Effect of Green Supply Chain Practices on Environmental Development: Insights from ISO14001 Certified Manufacturing Companies in Malaysia

Abstract :

This paper investigates the effect of green supply chain practices on environmental development. There is a growing need to study the effects of green supply chain practices towards environmental development in the manufacturing industry due to the large environmental impact and the growing pressure for companies to go green. A survey was sent to 621 Malaysian ISO 14001 certified manufacturing companies. With a total of 146 usable questionnaires, the response rate was 23.51%. This study identified that green purchasing and eco-design has a positive effect towards environmental development. These results present empirical evidence of the relationship between green supply chain practices and environmental development. The adoption of green supply chain practices by manufacturing firms would be justified, not just by merely moral grounds, but also the positive effect companies gain in their performance.