Internal Green Supply Chain Management Practices Influence on Firm Performance

Abstract

Green supply chain management (GSCM) is a valuable tool for manufacturing companies that seek to reduce the environmental impact and also improve their firm performance. However, in South America, this topic is just emerging. Based on a survey of 216 respondents, this paper assesses the impact of the implementation of internal green supply chain management practices (internal environmental management and eco-design) on environmental, operational and economic performance of Peruvian manufacturing companies. The data was analyzed through partial least squares structural equation modeling (PLS-SEM). The findings show that internal environmental management positively influences the three aspects of firm performance but eco-design only influence environmental and operational performance. The practical implications of this research suggest that managers should put their efforts on implementing internal GSCM practices to obtain the benefits on performance.

Keywords: Green Supply Chain Management (GSCM), Internal Environmental Management (IEM), Eco-Design (ED), firm performance, Peru