GREEN SUPPLY CHAIN MANAGEMENT, ENVIRONMENTAL COLLABORATION AND SUSTAINABILITY PERFORMANCE.

The model linking the relationship between GSCM practices (Independent Variable), environmental collaboration (Mediator) and sustainability performance (Dependent Variable). The GSCM practices are conceptualized to include green procurement, green manufacturing, green distribution and green logistics. The sustainability performance is investigated from the perspective of economic, environment and social. The relational view theory was first articulated by Dyer and Singh to suggest that establish long-term collaborative relationship characterized by strong inter-organizational interactions could facilitate firms to pursue GSCM practise.  In general, the relational view provide insight into how firm develops value creating linkage with other firms to achieve high profit returns. 

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H1: GSCM practice is positively related to sustainability
performance :

 

It is a relationship between sustainable supply management and sustainability performance. In contrast to these studies, environmental collaboration is proposed as a moderator of the link between the GSCM practices and sustainability in view of the presence of the environmental collaboration could facilitate GSCM practices and firms which form collaborative relationships with suppliers would be easy to implement GSCM practices. In this context, environmental collaboration as a key relational capability could be advantageously positioned to facilitate the GSCM strategic formulation and execution. Therefore, the following hypothesis is proposed

 "H2: Environmental collaboration moderates the relationship
between GSCM practice and sustainability performance."

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In summary, business activities can pose a significant threat to the environment in terms of carbon monoxide emissions,
discarded packaging materials, scrapped toxic materials, traffic congestion and other forms of industrial pollution. Green supply chain management (GSCM) is considered as an environmental innovation. The concept of GSCM is to integrate environmental thinking into supply chain management (SCM). GSCM aims to minimize or eliminate wastages including hazardous chemical, emissions, energy and solid waste along supply chain such as product design, material resourcing and selection, manufacturing process, delivery of final product and end-of-life management of the product. As such, GSCM plays a vital role in influencing the total environment impact of any firm involved in supply chain activities and thus contributing to sustainability performance enhancement.

As for this  proposed conceptual model, it is mainly grounded within relational view theory.  According to this theory, the establishment of long-term collaborative relationship characterized by strong inter-organizational interactions would facilitate firms to pursue GSCM practices. Specifically, this theory provides insight into how firms can develop value, creating linkages with others in order to achieve their desired outcomes. In conclusion, the proposed model, though helpful to some extent, still needs to be researched and fine-tuned before it can be usefully applied to the context of Malaysian manufacturing companies.