Effects of Normative Pressures to Implement External Green Supply Chain Management Practices and Their Impact on Economic Performance

Abstract

Companies are becoming aware that the implementation of green practices can help them to establish a green image, win more customers and positively influence their economic performance. This paper empirically tests a theoretical model that explores normative pressures, external green supply chain management practices (green purchasing, cooperation with customers and investment recovery) and economic performance of manufacturing companies in Peru. The data was collected from 176 companies and it was analyzed using partial least squares structural equation modeling (PLS-SEM). The results provide evidence of the positive influence of normative pressures on the implementation of external green practices, except for investment recovery. Economic performance is positively related to green purchasing and investment recovery but it is negatively related with cooperation with customers. This research contributes to the literature of green supply chain management and provides managerial implications for Peruvian companies on the improvement of economic performance through the adoption of green practices.