The effects of green supply chain management on the supplier’s performance through social capital accumulation

This paper aims to examine the effects of green supply chain management (GSCM) on environmental and operational performances with a perspective of social capital accumulation in the supply chain. The roles of structural capital and relational social capital in GSCM were empirically explored.

A research model was developed to investigate the effects of GSCM on a supplier’s environmental and operational performances through structural and relational social capitals. Using an exploratory factor analysis, the study identified the structural and relational dimensions of social capital and the environmental and operational performance dimensions of supplier’s performance. The hypotheses were tested on data of 207 responses collected from supplying firms in South Korea, using structural equation modeling.

The paper finds that GSCM contributes to the environmental and operational performance improvements of the supply chain through social capital accumulation. Relational capital, in particular, plays a more important pivoting role in the relationships between GSCM and environmental and operational performances.

The findings of this paper provide useful insights about how supply chain members should integrate environmental issues into supply chain management practices that would enhance social capital accumulation to foster stronger operational and environmental performances throughout the entire supply chain.

This research is one of the few studies that explore the effects of GSCM on performance by explicitly considering social capital as an important intervening variable. By applying social capital theory, this study provides theoretical underpinning for furthering the GSCM literature.