A causal relationship model of green logistics management and lean management affecting food and beverage industrial performance in Thailand

https://doi.org/10.53730/ijhs.v6nS5.7839

Authors

  • Sarawut Chaitongrat Graduate Student, College of Logistics and Supply Chain, Suan Sunandha Rajabhat University, Thailand
  • Natapat Areerakulkan Assistant Professor, College of Logistics and Supply Chain, Suan Sunandha Rajabhat University, Thailand

Keywords:

green logistics, lean management, industrial performance, environmental performance, food beverage industry

Abstract

This research aims to study the effect of green logistics management and lean management on environmental performance and industrial performance of food and beverage industry in Thailand. The research was designed as quantitative. The sample consisted of 430 food and beverage enterprises in Thailand. Data were analyzed using structural equation modelling (SEM) technique. The findings revealed that green logistics management and lean management influence environmental performance and industrial performance of the food and beverage industry in Thailand at a statistical significance level of 0.05 with the statistical values of c2= 99.472, df = 83, p-value = 0.105, c2/df = 1.198, RMSEA = 0.022, RMR = 0.009, GFI = 0.976, AGFI = 0.945, CFI = 0.998, which can predict 77.80% of industrial performance. This indicates that that green logistics management and lean management can help improve performance of organizations and industries, enabling them to compete and survive in a dynamic business environment.  Not only do green logistics management and lean management help improve financial performance, but they also help protect the environment, leading organizations to develop sustainable growth.

Downloads

Download data is not yet available.

References

Abreu-Ledon, R., Garcia, D., Garrido-Vega, P., & Escobar-Perez, B. (2018). A meta-analytic study of the impact of Lean Production on business performance. International Journal of Production Economics, 200, 83-102. https://doi.org/10.1016/j.ijpe.2018.03.015

Acuna-Carvajal, F., Pinto-Tarazona, L., López-Ospina, H., Barros-Castro, R., Quezada, L., & Palacio, B. (2019). An integrated method to plan, structure and validate a business strategy using fuzzy DEMATEL and the balanced scorecard. Expert Systems with Applications, 122, 351–368. https://doi.org/10.1016/j.eswa.2019.01.030

Agus, A., & Hajinoor, M. (2012). Lean production supply chain management as driver towards enhancing product quality and business performance Case study of manufacturing companies in Malaysia. International Journal of Quality & Reliability Management, 29(1), 92-121. https://doi.org/10.1108/02656711211190891

Agyabeng-Mensah, Y., Afum, E., & Ahenkorah, E. (2020). Exploring financial performance and green logistics management practices: Examining the mediating influences of market, environmental and social performances. Journal of Cleaner Production, 258, 1-13. https://doi.org/10.1016/j.jclepro.2020.120613

Ali, S. (2014). Exploring Green supply chain performance measures framework for Indian Manufacturing Practices. New Delhi Institute of Management, 1-16. https://www.pomsmeetings.org/confpapers/059/059-0133.pdf

Almanei, M., Salonitis, K., & Xu, Y. (2017). Lean implementation frameworks: the challenges for SMEs. Procedia CIRP, 63, 750-755. https://doi.org/10.1016/j.procir.2017.03.170

Al-Minhas, U., Ndubisi, N., & Barrane, Z. (2020). Corporate environmental management: A review and integration of green human resource management and green logistics. Management of Environmental Quality: An International Journal, 31(2), 431-450. https://doi.org/10.1108/MEQ-07-2019-0161

Alshubiri, F. (2017). The Impact of Green Logistics-Based Activities on the Sustainable Monetary Expansion Indicators of Oman. Journal of Industrial Engineering and Management, 10(1), 388-405. http://dx.doi.org/10.3926/jiem.2173

Bank of Thailand. (2020). 10 Years of Thailand Industry. Focused And Quick (FAQ) Bank of Thailand, 165, 1-13. https://www.bot.or.th/Thai/MonetaryPolicy/ArticleAndResearch/Pages/FAQ165.aspx

Chaitongrat, S., Areerakulkan, N., & Setthachotsombut, N. (2020). A Comprehensive Literature Review on the Relationship of Green Logistics and Lean Management on Firms’ Performance. Sciences and Business Management Graduate Conference 2020: SBC2020, 112-120.

Cheng, M., Humphreys, K., & Zhang, Y. (2018). The interplay between strategic risk profiles and presentation format on managers' strategic judgments using the balanced scorecard. Accounting, Organizations and Society, 70, 92-105. https://doi.org/10.1016/j.aos.2018.05.009

Cherrafi, A., Garza-Reyes, J. Kumar, V., Mishra, N., & Ghobadian, A. (2018). Lean, green practices and process innovation: A model for green supply chain performance. International Journal of Production Economics, 206, 79-92. https://doi.org/10.1016/j.ijpe.2018.09.031

Choi, Y. & Zhang, N. (2011). Does proactive green logistics management improve business performance? A case of Chinese logistics enterprises. African Journal of Business Management, 5(17), 7564-7547. https://doi.org/10.5897/AJBM11.613

Chrisostom, A. O. & Monari, F. (2018). Influence Green Logistics Management on Performance of registered Automotive Firms in Kenya. International Journal of Academic Research in Business and Social Sciences, 8(4), 351–365. http://62.24.102.115:8080/xmlui/bitstream/handle/123456789/2986/Aleri_Influence_Green_Logistics_Management_on_Performance_of_registered_Automotive_Firms_in_Kenya.pdf?sequence=1&isAllowed=y

Daniel, M., Odock, S., & Kate, L. (2020). Effect of green logistics practices and social performance on performance of logistics firms in Kenya. International Journal of Research Publications, 57(1), 3-16. https://doi.org/10.47119/IJRP100571720201331

Dekier, L. (2012). The Origins and Evolution of Lean Management System. Journal of International Studies, 5(1), 46-45. https://jois.eu/files/DekierV_5_N1.pdf

Department of Industrial Works (2019). Green Industry Manual (9th Edition) (Thai Version). Bangkok: The Permanent Secretary for Ministry of Industry, Thailand. https://greenindustry.diw.go.th/webgi/wp-content/uploads/2022/01/ART_GREEN_THAI.pdf

Effendi, M. (2018). Environmental Performance Analysis of Mining Companies in Indonesia with SEM-PLS. Journal of Advanced Management Science Vol, 6(1), 45-49. http://eprints.perbanas.ac.id/id/eprint/3677

Garza-Reyes, J., Kumar, V., Chaikittisilp, S., & Tan, K. (2018). The effect of lean methods and tools on the environmental performance of manufacturing organizations. International Journal of Production Economics, 200, 170–18. https://doi.org/10.1016/j.ijpe.2018.03.030

Hair, J. F., Black, W. C., Babin, B. J. & Anderson, R. E. (2010). Multivariate Data Analysis (7th ed.). UpperSaddle River, NJ: Prentice Hall.

Handayati, P. & Rochayatun, S. (2015). The Effect of Environmental Performance And Corporate Governance Mechanism On The Corporate Social Responsibility Disclosure. International Journal of Business, Economics and Law, 8(1), 2289-1552. http://ijbel.com/wp-content/uploads/2016/01/Acc-40.pdf

Hussain, M., Al-Aomar, R., & Melhem, H. (2018). Assessment of lean-green practices on the sustainable performance of hotel supply chains. International Journal of Contemporary Hospitality Management, 31(6), 2488-2567. https://doi.org/10.1108/IJCHM-05-2018-0380

Ismail, F., Ashfaq, M., Irum, S., Alifiah, M., & Adnan, H. (2019). Awareness on Green Logistics among Transportation Companies in Johor towards Business Performance. International Journal of Recent Technology and Engineering (IJRTE), 8(2S), 249-253. https://www.ijrte.org/wp-content/uploads/papers/v8i2S/B10350782S19.pdf

Kaplan, R., & Norton, D. (2007). Using the Balanced Scorecard as a Strategic Management System. Harvard Business Review (January–February 2007), 75–85. http://jackson.com.np/home/documents/MBA4/Management_accounting/BSCHarvardBusinessReview.pdf

Kasikorn Research Center. (2020). Exporting Food and Beverages Y2020. Kasikorn Research Center, Thailand. https://kasikornresearch.com/en/analysis/k-econ/business/Pages/z3042.aspx

Kline, R. B. (2011). Principles and Practice of Structural Equation Modeling (3rd ed.). New York: Guilford.

Kostoska, O., & Kocarev, L. (2019). A Novel ICT Framework for Sustainable Development Goals. Sustainability, 11, 1-31. https://doi.org/10.3390/su11071961

Kwak, S., Cho, W., Seok, G., Yoo, S. (2020). Intention to Use Sustainable Green Logistics Platforms. Sustainability, 12, 1-17. https://doi.org/10.3390/su12083502

Likert, R. (1932). A technique for measurement of attitudes. Archives of Psychology, 140, 5-55.

Loyd, N., Harris, G., Gholston, S., & David, D. (2020). Development of a lean assessment tool and measuring the effect of culture from employee perception. Journal of Manufacturing Technology Management, 31(7), 1439-1456. https://doi.org/10.1108/JMTM-10-2019-0375

Mello, J., Trabasso, L., Reckevcius, A., Palmeira, A., & Caraca, W. (2020). A novel jigless process applied to a robotic cell for aircraft structural assembly. The International Journal of Advanced Manufacturing Technology, 109, 1177-1187. https://doi.org/10.1007/s00170-020-05700-4

Paton, D. & Elsayed, K. (2005). The impact of environmental performance on firm performance: static and dynamic panel data evidence. Structural Change and Economic Dynamics, 16, 395–412. https://doi.org/10.1016/j.strueco.2004.04.004

Pearce, A., Pons, D., & Neitzert, T. (2018). Implementing lean-Outcomes from SME case studies. Operations Research Perspectives, 5, 94-104. https://doi.org/10.1016/j.orp.2018.02.002

Qu, Q., Tang, M., Liu, Q., Song, W., Zhang, F., & Wang, W. (2017). Empirical Research on The Core Factors of Green Logistics Development. Academy of Strategic Management Journal, 16(2), 1-10. https://www.proquest.com/openview/93e78ec6b3239cf7b5f3eb15a48e4e5e/1?pq-origsite=gscholar&cbl=38745&casa_token=TqkUOLBThOUAAAAA:1RoFsMa5gROsBe9WDBNT-eC2a2Xo-4OOJRIcTPk_8C98OFxvU4CwHoxJqQ0bFWPTeMj40OgKj_w

Rehman, R., Kraus, S., Shah, S., Khanin, D., Mahto, R. (2021). Analysing the relationship between green innovation and environmental performance in large manufacturing firms. Technological Forecasting & Social Change,163, 1-6. https://doi.org/10.1016/j.techfore.2020.120481

Rompho, N. (2014). Performance Measurement. Bangkok: Thammasat Printing House.

Rovinelli, R. J., & Hambleton, R. K. (1977). On the use of content specialists in the assessment of criterion-referenced test item validity. Tijdschrift voor Onderwijsresearch, 2(2), 49–60. https://eric.ed.gov/?id=ED121845

Sarraf, F., & Nejad, S. (2020). Improving performance evaluation based on balanced scorecard with grey relational analysis and data envelopment analysis approaches: Case study in water and wastewater companies. Evaluation and Program Planning, 79, 1-11. https://doi.org/10.1016/j.evalprogplan.2019.101762

Shashi., Centobelli, P., Cerchione, R., & Singh, R. (2019). The impact of leanness and innovativeness on environmental and financial performance: Insights from Indian SMEs. International Journal of Production Economics, 212, 111-124. https://doi.org/10.1016/j.ijpe.2019.02.011

Taticchi, P. (2010). Business Performance Measurement and Management. New York: London New York. https://link.springer.com/content/pdf/10.1007/978-3-642-04800-5.pdf

Tupamahu, A., Ghozali, I., & Basuki, P. (2019). Lean Management, Competitive Advantage, and Firm Performance: The Role of Management Control Systems. Academic Journal of Interdisciplinary Studies, 8(3), 221-223. https://www.richtmann.org/journal/index.php/ajis/article/view/10577

Wagner T., Herrmann, C., & Thiede, S. (2017). Industry 4.0 impacts on lean production systems. Procedia CIRP, 63, 125-131. https://doi.org/10.1016/j.procir.2017.02.041

Wongwilai, S., Phudetch, P., Saelek, P., Khuptawatin, A., Wongcharoensin, K., Chaitongrat, S., Vaiyavuth, R., Jermsittiparsert, K. (2021). The role of innovative ideas in business sustainability: Evidence from textile industry. Uncertain Supply Chain Management, 10(2022), 285-194. 10.5267/j.uscm.2021.8.011

Zaid, A., Jaaron, A., & Bon, A. (2018). The impact of green human resource management and green supply chain management practices on sustainable performance: An empirical study. Journal of Cleaner Production, 204, 965-979. https://doi.org/10.1016/j.jclepro.2018.09.062

Published

24-05-2022

How to Cite

Chaitongrat, S., & Areerakulkan, N. (2022). A causal relationship model of green logistics management and lean management affecting food and beverage industrial performance in Thailand. International Journal of Health Sciences, 6(S5), 418–432. https://doi.org/10.53730/ijhs.v6nS5.7839

Issue

Section

Peer Review Articles