Effects of institutional pressures and green supply chain management practices on green innovation and performance of Chinese chemical manufacturers in China

The increasing depletion of natural resources due to rapid industrialization has led to a heightened scholarly focus on the environmental impact of companies. In response to these growing environmental concerns, numerous Chinese chemical companies have started incorporating green supply chain management (GSCM) practices and green innovation (GI) into their environmental strategies, aiming to improve performance outcomes. Since environmental strategy is a valuable strategic resource in Chinese chemical companies, GSCM practices and GI adoption have been effective environmental tools affecting organizational performance outcomes. To address this issue, this thesis aims to bridge the gap in the existing literature by investigating the GSCM practices and GI that impact performance outcomes in the context of Chinese chemical companies. First, underpinned by Institutional Theory, institutional pressures were suggested as the hygiene and motivation factors that drive Chinese chemical companies to implement GSCM practices and GI. Second, the Resource-Based View explains the GSCM practices and GI as a valuable, rare, inimitable, and non-substitutable resource to influence Chinese chemical companies’ performance outcomes. Upper Echelon Theory also explains the moderating role of top management support in influencing the relationship between institutional pressures and the adoption of GSCM practices. Last, the Dynamic Capabilities Theory was applied to explain the moderation role of green dynamic capabilities. Due to COVID-19, online questionnaires were used to collect data in this research. Data collection was conducted online between January and April 2022, utilizing the Wenjuanxing platform, a respected Chinese version of Qualtrics. The participant pool was restricted to those with IP addresses coming from the southeastern region of China, which encompasses nine provinces and cities, including Beijing, Tianjin, Hebei province, Shanghai, Jiangsu province, Zhejiang province, Fujiang province, Shandong province, and Guangdong province. A total of 414 online questionnaires were distributed to the respondents using the purposive sampling method, with the respondents being Chinese chemical company employees who had at least one year of work experience. Subsequently, partial least squares structural equation modeling was adopted to analyze the data. The study revealed three key findings: 1) normative pressure and mimetic pressure play important roles in motivating GSCM practices; 2) GSCM practices and GI are significant factors that should not be overlooked as they are essential to organizational performance outcomes; and 3) green dynamic capabilities moderate the influence of GSCM practices on performance outcomes in Chinese chemical companies. Theoretically, this study adds to the existing literature by: broadening the theoretical scope of the full pressures-practices-performance model of GSCM in the Chinese chemical sector; uncovering the direct and mediating roles of GI in GSCM practices and organizational performance; and exploring the moderating roles of top management support and green dynamic capabilities in the full pressures-practices-performance model of GSCM in the Chinese chemical sector.

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