The Relationship Between Supply Chain Integration, Green Supply Chain Management Practices and Sustainability Performance: A Conceptual Framework
Keywords:
Small and Medium Enterprise, Supply Chain Integration, Green Supply Chain Management Practices, Sustainability Performance
Abstract
A survey conducted by the SME Association among 1,713 SME members revealed that 20% of the respondents were considering permanently closing their business in the next six months due to this issue. In addition, the growth of SMEs in 2021 registered at -5.6% which was lower than Malaysia’s GDP in 2015. Taking note of these issues, this study is going to develop the framework for Malaysian SMEs by investigating the relationship between supply chain integration, green supply chain management (GSCM) practices and sustainability performance. Resource-based view (RBV) theory, and natural resource-based view (NRBV) theory are integrated to enlighten the probable relationship between the variables to develop a research framework. A total of 576 SME companies in Malaysia will participate in this study. The data will be collected via the survey method. Partial Least Squares (PLS) procedure will be applied to analyze the data and test the hypotheses of this study. The significance of this study will contribute to the body of knowledge and practice by providing a strong research framework for a clear understanding that describes the effect of implementing supply chain integration among SME companies and the role of GSCM practices towards sustainability performance that would be utilized by the companies and the academicians.
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References
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Basnet, C. (2013). The measurement of internal supply chain integration. Management Research Review, 36(2), 153–172.
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Deli?, M., Eyers, D. R., & Mikuli?, J. (2019). Additive manufacturing: Empirical evidence for supply chain integration and performance from the automotive industry. Supply Chain Management: An International Journal, 24(5), 604–621.
Diabat, A., & Govindan, K. (2011). An analysis of the drivers affecting the implementation of green supply chain management. Resources, Conservation and Recycling, 55(6), 659–667.
Dowie, T. (1994). Green design. World Class Design to Manufacture, 1(4), 32–38.
Dyer, J. H., & Singh, H. (1998). The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review, 23(4), 660–679.
Eltayeb, T. K., Zailani, S., & Ramayah, T. (2011). Green supply chain initiatives among certified companies in Malaysia and environmental sustainability: Investigating the outcomes. Resources, Conservation and Recycling, 55(5), 495–506.
Fabbe-Costes, N., & Jahre, M. (2008). Supply chain integration and performance: A review of the evidence. The International Journal of Logistics Management, 19(2), 130–154.
Field, J. M., & Sroufe, R. P. (2007). The use of recycled materials in manufacturing: Implications for supply chain management and operations strategy. International Journal of Production Research, 45(18–19), 4439–4463.
Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28(1), 58–71.
Frohlich, M. T., & Westbrook, R. (2001). Arcs of integration: An international study of supply chain strategies. Journal of Operations Management, 19(2), 185–200.
Furlan, A., Romano, P., & Camuffo, A. (2006). Customer-supplier integration forms in the air-conditioning industry. Journal of Manufacturing Technology Management, 17(5), 633–655.
Green, K. W., Jr., Zelbst, P. J., Meacham, J., & Bhadauria, V. S. (2012). Green supply chain management practices: Impact on performance. Supply Chain Management: An International Journal, 17(3), 290–305.
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Hart, S. L. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4), 986–1014.
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Kannan, V. R., & Tan, K.-C. (2010). Supply chain integration: Cluster analysis of the impact of span of integration. Supply Chain Management: An International Journal, 15(3), 207–215.
Kogg, B. (2003). Greening a cotton-textile supply chain: A case study of the transition towards organic production without a powerful focal company. Greener Management International, 43, 53–64.
Kumar, V., Chibuzo, E. N., Garza-Reyes, J. A., Kumari, A., Rocha-Lona, L., & Lopez-Torres, G. C. (2017). The impact of supply chain integration on performance: Evidence from the UK food sector. Procedia Manufacturing, 11, 814–821.
Lotfi, Z., Sahran, S., & Mukhtar, M. (2013). A product quality–supply chain integration framework. Journal of Applied Sciences, 13(1), 36–48.
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Sadler, I. (2007). Logistics and supply chain integration. SAGE Publications.
Sarkis, J. (2012). A boundaries and flows perspective of green supply chain management. Supply Chain Management: An International Journal, 17(2), 202–216.
Sekaran, U., & Bougie, R. (2013). Research methods for business: A skill-building approach (6th ed.). Wiley.
Shashi, & Cerchione, R. (2018). Sustainability orientation, supply chain integration, and SMEs' performance: A causal analysis. Benchmarking: An International Journal, 25(9), 3679–3701.
Smart, A. (2008). eBusiness and supply chain integration. Journal of Enterprise Information Management, 21(3), 227–246.
SME Corporation Malaysia. (2022). SME integrated plan of action (SMEIPA) 2022. SME Corporation Malaysia.
Srivastava, S. K. (2007). Green supply-chain management: A state-of-the-art literature review. International Journal of Management Reviews, 9(1), 53–80.
Tan, C. L., Zailani, S. H. M., Tan, S. C., & Shaharudin, M. R. (2016). The impact of green supply chain management practices on firm competitiveness. International Journal of Business Innovation and Research, 11(4), 539–558.
Thun, J.-H. (2010). Angles of integration: An empirical analysis of the alignment of internet-based information technology and global supply chain integration. Journal of Supply Chain Management, 46(2), 30–44.
Vanpoucke, E., Vereecke, A., & Wetzels, M. (2014). Developing supplier integration capabilities for sustainable competitive advantage: A dynamic capabilities approach. Journal of Operations Management, 32(7–8), 446–461.
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171–180.
Zhao, X., Huo, B., Selen, W., & Yeung, J. H. Y. (2011). The impact of internal integration and relationship commitment on external integration. Journal of Operations Management, 29(1–2), 17–32.
Zhu, Q., Feng, Y., & Choi, S.-B. (2017). The role of customer relational governance in environmental and economic performance improvement through green supply chain management. Journal of Cleaner Production, 155, 46–53.
Zhu, Q., Sarkis, J., & Lai, K.-H. (2008). Confirmation of a measurement model for green supply chain management practices implementation. International Journal of Production Economics, 111(2), 261–273.
Zhu, Q., Sarkis, J., & Lai, K.-H. (2012). Examining the effects of green supply chain management practices and their mediations on performance improvements. International Journal of Production Research, 50(5), 1377–1394.
Zhu, Q., Sarkis, J., & Lai, K.-H. (2013). Institutional-based antecedents and performance outcomes of internal and external green supply chain management practices. Journal of Purchasing and Supply Management, 19(2), 106–117.
Zhu, Q., Sarkis, J., & Lai, K.-H. (2019). Choosing the right approach to green your supply chains. Modern Supply Chain Research and Applications, 1(1), 54–67.
Zhu, Q., & Sarkis, J. (2004). Relationships between operational practices and performance among early adopters of green supply chain management practices in Chinese manufacturing enterprises. Journal of Operations Management, 22(3), 265–289.
Zsidisin, G. A., & Siferd, S. P. (2001). Environmental purchasing: A framework for theory development. European Journal of Purchasing & Supply Management, 7(1), 61–73.
Zikmund, W. G. (2003). Business research methods (7th ed.). Thomson/South-Western.
Artiach, T., Lee, D., Nelson, D., & Walker, J. (2010). The determinants of corporate sustainability performance. Accounting & Finance, 50(1), 31–51.
Ataseven, C., & Nair, A. (2017). Assessment of supply chain integration and performance relationships: A meta-analytic investigation of the literature. International Journal of Production Economics, 185, 252–265.
Baojuan, S. (2008). Green supply chain management and implementing strategy. In Proceedings of the International Conference on Logistics Engineering and Supply Chain (pp. 121–124).
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Basnet, C. (2013). The measurement of internal supply chain integration. Management Research Review, 36(2), 153–172.
Baumgartner, R. J. (2008). Corporate sustainability performance: Methods and illustrative examples. International Journal of Sustainable Development and Planning, 3(2), 117–131.
Beamon, B. M. (1999). Designing the green supply chain. Logistics Information Management, 12(4), 332–342.
Chan, R. Y. K., He, H., Chan, H. K., & Wang, W. Y. C. (2012). Environmental orientation and corporate performance: The mediation mechanism of green supply chain management and moderating effect of competitive intensity. Industrial Marketing Management, 41(4), 621–630.
Chen, H., Daugherty, P. J., & Roath, A. S. (2009). Defining and operationalizing supply chain process integration. Journal of Business Logistics, 30(1), 63–84.
Creswell, J. W. (2014). Research design: Qualitative, quantitative, and mixed methods approaches (4th ed.). SAGE Publications.
Deli?, M., Eyers, D. R., & Mikuli?, J. (2019). Additive manufacturing: Empirical evidence for supply chain integration and performance from the automotive industry. Supply Chain Management: An International Journal, 24(5), 604–621.
Diabat, A., & Govindan, K. (2011). An analysis of the drivers affecting the implementation of green supply chain management. Resources, Conservation and Recycling, 55(6), 659–667.
Dowie, T. (1994). Green design. World Class Design to Manufacture, 1(4), 32–38.
Dyer, J. H., & Singh, H. (1998). The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review, 23(4), 660–679.
Eltayeb, T. K., Zailani, S., & Ramayah, T. (2011). Green supply chain initiatives among certified companies in Malaysia and environmental sustainability: Investigating the outcomes. Resources, Conservation and Recycling, 55(5), 495–506.
Fabbe-Costes, N., & Jahre, M. (2008). Supply chain integration and performance: A review of the evidence. The International Journal of Logistics Management, 19(2), 130–154.
Field, J. M., & Sroufe, R. P. (2007). The use of recycled materials in manufacturing: Implications for supply chain management and operations strategy. International Journal of Production Research, 45(18–19), 4439–4463.
Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28(1), 58–71.
Frohlich, M. T., & Westbrook, R. (2001). Arcs of integration: An international study of supply chain strategies. Journal of Operations Management, 19(2), 185–200.
Furlan, A., Romano, P., & Camuffo, A. (2006). Customer-supplier integration forms in the air-conditioning industry. Journal of Manufacturing Technology Management, 17(5), 633–655.
Green, K. W., Jr., Zelbst, P. J., Meacham, J., & Bhadauria, V. S. (2012). Green supply chain management practices: Impact on performance. Supply Chain Management: An International Journal, 17(3), 290–305.
Groznik, A., & Erjavec, J. (2012). Environmental impact of supply chains. In A. Groznik & Y. Xiong (Eds.), Pathways to supply chain excellence (pp. 115–124). IntechOpen.
Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate data analysis (5th ed.). Prentice Hall.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis (7th ed.). Pearson.
Hajikhani, M., Wahat, N. W. A., & Idris, K. B. (2012). Considering green supply chain management drivers, as a strategic organizational development approach, Malaysian perspective. Australian Journal of Basic and Applied Sciences, 6(8), 246–265.
Hart, S. L. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4), 986–1014.
Henri, J.-F., & Journeault, M. (2010). Eco-control: The influence of management control systems on environmental and economic performance. Accounting, Organizations and Society, 35(1), 63–80.
Huang, M.-C., Yen, G.-F., & Liu, T.-C. (2014). Reexamining supply chain integration and the supplier’s performance relationships under uncertainty. Supply Chain Management: An International Journal, 19(1), 64–78.
Ibrahim, N., Razak, R. C., Wahab, M. H. A. A. A., Osman, A. A., & Ab Rahman, S. M. (2021). Supply chain risks and roles of the strategy of green supply chain management practices. International Journal of Academic Research in Business and Social Sciences, 11(7), 752–771.
Kamra, J., Mani, A. P., Sharma, M., & Joshi, S. (2024). The nexus between green supply chain management and sustainability performance. Sustainability, 16(17), 7474.
Kannan, V. R., & Tan, K.-C. (2010). Supply chain integration: Cluster analysis of the impact of span of integration. Supply Chain Management: An International Journal, 15(3), 207–215.
Kogg, B. (2003). Greening a cotton-textile supply chain: A case study of the transition towards organic production without a powerful focal company. Greener Management International, 43, 53–64.
Kumar, V., Chibuzo, E. N., Garza-Reyes, J. A., Kumari, A., Rocha-Lona, L., & Lopez-Torres, G. C. (2017). The impact of supply chain integration on performance: Evidence from the UK food sector. Procedia Manufacturing, 11, 814–821.
Lotfi, Z., Sahran, S., & Mukhtar, M. (2013). A product quality–supply chain integration framework. Journal of Applied Sciences, 13(1), 36–48.
Neubert, G., Ouzrout, Y., & Bouras, A. (2018). Collaboration and integration through information technologies in supply chains. CoRR, abs/1811.01688.
Ramdan, M. R., Abd Aziz, N. A., Abdullah, N. L., Samsudin, N., Singh, G. S. V., Zakaria, T., Fuzi, N. M., & Ong, S. Y. Y. (2022). SMEs' performance in Malaysia: The role of contextual ambidexterity in innovation culture and performance. Sustainability, 14(3), 1679.
Razak, R. C., & Ibrahim, N. Z. (2020). Green supply chain management practices: A literature review. International Journal of Entrepreneurship and Management Practices, 3(12), 14–27.
Sadler, I. (2007). Logistics and supply chain integration. SAGE Publications.
Sarkis, J. (2012). A boundaries and flows perspective of green supply chain management. Supply Chain Management: An International Journal, 17(2), 202–216.
Sekaran, U., & Bougie, R. (2013). Research methods for business: A skill-building approach (6th ed.). Wiley.
Shashi, & Cerchione, R. (2018). Sustainability orientation, supply chain integration, and SMEs' performance: A causal analysis. Benchmarking: An International Journal, 25(9), 3679–3701.
Smart, A. (2008). eBusiness and supply chain integration. Journal of Enterprise Information Management, 21(3), 227–246.
SME Corporation Malaysia. (2022). SME integrated plan of action (SMEIPA) 2022. SME Corporation Malaysia.
Srivastava, S. K. (2007). Green supply-chain management: A state-of-the-art literature review. International Journal of Management Reviews, 9(1), 53–80.
Tan, C. L., Zailani, S. H. M., Tan, S. C., & Shaharudin, M. R. (2016). The impact of green supply chain management practices on firm competitiveness. International Journal of Business Innovation and Research, 11(4), 539–558.
Thun, J.-H. (2010). Angles of integration: An empirical analysis of the alignment of internet-based information technology and global supply chain integration. Journal of Supply Chain Management, 46(2), 30–44.
Vanpoucke, E., Vereecke, A., & Wetzels, M. (2014). Developing supplier integration capabilities for sustainable competitive advantage: A dynamic capabilities approach. Journal of Operations Management, 32(7–8), 446–461.
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171–180.
Zhao, X., Huo, B., Selen, W., & Yeung, J. H. Y. (2011). The impact of internal integration and relationship commitment on external integration. Journal of Operations Management, 29(1–2), 17–32.
Zhu, Q., Feng, Y., & Choi, S.-B. (2017). The role of customer relational governance in environmental and economic performance improvement through green supply chain management. Journal of Cleaner Production, 155, 46–53.
Zhu, Q., Sarkis, J., & Lai, K.-H. (2008). Confirmation of a measurement model for green supply chain management practices implementation. International Journal of Production Economics, 111(2), 261–273.
Zhu, Q., Sarkis, J., & Lai, K.-H. (2012). Examining the effects of green supply chain management practices and their mediations on performance improvements. International Journal of Production Research, 50(5), 1377–1394.
Zhu, Q., Sarkis, J., & Lai, K.-H. (2013). Institutional-based antecedents and performance outcomes of internal and external green supply chain management practices. Journal of Purchasing and Supply Management, 19(2), 106–117.
Zhu, Q., Sarkis, J., & Lai, K.-H. (2019). Choosing the right approach to green your supply chains. Modern Supply Chain Research and Applications, 1(1), 54–67.
Zhu, Q., & Sarkis, J. (2004). Relationships between operational practices and performance among early adopters of green supply chain management practices in Chinese manufacturing enterprises. Journal of Operations Management, 22(3), 265–289.
Zsidisin, G. A., & Siferd, S. P. (2001). Environmental purchasing: A framework for theory development. European Journal of Purchasing & Supply Management, 7(1), 61–73.
Zikmund, W. G. (2003). Business research methods (7th ed.). Thomson/South-Western.
Published
2026-09-14
How to Cite
Ibrahim, N., Abd Rahim, N. N., Abd Rashid, N., Yusof Za Ba, M. F., & Abd Rahim, N. A. (2026). The Relationship Between Supply Chain Integration, Green Supply Chain Management Practices and Sustainability Performance: A Conceptual Framework. Information Management and Business Review, 18(3(I), 14-22. https://doi.org/10.22610/imbr.v18i3(I).4893
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Research Paper
Copyright (c) 2026 Norzawani Ibrahim, Nur Najjah Abd Rahim, Norasekin Abd Rashid, Mior Faizmie Yusof Za Ba, Nur Amalina Abd Rahim
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