Impact of knowledge management capability and green supply chain management practices on 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.
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 http://www.bgmea.com.bd/home/about/AboutGarmentsIndustry.
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 http://www.btmadhaka.com/.
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 https://about.hm.com/content/dam/hmgroup/groupsite/documents/masterlanguage/CSR/reports/HM_group_SustainabilityReport_2017_FullReport.pdf
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/j.omega.2006.11.009
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.
Copyright (c) 2019 International Journal of Research in Business and Social Science (2147- 4478)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors contributing to IJRBS agree to publish their articles under the Creative Commons Attribution- 4.0 NC license, allowing third parties to share their work (copy, distribute, transmit) and to adapt it, under the condition that the authors are given credit, that the work is not used for commercial purposes, and that in the event of reuse or distribution, the terms of this license are made clear. Authors retain copyright of their work, with first publication rights granted to IJRBS. However, authors are required to transfer copyrights associated with commercial use to the Publisher. The authors agree to the terms of this Copyright Notice, which will apply to this submission if and when it is published by this journal
Submission of an article implies that the work described has not been published previously( exceptin the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, it will not be published elsewhere in the same form, in English or in any other languages, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication