2014 Exploring The Relationship Between Leadership, Operational Practices, Institutional Pressures and Enviromental Performance

Int. J.
Production Economics ∎ (∎∎∎∎) ∎∎∎–∎∎∎
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Int. J. Production Economics

journal homepage: www.elsevier.com/locate/ijpe
Exploring the relationship between leadership, operational practices,

institutional pressures and environmental performance: A framework
for green supply chain
Rameshwar Dubey a,1, Angappa Gunasekaran b,n, Sadia Samar Ali c,2
a
Symbiosis Institute of Operations Management, Symbiosis International University, Plot No. A-23, Shravan Sector, CIDCO, New Nashik 422008, India
b
Charlton College of Business, University of Massachusetts Dartmouth, North Dartmouth, MA 02747-2300, USA
c
Fortune Institute of International Business, Rao Tula Ram Marg, Vasant Vihar, New Delhi 110057, India
art ic l e i nf o a b s t r a c t
Article history: The aim of the paper is to test the impacts of supplier relationship management (SRM) and total quality
Received 23 February 2014 management (TQM) on environmental performance under the influence of leadership and the
Accepted 3 October 2014 moderation effect of institutional pressures (IP). The study investigates these effects using a pre-
tested structured questionnaire. Data was collected using a split survey method using a modified version
Keywords: of Dillman's (2007) total design method with 187 and 174 complete and usable responses for the
Green supply chain management respective parts. We performed non-response bias before checking assumptions such as constant
Total Quality Management variance and normality. We further checked reliability and construct validity using confirmatory factor
Supplier Relationship Management analysis and hierarchical regression analyses for hypothesis testing. We find that constructs and
Institutional pressures
indicators of our theoretical framework meet the criteria, and find them to be a good fit based on
Confirmatory factor analysis
confirmatory factor analysis and fit indices output. The hierarchical regression analyses outputs suggest
Hierarchical regression analysis
that all our hypotheses are supported, which further supports the extant literature. Our present study is
unique in terms of scope and contribution to SCM and OM theory and practice. The study has tested
empirically the research calls of various researchers and extended them to green supply chain networks.
Our findings support institutional theory.
& 2014 Elsevier B.V. All rights reserved.
1. Introduction In recent years, researchers have shown increasing interest in

environmentally friendly manufacturing practices (Choi et al.,
The growing concern towards protecting the environment has 2012). While there is a rich body of literature on green manufac-
now transferred into green policies (e.g. Sarkis et al., 2011; turing and its implementation (e.g. Bierma and Waterstraat, 1999;
Gunasekaran and Gallear, 2012). Today, green manufacturing has Vachon and Klassen, 2006; Hsu and Hu, 2009; Bai and Sarkis,
become common jargon used by almost one-third of manufactur- 2010; Ku et al., 2010; Testa and Iraldo, 2010; Lo et al., 2012; van
ing specialists and researchers. This is, perhaps, inevitable. There is Hoof and Lyon, 2013), there is little literature which has attempted
a dire need for companies, and especially those engaged in to study leadership and operational practices' impacts on environ-
manufacturing activities, to take a proactive, rather than a reactive, mental performance. Few studies utilize a theory-focused
approach in this regard. According to a report released by UNEP approach to understand the role of key factors of green manufac-
(2011), global manufacturing industry consumes 35 per cent of the turing in environmental performance. Drawing on the literature
total electricity consumed worldwide and is responsible for 20 per on leadership (e.g. Siaminwe et al., 2005; Stone, 2006; Brown and
cent of the world's CO2 emissions, which is detrimental to all life Stone, 2007; Van Berkel, 2007; Deif, 2011; Despeisse et al., 2012;
on earth. The effect of this argument is to draw attention towards Law and Gunasekaran 2012; Singh et al., 2012; Dües et al., 2013;
green manufacturing. van Hoof and Lyon, 2013), supplier relationship management (e.g.
Bierma and Waterstraat, 1999; Vachon and Klassen, 2006; Hsu and
Hu, 2009; Bai and Sarkis, 2010; Ku et al., 2010; Testa and Iraldo,
n
Corresponding author. Tel.: þ 1 508 999 9187; fax: þ1 508 999 8646. 2010; van Hoof and Lyon, 2013), total quality management (e.g.
E-mail addresses: rameshwardubey@gmail.com (R. Dubey), Pauli, 1997; Murovec et al., 2012; Prajogo et al., 2012; Pereira-
agunasekaran@umassd.edu (A. Gunasekaran),
sadiasamarali@gmail.com (S. Samar Ali).
Moliner et al., 2012), institutional theory (DiMaggio and Powell,
1
Tel.: þ91 253 2379960x39, Mobile: þ91 8600417738. 1983; Clemens and Douglas, 2006; Yu et al., 2006; Zhu and Sarkis,
2
Mobile: þ 91 9650691133. 2007; Sarkis et al., 2011) and environmental performance (e.g. Zhu
http://dx.doi.org/10.1016/j.ijpe.2014.10.001
0925-5273/& 2014 Elsevier B.V. All rights reserved.
Please cite this article as: Dubey, R., et al., Exploring the relationship between leadership, operational practices, institutional pressures
and.... International Journal of Production Economics (2014), http://dx.doi.org/10.1016/j.ijpe.2014.10.001i
2 R. Dubey et al. / Int. J. Production Economics ∎ (∎∎∎∎) ∎∎∎–∎∎∎
and Sarkis, 2004; Wagner and Schaltegger, 2004; Schoenherr, (iii) To outline further research directions.
2012; Lo et al., 2012), we develop a theoretical framework to We feel that our research has its own limitations; however,
explain the impact of leadership, supplier relationship manage- our limitations can be overcome and the research further
ment and total quality management on environmental perfor- extended to advance the existing literature.
mance under the influence of institutional pressures. Extending
the findings of Kanji and Wong (1999), who proposed a business The rest of the paper is organized as follows. In the next
excellence model for supply chain management, we submit that section, we will synthesize the theoretical foundations of the
institutional pressures can further moderate the impact of the study. In Section 3, we illustrate our research framework and
implementation of green manufacturing practices. develop our research hypotheses accordingly. In Section 4, we
While it is reasonable to assume that leadership, supplier discuss the research design, including questionnaire design, pre-
relationship management and total quality management under testing and data collection. In Section 5, we will perform psycho-
the moderation effect of institutional pressures will be critical to metric properties testing and hypothesis testing. In Section 6, we
environmental performance, and this will therefore be influential will conclude and discuss the theoretical and practical implica-
in the adoption of environmentally friendly practices by the tions, as well as considering the limitations of the study and
rubber industry, we submit that a theoretical explanation of that further research directions.
adoption phase is still underdeveloped. Theory-based empirical
studies with a focus on the period post-adoption of environmen-
tally friendly practices by the rubber industry are clearly called for. 2. Related research
By empirically validating a theoretically derived green supply
chain model, this study offers three major contributions to the To begin with, it is very important to understand ‘Green
literature on green supply chain management. Manufacturing’ and its dimensions. There are many definitions
First, the present study investigates the model under the lens of and arguments, but as the literature confirms, the processes of
organizational theory, in particular institutional theory, which is in manufacturing or production create great quantities of wastes, in
its infancy stage (Ketchen and Hult, 2007). Glover et al. (2014), in the form of solids, liquids and gases, which are harmful to the
one recent study, investigated sustainable practices across the dairy earth and to life supported by the earth. In order to minimize the
supply chain using institutional theory perspective. The study has harmful effects of these wastes, companies need to deploy
provided an interesting insight into institutional pressures and their innovative manufacturing practices which blend technology, cul-
impacts on the implementation of environmental practices. ture, leadership and policies, at an economical cost such that firms
Second, this study calls for recognition of the need for a green are not overburdened with excessive costs of production which
supply chain model for the rubber industry; and third, we extend would force them to outsource, which is the present scenario in
the prior research on adoption of environmentally friendly prac- the western part of the world (e.g. WCED, 1987; Porter and Van der
tices in the manufacturing sector through an industry-specific Linde, 1995; Azzone and Noci, 1998; Sikdar and Howell, 1998;
examination of the rubber industry. Our decision to test our Montalvo Corral, 2003; Van Berkel, 2007; Balan et al., 2007; Zeng
proposed model with respect to the rubber industry was guided et al., 2010; Chaabane et al., 2012; Deif, 2011; De Giovanni and
by two aspects. First, researchers have conducted many studies on Esposito Vinzi (2012); Boltic et al., 2013; Dües et al., 2013).
sectors such as automotive, automotive components, chemicals,
electronic goods manufacturing and oil & gas. However, to our 2.1. Dimensions of green manufacturing
knowledge we have not come across any such studies in the context
of the rubber manufacturing sector, which is one of the largest Green manufacturing is associated with manufacturing produc-
sectors and one of the major sources of carbon emissions after tion practices which use more environmentally-friendly resources
transportation, deforestation, cement, steel and oil refining. Second, and provide maximum output with little or no waste or pollution
we received support from one of the Indian rubber manufacturing in production (Gopalakrishnan et al., 2012; Baines et al., 2012).
companies to undertake a research project with respect to the Green manufacturing includes implementing the best resources
Indian rubber sector and its efforts towards GSCM practices. The available to industry, which can in the long run lead to competitive
Indian rubber sector comprises 30 large firms, along with over 3500 advantage by increasing efficiency through increasing production
classed as MSMEs (Micro, Small and Medium Enterprises), with the quality and output at optimum cost (Fullerton et al., 2008). Green
latter together accounting for more than 30 per cent of energy manufacturing can lead to reduced usage of raw materials, reduc-
consumption and thus disproportionately responsible for CO2 tion in energy consumption, fewer manufacturing steps, and lower
emissions due to obsolete technology and lack of oversight. environmental and occupational safety expenses, along with an
Based on the preceding discussions we have derived our research improved corporate image (Porter and Van der Linde, 1995).
objectives as: Challenges associated with e Interplay of Governance Mechanisms
in Complex Procurement Projecgreen manufacturing include
(i) To empirically validate our proposed theoretical framework. meeting customer demands for environmentally sound products,
To empirically validate our theoretical framework, we adopt development of recycling schemes, minimization of materials use,
confirmatory factor analysis (CFA). The CFA analysis helps us and selection of materials with low environmental impacts
to check the validity of our theoretical framework. Second, to (Florida, 1996). The practices that constitute green manufacturing
further test our research hypotheses, we adopt hierarchical are Lean Manufacturing (e.g. Farish, 2009; Franchetti et al., 2009;
regression analysis (HRA) as opposed to structural equation Deif, 2011; Dües et al., 2013); Total Quality Management (TQM)
modeling. (e.g. Pauli, 1997; Murovec et al., 2012; Prajogo et al., 2012; Pereira-
(ii) To provide recommendations for the rubber industry, which is Moliner et al., 2012; Gavronski et al., 2011); Supplier Relationship
aspiring to implement green supply chain management (GSCM) Management (SRM) (e.g. Bierma and Waterstraat, 1999; Vachon
or may already have implemented a GSCM framework. and Klassen, 2006; Hsu and Hu, 2009; Bai and Sarkis, 2010; Ku
As discussed, the focus of the present study on the rubber et al., 2010; Testa and Iraldo, 2010; van Hoof and Lyon, 2013);
industry is this paper's unique contribution. The recommenda- Leadership (Siaminwe et al., 2005; Stone, 2006; Brown and Stone,
tions may help the rubber industry to outline strategies to 2007; Van Berkel, 2007; Deif, 2011; Dües et al., 2013; van Hoof and
improve their environmental performance. Lyon, 2013; Despeisse et al., 2012); and Technologies for cleaner
R. Dubey et al. / Int. J. Production Economics ∎ (∎∎∎∎) ∎∎∎–∎∎∎ 3
production/green manufacturing (e.g. Sikdar and Howell, 1998; techniques, existing improvement efforts and technical tools under
Zhang et al., 2013; van Hoof and Lyon, 2013). Dillon and Fischer a disciplined approach. In a seminal article, Zhu and Sarkis (2004)
(1992) argued that integration and understanding of production investigated the impact of quality management, as one of their
operations and managerial functions for personnel is necessary for constructs, on green supply chain practices. According to Newman
green manufacturing to progress ideas. There are a few prerequi- and Hanna (1996), integration of TQM with environmental issues
sites for green manufacturing, which are sometimes hard to may have a pervasive impact on operations management. Just as
explain and quantify. TQM pursues global solutions to other quality problems, it offers
Due to rapid concern about global warming and pollution, mechanisms for finding global solutions to the environmental
industrial practices are emerging as challenges for the global quandary of today's manufacturers (Pun, 2006). In recent years
environment (Sundarakani et al., 2010). Johansson and Winroth the integration of TQM and environmental issues has attracted
(2009) conducted an empirical study with a new approach, major attention from researchers (e.g. Prajogo et al., 2012; Pereira-
comparing lean manufacturing and green manufacturing. Accord- Moliner et al., 2012; Gavronski et al., 2011). In our study we have
ing to institutional theory companies sometimes, under pressure identified one of the operational practices which may impact green
from stakeholders, adopt practices which are environmentally manufacturing practices.
friendly and beneficial to society. Mimetic isomorphism occurs
due to an uncertain environment that leads one firm to mimic 2.3. SRM and its impact on green manufacturing practices
other firms' practices, which they perceive to be beneficial for
their business (Kauppi, 2013; Zsidisin et al., 2005). Normative In recent years, SRM has attracted huge interest among
isomorphism occurs due to professionalization, which is a product academia and practitioners. Companies who want to successfully
of the educational backgrounds of the managers and legitimation integrate manufacturing with environmental issues should be able
in the cognitive base (DiMaggio and Powell, 1983). to find suppliers who have minimized their environmental impact
Similarly, economic variants, i.e. frequency-based imitation, without reducing the quality of their product or raising costs
trait-based imitation and outcome-based imitation, lead towards significantly (Luthra et al., 2013). SRM results in lower inventory
institutional isomorphism. Thus, economic efficiency and profit level, cost and higher accuracy (Luthra et al., 2010). The green
maximization are a better fit with OM and SCM paradigms suppliers can be the greatest assets of the organization, but poor
(Ketokivi and Schroeder, 2004). Without environmental aware- choice can make them the greatest liability also (Agarwal and
ness, it is difficult to implement green practices. Regulatory, Vijayvargy, 2012).
competitive, and marketing pressures have led to increased
environmental awareness and are the drivers of green supply 2.4. SRM, TQM and green manufacturing practices
chain management (GSCM) (Zhu et al., 2005; Sarkis et al., 2011).
For example, Chinese manufacturers have taken proactive mea- Supplier relationship management with partners has played a
sures in closing the supply chain loop by adopting GSCM practices. pivotal role in the successful implementation of green manufac-
From the preceding discussion, we can see the importance of turing practices in western economies (e.g. Bierma and
concepts like lean manufacturing, TQM, supplier relationship, Waterstraat, 1999; Vachon and Klassen, 2006; Hsu and Hu,
training and development, and leadership. Lean manufacturing 2009; Bai and Sarkis, 2010; Ku et al., 2010; Testa and Iraldo,
also focuses on waste minimizations. The concept has its root in 2010; van Hoof and Lyon, 2013), and even Indian manufacturers
the Toyota Production Systems (TPS), and revolutionized the have realized the potential benefits of supplier relationship man-
manufacturing practices during the 1960s and 1970s. By the agement (e.g. Thakkar et al., 2008; Mohanty and Gahan, 2012).
1990s almost every leading manufacturing company had However, the role of supplier relationship management in imple-
embraced lean manufacturing as a strategy. However, with the mentation of green supply chain practices in India needs to be
passage of time the quality of product became the foremost further studied. Further, in recent years, firms in western countries
objective of the companies and soon their focus shifted to that have integrated TQM philosophy with green manufacturing
customer satisfaction. In spite of several similarities, the TQM practices have shown superior performance (e.g. Pauli, 1997;
literature is different from lean literature in terms of scope, Murovec et al., 2012; Prajogo et al., 2012; Pereira-Moliner et al.,
concept and methodologies (Anvari et al., 2011). However, TQM 2012; Gavronski et al., 2011).
scores over lean manufacturing in terms of its holistic view.
It focuses on customers and includes every aspect of an organiza- 2.5. Green manufacturing leads to superior firm performance
tion. Second, lean manufacturing fails to offer any concrete
solution when demand or supply uncertainty is high. In such That green manufacturing has helped firms to achieve superior
scenario the TQM philosophy is at least not constrained due to performance is supported by the literature (e.g. Pauli, 1997; Farish,
environmental uncertainty. However, we are not underestimating 2009; Franchetti et al., 2009; Deif, 2011; Murovec et al., 2012;
the merit of lean manufacturing. In our context, keeping the Prajogo et al., 2012; Pereira-Moliner et al., 2012; Gunasekaran and
present demand and supply uncertainty and customer's interest Spalanzani, 2012; Dües et al., 2013; Gavronski et al., 2011). The
in mind, we prefer TQM philosophy over lean manufacturing. The literature defines performance as the combination of environmen-
supplier relationship is an integral constituent of both TQM and tal performance (e.g. reduction in CO2, SO2, NOx; converting waste
lean manufacturing. Past research supports the positive impacts into more useful products; reuse or recycling after use; increase in
of supplier relationship management on GSCM implementation product quality; increase in customer satisfaction) and business
(e.g. Ku et al., 2010; Testa and Iraldo, 2010; van Hoof and Lyon, 2013). performance (e.g. increase in market share; increase in profit-
The role of leadership is pivotal to such initiatives, where output and ability; increase in ROI; increase in ROA; improvement in inven-
the benefits realized may not be tangible. tory turnover, etc.).
However, in the present study we will confine our research to
2.2. TQM and its impact on green manufacturing practices environmental performance. We have identified literatures which
have supported green supply chain management practices and
Besterfield (1995) defined TQM as both a philosophy and a set of their positive impact on environmental performance (e.g. Zhu et al.,
guiding principles that represents the foundation of a continuously 2005; Zhu et al., 2008; Kim et al., 2011; Bhateja et al., 2012; Seman
improving organization. It integrates fundamental management et al. (2012); Gangele and Verma (2011); Whitelock, 2012).
2.6. Research gaps collaboration among supply chain network partners (Gunasekaran,
1999; Yusuf et al., 2007). Leadership is key driver of GSCM
Though previous studies have indicated the importance of the initiatives. Sharif and Irani (2012), in one of their research studies,
integration of TQM and SCM to achieving competitive advantage outlined how leadership can help an organization to successfully
(e.g. Kanji and Wong, 1999; Gunasekaran and McGaughey, 2003; achieve environmental performance in a supply chain network.
Tutuncu and Kucukusta, 2008; Vanichchinchai and Igel, 2009; Leadership is about establishing environmental policies and goals
Talib et al., 2010), nevertheless there is a scarcity of studies which to provide resources and training, and to stimulate improvement.
have studied the combined effects of TQM and SRM on supply It involves establishing practices with a long term vision for the
chain network design which is environmentally friendly. Second, firm, driven by changing customer requirements; as opposed to
the moderation effect of institutional pressures has been studied internal management control. We therefore hypothesize the
in GSCM networks by Zhu and Sarkis (2007); however the following:
moderation effect of institutional pressures on SRM and TQM to
influence environmental performance at aggregated level was not H1. Leadership positively impacts TQM implementation;
explored. Consequently, there is need for such studies in the H2. Leadership positively impacts SRM with supply chain partners.
context of green supply chain network design.
3.2. Supplier relationship management (SRM)
3. Theoretical framework and hypotheses development
The collaborative partnership among supply chain partners in a
Supplier relationship management is pivotal to the success of a supply chain network improves coordination (Kanji and Wong,
green purchasing programme. The firm has to form a bond with 1999) and reduces bull-whip effect in the network (Lee et al.,
their suppliers and motivate them to supply eco-friendly and non- 1997). Supply chain collaboration is defined as shared efforts to
hazardous raw materials, for example by training and educating achieve common goal (Cannella and Ciancimino, 2010). Relation-
them to adopt ISO 14001:2004. Firms which create pressure on ship management across the supply chain network has helped
their suppliers and review periodically to monitor progress are firms to achieve green objectives like reducing carbon emissions
seen to adopt green practices successfully. Supplier collaboration across the supply chain network (Aberdeen Group, 2008; van den
results in developing eco-friendly products faster than relying Broek and van den Broek-Serlé, 2010), helps in TQM implementa-
solely on the in-house R&D team. Good partnership practices tion (Gunasekaran, 1999; Mahapatra and Khan, 2006) and also
create transparency and hence the costs involved in developing assists in the successful implementation of green practices in the
the eco-friendly raw materials are visible, and therefore the risk of supply chain network (Bierma and Waterstraat, 1999; Vachon and
over spending is reduced. Motivating suppliers to maintain inven- Klassen, 2006; Hsu and Hu, 2009; Bai and Sarkis, 2010; Ku et al.,
tory at their works and issuing an open purchase order/contract so 2010; Testa and Iraldo, 2010; van Hoof and Lyon, 2013). Supplier
that the material is supplied in time to meet the production relationship management is about involving suppliers in decision
demand saves inventory carrying cost of firm. In one of the making, technological development and meeting customer expec-
seminal works in this area, Kanji and Wong (1999) proposed a tations through collaboration. It includes information, risk and
‘business excellence model for SCM’ where they investigated how proportionate profit sharing. We therefore hypothesize:
leadership drives TQM initiatives to improve collaboration to
H3. SRM positively impacts TQM implementation;
achieve superior performance in a supply chain network. We
would like to further investigate this model under the moderation H4. SRM positively impacts environmental performance.
effect of institutional pressures (e.g. Zhu and Sarkis, 2007; Wu
et al., 2012). Consequently, we propose a theoretical framework as 3.3. Total quality management
shown in Fig. 1.
Total Quality Management is a philosophy according to which a
3.1. Leadership firm aims to deliver quality products or services to customers.
TQM is a continuous process of improvement for individuals,
Top management of different supply chain members of a groups of people and whole firms; it encompasses a set of four
supply chain network, from supplier's supplier through manufac- principles (delight the customer, management by fact, people-
turers, transporters, distributors and retailers, must align their based management, and continuous improvement) and eight core
objectives in the direction of customer interest, therefore taking concepts (customer satisfaction, internal customers are real, all
environmental factors into consideration. Kanji and Wong (1998, work is process, measurement, teamwork, people make quality,
1999) consider leadership as the base of the pyramid in the TQM continuous improvement cycle, and prevention) (Kanji and Wong,
model. Leadership has been identified as a driver of TQM philo- 1998). It can be concluded that TQM is a philosophy and a
sophy (e.g. Beer, 2003; Lakshman, 2006; Karaszewski, 2010; Rui systematic activity to improve the value and quality of the
et al., 2010) as it helps in building a quality culture and fostering products and services offered to customers through maximization
of the potential of all stakeholders. In the past, researchers have
highlighted the role of TQM in helping firms to achieve green
Institutional
Pressures
objectives by reducing wastage, recycling wastes and reducing
SRM
carbon emissions (e.g. Prajogo et al., 2012; Pereira-Moliner et al.,
2012; Gavronski et al., 2011). Wiengarten and Pagell (2012), in one
of their research studies, highlighted the importance of quality
Leadership Environmental management practices on environmental performance. TQM mea-
Performance
sures the ability to improve product quality, improve coordination
and reduce variability across the supply chain network. It helps to
TQM build a mind-set among the partners across the network which
aims to reduce cost by minimizing wastages resulting from
Fig. 1. GSCM business model. transport, overproduction and defects. We therefore hypothesize:
H5. TQM positively impacts environmental performance. H6. Institutional pressures have moderation effect on SRM impact
on environmental performance.
3.4. Moderation effect of institutional pressures H7. Institutional pressures have moderation effect on TQM impact
Recent years have seen an increasing role of institutional Here, we consider three dimensions which shape institutional
theory in the fields of OM and SCM (Kauppi, 2013). According to theory, i.e. coercive pressure, normative pressure and mimetic
Scott (2008), institutional theory suggests that external forces pressure (DiMaggio and Powell, 1983). The coercive isomorphism
motivate firms to undertake similar strategic actions. Under institu- is due to both formal and informal pressures exerted on organiza-
tional theory, firms are not only profit-seeking entities, but also tions by other organizations (e.g. buyers, government agencies,
recognize the importance of achieving social legitimacy (Suchman, regulatory norms etc.) due to expectations from society (DiMaggio
1995). Institutional theory has two main forms, an economic variant and Powell, 1983). In situations where buyers are strong and
and a social variant (Ketokivi and Schroeder, 2004). The mechan- supply market strength is low, a company can exercise coercion to
isms identified are coercive, mimetic and normative, which lead serve its own interest by demanding that partners adopt its
towards institutional isomorphism (DiMaggio and Powell, 1983). favorable operational practices (Kraljic, 1983; Liu et al., 2010).
The coercive mechanism consists of formal or informal pressures Companies are under pressures from government, customers and
created on firms by other firms on which they are dependent and other stakeholders to implement best practices. Normative iso-
by expectations from the society (Kauppi, 2013; DiMaggio and morphism occurs as a result of professionalization, which is
Powell, 1983). defined as “the collective struggle of members of an occupation
GSCM can be used as an environmental tool to improve the to define the working conditions and their methods to work and in
firm's environmental image and gain competitiveness within the future guide the future professionals through legitimacy” (Liang
international business arena (Zhu et al., 2008). Greening any et al., 2007). Mimetic isomorphism results from the mimicking
supply chain involves institutionalizing environmental principles action of other organizations' actions. An organization mimics the
in the design and operation of the supply chain. We have already actions of others when there is lack of clarity in organizational
described the importance of environmental principles for achiev- goals, where there is environmental uncertainty, or where the
ing eco-efficiency and building environmentally friendly organiza- technology is not well understood (DiMaggio and Powell, 1983;
tions, and emphasis is placed on the application of such principles Liang et al., 2007).
in the product lifecycle (Tsoulfas and Pappis, 2006). It is very Coercive isomorphism is due to external pressures created by
important for any practising manager to understand the links stakeholders (e.g. buyers, government agencies, regulatory norms
between GCSM practices, and environmental and economic per- etc.) due to varying expectations from society (DiMaggio and
formance for successful GSCM implementation. Environmental Powell, 1983). In order to live up to the expectations of the
pressure act as a driver for successful GSCM practices. Market stakeholders, the top management completely mediates between
and regulatory pressures, including environmental pressures, help coercive isomorphism and supplier relationship management
an organization to improve as they are believed to influence practices in a green supply chain network. Zhu et al. (2007)
eco-design and green purchasing. Manufacturers facing greater investigated the impact of coercive pressures on top management
regulatory pressures tend to implement green purchasing and behaviors, which play a critical role in formulating procurement
investment recovery policies. Competitive pressure significantly policies in line with institutional norms. We therefore can further
improves the economic benefits available from adoption of differ- hypothesize as follows:
ent GSCM practices (Zhu et al., 2007). In one study Wong et al.
(2012) studied the moderation effect of environmental manage- H6a. Coercive pressure has moderation effect on SRM impact on
ment and green operations on manufacturing firm performance. SRM impact;
However, we further extend this research from an institutional
H7a. Coercive pressure has moderation effect on TQM impact on
theory perspective. Institutional pressure drives organizations
environmental performance.
to adopt environmental management initiatives; for example,
Wu et al. (2012) studied the impact of GSCM drivers on GSCM Normative isomorphism arises due to professional codes,
practices under the moderation effect of institutional pressures, which expect professionals to follow very specific guidelines. We
with reference to Taiwan's textile industry. Hence, we submit that have discussed in our preceding section how top management
institutional pressures have a moderation effect on the impact of plays a linking role in implementing professional codes and how,
SRM and TQM on environmental performance. However, one can through proper training and regular workshops, young managers
argue that there are reasons why institutional pressure is not assimilate the professionalization. In our study we therefore
regarded as a mediating variable. Very often researchers get assume the complete mediation role of top management in
confused between moderating, mediating and controllable vari- translating normative pressures into supplier relationship man-
ables. However, a proper understanding and critical review further agement practices in a green supply chain network. We therefore
helps to resolve the conflicts. Similarly, in our case we have hypothesize this as:
enough literature which supports the moderation role of institu-
tional pressure. In a study Kennedy and Fiss (2009) explored the H6b. Normative pressure has moderation effect on SRM impact on
motivation behind implementation of TQM in an organization. SRM impact;
Liu et al. (2010) investigated the moderation effect of institutional
H7b. Normative pressure has moderation effect on TQM impact
pressures on firm intention to implement internet-based supply
chain. Rogers et al., (2007) investigated the supplier development
programme from an institutional theory perspective. Institutional Mimetic isomorphism results results from mimicking action
Pressure measures the coercive, mimetic and normative pressures of an organization. When an organization lacks clarity in terms of
which drive GSCM adoption. It is measured in terms of regulatory goals, or environmental uncertainty is high (i.e. high demand
pressure, market pressure, brand consciousness and profit motive, uncertainty, high supply uncertainty and high technology uncer-
which lead to institutional isomorphism. Based on our discussions tainty), in such a situation the top management tends to replicate
we therefore hypothesize that: the existing trend in the industry. Thus the supplier relationship
management practices of such organizations are aligned as per three items for measurement and analyzed using confirmatory
existing current practices in similar organizations. We therefore factor analysis (Hair et al., 2006; Anderson and Gerbing, 1988).
hypothesize based on our preceding discussions as follows: The items included in the final questionnaire were pretested
with six experts drawn from industry and academia to check the
H6c. Mimetic pressure has moderation effect on SRM impact on
content validity. We have incorporated all the suggestions of the
SRM impact;
experts. The suggestions were mainly related to the wording of
H7c. Normative pressure has moderation effect on TQM impact on the questionnaire and some items regarding relationships with
environmental performance. partners. We did not disclose constructs to the respondents to
eliminate respondent bias, as we will discuss in the data
3.5. Environmental performance collection section. We have presented our constructs, their
measures and literature support in a tabulated form as shown
Environmental performance measures the ability of the firm in Table 1 as:
to reduce carbon dioxide, SO2, NOx and other harmful gas Indicators representing independent variables in our frame-
emissions resulting from activities across the supply chain network were captured using a 5-point Likert scale, from strongly
work. Environmental performance is defined as the relationship disagree to strongly agree. Additional control variables were used
between the organization and the environment. It includes the to account for extraneous effects – specifically, firm size as the
environmental effects of resources consumed, the environmental dummy variable (Chen and Paulraj, 2004). In our case we have not
impacts of the organizational process, the environmental impli- taken into consideration the nature of the industry, as we
cations of its products and services, the recovery and processing restricted our study to the rubber and rubber equipment manu-
of products and meeting legal environmental requirements. facturing sector.
The environmental initiatives include ISO 14000 certification,
pollution prevention, recycling of materials, and waste reduction 4.3. Sampling
(Schoenherr, 2012).
There are over 3500 licensed rubber goods manufacturing
firms in India which are practising green supply chain practices,
4. Research design based on initial information provided by All India Rubber
Association (AIRA). Target respondents are senior managers of
4.1. Questionnaire design each firm. We estimated our target sample size using the
formula of Yamne (1967) , according to which we determined
In developing a questionnaire with which to conduct the a sample size of roughly 358 to give a 95 per cent confi-
survey, we began with a review of the extensive literature on dence level.
the five main concepts – which included leadership, relationship However, other recent studies in the OM and SCM area (e.g.
management with their partners, TQM, institutional pressures and Schoenherr and Mabert, 2011; Braunscheidel and Suresh, 2009)
environmental performance – to identify the key issues, and have demonstrated that a sample size of 150 is sufficient to test
developed a draft measurement instrument based on those used research hypotheses (Hair et al., 2006).
by other researchers. In the field of quality management, a number
of researchers have used questionnaire surveys as instruments for 4.4. Data collection
empirical study. These included, for example, Kanji and Wong
(1999), Vachon and Klassen (2006), Hsu and Hu (2009), Bai and Data was collected through an electronic survey, using a split
Sarkis (2010), Zhu and Sarkis (2007), Flynn et al. (1994), Kauppi survey method (Podsakoff et al., 2003). In our case, we divided the
(2013), DiMaggio and Powell (1983), Saraph et al. (1989), Kaynak questionnaire into two parts. The first part of the questionnaire
(2003) and Blauw and During (1990). Resulting from the intensive consisted of items related to leadership, supplier relationship
literature review, the questionnaire is consolidated into two management, TQM and institutional pressure (i.e. regulatory
sections: norms and market pressure); the second part consisted of items
Section 1: Includes questions on indicators of leadership, TQM, related to environmental performance.
relationship management with their partners and institutional The survey was sent to targeted individuals in procurement
pressures. This section has 25 items in total. The objective of this departments to respond to questions related to their relationships
section is to gauge the perceptions of the practitioners who were with partners. These individuals were requested to pass on the
our target respondents. The respondents were asked to rate on a remaining questions to their colleagues from quality and human
five-point Likert scale (where 1 ¼Strongly Disagree and 5 ¼ resource departments to complete the questions related to TQM,
Strongly Agree). leadership and institutional pressures. The second part of the
Section 2: Includes questions on environmental performance. questionnaire was sent to environmental managers of the same
It has six items. The objective of this section is to gauge the firms, as they are more knowledgeable about questions related to
perceptions of the respondents, who are environmental managers environmental performance. The split survey method allowed us
in their respective companies. Respondents were asked to rate to address the most informed respondents to answer our ques-
on a five-point Likert scale (where 1 ¼Strongly Disagree, and tions. Prior to questioning, respondents were assured that
5 ¼Strongly Agree). responses would not be revealed.
Our initial survey frame consisted of 358 firms situated
4.2. Measures throughout India and was compiled from a database provide by
All India Rubber Association (AIRA). This database was chosen to
Measures were adopted or modified from scales established in reach a high number of executives of sufficient seniority and
extant research to avoid scale proliferation. We used multi-item knowledge to answer the split survey. Data collection was con-
measures of constructs for our proposed theoretical framework in ducted using a modified version of Dillman's (2007) total design
order to improve reliability, reduce measurement error, ensure method. Overall, we received 187 complete and usable responses
greater variability among survey individuals and improve validity for the first part and 174 complete and usable responses for the
(Churchill, 1979). Each construct was operationalized using at least second part. The firm response rate is therefore 187/358 ¼ 52.23%
Table 1
Constructs of theoretical framework and their measures
Constructs Reference Items
Leadership (L) Kanji and Wong (1999), Podsakoff et al. (1990, 1996) Does your company have a well-defined environmental policy.
and Laohavichien et al. (2011) Is every employee aware about the firm's environmental policy.
Does top management support environmental programs.
Top management has approved special fund for investment in cleaner
technologies.
Does senior managers show positive attitude towards green practices.
Does senior managers motivate and support new ideas received from junior
executives.
Are employees recognized for innovative ideas and awarded on a periodic basis.
Institutial pressure (IP) DiMaggio and Powell (1983), Zhu and Sarkis (2007) Is regional pollution control board pressurizing the firm to adopt green practices.
and Kauppi (2013) Does Government regulations provide clear guidelines in controlling pollution
level.
Does pollution control board strictly monitors the pollution level of firm on a
periodic basis.
Does green practices decrease incidence of penalty fee charged by pollution control
board.
Are maximum sales of company export oriented.
Are foreign customers more sensitive towards green practices.
Supplier relationship (SRM) Zsidisin and Siferd, (2001), Carter and Jennings, 2004 Does green practices improve customer satisfaction.
and Hong and Phitayawejwiwat (2005) Do your firm recover end of life products from customers.
Do your customers appreciate eco friendly products.
Is environmental criteria considered while selecting suppliers.
Do your firm consider environment collaboration with suppliers.
Do your firm have technological integration with suppliers.
Do your firm train and educate suppliers in implementing ISO 14001.
Is environmental audit for suppliers done periodically.
Total quality management Blauw and During, (1990), Kanji and Wong (1999), Firm have successfully implemented Total Quality Management.
(TQM) Kaynak (2003), Gavronski et al. (2011) Does green practices promote product quality.
Environmental performance Zhu and Sarkis (2004) and Wagner and Schaltegger Green practices reduce solid waste generation.
(EP) (2004) Effluent meets CPCB norms by converting into green operations.
Does green practices reduce environmental accidents and health hazards.
Does green practices decrease of cost of raw materials.
Does green practices reduce the inventory levels.
Does green practices reduce cost for energy consumption.
Table 2 4.5. Non-response bias

Respondent profile
Non-response bias is the difference between the responses of
Number of employees Percentage distribution
the early respondents and late respondents (Lambert and
o 250 39.57% Harrington, 1990). Some of the eminent statisticians and experts
250–1000 26.74% in survey methods (e.g. Armstrong and Overton, 1977) have
4 1000 33.69% provided the scientific argument behind conducting non-
Cadre response bias testing, irrespective of response rate. To account
for non-response bias, we have compared the responses of early
Top management 36.30%
and late waves of returned surveys (Armstrong and Overton, 1977;
Middle management 63.70%
Lambert and Harrington, 1990; Chen and Paulraj, 2004). The final
sample was ranked according to the dates the responses were
received and split into equally sized groups. We compared the first
and the split survey ratio is 174/187¼ 93.04%. Here, the split ratio 30 per cent of respondents (early-wave group) against the last 30
is relatively high but the response rate was slightly lower than we per cent of respondents. Comparison analysis was based on eight
initially expected. However, the sample size is sufficient enough to randomly selected variables: t-tests performed on the two groups
test the research hypotheses developed in this study (Hair et al., yielded no statistically significant differences (at 95% confidence
2006), and is comparable to the response rate achieved in other intervals). From this we conclude that non-response bias is not a
recent research investigating supply chain and operations man- major issue.
agement topics. As the questionnaire was part of a larger research
project which ran to 6 pages in total, this may explain the below-
average response rate. During our follow up with respondents who 5. Data analysis
were senior managers, they revealed that they are quite reluctant
to engage in external surveys. They revealed that in recent years, 5.1. Assessment of psychometric properties
companies in India have formulated policies not to respond to any
external survey that is not routed through proper channels. Over- It is pertinent to test the assumptions like constant variance,
all, 36.3 per cent of the total respondents belonged to top existence of outliers and normality before we determine reliability
management and 63.7 per cent to middle management. The and validity of the measurement items. We used plots of residuals
profiles of the respondents are shown in Table 2. by predicted values and statistics of skewness and kurtosis.
To detect multivariate outliers, we used Mahalanobis distances of 5.1.2. Confirmatory factor analysis
predicted variables (Stevens, 1984; Cohen et al., 2003). The After we had checked the assumptions, we used confirmatory
maximum absolute values of the skewness and kurtosis of the factor analysis to establish convergent validity and discriminant
items were found to be 1.496 and 1.169, respectively. These values validity (Fornell and Larcker, 1981). Table 3 provides values of
are well within the limits recommended by past research (uni- standardized factor loadings (λ), scale composite reliability (SCR)
variate skewness o 2, kurtosis o7) (Curran et al., 1996). For testing and average variance extracted (AVE).
multivariate normality, we applied Mardia's (1970) coefficients of The Table 3 output suggests that standardized factor loadings of
multivariate skewness and kurtosis, which were found to be non- indicators,SCR and AVE are well above than specified lower value
significant (po 0.05), indicating multivariate normality. Neither (i.e. λi should be ideally greater than 0.7 and must be Z0.5,
the plots nor the statistics indicated any significant deviances from SCRZ 0.7 and AVEZ0.5).
assumptions. We can therefore conclude that constructs of our theoretical
framework possess convergent validity. To determine discriminant
validity, we have derived inter-factors correlation matrix and
modified it as per (Fornell and Larcker 1981), suggestions as shown
5.1.1. Exploratory factor analysis in Table 4.
First, we conducted factor analysis by entering all variables
used in analysis into principal component analysis (varimax
rotation). The Kaiser–Meyer–Olkin measure of sample adequacy Table 4
is 0.73. The test reduced all the variables into five independent Discriminant validity.
parsimonious factors with Eigen's value greater than 1.0, explain-
Constructs 1 2 3 4 5
ing 68.6% of the total variance. The first latent variable explained
nearly 27.53% of the total variance, thus common method bias is Leadership (1) 0.875n
not a serious issue. Furthermore, all four factors contained vari- SRM (2) 0.442nn 0.898n
ables which were apparently interpretable. The solution was TQM (3) 0.376nn 0.421nn 0.905n
Inst. Pressure (IP) (4) 0.482nn 0.392nn 0.324nn 0.885n
viable. We have further attempted to give a meaning to the stable
Environmental Perf. (EP) (5) 0.396nn 0.345nn 0.336nn 0.438nn 0.804n
structure as shown in Table 3. Variables with higher loadings were
considered more important and have greater influence on the n
Square root of AVE.
nn
name or label selected to present a factor (Hair et al., 2006). Correlation coefficient.
Table 3
Constructs and their reliability indicators, SCR and AVE.
Scale Items Factor SCR AVE

loadings
Leadership (L) Chronbach's Alpha: 0.947 Does your company have a well-defined environmental policy 0.927 0.93601 0.768151
Is every employee aware about the firm's environmental policy 0.904
Does top management support environmental programs 0.848
Top management has approved special fund for investment in cleaner 0.879
technologies
Does senior managers show positive attitude towards green practices 0.845
Does senior managers motivate and support new ideas received from junior 0.861
executives
Are employees recognized for innovative ideas and awarded on a periodic basis 0.868
Institutial pressure (IP) Chronbach's Alpha: 0.885 Is regional pollution control board pressurizing the firm to adopt green 0.905 0.934961 0.784327
practices
Does Government regulations provide clear guidelines in controlling pollution 0.83
level
Does pollution control board strictly monitors the pollution level of firm on a 0.887
periodic basis
Does green practices decrease incidence of penalty fee charged by pollution 0.83
control board
Are maximum sales of company export oriented 0.928
Are foreign customers more sensitive towards green practices 0.928
Supplier relationship (SRM) Chronbach's Alpha: Does green practices improve customer satisfaction 0.821 0.948883 0.806677
0.960 Do your firm recover end of life products from customers 0.837
Do your customers appreciate eco friendly products 0.869
Is environmental criteria considered while selecting suppliers 0.904
Do your firm consider environment collaboration with suppliers 0.952
Do your firm have technological integration with suppliers 0.897
Do your firm train and educate suppliers in implementing ISO 14001 0.947
Is environmental audit for suppliers done periodically 0.948
Total quality management (TQM) Chronbach's Firm have successfully implemented Total Quality Management 0.905 0.961549 0.819025
Alpha: 0.715 Does green practices promote product quality 0.905
Environmental performance (EP) Chronbach's Green practices reduce solid waste generation 0.88 0.83573 0.647167
Alpha: 0.881 Effluent meets CPCB norms by converting into green operations 0.823
Does green practices reduce environmental accidents and health hazards 0.875
Does green practices decrease of cost of raw materials 0.541
Does green practices reduce the inventory levels 0.858
Does green practices reduce cost for energy consumption 0.798
From Table 4, we can see that the absolute values for entries Regarding the fourth hypothesis, unstandardized β coefficient
marked (nn) (correlation coefficient) are lower than the absolute of path (SRM-EP) is 0.474, statistically significant at (p o0.05),
value of square root of AVE entries (n). This suggests that the suggesting that the firm may achieve superior environmental
constructs possess discriminant validity (Fornell and Larcker, performance which can be measured in terms of reduction in
1981). We have also estimated the fit indices for the overall solid waste generation, helping to meet CPCB norms, reducing
measurement model; Normed Chi-Square¼0.6, which suggests health and environmental hazards, reducing emissions of harmful
that χ2/df r2, represent a better fit (Hu and Bentler, 1999). There gases, reducing raw materials costs and helping to save energy.
are other indices like RMSEA which was found 0.08 which suggest The statistical finding clearly supports other recent findings (e.g.
that model is a better fit. Seman et al., 2012; Gangele and Verma, 2011; Whitelock, 2012;
Kim et al., 2011).
5.2. Hypotheses tests For the fifth hypothesis, unstandardized β coefficient of path
(TQM-EP) is 0.530, statistically significant at (p o0.05), suggest-
We tested our research hypotheses using hierarchical regres- ing that firms which have implemented TQM may achieve super-
sion analysis. This technique is considered most appropriate and a ior environmental performance. TQM fosters cooperation among
more conservative technique, as opposed to the covariance-based supply chain partners (Kanji and Wong, 1999; Gunasekaran and
method, due to the complexity of the model and available data McGaughey, 2003; Talib et al., 2010) and leads to superior supply
points, and the great robustness of the technique (Gefen et al., chain performance. Our findings suggest that TQM is a positive
2000). We present our hierarchical regression analysis output in and significant determinant of environmental performance clearly
Table 5. supports previous findings (e.g. Pauli, 1997; Murovec et al., 2012;
The hierarchical regression analysis output shows that each Prajogo et al., 2012; Pereira-Moliner et al., 2012; Gavronski et al.,
linkage of the theoretical framework under the effect of the 2011).
controlling variable, e.g. size of the firm in terms of employees, In our sixth hypothesis and seventh hypothesis we have three
is supported statistically. The R2 values for each research hypoth- sub-hypotheses. However, our exploratory factor analysis suggests
esis are found to be between 0.586 and 0.796, with F-statistics that all the three institutional pressures identified by DiMaggio
well above critical value Fcr (2172) ¼ 3, shows that model is very and Powell (1983) and subsequently further supported by other
strong. The VIF statistic is found to be less than 4, which suggests researchers (e.g. Zhu and Sarkis, 2007; Sarkis et al., 2011) are
that the hierarchical regression output is free from multicollinear- loaded on a single factor. Thus we reclassified all three pressures
ity effect (Hair et al., 2006); and Durbin–Watson statistic is found as a single pressure (i.e. institutional pressure).
to be between 1.5 and 2.5, which suggests the hierarchical For the sixth hypothesis, unstandardized β coefficient of path
regression output is free from auto-correlation effect (Field, (IP*SRM-EP) is 0.135, statistically significant at (p o0.05), sug-
2005).The unstandardized β co-efficient of path (L-TQM) is gesting that SRM has a positive impact under the moderation
0.957, which is found to be statistically significant at (p o0.05), effect of institutional pressure (i.e. the coercive pressure, the
indicating that leadership is a positive determinant of successful normative pressure and mimetic pressure loaded on a single
implementation of TQM. The results clearly support previous factor), which suggests that market pressure and regulatory norms
findings (e.g. Kanji and Wong 1999; Rui et al., 2010). have positive impacts. SRM focuses on improving coordination in
In the case of the second hypothesis, unstandardized β coeffi- supply chain networks through information sharing and collabora-
cient of path (L-SRM) is 0.953, which is statistically significant at tion improves environmental performance by reducing solid waste
(p o0.05), indicating that leadership is significantly important for generation and helps in mitigating risk due to harmful emissions
building supplier relationship management. The top management of gases like CO2, NOx, SOx and VOCs (Volatile Organic Compounds)
commitment towards building SRM may help to improve colla- which can be generated by the rubber industry. Inherent problems
boration to achieve the objective of minimizing the impact of poor can be rectified if procurement policies can be aligned with
coordination in supply chain network design and achieving a more environmental norms. For this, leaders of both companies need
sustainable network without sacrificing their profit margin. This to assess the win-win situation and sensitize their team members
result clearly supports the previous findings (e.g. Gunasekaran, to adapt to the global need for environmentally friendly products.
1999; Reichheld, 2003; Yusuf et al., 2007; Dües et al., 2013; van This finding of ours supports the findings of Zhu and Sarkis (2007),
Hoof and Lyon, 2013; Despeisse et al., 2012). Zhu et al. (2012a,b).
For the third hypothesis, unstandardized β coefficient of path For the seventh hypothesis, unstandardized β coefficient of
(SRM-TQM), is 0.749 which is statistically significant at (po0.05), path (IP*TQM-EP) is 0.112, statistically significant at (p o0.05),
suggesting that SRM is a positive determinant of successful TQM suggesting that TQM has a positive impact under the moderation
implementation. The firm may achieve better results, in terms of effect of institutional pressure, which suggests that market pres-
customer satisfaction by offering better quality products or services, sure and regulatory norms have positive impacts. However, an
through supplier collaboration at minimum cost. The result supports interesting observation can be made based on the moderation
previous findings (e.g. Gunasekaran, 1999; Yusuf et al., 2007; regression output; the relative difference between the magnitude
Wiengarten and Pagell, 2012). of unstandardized β co-efficient of path (TQM-EP) is negative, i.e.
Table 5
Hierarchical regression analysis.
Hypothesis R2 F statistics Fcr ¼ 3 β t-Statistic p-Value Durbin–Watson statistic VIF Supported/Rejected
H1:L-TQM 0.796 333.280 0.957 25.133 0.000 1.664 1.033 Supported

H2:L-SRM 0.692 192.110 0.953 18.930 0.000 1.526 1.033 Supported
H3:SRM-TQM 0.661 166.963 0.749 17.689 0.000 1.918 1.033 Supported
H4:SRM-EP 0.586 120.789 0.474 14.947 0.000 1.785 1.033 Supported
H5:TQM-EP 0.633 147.346 0.530 16.558 0.000 1.755 1.043 Supported
H6:IPnSRM-EP 0.601 128.963 0.112 15.460 0.000 1.562 1.065 Supported
H7:IPnTQM-EP 0.658 164.865 0.135 17.540 0.000 1.508 1.061 Supported
the impact of TQM on EP was more pronounced than the impact of study supports the findings of Sharif and Irani (2012). It further
TQM on EP under the moderation effect of institutional pressure extends environmental supply chain leadership theory.
(IP). However, in recent years TQM has been regarded as a guiding Third, we have further empirically tested our proposed model
principle of the firm, and as such TQM is often implemented long from data collected from the rubber industry. Our study has
before the firm realizes the need for a sustainable supply chain. provided an interesting revelation. In our findings we have seen
Those firms that have implemented TQM successfully have found that all three institutional pressures were found to be loaded on a
themselves in a more comfortable position to achieve a sustain- single factor and the items of mimetic pressures were dropped due
able supply chain network. However, we do not deny the initial to low standardized factor loadings (i.e. o0.5). In the case of the
impact of regulatory and market pressures on the implementation rubber industry the regulatory and normative pressures are
of TQM to achieve superior environmental performance. It is significant in comparison to mimetic pressures. To our knowledge
therefore crystal clear that firms who have implemented TQM this is first study focusing on the rubber industry, where an
will achieve superior quality, which further leads them to achieve empirical study was conducted to investigate the integration of
the more recently established goal, i.e. superior EP. The findings of SRM and TQM in a green supply chain network.
our study further support the research findings of, Wiengarten and Thus, we contribute to the literature by addressing the need to
Pagell (2012). obtain a more holistic understanding of the distinct relationships
among competencies (i.e. leadership, SRM); response alternatives
(i.e. TQM); and performance outcomes (i.e. environmental
6. Conclusion performance).
In this paper, we empirically investigated the links between 6.1.2. Implications and contributions to practice
leadership, SRM, TQM and environmental performance in green Many of our findings offer guidance to management and supply
supply chain or sustainable supply chain network design. More- chain practitioners. By conducting this empirical study, we estab-
over, we further examined the moderation effect of IP on links lished evidence, beyond the anecdotal, that firms indeed benefit
connecting SRM and EP, and TQM and EP, respectively, under the from SRM and TQM integration under the influence of leadership
effect of controllable variables such as the size of the firm. Our in green supply chain networks. Thereby, we provide insights for
work further strengthens and refines empirical work on the managers into supply chain sustainability and quality manage-
integration of SRM and TQM in a green supply chain network ment. Moreover, our results strengthen the notion of those
and on the application of institutional theory in the fields of OM managers who believe in the integration of TQM and SCM for
and SCM, answering previous calls for research (Talib et al., 2011; improving environmental performance for achieving sustainability
Kauppi 2013). Overall, our study helps to test, empirically, the of the supply chain network. It also helps to resolve the debate in
‘Business Excellence Model for Supply Chain Management’ (Kanji the mind of those managers who believe in TQM for quality and
and Wong, 1999), and the model of Gunasekaran and McGaughey SRM for better coordination. However, if the SRM competency of
(2003) in the context of green supply chain network design or the the firm is integrated with the guiding philosophy of the firm, i.e.
sustainable supply chain, tests which are necessary at this time. In TQM, the firm can achieve superior environmental performance by
addition, we have attempted to understand the possible linkage reducing emissions of harmful gases and reducing wastage in the
between institutional theory and GSCM theory. entire supply chain network, preventing waste which is non-
recyclable and the disposal of which will lead to further environ-
mental degradation.
6.1. Unique contributions
We appreciate that the idea of recommending organizations to
align leadership with operational practices, under the moderation
6.1.1. Implications and contributions to theory
effect of institutional pressures, sounds ill-advised because most of
With this study, we provide further evidence that supplier
the literature in green supply chain management has critically
relationship management and TQM integration under the influ-
argued that institutional pressures is not sufficient enough to
ence of leadership and moderation effect of institutional pressures
explain the divergent nature of organizational change (e.g. Zhu
(IP) may help firms, as one of their goals, to achieve environmental
et al., 2005; Delmas and Toffel, 2010). However, it should be noted
performance. The role of institutional pressures in affecting adop-
that our findings are based on those rubber manufacturing units
tion of green supply chain practices is well discussed in the
that had already invested significant resources in green supply
literature (e.g. Zhu et al., 2005; Zhu and Sarkis, 2007; Wu et al.,
chain practices. Therefore our study is most relevant for such
2012). What is less well understood is how institutional pressures
companies who want to embrace green supply chain practices in
affect the process of integration of leadership, supplier relation-
developing countries. From this perspective we view institutional
ship management and total quality management on environmen-
pressures as positive and beneficial to those rubber manufacturing
tal performance. Three key aspects of this study signify our
units struggling to reap benefits from their failed endeavors in
contribution to the theory of green supply chain management.
embracing “green” in their supply chain network.
First, the study attempts to focus on post-implementation of green
supply chain management practices in the context of the supply
chain network. These findings extend the past work of e.g. Kanji 6.2. Limitations and further research directions
and Wong (1999), Gunasekaran and McGaughey (2003) and Talib
et al. (2011). The present study findings further support the studies As with any research, our study is subject to several limitations
of, for example, Wiengarten and Pagell (2012) and Wu et al. that need to be taken into consideration when interpreting the
(2012). results. Based on the legal structure of the firms in our sample and
Second, this study integrates institutional pressures and the related confidentiality requirements concerning corporate infor-
influence of leadership on operational practices to improve envir- mation, we did not have the ability to collect a sufficient amount of
onmental performance in one model, and reconciles influences subjective data, which would have been desirable, especially with
that the literature had previously presumed to be independent. regard to environmental performance measures.
In the extant literature, top management, institutional pressures Second, we have collected data at one point of time. Conse-
and operational practices are rarely studied together. Further, our quently, causality cannot be established without longitudinal data.
Third, the present study was conducted on the rubber industry in Carter, C.R., Jennings, M.M., 2004. The role of purchasing in corporate social
an Indian context. Therefore, results may not be easily transferable responsibility: a structural equation analysis. J. Bus. Logist. 25 (1), 145–186.
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Int. J. Production Economics

Exploring the relationship between leadership, operational practices,

1. Introduction In recent years, researchers have shown increasing interest in

Constructs Reference Items

Table 2 4.5. Non-response bias

Scale Items Factor SCR AVE

Hypothesis R2 F statistics Fcr ¼ 3 β t-Statistic p-Value Durbin–Watson statistic VIF Supported/Rejected

H1:L-TQM 0.796 333.280 0.957 25.133 0.000 1.664 1.033 Supported

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