Consumer Perception of Green Supply Chain Management and Its Impact on Green Brand Loyalty: Do Green Brand Image and Environmental Concern Matter?

Siau, Jun Lun (Darren) (2024) Consumer Perception of Green Supply Chain Management and Its Impact on Green Brand Loyalty: Do Green Brand Image and Environmental Concern Matter? Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

Green supply chain management (GSCM) plays a vital role in the transition of industries towards sustainable practices. However, implementing GSCM in developing economies has been slower compared to developed economies, despite having a wide range of advantages. Business practitioners in emerging economies are looking for more information on the benefits of GSCM before they can proceed with implementation. As such, based on the stimulus-organism-response (SOR) theory, this study explored whether consumer perception of GSCM, which include consumer perception on green systems (GS), green design (GD), green supply chain responsibility (GSCR), and green investment recovery (GIR), could positively influence green brand image (GBI) and green brand loyalty (GBL). The moderation effect of environmental concern (EC) is also examined. This study utilised quantitative method via survey to sample consumers who have the experience of purchasing consumer electronics products, and employed partial least squares structural equation modelling for data analysis (n = 377). The results suggest that GS, GSCR, and GIR are having significant direct effects on GBI, whilst GSCR and GIR are having significant direct effects on GBL. Moreover, GS, GSCR, and GIR are having significant mediated effects on GBL via GBI. In addition, EC also enhances the positive relationship between GBI and GBL. This research contributes to the literature on sustainability, by empirically examined the relationships between consumer perception of GSCM and GBI as well as GBL, concurrently, within a single model. This study also extends the theoretical umbrella of the SOR theory through in-depth examination of the largely ignored influence of consumer perception of GSCM on GBI and GBL. Through this study, managers could comprehend the importance of GSCM as an instrument to gain competitive advantage, and policymakers could enhance the country’s development of sustainable supply chain ecosystem by promoting GSCM implementation as a mean to augment business competitiveness. In terms of the societal implications, this study could advance GSCM implementation by the firms, where large-scale implementation of GSCM enhances the firms’ future-readiness when facing ecological and stakeholder pressure, thus safeguarding the ability of the firms to supply job opportunities in the long-term. Apart from that, this study contributes to the attainment of sustainable development goal (SDG) 8 on decent work and economic growth, SDG 12 on responsible consumption and production, and SDG 13 on climate action. In terms of the originality and value, this study is one of the first few studies that integrated the three predominantly segregated