Creating technological innovation via green supply chain management: An empirical analysis

This study sets out to empirically test the research framework and identify the relationship between green supply chain management (GSCM) practices and technological innovation (TI) in manufacturing firms. It is one of the first studies that experimentally validate the relationship between GSCM practices and TI from the perspective of a developing nation. In this study, 133 usable sets of data were collected from manufacturing firms in Malaysia. Results obtained from the partial least square-structural equation modeling (PLS-SEM) approach supported the significant positive relationship between three GSCM practices (i.e. internal environmental management, eco-design and investment recovery) and TI, but the study found that green purchasing and cooperation with customers do not have a significant positive correlation with TI. The importance of GSCM practices has been proven to enhance firms’ TI, in addition to improving the environment, bringing about a positive impact on the manufacturing establishment. Therefore, this study has relevance to all manufactures seeking to enhance their TI through the effective use of GSCM practices.