Diffusion Structure of Low-carbon Supply Chain Management Practices and Performance of Japanese Firms

Abstract

This study constructed a structural equation model to indicate the diffusion structure of green supply chain management (GSCM) implementation and firm performance in Japanese enterprises, focusing on global warming measures based on a questionnaire survey. It employed exploratory factor analysis and covariance structure analysis to analyze the data. The results suggested that “cooperation with suppliers” and the “promotion of creating shared value (CSV)” lag behind the other GSCM practices. Next, the diffusion structure of GSCM practices and firm performance indicated that the internal GSCM practices of “organizational implementation” and “design for environment” improved “corporate social responsibility and CSV”, which in turn promoted external GSCM practices of “cooperation with suppliers and customers”. Furthermore, we found that several GSCM practices positively influenced firm performance: “organizational implementation” significantly influenced environmental performance; “design for environment” promoted operational performance, which in turn strongly influenced environmental and economic performance; “design for environment” and “cooperation with suppliers” significantly influenced negative economic performance. Our results indicated that CSV and “cooperation with suppliers” should be promoted and ways to improve cooperation among enterprises should be explored based on common benefits to achieve a low-carbon business.