Table of Contents

1. Executive Summary……………………………………………..…4

2. Introduction…………………………………………………………6

3. Literature Review…………………………………………………..16

4. Methodology……………………………………………….……….29

5. Data Analysis& Discussion……………………….…………………32

6. Conclusion………………………………………………….……….61

7. References…………………………………………………………..64

8. Appendices………………………………………………….……….71

1. Executive Summary

It is crucial for businesses to be environmentally conscious and use Green Supply Chain Management, which helps to ensure that this supply exercise doesn't negatively impact the environment, because when supply chains are operated by corporations, natural resources diminish and carbon dioxide and its elements gases—are released more frequently, indicating a great danger to the environment. Green Supply Chain management (GSCM) denotes to the perception of assimilating sustainable production processes aligned with environmental protection policies into the traditional supply chain. At this point, would it be beneficial for corporations to switch to applying Green Supply Chain Management or not. A detailed literature review is conducted, which show the importance of applying GSCM into the supply chain level and the correlation between GSCM and the overall performance of a business organization. The focus of this study is on whether integrating GSCM within the supply chain level will result in enhanced business performance. This research is piloted by using a cross-sectional survey scheme applicable where the general goal is to clarify whether significant relationships exist amongst the variables at any point. The study population embraced all of the ISO 14001-certified manufacturing companies functioning in the U.S.A. There are two variables used: GSCM practices which function as an independent variable and organizational performance which is a dependent variable. The survey asked the companies about the ownership status of the firm, whether it is locally owned or foreign-owned. It has also investigated the scope of market for the firm, and the majority tended to be global. The production type of the firms was also tackled in a question to identify in which sectors these companies are operating along with the years of operation for each firm. Also the survey asked about the number of employees in each company. Then the survey assessed the green supply chain management practices within the companies in terms of sustainable procurement practices, environmental responsible designs, green manufacturing practices, green packaging practices, and green distribution practices of the firms. All of them applied green practices on different scales. On the other hand, the companies were asked to reflect on the cash flow performance and 64 out of 75 companies said that it was high. They were further asked to reflect on profit after tax and return of sales and the majority explained that it was high. Lastly, the survey asked about the return on investment and 61 companies out of 75 said that it was high.

Firstly, the data was analyzed by measuring Cronbach’s alpha which was 0.781. It is close to +1 which is deemed appropriate given that the data sets components are credible.

Secondly, analysis of the variances (ANOVA) was used to examine the impact of applying these practices on the operational performance of the American companies. By dissecting the sum of squares into several components in order to assess the degree of variance in the data, it showed significance level of 0.000 and a f-worth of 184.199 which translates into a regression model substantial at 95%.

Certainly, the study analyzed correlations between demographic, environmental design, and organizational performance factors. The results showed that all indicators were valid, with x1 having correlation result of 1, x2 having correlation result of 0.765, and x3 having correlation result of 0.66. The study was statically significant at 99.9% with a 0.1% rate of misinterpretation. By conducting two-nailed tests, the researcher determined that the data followed a normal distribution and that all factors favored the null hypotheses. The study concluded that Green Supply Chain management practices enhance the performance of ISO certified companies in the United States.

2. Introduction

The first chapter of the research paper is an introduction which gives an overview of the topic. In this chapter is an introduction about general supply chain and the part of businesses in affecting the supply chain would be discussed. Environmental issues arising from technological advancement would be discussed. Along with discussing environmental issues the green supply chain role in addressing these issues would be discussed. This chapter is discussing how firms are adopting GSCM and how it is making a difference in positive ways.

Background

Supply chains are used by modern enterprises to develop, distribute, and transfer value to customers in the most feasible manner (Green et al., 2012). The supply chain boosts corporate success by combining enterprises to give consumers value at the lowest possible price (Bagher, 2018). Therefore, it is important that business managers create an efficient supply chain in order to increase consumer happiness, foster competitive advantage, and increase the wealth of their company (Diabat and Govindan, 2011). However, companies create externalities to the environment when they create and manage efficient supply networks; these externalities are typically negative and unsustainable. That is, when supply chains are managed more carefully by corporations, natural resources are depleted and carbon dioxide and its components—greenhouse gases—are released more often. This indicates a great danger to the environment (Dadhich et al., 2015). Accordingly, it is crucial for enterprises to be environmentally responsible and apply Green Supply Chain Management, which aids to guarantee that this exercise of supply chain doesn’t harm the environment. Therefore, companies should match and relate their performance goals with sustainable performance. 

Research has suggested a number of parameters for GSCM practice among firms. These include eco-design, eco-production, and green buying (Tan, 2016). Businesses are required to conduct their supply chain operations within the parameters of environmental sustainability by applying these factors. The bulk of the research acknowledges that GSCM not only improves the environment but also helps businesses perform. Green supply chain initiatives helped firms cut back on their use of energy and logistical expenses, which improved their performance. Green technology is favored by Seman et al. (2012), particularly in industrial companies that increase revenues (Sari & Youn et al., 2013).

The application of GSCM enhances the working environment of firms involved. According to empirical research, green supply chain management increases corporate competitiveness. The findings from Laari (2016) support the claim that GSCM enhances the environmental and operational aspects of enterprises. Syakila (2016), on the other hand, emphasizes that GSCM does not necessarily support business competitiveness. Similarly, Khan and Qianli (2017) concurred that higher sustainable standards reduce businesses' profitability since GSCM necessitates significant technological expenditures. This is a different viewpoint that suggests GSCM might not improve firms' general well-being.

There is no unified viewpoint offered by the many theoretical approaches on the subject. Tripathi and Bains (2013), for instance, made the case that it is every company's duty to maximize profit for its owners. According to Eccles et al. (2014), enterprises are under pressure to support environmental sustainability at the expense of investors, which creates issues between managers and shareholders. 

Due to the ongoing disagreement about whether incorporating GSCM methods can increase organizational performance, practitioners are unsure of the best course of action. To ascertain whether a connection among the adoption of GSCM techniques and enhanced organizational performance exists, we expand this earlier research to the US context in this study to answer the research question.

Research Question

Will GSCM result in better performance of the U.S companies?

The resource-based approach argues that businesses should use GSCM because it gives them a competitive edge in an increasingly cutthroat market. Hu and Hsu's (2010) findings, however, imply that poor green practices of supply chain management practices may work against a firm's performance. This suggests that the adoption of the GSCM framework by corporate management is necessary for there to exist an optimistic bond between GSCM and business performance.

Manufacturing organizations can use operational analysis, continuous improvement, measurement, and objectives that El-Baz and Iddik, (2021) stated to lead to green manufacturing by reducing waste (in all its forms), energy consumption, and resource use (material usage). It is essential to create processes considering a supply chain emphasis. Efforts to boost the ecological performance of attained contributions or of the merchants that deliver them are referred to as "green supply" operations (Bowen et al., 2001). This results in a more environmentally friendly product chain. The idea is that a new purchasing skill called "resource management" will be the answer to the "waste" (environmental) problem. The administration of resources from their point of origin through numerous manufacturing and delivery stages to final use, recycling, or reuse is referred to as "resource management" by Kahn (2021).

Practices of Green supply chain management have been widely implemented by firms in the US but their impact has not been fully researched and the various ways that they have been helpful. Vermeulen agrees with the World Bank's observation from 2003 that there has been a shift away from the old "development against environment" idea and toward a new one in which improved environmental management is crucial to sustainable development. The present wave of globalization is forcing businesses to outsource more of their industrial operations. Utilizing internal management tools is the system. In other words, if new trends are handled in this manner, environmental problems could be poorly planned. The authors contend that new initiatives on social responsibility and more equitable trade relations must exist with a renewed attention on green supply chain managing and extended producer responsibility practices.

Environmental issues are getting more significant to businesses as a result of stakeholder demands that they tackle environmental sustainability in their industrial and commercial activities, including management, consumers, rivals, NGOs, and staff (Carter & Easton, 2011; Ashraf et al., 2020). The capacity of businesses to manage complicated supplier relationships will determine their ability to lessen their environmental impact (Darnall et al., 2008; Le, 2020; Reche et al., 2020). Intending to handle green supply chains, managing business activities from raw material producers to end customers, and developing connections between supply chain partners are some ways to lessen the ecological effects of commercial businesses (Linton et al., 2007; Micheli et al., 2020; Shahzad et al., 2020).

Research Objective

Risks associated with the business environment have occurred as one of the most unrelenting issues facing enterprises today. Such risks cannot be disregarded in any corporate overall planning, so risk management serves as a gauge of how well an organization can adapt to the swiftly changing business environment. And certainly, businesses will consider if switching to Green Supply Chain practices will still benefit their overall market performance or not, because in the end a business is only operating to generate profit and here stands the notion of this research which is to identify how GSCM practices impacts the business performance of companies. The main purpose of this research is to ascertain how American companies’ performance is impacted by GSCM procedures and to identify if there is any relationship between GSCM and performance.

As a result of market globalization, heightened competitiveness, and the increasing significance of customer centricity, there will be a shift toward more environmentally friendly supply chains. Specifically cited for instance, to maintain its competitiveness on a global scale, a company must adhere to international standards like ISO 14001, and to achieve a competitive edge, businesses must not only be distinctive but also fulfill client demands. You must have environmental products and a strategy in place. Supply chain implementation decisions are also influenced by consumer demand, increasingly strict regulations, and the need to foresee the possibility of a poor public image. Consumers and other stakeholders frequently fail to discriminate between a company's suppliers and own all supply-related problems. For instance, only large enterprises in the US are subject to environmental audits, even though pollution comes from a variety of sources, including households, small businesses, and industry—the latter of which is large, if not entirely, to blame.

Every firm is a part of a supply chain or network, according to Carter and Washispack (2018), and numerous manufacturing, marketing, or procurement choices have an influence on the supply chain in numerous ways, including on the environment. Manufacturers and service providers are increasingly having their products tested for environmental compatibility. Their goods must not only satisfy the demand of customers in terms of cost and quality but also take into account societal environmental issues. Carter and Washispack (2018) also share that a shift in production philosophies was necessary to discourse the current condition and development of environmental deprivation. He continues by stating that although ISO 14000 reflects a shift in environmental thinking, it mainly focuses on processes and systems and makes no mention of emission standards, limits, or test procedures. There is a belief that the new problems that manufacturers and manufacturing firms worldwide are confronting can be solved by greening the supply chain. The difficulty, according to Beamon, is finding ways for industrial progress and environmental protection to coexist.

The goal of environmental performance, as claimed by Sanders et al., (2019), is to reduce an organization's environmental impact by managing the parts of its procedures that have an effect on or have the potential to influence the environment. To address the need for ecologically friendly products, companies should hold green supply chain management (GSCM), which includes green manufacturing, green purchasing, and green marketing. The Green Purchasing Network (Japan), for instance, is a green purchasing strategy that is thought to be the most influential stimulus for organizations to support the creation of environmentally friendly products and services and create green supply chains. This regulation, which became enforced in Japan in 2001, requires all government departments and agencies to adopt a green buying policy. This highlights the part that the government may play in encouraging economies and manufacturing firms to embrace GSCM methods.

The Chinese government has applied pressure at both the national and local levels, such as through increasing environmental tax regulations, due to resource shortages, environmental degradation, and mounting consumer demand in China. The Chinese government has implemented resource tariffs and limits for some resources, like water, to prevent overexploitation and excessive usage. The need to reconsider how we approach the environment was reaffirmed at the World Social Forum. The Forum made note of the alarming rate of deforestation in developing nations, the indiscriminate use of natural resources, and the rise in industrial waste production. They argued that the government should get involved.

Green supply chain practices have been highlighted to have various impacts on firms such as cost savings by reducing energy and resource consumption, which can lower costs, improved brand reputation where companies that are seen as environmentally responsible may attract more customers, and can distinguish their products from those of their contenders, increased customer loyalty where customers are increasingly interested in buying products from environmentally responsible companies, avoid penalties, companies can reduce the risks associated with environmental incidents and potential liabilities. There is also increased innovation and competitiveness as companies that adopt green practices may be better positioned to develop new, innovative products and processes, which can help them maintain a competitive advantage.

Manufacturing firms in the U.S

Industrial and supply chain actions both depend on the environment, Sanders et al., (2019). According to the Economist, there are more than 700,000 manufacturing businesses, which can be classified into 14 sectors. These industries are alienated into groups based on the kinds of raw materials that businesses import or the goods that they produce.

The manufacturing industry contributed 2.49 trillion dollars to the United States GDP (gross domestic product) in 2021. Medium and small sized businesses (SMEs), which are responsible for 32% of the US’s exports and are contributing to the supply chain system, are exempt from the EMCA, according to the 1999 baseline survey report. Some businesses have certifications from GSCM which enables businesses to evaluate each channel's and its constituents' contributions to satisfying customer demands while upholding targeted environmental standards. Therefore, in the US context, a company's 1S014000 certification or environmental certification is insufficient. Different environmental sustainability techniques are required. U.S. manufacturing firms that are part of global corporations may react to environmental challenges differently than their local competitors. For instance, the multinational General Motors answered a query in the fourth automotive sector with the following statement: Why should we make the supply chain green? "We can do considerably more to enhance the environment along with our suppliers than GM alone could."

A supply chain known that applies GSCM targets to reduce waste, improve ecosystem quality, and accelerate material recycling. In practice, GSCM sought to generate sizable returns while considering environmental competence. It does this by utilizing technological procedures, novel amenities, drill, and workforce division (Sugandini et al.,2020). Firm executives should adhere to government regulations on potential pollution while increasing output using GSCM approach. According to Geng, Enhancing a company's financial, ecological, operative, and public efficiency is the objective of GSCM. Practically speaking, there is still a literature gap that needs to be conceptualized with a practical strategy for their unbiased measuring proxy (Karmaker et al.,2021).

Ecological Supply Chain Management is considered one of the key aspects of fostering organizational sustainability (SSCM) which has aspects of making it environmentally and economically conscious. Organizations are increasingly taking sustainability into account when making both long-term and short-term decisions because it is one important challenge in the management of supply chain. For present and future organizational growth, Sánchez-Flores et al., (2020 P. 70) defined her SSCM and concurred on the significance of combining sustainable development activities with supply chain management (SCM). Additionally, the authors state that most businesses are implementing sustainable supply chain processes due to the fast-shifting customer demand patterns, escalating competition, and pressure from regulators and other stakeholders. The need to comprehend how businesses might interact with important supply chain (SC) actors to promote sustainability is also developing Sánchez-Flores et al., (2020 P. 70).

As a result of customer and governmental expectations for environmentally friendly operations, manufacturers are increasingly using GSCM techniques. To successfully adopt these principles, supply chain allies from both downstream and upstream must be integrated by way it has been well deliberated and analyzed by Roy, Schoenherr, and Charan (2018). Environmental and operational performance is predicted to increase with the adoption of GSCM methods. There are questions as whether improved operational and environmental performance will ultimately transform into enhanced business performance as indicated by a growth in market share and profitability (Tuffnell et al., 2020). Furthermore, it was critical to consider the official forces pushing firms to embrace these practices to comprehend the link between the use of GSCM methods and organizational success (Younis and Sundarakani, 2019). In relations of its impact on GDP, occupation, and exports, manufacturing is significant to the world's economy. The environment is under more stress because of the expansion of this industry in the area. The expansion of this industry has been linked to rising levels of greenhouse gases, solid waste, wastewater, and other environmental pollutants (Sanders et al., 2020). More troublingly, there are almost no long-term studies on contaminant effects at the regional level, and these nations lack effective procedures to monitor or regulate this deterioration. Companies are working to achieve EMS certifications like ISO14001 to stop this scenario.

The ISO 14001 accreditation offers a compelling reason to use environmental management strategies like GSCM strategies (Carter and Washispack, 2018). Whether implementing GSCM techniques improves corporate performance is an issue that troubles the managers of operations and supply chain. To further understand this connection, numerous investigations have been carried out. This thesis critique indicates significant knowledge gaps. First, investigations have produced contradictory findings. It is believed that a strong correlation between GSCM practice and organizational performance exists, according to several studies (Tseng et al., 2019). Some revealed no real correlation between the variables. Others pointed to a bad connection. Others have discovered a mix of the good, bad, and unimportant. Due to the ongoing disagreement about whether incorporating GSCM methods can increase organizational performance, practitioners are unsure of the best course of action.

In brief, it is crucial that all companies switch to GSCM within their business activity due to the environmental impact it has on. Whether it is beneficial in terms of business performance or not, no company in anywhere in the world should neglect the necessity of adapting Green Supply Chain management in their operations.

The research paper is organized in the form of chapters including literature review, methodology, findings, discussion and conclusion. All the chapters provide follow up information about the research topic and guides readers about the importance of proposed research for modern organizations. Reading each chapter would enable readers to understand the researcher's approach and the purpose of the research. This study serves as guidance for future researchers to study a different dimension of GSCM and its impact on the company.

3. Literature Review

It is the second chapter of the research paper which provides an general review of existing literature and research studies on the proposed research topic. This chapter is subdivided into subheadings including GSCM practices and organizational performance, technological innovation, environmental management, impact of green manufacturing on sustainability performance, operational performance, environmental protection with GSCM, and environmental

Responsible designs of products of the firm. These subheadings summarize important research studies about the importance of GSCM in business settings and how it is bringing two-fold success for the environment and for business organizations as well.

In academic literature, the topic of the concerns of the environment and the incorporation of green practices into the supply chain has gained popularity. The growing concern about the environment and temperature change, as well as the global efforts made by governments and organizations to lessen their environmental effect, is mirrored by this interest. Governments, society, and commercial groups have taken a significant interest in environmental challenges such as air pollution, solid waste management, ozone layer exhaustion, and global warming (Jemai et al., 2020; Al- Quran et al., 2020). Since businesses create more emissions than other commercial activities do in order to satisfy consumer requirements and desires, they are often seen as a source of pollution and environmental deterioration in developing nations where they are an important part of the economic structure. As a result, green supply chain management (SCM) strategies became increasingly important since they may help minimize the harmful consequences of industrial processes and boost businesses' competitive advantages (Al-Hawary & Al-Jawazneh, 2011).

GSCM Practices and Business Performance

The use of GSCM enables a company to gain a competitive advantage in competitive markets (Porter & Van der Linde, 1995). Managing Green supply chain includes reuse and recycling; thus, it decreases operational costs on the long term. Reduced production costs and increased sales resulted in improved market position and financial performance. According to Molina-Azorin, and Tari ́ (2009), the application of GSCM positively affects a firm's marketing performance. In addition, the implementation of GSCM improves the reputation of a firm, and business relationships flourish positively. That is why it is crucial to extend this idea of GSCM enhancing the performance of the companies to the biggest market in the world, the United States.

Some research studies address the direct connection between organizational performance and GSCM practices motivating emerging organizations to adapt to the green supply chain. Numerous studies establish a positive relationship (Rao & Holt, 2005). Some other studies reveal that there isn’t a noticeable relationship between organizational practices and green supply chain management (Pullman et al., 2010). These differences in agreement about the link between GSCM and organizational performance cause somewhat of a gap in the existing literature. This gap arises because different researchers are looking at different dimensions of GSCM, and they lack focus on the entirety of this concept.

According to research, currently, a number of firms have started implementing green supply chain strategies within firms to capitalize on profit and improve organizational performance. Most of the researchers are using the resource-based view (RBV) to clarify the positive effect of GSCM on firms' performance. In 1995, Hart has attempted to explicate the latitude of RBV by comprising limitations and chances from the environment. Researchers are also keeping an eye on the environmental influence of the green supply chain in manufacturing firms. Klassen and Whybark (1999) found that the application of GSCM means companies are focusing on contamination avoidance strategies which are associated with a firm's performance.

There hasn’t been a previous research on this topic that was established in the United States, which is the most competitive marketplace in the world. So unless a research is done there, it can’t be clearly said that GSCM practices enhance the performance and competitiveness of companies, hence this research is focused on extending this topic to the United States.

Concerns about the environmental impact of GSCM are giving rise to this technique and urging organizations to adapt it to improve firm performance. Researchers indicate that the method of GSCM is an effective solution to improve the environment. According to Hervani, and Helms (2005), every organization, regardless of size and industry, is directly or indirectly contributing to environmental degradation. Thus, if organizations adopt the GSCM approach, environmental footprints will be minimized. Implementation of GSCM in organizations would bring two-fold advantages; one by improving firms' performance and the second by reducing negative environmental impact. The use and successful implementation of GSCM is motivated by the limited availability of raw-material, ecological degradation, and the controlling rising pollution levels (Talha et al., 2022).

Technological Innovation (TI)

Corporations and organizations are depending on ecologically friendly technologies and sustainable energy resources that will improve a firm's performance and environmental sustainability. Research on different factors of technological development and impact on the environment is drawing the attention of industries from across the world.