to evaluate the impact of GSCM practices on organisational performance. A questionnaire survey is used to validate the GSCM practices and performance outcomes. One hundred twenty participants completed the questionnaire and data is collected from the available SMEs and used in the empirical analysis. Multi-linear regression analysis tests the proposed hypotheses and identifies the research outcomes. The results revealed that green practices led to improvement in all elements of organisational performance. However, Green Logistics is the only one that does not positively impact the economy and environmental performance due to inappropriate implementation of the green logistics. The paper provides a clear understanding of various aspects of GSCM implementation and can help practitioners improve their GSCM performance.