The relationship between green supply chain integration and sustainable performance

Green supply chain management (GSCM) has recently emerged to comply with regulations for environmental protection as a result of increasing environmental concerns over the past decades. Since manufacturing companies have often been charged for the environmental liabilities of their suppliers, there has been urgency for integration of environmental initiatives, not only within the walls of the company, but across the entire supply chain in order to ensure the company’s sustainable
performance. Consequently, Green Supply Chain Integration (GSCI) was introduced to integrate the environmental management practices within manufacturing companies, with the suppliers and the customers. However, there is lack of discoveries in terms of GSCI conceptualization. Therefore, this study was conducted to identify
the relationship between Green Supply Chain Integration and sustainable performance.
Specifically, the objective of this study is to examine the relationship between supplier
integration, customer integration, internal integration, logistic integration, technology
integration, and dimensions of sustainable performance namely economic, environmental, and social. A survey was conducted on ISO14001 Environmental Management System (EMS) certified manufacturing firms in Malaysia. A total of 107
questionnaires was completed by the respondents and considered to be appropriate for data analysis. The data was analyzed using Pearson’s correlation analysis and multiple regression analysis. It was found that each variable in the GSCI is positively correlated with sustainable performance. Further investigation using multiple regression has shown that internal integration and technology integration to be the strongest predictors of sustainable performance. Apart from contribution to theoretical knowledge, the results would also be valuable in providing new insights to
management in their environmental goals and sustaining successful performance within the pressures of stakeholders, customers, and environmental regulations