Research on the Impacting Mechanism and the Context of Supply Chain Integration on Green Innovation: Lessons for the CEOs of the Plastic Industry
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With an anticipated moderate growth rate of the Chinese plastics market, which accounted for 41.4% of the Aisa-Pacific market in 2023, the plastics market is expected to show a growing emphasis on sustainability and eco-friendly alternatives over 2023-2028, primarily due to environmental concerns. CEOs in Chinese plastic industries find it challenging to maintain a competitive advantage based solely on their own internal capabilities without responsiveness and adaptability to climate change as an extreme example of volatility, complexity, and uncertainty in firms’ environments. This is particularly true for the plastics industry, where both strengthening supply chain integration to reduce transaction costs and improve supply efficiency and adapting to the dynamic enviornment with supply chain agility have become essentials for promoting green innovation among plastics enterprises. This study employs empirical analysis through a questionnaire survey for CEOs of the Chinese plastic industry involving 555 valid samples. The findings indicate a positive impact of supply chain integration on green innovation in the plastics industry, with quality management playing a significant mediating role in this process. Specifically, supplier integration fosters green innovation by optimizing process quality, while customer integration enhances green innovation by improving product quality. Furthermore, supply chain agility significantly moderates the relationship between supply chain integration and quality management. This research provides practical evidence for CEOs of the plastics industry to recognize the advantages of supply chain integration and supply chain agility to improve their green innovation performance, offering valuable references for enhancing the sustainable efficiency of corporate green innovation.
Abstract
With an anticipated moderate growth rate of the Chinese plastics market, which accounted for 41.4% of the Aisa-Pacific market in 2023, the plastics market is expected to show a growing emphasis on sustainability and eco-friendly alternatives over 2023-2028, primarily due to environmental concerns. CEOs in Chinese plastic industries find it challenging to maintain a competitive advantage based solely on their own internal capabilities without responsiveness and adaptability to climate change as an extreme example of volatility, complexity, and uncertainty in firms’ environments. This is particularly true for the plastics industry, where both strengthening supply chain integration to reduce transaction costs and improve supply efficiency and adapting to the dynamic enviornment with supply chain agility have become essentials for promoting green innovation among plastics enterprises. This study employs empirical analysis through a questionnaire survey for CEOs of the Chinese plastic industry involving 555 valid samples. The findings indicate a positive impact of supply chain integration on green innovation in the plastics industry, with quality management playing a significant mediating role in this process. Specifically, supplier integration fosters green innovation by optimizing process quality, while customer integration enhances green innovation by improving product quality. Furthermore, supply chain agility significantly moderates the relationship between supply chain integration and quality management. This research provides practical evidence for CEOs of the plastics industry to recognize the advantages of supply chain integration and supply chain agility to improve their green innovation performance, offering valuable references for enhancing the sustainable efficiency of corporate green innovation.