Green purchasing practices for corporate environmental

Abstract

Green purchasing aims to minimize negative environmental impacts in manufacturing process and transportation by using durable, recyclable and reusable materials. Manufacturing companies that practiced environmental strategy in purchasing benefitted from cost savings, better public image and decreased liability. In addition, firms that are able to leverage their green supply base with lower cost, higher quality and concern about environment aspects to impact their total cost structure and product quality could have a competitive advantage in their markets. Therefore, this study aims to investigate the impact of green purchasing practices including green product, green process and green supplier on environmental performance in the context of Malaysian manufacturing companies. A total of 156 questionnaires were distributed to different industry sectors. The findings show that green product, green process and green supplier are significantly and positively related to environmental performance. In addition, green product is the main predictor of the environmental performance. Ultimately, the results could offer useful guidance for Malaysian manufacturing companies in green purchasing practices implementation as well as provide a springboard for further empirical research in the area