Sustainable Production: Practices and Determinant Factors of Green Supply Chain Management of Chinese Companies

This paper explores the green supply chain management (GSCM) of companies based in
the Yangtze River Delta, China. The companies' overall GSCM practice level (LGSCM) is
measured by using the data from 165 valid respondents in a questionnaire survey
conducted during April and May 2009. The relationships between LGSCM and the classified
determinant factors are analyzed. It is indicated that Chinese companies are still at a
preliminary stage of GSCM practices. Their environmental management in cooperation
with external members of the supply chain is very marginal. A company's LGSCM is
significantly and positively associated with the external pressures from regulatory, domestic
clients and business competitors. As an internal factor, a company's learning capacity
greatly determines LGSCM. We also confirm that the internal factors function as intermediate variables of external pressures in influencing a company's GSCM. A company's
environmental management capacities will be strongly enhanced by frequent internal
training of employees to increase its involvement in GSCM practices.