ENVIRONMENTAL MANAGEMENT STRATEGY: THE IMPACT OF GREEN LOGISTIC PRACTICES AND GREEN SUPPLY CHAIN MANAGEMENT ON ENVIRONMENTAL AND ECONOMIC PERFORMANCE

Abstract

The globalisation of businesses and increased competitive pressures have prompted many firms to develop green logistics and supply chain management. They align with rising demands for third-party logistics amid growth in the service and manufacturing sectors, leading to transforming traditional business models in logistics. The study investigates how environmental management strategies impact both environmental and economic performance, focusing on the role of green logistics (LO) and supply chain management practices (SP) in Malaysian manufacturing companies certified under ISO 14900.  Using SPSS and Partial Least Squares (PLS) for data analyses, and the study found significant relationships between EM, GL, and GSCM. However, there is no relationship between EM and EO. The results showed a positive relationship between EM, EN, GL, and EO. Moreover, no relationships are found between GSCM and GL, EN, and EO performance. These research findings provide valuable insights for policymakers, local authorities, and organisations keen to promote green sustainability practices for competitive advantage in the long run.