Impact of knowledge management capability and green supply chain management practices on firm performance

  • Ahashan Habib 1. Center for Modern Information Management, School of Management, Huazhong University of Science and Technology, Wuhan, Hubei 430074, P. R. China. 2. Department of Textile Engineering Management, Bangladesh University of Textiles, Dhaka, Bangladesh.
  • Yukun Bao Center for Modern Information Management, School of Management, Huazhong University of Science and Technology, Wuhan, Hubei 430074, P. R. China.
Keywords: Knowledge Management, Green Supply Chain Management, Firm Performance


Knowledge management is one of the most important strategic resources of the firm which has been ascertained to many organizations to acquire and apply it before their competitor for achieving competitive advantages. Similarly, due to rising environmental awareness among customers, governments, NGOs, and researchers, firms are facing increasing pressure to implement environmental management practices in their operations. The purpose of this paper is to identify the influence of knowledge management capability (KMC) on green supply chain management (GSCM) practices adoption of the manufacturing firm and subsequently the impact on firm performance. The data were collected from 262 Bangladeshi textile manufacturing firms and analyzed using structural equation modeling, typifying that exploratory and quantitative research. Drawing upon the resource-based view the study revealed that KMC has a significant positive effect on internal and external-GSCM practices adoption. Further, the study revealed that internal-GSCM practices have significantly positive effects on both economic and environmental performance while the external-GSCM practice has positive environmental performance but negatively affects economic performance. Finally, this study indicates that KMC is an intuitive resource of a firm that can bring sustainable performance through GSCM practices.

Author Biography

Yukun Bao, Center for Modern Information Management, School of Management, Huazhong University of Science and Technology, Wuhan, Hubei 430074, P. R. China.

Dr. Yukun Bao

Professor and Deputy Director,

Center for Modern Information Management,

School of Management,

Huazhong University of Science and Technology,

Wuhan, P.R. China, 430074



Ahmed, S., Akter, T., & Ma, Y. (2018). Green Supply Chain Management (GSCM) Performance Implemented by the Textile Industry of Gazipur District, Dhaka. Logistics, 2(4), 21. doi: 10.3390/logistics2040021

Attia, A., & Essam Eldin, I. (2018). Organizational learning, knowledge management capability and supply chain management practices in the Saudi food industry. Journal of Knowledge Management, 22(6), 1217-1242. doi: 10.1108/jkm-09-2017-0409

Barney, J. (1991 ). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17, 99–120.

BGMEA. (2019). About Garment Industry of Bangladesh.Retrieved March 7, 2019, from

Bolisani, E., & Bratianu, C. (2017). Knowledge strategy planning: An integrated approach to manage uncertainty, turbulence, and dynamics. Journal of Knowledge Management., 21(20, 233–253.

BTMA. (2019). Retrieved March 9, 2019, from

Cao, M., Vonderembse, M. A., Zhang, Q., & Ragu-Nathan, T. S. (2009). Supply chain collaboration: conceptualisation and instrument development. International Journal of Production Research, 48(22), 6613-6635. doi: 10.1080/00207540903349039

Chin, W. W. (1998). The partial least squares approach to structural equation modeling. ModernMethods for Business Research,, 295, 295-336.

Chin, W. W. (1998b). Commentary: issues and opinion on structural equation modelling. MIS Q., 22(1), xii-xvi.

Chu, S., Yang, H., Lee, M., & Park, S. (2017). The Impact of Institutional Pressures on Green Supply Chain Management and Firm Performance: Top Management Roles and Social Capital. Sustainability, 9(5), 764. doi: 10.3390/su9050764

Chuang, S.-H. (2004). A resource-based perspective on knowledge management capability and competitive advantage: an empirical investigation. Expert Systems with Applications, 27(3), 459-465. doi: 10.1016/j.eswa.2004.05.008

Darroch, J. ( 2005). Knowledge management, innovation and firm performance. . Journal of Knowledge Management., 9(3), 101-115.

de Guimarães, J. C. F., Severo, E. A., & de Vasconcelos, C. R. M. (2018). The influence of entrepreneurial, market, knowledge management orientations on cleaner production and the sustainable competitive advantage. Journal of Cleaner Production, 174, 1653-1663. doi: 10.1016/j.jclepro.2017.11.074

du Plessis, M. (2007). The role of knowledge management in innovation. Journal of Knowledge Management, 11(4), 20-29. doi: 10.1108/13673270710762684

Eisenhardt, K., & Martin., J. (2000). Dynamic Capabilities: What are They? Strategic Management Journal, 21 (10–11), 1105–1121.

Eltayeb, T. K., Zailani, S., & Ramayah, T. (2011). Green supply chain initiatives among certified companies in Malaysia and environmental sustainability: Investigating the outcomes. Resources, Conservation and Recycling, 55(5), 495-506. doi: 10.1016/j.resconrec.2010.09.003

Foo, P.-Y., Lee, V.-H., Tan, G. W.-H., & Ooi, K.-B. (2018). A gateway to realising sustainability performance via green supply chain management practices: A PLS–ANN approach. Expert Systems with Applications, 107, 1-14. doi: 10.1016/j.eswa.2018.04.013

Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: algebra and statistics. . J. Mark. Res., 382–388.

Gharakhani, D., & Mousakhani, M. (2012). Knowledge management capabilities and SMEs’ organizational performance. Journal of Chinese Entrepreneurship,, 4(1), 35-49.

Green, K. W., Zelbst, P. J., Meacham, J., & Bhadauria, V. S. (2012). Green supply chain management practices: impact on performance. Supply Chain Management: An International Journal, 17(3), 290-305. doi: 10.1108/13598541211227126

H&M. (2017). H&M group Sustainability Report. Retrieved 26/9/2018, 2018, from

Hair, J., Anderson, R., Tatham, R., & Black, W. (2006). Multivariate Data Analysis, 6th ed., . Prentice Hall, NJ.

Hair, J. F., Sarstedt, M., Ringle, C. M., & Mena, J. A. (2012). An assessment of the use of partial least squares structural equation modeling in marketing research. Journal of the Academy of Marketing Science, 40(3), 414-433.

Hair, J. F. J., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A Primer on Partial Least Squares Structural Equation Modeling (Pls-Sem). Sage Publications, Thousand Oaks, CA.

Halley, A., & Beaulieu, M. (2005). Knowledge management practices in the context of supply chain integration: the Canadian experience. Supply Chain Forum: An International Journal, 6(1), 66-81.

Harman, H. H. (1976). Modern Factor Analysis, . University of Chicago Press.

Hassan, N., & Raziq, A. (2019). Effects of knowledge management practices on innovation in SMEs. Management Science Letters, 997-1008. doi: 10.5267/j.msl.2019.4.005

Henseler, J., Ringle, C. M., & Sarstedt, M. (2014). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115-135.

Hussain, T., & Wahab, A. (2018). A critical review of the current water conservation practices in textile wet processing. Journal of Cleaner Production, 198, 806-819. doi: 10.1016/j.jclepro.2018.07.051

Hustvedt, G., & Dickson, M. A. (2009). Consumer likelihood of purchasing organic cotton apparel. Journal of Fashion Marketing and Management: An International Journal, 13(1), 49-65. doi: 10.1108/13612020910939879

Iqbal, A., Latif, F., Marimon, F., Sahibzada, U. F., & Hussain, S. (2019). From knowledge management to organizational performance. Journal of Enterprise Information Management, 32(1), 36-59. doi: 10.1108/jeim-04-2018-0083

Islam, M. M., Mahmud, K., Faruk, O., & Billah, M. S. (2011). Textile Dyeing Industries in Bangladesh for Sustainable Development. International Journal of Environmental Science and Development, 428-436. doi: 10.7763/ijesd.2011.v2.164

Jiang, W., Chai, H., Shao, J., & Feng, T. (2018). Green entrepreneurial orientation for enhancing firm performance: A dynamic capability perspective. Journal of Cleaner Production, 198, 1311-1323. doi: 10.1016/j.jclepro.2018.07.104

Khan, M. S., Ahmed, S., Evans, A. E. V., & Chadwick, M. (2009). Methodology for Performance Analysis of Textile Effluent Treatment Plants in Bangladesh. Chemical Engineering Research Bulletin, 13(2). doi: 10.3329/cerb.v13i2.3939

Khan, S. A. R., & Qianli, D. (2017). Impact of green supply chain management practices on firms' performance: an empirical study from the perspective of Pakistan. Environ Sci Pollut Res Int, 24(20), 16829-16844. doi: 10.1007/s11356-017-9172-5

Kock, N. (2015). Common method bias in PLS-SEM: a full collinearity assessment approach. International Journal of e-Collaboration, 11, 1-10.

Kyobe, M. (2010). A knowledge management approach to resolving the crises in the information systems discipline. Journal of Systems and Information Technology, 12(2), 161-173.

López-Torres, G. C., Garza-Reyes, J. A., Maldonado-Guzmán, G., Kumar, V., Rocha-Lona, L., & Cherrafi, A. (2019). Knowledge management for sustainability in operations. Production Planning & Control, 30(10-12), 813-826. doi: 10.1080/09537287.2019.1582091

Min, H., & P, G. W. (2001). Green purchasing practice of US firms. International Journal of Operations &Production Management, 21(9), 1222-1238.

Namagembe, S., Ryan, S., & Sridharan, R. (2019). Green supply chain practice adoption and firm performance: manufacturing SMEs in Uganda. Management of Environmental Quality: An International Journal, 30(1), 5-35. doi: 10.1108/meq-10-2017-0119

Nasir Uddin, M. (2010). Impact of knowledge management and inter-organizational system on supply chain performance: the case of Australian Agri-food industry”, . (Ph.D), Curtin University.

Nath, P., Nachiappan, S., & Ramanathan, R. (2010). The impact of marketing capability, operations capability and diversification strategy on performance: A resource-based view. Industrial Marketing Management, 39(2), 317-329. doi: 10.1016/j.indmarman.2008.09.001

OECD. (2003). Measuring Knowledge Management in the Business Sector. Canada: OECD/Minister of Industry.

Paulraj, A. (2011). Understanding the relationships between internal resources and capabilities, sustainable supply management and organizational sustainability. Journal of Supply Chain Management, 47(1), 19-37.

Peng, Y.-S., & Lin, S.-S. (2007). Local Responsiveness Pressure, Subsidiary Resources, Green Management Adoption and Subsidiary’s Performance: Evidence from Taiwanese Manufactures. Journal of Business Ethics, 79(1-2), 199-212. doi: 10.1007/s10551-007-9382-8

Peteraf, M. A. (1993). The Cornerstones of Competitive Advantage: A Resource-based View. Strategic Management Journal, 14(3), 179–191.

Petljak, K., Zulauf, K., Štulec, I., Seuring, S., & Wagner, R. (2018). Green supply chain management in food retailing: survey-based evidence in Croatia. Supply Chain Management: An International Journal, 23(1), 1-15. doi: 10.1108/scm-04-2017-0133

Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: a critical review of the literature and recommended remedies. . The Journal of Applied Psychology,, 88(5), 879.

Reza, A. K., Islam, M. S., & Shimu, A. A. (2017). Green Industry in Bangladesh: An Overview. Environmental Management and Sustainable Development, 6(2), 124. doi: 10.5296/emsd.v6i2.11027

Saeed, A., Jun, Y., Nubuor, S., Priyankara, H., & Jayasuriya, M. (2018). Institutional Pressures, Green Supply Chain Management Practices on Environmental and Economic Performance: A Two Theory View. Sustainability, 10(5), 1517. doi: 10.3390/su10051517

Saeidi, E., & Wimberley, V. S. (2017). Precious cut: exploring creative pattern cutting and draping for zero-waste design. International Journal of Fashion Design, Technology and Education, 11(2), 243-253. doi: 10.1080/17543266.2017.1389997

Sarkis, J., Zhu, Q., & Lai, K. H. (2011). An Organizational Theoretic Review of Green Supply Chain Management Literature. . International Journal of Production Economics, 130(1), 1-15.

Tseng, S. (2014). The impact of knowledge management capabilities and supplier relationship management on corporate performance. Int. J. Prod. Econ, 15(4), 39-47.

Vachon, S., Co‐Editors: Benn Lawson, P. D. C., & Klassen, R. D. (2006). Extending green practices across the supply chain. International Journal of Operations & Production Management, 26(7), 795-821. doi: 10.1108/01443570610672248

Vachon, S., & Klassen, R. D. (2008). Environmental management and manufacturing performance: the role of collaboration in the supply chain. International Journal of Production Economics, 111(2), 299-315.

Vanalle, R. M., Ganga, G. M. D., Godinho Filho, M., & Lucato, W. C. (2017). Green supply chain management: An investigation of pressures, practices, and performance within the Brazilian automotive supply chain. Journal of Cleaner Production, 151, 250-259. doi: 10.1016/j.jclepro.2017.03.066

Verwaal, E., & Hesselmans, M. (2004). Drivers of supply network governance: an explorative study of the Dutch chemical industry. European Management Journal, 22(4), 442–451.

Vijayvargy, L., Thakkar, J., & Agarwal, G. (2017). Green supply chain management practices and performance. Journal of Manufacturing Technology Management, 28(3), 299-323. doi: 10.1108/jmtm-09-2016-0123

Wade, M., & Hulland, J. (2004). The Resource-Based View and Information Systems Research: Review, Extension,and Suggestions for Future Research. MIS Quarterly, 28(1), 107-142.

Wang, C. M., Xu, B. B., Zhang, S. J., & Chen, Y. Q. (2016). Influence of personality and risk propensity on risk perception of Chinese construction project managers. International Journal of Project Management and Organization Review, 34(7), 1294-1304.

Weldy, T., & Gillis, W. (2010). The learning organization: variations at different organizational levels. The Learning Organization, 17(5), 455-470.

Wernerfelt, B. (1984). A resource-based view of the firm. . Strategic Management Journal, 5(2), 171 −180.

Wilburn Green, K., Toms, L. C., & Clark, J. (2015). Impact of market orientation on environmental sustainability strategy. Management Research Review, 38(2), 217-238. doi: 10.1108/mrr-10-2013-0240

Womack, J., Jones, D., & D, R. (1990). The machine that changed the world. . New York: Harper Perennial.

Yadlapalli, A., Rahman, S., & Gunasekaran, A. (2018). Socially responsible governance mechanisms for manufacturing firms in apparel supply chains. International Journal of Production Economics, 196, 135-149. doi: 10.1016/j.ijpe.2017.11.016

Ye, F., Zhao, X., Prahinski, C., & Li, Y. (2013). The impact of institutional pressures, top managers' posture and reverse logistics on performance—Evidence from China. International Journal of Production Economics, 143(1), 132-143. doi: 10.1016/j.ijpe.2012.12.021

Yeung, A. C. L., Lai, K., & Yee, R. W. Y. (2007). Organizational learning, innovativeness, and organizational performance: A qualitative investigation. . Int. J. Prod. Res., 45, 2459–2477.

Yu, W., Chavez, R., & Feng, M. (2017). Green supply management and performance: a resource-based view. Production Planning & Control, 28(6-8), 659-670. doi: 10.1080/09537287.2017.1309708

Zaim, H., Keceli, Y., Jaradat, A., & Kastrati, S. (2018). The effects of knowledge management processes on human resource management. Journal of Science and Technology Policy Management, 9(3), 310-328. doi: 10.1108/jstpm-02-2018-0011

ZDHC. (2016). Annual report of Zero Discharge of Hazardous Chemicals Programme.

Zhao, R., Liu, Y., Zhang, N., & Huang, T. (2017). An optimization model for green supply chain management by using a big data analytic approach. Journal of Cleaner Production, 142, 1085-1097. doi: 10.1016/j.jclepro.2016.03.006

Zhu, Q., & Sarkis, J. (2007). The moderating effects of institutional pressures on emergent green supply chain practices and performance. International Journal of Production Research, 45(18-19), 4333-4355. doi: 10.1080/00207540701440345

Zhu, Q., Sarkis, J., Cordeiro, J., & Lai, K. (2008). Firm-level correlates of emergent green supply chain management practices in the Chinese context☆. International Journal of Management Science, 36(4), 577-591. doi: 10.1016/

Zhu, Q., Sarkis, J., & Geng, Y. (2005). Green supply chain management in China: pressures, practices and performance. International Journal of Operations & Production Management, 25(5), 449-468. doi: 10.1108/01443570510593148

Zhu, Q., Sarkis, J., & Lai, K.-h. (2007). Green supply chain management: pressures, practices and performance within the Chinese automobile industry. Journal of Cleaner Production, 15(11-12), 1041-1052. doi: 10.1016/j.jclepro.2006.05.021

Zhu, Q., Sarkis, J., & Lai, K.-h. (2013). Institutional-based antecedents and performance outcomes of internal and external green supply chain management practices. Journal of Purchasing and Supply Management, 19(2), 106-117. doi: 10.1016/j.pursup.2012.12.001

Zhu, Q., Tian, Y., & Sarkis, J. (2012). Diffusion of selected green supply chain management practices: an assessment of Chinese enterprises. Production Planning & Control, 23(10-11), 837-850. doi: 10.1080/09537287.2011.642188

Zsidisin, G. A., & Siferd, S. P. (2001). Environmental Purchasing: A Framework for Theory Development. European Journal of Purchasing & Supply Management, 7(1), 61-73.

How to Cite
Habib, A., & Bao, Y. (2019). Impact of knowledge management capability and green supply chain management practices on firm performance. International Journal of Research in Business and Social Science (2147- 4478), 8(6), 240-255.