The Influence of Green Supply Chain Management (GSCM) on Environmental Performance: Case Study of Automotive Industry in Malaysia

Abstract

The use of the green concept in the automotive industry and its practice in Supply Chain Management (SCM) as an energy-efficient transport innovation, and to improve environmental performance context has the potential to alleviate environmental issues. Green Supply Chain Management (GSCM) can be defined as bringing together environmental thinking into SCM. The need for GSCM especially in the automotive industry is due to the increasing environmental constraints due to global warming as well as pollution from the transportation and industry activities as the major contribution. Numerous companies have recently recognised the term GSCM, also known as ‘supply chain environmental management’. However, little research has been done on the relationship between environmental performances. Thus, this study aims to bridge the gap by modelling the green innovation drivers on the Malaysian automotive industry and their impact on environmental performance. This study also provided empirical evidence that will allow companies to implement green supply chain management in order to improve environmental efficiency. The information gathered through a questionnaire survey from Malaysia's automotive industry sectors. The data analysed using structural equation modelling. Findings could help the automotive industry to build a systematic blueprint in controlling their green innovation practices towards increasing their productivity.