Quality management, environmental management maturity,

green supply chain practices and green performance of Brazilian

companies with ISO 14001 certication: Direct and indirect
effects
Ana Beatriz Lopes de Sousa Jabbour
a,1
, Charbel Jose Chiappetta Jabbour
a,
, Hengky Latan
b
,
Adriano Alves Teixeira
c
, Jorge Henrique Caldeira de Oliveira
c
a
UNESP Univ Estadual Paulista (Sao Paulo State Univ), Av. Eng. Luiz Edmundo Carrijo Coube, 14-01, Vargem Limpa, Bauru, SP CEP 17033360, Brazil
b
University of Pattimura, Economic and Accounting Department, Indonesia
c
USP Faculdade de Economia, Administrao e Contabilidade de Ribeiro Preto, Av. Bandeirantes, 3900, Monte Alegre, Ribeiro Preto CEP 14033390, Brazil
a r t i c l e i n f o
Article history:
Received 26 September 2013
Received in revised form 22 February 2014
Accepted 9 March 2014
Keywords:
Green supply chain practices
Environmental management
Quality management
Green performance
Sustainable operations
Brazil
a b s t r a c t
This study aims to test a new conceptual model based on the relationship between quality
management (QM), environmental management maturity (EMM), adoption of external
practices of green supply chain management (GSCM) (green purchasing and collaboration
with customers) and green performance (GP) with data from 95 Brazilian rms with ISO
14001. To our knowledge, such links and relationships are not simultaneously identied
and tested in the literature. The results indicate the validation of all of the research hypoth-
eses. This paper highlights that an improvement in green performance will require atten-
tion to quality management, environmental management maturity, and green supply
chain.
2014 Elsevier Ltd. All rights reserved.
1. Introduction
In a recent survey, approximately 70% of business leaders said that sustainability has a permanent place in their
management agendas, but the success of this process depends on collaborations established between supply chain rms
(Kiron et al., 2012). In this context, the concept of green supply chain management (GSCM) has grown in importance because
it contributes in the transition towards eco-efciency (Govindan et al., 2014) and sustainability (Yusuf et al., 2013; Zhu et al.,
2013b) and also to the future of operations management (Gunasekaran and Ngai, 2012; Diabat and Govindan, 2011).
As a consequence of the concept of extended producer responsibility (EPR) (Sheu and Talley, 2011), GSCM can be dened
as the coordination of the supply chain in a form that integrates environmental concerns and considers inter-organizational
activities (Green et al., 2012). GSCM manages the acquisition, production and distribution of materials to meet the
http://dx.doi.org/10.1016/j.tre.2014.03.005
1366-5545/ 2014 Elsevier Ltd. All rights reserved.

Corresponding author. Tel./fax: +55 14 31036122.

E-mail addresses: abjabbour@feb.unesp.br (A.B.L.S. Jabbour), prof.charbel@gmail.com (C.J.C. Jabbour), hengkylatan@yahoo.com (H. Latan), aatadrianobirigui@
gmail.com (A.A. Teixeira), jorgecaldeira@usp.br (J.H.C. de Oliveira).
1
Tel./fax: +55 14 31036122.
Transportation Research Part E 67 (2014) 3951
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requirements of stakeholders to improve protability, competitiveness and the resilience of organization in the short and
medium terms through improved green performance (Ahi and Searcy, 2013). GSCM practices that involve every tier in
the greening of a supply chain are often called external GSCM practices (Zhu et al., 2007a).
The literature argues that in general, the adoption of GSCM practices tends to affect not only the companys green per-
formance (Zhu et al., 2007b, 2013b) but also supply chain performance too (Azevedo et al., 2011). However, with regard
to external GSCM practices, such ndings may not appear conclusive because both supporting (Zhu et al., 2007a; Green
et al., 2012) and contradictory results (Zailani et al., 2012) can be found. Another relevant nding, according to Zhu et al.
(2012a), is that it is desirable for companies improve their EMM before they improve green management performance
through external GSCM practices. Hence the maturity level of environmental management may have implications for the
adoption of GSCM practices. Certainly, one way to improve the EMM in companies is through the early adoption of quality
management (QM) principles (Pereira-Moliner et al., 2012; Llanch et al., 2013; Zhu et al., 2013a).
However, the literature lacks an adequate analysis of the relationship between QM, the environmental management
maturity (EMM), external GSCM practices and the environmental performance of rms (GP).
Additionally, two relevant variables may inuence this relationship: the national context and rm size. Seuring and
Gold (2013) note that there are few studies on developing countries within the theme of sustainability in supply chains.
Thus, analyzing Brazilian companies may be important, particularly because Brazil is part of the BRIC group (Brazil, Russia,
India and China) and corresponds to approximately 30% of GDP in Latin America. In addition, Brazil is among the 10 larg-
est world economies (Jabbour and Jabbour, 2014). The importance of rm size has also been highlighted by several
authors as a variable that can inuence the green performance of organizations (Gonzlez-Benito and Gonzlez-Benito,
2006).
From the above, the questions that we seek to answer in this study are as follows: Does quality management (QM) inu-
ence environmental management maturity (EMM)? Does EMM inuence the adoption of external green supply chain man-
agement (GSCM) practices? Do external GSCM practices inuence the green performance of these rms (GP)? Does EMM
mediate the relationship between QM and GSCM? Does GSCM mediate the inuences of EMM and GP? Are these relation-
ships valid for the companies in Brazil with ISO 14001 certication?
Thus, the aim of this research is to answer the questions above. To this end, we present the results of a survey of 95 Bra-
zilian companies with ISO 14001 certication and test these data using a conceptual model that incorporates 9 research
hypotheses. The value of this analysis derives from the following: (a) the literature on organizational sustainability, as far
as the authors of this article know, still presents no simultaneous testing of the identied relationships, (b) the reality of
developing countries, with the exception of China, is still poorly analyzed. Thus, to our knowledge, these are the rst research
ndings that combine the concepts of QM, EMM, GSCM and GP based on the Brazilian context.
This paper is structured as follows: Section 2 presents the literature review and the research hypotheses; Section 3 pre-
sents the research methodology; Section 4 presents the results; Section 5 presents the discussion and, nally, Section 6 pre-
sents the conclusions of this paper.
2. Theory and hypothesis development
2.1. Quality management (QM) and environmental management
In the 1980s, Western companies began to import a series of concepts, tools and Asian techniques to improve processes
and, subsequently, competitiveness through QM (Lo et al., 2013). Just as QM had its greatest development in companies dur-
ing the 1980s and 1990s, environmental management, a set of initiatives to mitigate the impact of organizations operations
on the environment (Bansal and Roth, 2000), intensied in the 1990s. According to Lubin and Esty (2010), the concept of
environmental sustainability has changed the way in which companies conduct their business, and it appears to have fol-
lowed a trajectory similar to that of QM.
Furthermore, the specialized literature (Narasimhan and Schoenherr, 2012; Pereira-Moliner et al., 2012) notes that there
are numerous similarities between QM and environmental practices, such as zero defects, life cycle assessment, waste reduc-
tion, and the involvement and training of employees and senior management (Sroufe and Curkovic, 2008).
In this sense, some studies suggest that QM practices such as ISO 9001 and other certication programs and supplier total
quality management (TQM) can facilitate or accelerate the implementation of environmental practices as well as increasing
their effectiveness (Wiengarten and Pagell, 2012; Pereira-Moliner et al., 2012; Llanch et al., 2013). Indeed, Wiengarten and
Pagell (2012) found empirical evidence that companies improve their performance in terms of cost, exibility and delivery
performance when environmental management practices exist due to high investments in QM practices.
Further, Pereira-Moliner et al. (2012) examined hotels in Spain, Llanch et al. (2013) investigated 374 restaurant managers,
and Zhu et al. (2013a) studied manufacturing companies in China. All these studies observed that QM practices facilitate the
development of environmental management practices, which in turn have a positive impact on quality management prac-
tices, producing knowledge that is acquired that then facilitates the adoption of environmental practices in a synergistic way.
In other words, it is possible to favor the implementation of environmental practices by taking advantage of the resources
and capabilities developed for QM.
40 A.B.L.S. Jabbour et al. / Transportation Research Part E 67 (2014) 3951
Pereira-Moliner et al. (2012) emphasize that companies can use QM approaches to develop a comprehensive system for
reducing and eliminating all waste streams associated with the design, manufacture, use and/or disposal of products and
materials, thus improving the EMM of rms. From the above, we derive the rst hypothesis:
H
1
. QM positively inuences the environmental management maturity in rms.
2.2. The environmental management maturity (EMM) and external GSCM practices
Environmental management is a set of initiatives that seek to mitigate the impact of an organizations activities on the
environment (Haden et al., 2009). Organizations can reduce their environmental impact through products, processes and
policies that reduce energy consumption and waste generation, and which promote the use of resources that are both
environmentally friendly and sustainable and which employ Environmental Management Systems too (Bansal and Roth,
2000). According to Kolk and Mauser (2002), due to the complexity and diversity of environmental management practices
and because of the different attitudes with which companies face the challenges of environmental problems (Tomomi, 2010),
an increasing number of business leaders and scholars have been characterizing companies in terms of their environmental
actions (Aragn-Correa and Rubio-Lpez, 2007).
The different environmental conscience of industrial businesses can be positioned along their environmental maturity
level (Murillo-Luna et al., 2011), which varies according to the viewpoint of authors. According to Jabbour and Jabbour
(2009), Jabbour (2010) and Teixeira et al. (2012), companies can be positioned in one of the three following environmental
management maturity levels:
Reactive Stage of Environmental Management companies at this stage are concerned about the cost of failure to comply
with environmental legislation, so the focus is on the end of the process, for example, the use of lters in chimneys and
the correct disposal of waste. Therefore, environmental management does not take place within the production process
with the intent of performing some type of structural change.
Preventive Stage of Environmental Management companies at this stage avoid/minimize the generation of waste or the
overuse of inputs. Therefore, the focus is on the pursuit of eco-efciency. Environmental management begins to have a
role in the companys organizational structure.
Proactive Stage of Environmental Management companies at this stage consider aspects of environmental management
as a strategy for the companys competitive advantage. The objective of environmental management is to make consid-
erable changes in the processes and/or products. At this stage, companies have actions with the support of suppliers and
customers.
The discussion of environmental management cannot be restricted to the organization, as the entire organization inu-
ences and is inuenced by the supply chain (Seuring and Gold, 2013). Thus, organizations have interdependencies because
they engage in material and information ows, from the supplier of raw materials to the nal customer (Mentzer et al.,
2001), adding value to the product at each tier in the supply chain (Tan, 2001). This broader supply chain perspective is rel-
evant for the transition towards sustainability, and it is termed green supply chain management (GSCM). According to
Srivastava (2007), GSCM is dened as the integration of environmental thinking into the management of the supply chain,
including product design, procurement and material selection and product delivery to the end customer as well as managing
the life cycle of the products after-life. Sarkis et al. (2011) dene GSCM as the integration of environmental management
into the inter-organizational practices of the supply chain, including reverse logistics.
Zhu et al. (2008) suggest several GSCM practices and highlight two in particular: green purchasing and cooperation with
customers. Green purchases are related to aspects of cooperation with suppliers to achieve environmental objectives and the
valuation of suppliers based on audits and ISO 14001 certication. Cooperation with customers considers customer
collaboration for eco design, cleaner production and green packaging.
The literature suggests that external GSCM practices have been less frequently adopted than internal environmental
practices (Zhu and Sarkis, 2004, 2006; Zhu et al., 2007a,b, 2008, 2012b; Holt and Ghobadian, 2009; Liu et al., 2012), and
also indicates that these external GSCM practices are fundamental to the pursuit of more sustainable organizations. For
example, Yang et al. (2013) conrm that internal green practices and external green collaboration have positive impacts
on green performance. Advanced environmental management tends to coincide with the adoption of external GSCM
practices.
De Giovanni and Vinzi (2012) claim that being a green company internally is a prerequisite for collaboration in GSCM.
According to Green et al. (2012), achieving a certain level of environmental management is a prerequisite for external GSCM
actions. Here, Zhu et al. (2012a) argue that to improve environmental performance by making use of external GSCM
practices, it is desirable for the company to rst implement internal environmental management practices, and Zhu et al.
(2013b) indicate that, due to institutional pressures, Chinese companies adopt internal environmental management
practices followed by external GSCM. According to Darnall et al. (2008), previous experience with an internal
environmental management system can favor the adoption of GSCM practices. Consequently, according to Testa and
Iraldo (2010), GSCM is a result of the maturing of environmental management. From the above, we derive the following
two hypotheses:
A.B.L.S. Jabbour et al. / Transportation Research Part E 67 (2014) 3951 41
H2a. The environmental management maturity (EMM) inuences the adoption of external GSCM practices such as
cooperation with customers.
H2b. The environmental management maturity (EMM) inuences the adoption of external GSCM practices such as green
purchasing.
2.3. External GSCM practices and the green performance (GP) of rms
According to Hervani et al. (2005), green performance (GP) indicators are essential requirements for GSCM. Zhu et al.
(2008) conducted an empirical study of Chinese companies and proposed a method for evaluating green performance in
organizations using: pollution emission/waste; environmental legislation adequacy; environmental reputation, overall envi-
ronmental performance.
Zhu and Sarkis (2004) emphasize that external GSCM practices have a direct and positive impact on green performance,
while Perotti et al. (2012), De Giovanni (2012) and Zhu et al. (2012a) argue that to improve green performance through the
adoption of external GSCM practices, it is desirable for the company to rst establish a high level of EMM. According to De
Giovanni and Vinzi (2012), the relationship between external GSCM practices and green performance needs to be strength-
ened. In general, the literature appears to highlight the ndings by Zhu et al. (2007b) and Zhu et al. (2013b) that the adoption
of GSCM practices improves green performance.
Green et al. (2012) indicate that among external GSCM practices, green purchasing does not have as signicant impact on
green performance as the practice of cooperation with customers, a nding which was conrmed by Zhu et al. (2007a), in their
research on Chinese automotive companies. However, Zailani et al. (2012), in their study of Malaysian companies, found that
green purchasing has a positive effect on environmental performance, and Yang et al. (2013) suggest that GSCMhave positive
impacts on green performance too. Additional evidence from Jabbour et al. (2014) based on mixed methodology (survey and
case studies) suggests that GSCM is linked with EMM. From the above we develop the following two hypotheses:
H3a. The adoption of external GSCM practices such as cooperation with customers inuences the green performance (GP)
of rms.
H3b. The adoption of external GSCM practices such as green purchasing inuences the green performance (GP) of rms.
Additionally, as the literature asks if QM inuences EMM (Simon et al., 2013; Zhu et al., 2013a), and proposes that EMM in
turn can inuence the adoption of external GSCM practices (Jabbour et al., 2014), we derive two further hypothses:
H4a. EMM mediates the relationship between QM and the adoption of external GSCM such as cooperation with
customers.
H4b. EMM mediates the relationship between QM and the adoption of external GSCM practices such as green purchasing.
Nonetheless, as the literature also asks if external GSCM practices can improve the green performance of rms (Yang
et al., 2013) but see GSCM as also inuenced by EMM, then we derive the following two hypotheses also, that:
H5a. External GSCM practices such as cooperation with customers mediate the relationship between EMM and the green
performance of rms.
H5b. External GSCM practices such as green purchases mediate the relationship between EMMand the green performance
of rms.
2.4. Firm size as a control variable of green performance (GP)
In general, the size of the rm is a control variable in statistical models. One measure of rm size is the number of com-
pany employees (Zhu et al., 2007a; Lpez-Gamero et al., 2010; Murillo-Luna et al., 2011). In Brazil, according to Sebrae
(2013), rms can be classied according to the number of employees into four groups: micro (119 employees), small
(2099 employees), medium (100499 employees) and large (500 or more employees).
Lpez-Gamero et al. (2010) found that company size is a relevant condition for achieving a proactive EMM, and Murillo-
Luna et al. (2011) also reached the conclusion that small rms face greater difculties than large enterprises when adopting
more advanced practices for environmental protection. Ribeiro et al. (2012) found that the degree of development of
environmental management practices is higher in large companies, while Gonzlez et al. (2008) note that the requirements
42 A.B.L.S. Jabbour et al. / Transportation Research Part E 67 (2014) 3951
from companies for their suppliers related to environmental issues increase with organization size, and Gonzlez-Benito and
Gonzlez-Benito (2006) highlight the role of rm size in greater environmental maturity.
Concerning the adoption of GSCM practices, size also appears relevant. Here, Zhu and Sarkis (2004) found that large rms
are more likely to have robust GSCM practices than small businesses. Indeed, Zhu et al. (2008) emphasize that medium and
large rms are more advanced than most small companies with regards to GSCM practices and, in particular, with regards to
external GSCM practices. Moreover, Zhu et al. (2007a) note that rm size has a positive impact on a companys green
performance (GP) in the context of GSCM. Therefore, in our study, we consider rm size as a control variable of GP.
3. Research method
3.1. Methodological approach
Our study follows deductive logic, and is developed by means of gathering quantitative data via a survey instrument. A
survey is a research strategy in which experts in a particular subject are asked about their perception of relevant organiza-
tional aspects (Rungtusanatham et al., 2003). Surveys are found to allow for a connection between academia and reality
because they facilitate the testing of conceptual models using organizational data (Flynn et al., 1990).
3.2. Conceptual model and measurements
3.2.1. Conceptual model
Based on our literature reviewand the direct hypotheses we detailed above H
1
, H
2A
, H
2B
, H
3A
, and H
3B
, and our hypotheses
regarding indirect and mediated relationships in H
4A
, H
4B
, and H
5A
H
5B
, (as state in Section 2), Fig. 1 outlines the conceptual
model that we empirically test in this study.
In our model, QM is an important green antecedent (Simon et al., 2013) in rms EMM (Zhu et al., 2013a), that in turn
inuences: the adoption of the external practices of GSCM (green purchasing; cooperation with customers); company GP
(Yang et al., 2013), which is controlled by the size of the rm as suggested by Zhu and Sarkis (2004).
Furthermore, it is expected that EMM has a mediating effect on the relationship between QM practices and external
GSCM, and likewise, external GSCM practices are expected to present a mediating effect on the relationship between
EMM and the green performance (GP) of rms. We now detail how each latent variable in the conceptual model was
measured as follows.
3.2.2. The measurement of quality management (QM)
Several studies have tested the effect of QM practices on business performance (e.g., Kaynak, 2003). In our study, QM is
measured using three items: ISO 9001; the certication of suppliers based on quality criteria; and TQM. Each of these
practices was measured using a 5-point Likert scale with a range of between 1 (minimum degree of implementation) and
5 (maximum degree of implementation).
3.2.3. Measuring the environmental management maturity (EMM)
Regarding the maturity level of the environmental management (EMM) construct, procedures similar to those adopted by
Murillo-Luna et al. (2011) where used, i.e. the relationship between the maturity level of environmental management and
Quality
management
Environmental
management
Level
Green
Purchasing
(External Green
Supply Chain
Management
practice)
Green
Performance
Firm Size
Collaboration
with Costumers
(External
Green Supply
Chain
Management
practice)
H
1
H
2A
H
2B
H
3A
H
3B
H
4A
H
4B
H
5A
H
5B
Direct effect
Indirect effect
Fig. 1. Conceptual model used in the research, with direct and indirect relationships.
A.B.L.S. Jabbour et al. / Transportation Research Part E 67 (2014) 3951 43
barriers to environmental adjustment. Thus, the maturity levels of environmental management considered in this study
were: (1) reactive; (2) preventive; and (3) pro-active. The levels that comprise the maturity level of environmental manage-
ment were entered in the questionnaire as per the denition presented for each stage in Section 2.2 above. Questionnaire
respondents were able to choose only one of the three levels to position their company in the environmental management
scale, meaning a 3-point scale was used to convert the maturity levels of environmental management in this study.
3.2.4. The Measurement of external GSCM practices collaboration with customers (CC_GSCM) and green purchasing (GP_GSCM)
In this study, we consider two types of external GSCM practices based on Zhu et al. (2007a). The rst relates to the prac-
tice of green purchasing (GP_GSCM), measured by the following items: cooperation with the suppliers to achieve the goals of
environmental management; the delivery of environmental guidelines to suppliers for each product to be purchased; the
selection of suppliers based on ISO 14001; the evaluation of environmental management of the second-tier suppliers; and
environmental audits of supplier rms.
Cooperation with customers (CC_GSCM) was also measured according to the following items of Zhu et al. (2007a),
namely: cooperation with customers for cleaner production; cooperation with the customers to develop ecologically sound
packaging; and cooperation with the customers for eco-design. Each of these practices was measured using a 5-point Likert
scale ranging between 1 (minimum degree of implementation) and 5 (maximum degree of implementation).
3.2.5. Measurement of green performance (GP)
Green performance was measured according to the work of Zhu et al. (2008), and based on their four items: the emission
of pollution/waste; compliance with environmental legislation; company environmental reputation; and company overall
environmental performance. Each of these items was measured using a 5-point Likert scale ranging between 1 (maximum
deterioration) and 5 (maximum improvement).
3.2.6. Firm size as a control variable
The size of the rm was measured using four categories: micro, small, medium-sized or large companies. We used the
Brazilian classication of rm size, which is based on the number of company employees (Sebrae, 2013), as detailed earlier.
3.3. Population, sample and data collection
Based on the work of Synodinos (2003), an instrument was developed to collect data using an online questionnaire,
located in a virtual environment, which housed the items used to measure each of the key concepts in this research, which
are documented in Appendix A. The web link for our questionnaire was sent by email to the Environmental Managers of Bra-
zilian companies with ISO 14001 certication.
The contact information for these environmental managers was collected using the database on ISO 14001 environmental
certication hosted by Inmetro and using additional contacts possessed by the research team. Altogether, about 330 envi-
ronmental managers were contacted by e-mail. Additionally, after sending the original invitation requesting that the partic-
ipants complete the survey, the research team also sent three additional email reminders. Finally, the research team initiated
a more personalized approach by telephoning the target respondents. At the end of this process, which lasted between 2012
and 2013, we obtained 95 valid and correctly completed questionnaires, corresponding to a 28.78% rate of return. This rate of
return is superior to those usually obtained in studies of the survey type (Synodinos, 2003) and also higher than the rate of
return observed in recent studies in the area of environmental management (Murillo-Luna et al., 2011; Pereira-Moliner et al.,
2012). In absolute terms, the number of questionnaires obtained is adequate compared to other research in the environmen-
tal eld (Wolf, 2013; Delmas, 2001).
To verify the adequacy of the sample obtained, that is, whether 95 questionnaires would be sufcient, the research team
utilized the software G*Power 3 (Faul et al., 2007), which, based on the search parameters to be performed, calculates the
minimum sample required so that the sample size does not affect the statistical signicance of the tests. After processing
the data using G*Power 3, it was concluded that the minimum sample required for the validity of the research would be
about 90 questionnaires. Thus, our 95 fully completed questionnaires not only complies with, but also slightly improves
upon, the minimum required number of questionnaires detailed by G*Power 3.
3.4. Data analysis
The hypotheses of this conceptual model were tested based on empirical data by means of structural equation modeling
using partial least squares (PLS) with the support of the software Smart PLS 2.0 M3 (Ringle et al., 2005). Structural equation
modeling is a second-generation multivariate statistical analysis that has been gaining attention in the areas of both envi-
ronmental management (Murillo-Luna et al., 2011; Pereira-Moliner et al., 2012) and operations management (Peng and Lai,
2012). The test of our conceptual model involves obtaining a measurement model (outer model) and a structural model
(inner model).
We chose to adopt the perspective of reective indicators, which is the dominant perspective in the eld of operations
management studies (Large and Thomsen, 2011). As such, nine hypotheses were tested in this study, including direct and
44 A.B.L.S. Jabbour et al. / Transportation Research Part E 67 (2014) 3951
mediated relationships. In our conceptual model, there are constructs/variables (QM, EMM, CC_GSCM, GP_GSCM, GP), each
consisting of measuring items (assertive). We applied the following cut-off values during the data analysis:
AVE higher than 0.5 (Hair et al., 2011; Latan and Ghozali, 2012).
Composite reliability higher than 0.7 (Hair et al., 2011; Latan and Ghozali, 2012).
Square root of AVE higher than correlation among construct (Latan and Ghozali, 2012).
Cronbachs alpha higher than 0.6 (Hair et al., 2011; Latan and Ghozali, 2012).
Communality higher than 0.6 (Latan and Ghozali, 2012).
Redundancy higher than zero (Latan and Ghozali, 2012).
R
2
small = 0.02; R
2
medium = 0.13; R
2
large = 0.26 (Cohen, 1992).
The t test values near 1.65, 1.96 and 2.58 will be considered with signicance levels of 10%, 5% and 1%, respectively (Latan
and Ghozali, 2012; Hair et al., 2011).
GoF calculation was obtained multiplying the Square root of AVE by average of R
2
(where AVE = 0.5; R
2
small = 0.02; R
2
medium = 0.13; R
2
large = 0.26), thus, GoF small, medium and large = 0.10, 0.25 and 0.36 (Latan and Ghozali, 2012;
Wetzels et al., 2009).
AVE, communality, and square root AVE were used to measure validity. Next, Cronbach alpha and composite reliability
were used to measure reliability. Redundancy and R-square were used to measure the explained variance (dependent/
endogenous constructs). The t-statistic was adopted for test hypotheses, and GoF was used as goodness of t model
indicator.
4. Results
All items for the latent variables that were considered in the conceptual model of this research showed good levels of
statistical quality, and therefore no item had to be discarded in the analyses. With help from the SmartPLS 2.0 M3 software
(Ringle et al., 2005), the measures for the model were obtained. The main statistical indicators showed satisfactory values
that were above the minimum levels of reference. For all latent variables, the AVE obtained values above 0.619; the compos-
ite reliability showed values above 0.836; the Cronbachs alpha obtained a minimum value of 0.768; the minimum common-
ality was 0.619; and the redundancy was also adequate (Table 1).
In addition to the indicators of statistical quality, the discriminant and convergent validity of the latent variables were
also checked. The discriminant validity was obtained by comparing the square roots of the average variance extracted
and the paths between the latent variables. The values for the square roots of average variance extracted on the diagonal
shown in bold demonstrate that they are acceptable (Table 2).
The convergent validity was analyzed to verify whether the measuring items for the latent variables have, in fact, their
highest loads in their original concepts; in other words, do the items have higher loads for the concepts that they belong to.
This test showed adequate results (Table 3).
To ensure that these positive relationships are, in fact, statistically signicant, we applied a bootstrapping technique
(2000 sub-samples). Here we nd that all such values are positive, and statistically signicant, as shown in Fig. 2.
R-squares for all dependent variables went from small to large. The tested models have predictive relevance because
the Q
2
result is larger than 0. There is no collinearity problem among predictor variables with VIF values for all <3.3. In
the model tested, based on the observed R
2
, it is clear that the determining power of QM in EMM can be considered to be
small (Cohen, 1992); the determining power of EMM is higher for the GSCM practice of green purchasing (GP_GSCM)
and lower for collaboration with customers (CC_GSCM); these GSCM practices together have a large effect in determining
green performance (GP) as detailed in Table 4.
Furthermore, the validity of the mediating effects between the latent variables has been veried (Table 5).
Thus, in our study EMM plays a mediating role in the relationship between QM practices and external GSCM, while exter-
nal GSCM practices exert a mediating effect on the relationship between the EMM and GP of rms, as illustrated in Fig. 3.
Thus, all of the 9 hypotheses in our study can be considered to be valid for our sample as detailed in Table 6. With regards
to the control variable of rm size, our results illustrate that the size of rms in our sample has a signicant inuence on the
degree of GP they exhibit.
Table 1
Outer model/measurement model result.
Latent variables AVE Composite reliability Cronbachs alpha Commonality Redundancy
CC_GSCM 0.7532 0.9015 0.8391 0.7532 0.0627
EMM 1.0000 1.0000 1.0000 1.0000 0.0222
GP_GSCM 0.6192 0.8897 0.8449 0.6192 0.0986
GP 0.7253 0.9134 0.8743 0.7253 0.1024
QM 0.6339 0.8366 0.7688 0.6339 0.0000
A.B.L.S. Jabbour et al. / Transportation Research Part E 67 (2014) 3951 45
Table 2
Discriminant validity.
Latent Variables CC_GSCM EMM GP_GSCM GP QM
CC_GSCM 0.867871 0.0000 0.0000 0.0000 0.0000
EMM 0.2934 1.000 0.0000 0.0000 0.0000
GP_GSCM 0.5524 0.4043 0.786893 0.0000 0.0000
GP 0.3999 0.3200 0.4058 0.851645 0.0000
QM 0.1838 0.1490 0.2283 0.0318 0.796178
Note: Square roots of average variance extracted shown on diagonal (bold).
Table 3
Convergent validity (cross loadings).
Indicators CC_GSCM EMM GP_GSCM GP QM
CC_GSCM1 0.8808 0.3031 0.5929 0.4077 0.1354
CC_GSCM2 0.8574 0.2115 0.4328 0.3587 0.1952
CC_GSCM3 0.8652 0.2354 0.3671 0.2421 0.1526
EMM 0.2934 1.0000 0.4043 0.3200 0.1490
GP1 0.3758 0.2649 0.3416 0.8291 0.0138
GP2 0.2713 0.2104 0.3104 0.8172 0.0127
GP3 0.3929 0.3226 0.4034 0.8756 0.0411
GP4 0.2967 0.2755 0.3085 0.8827 0.0378
GP_GSCM1 0.3937 0.3228 0.8013 0.3659 0.2270
GP_GSCM2 0.5063 0.3726 0.8776 0.3471 0.1209
GP_GSCM3 0.5027 0.3455 0.8288 0.3142 0.2412
GP_GSCM4 0.4439 0.1916 0.7074 0.2606 0.1633
GP_GSCM5 0.3320 0.3235 0.7046 0.2941 0.1476
QM1 0.0668 0.0170 0.0169 0.0771 0.6813
QM2 0.2247 0.1563 0.2484 0.0312 0.9111
QM3 0.0619 0.0978 0.1375 0.1112 0.7794
Note: Bold applied to values higher than 0.6.
Quality
Management
Environmental
Management
Level
Green
Purchasing
(External Green
Supply Chain
Management
Practice)
Green
Performance
Firm Size
Collaboration
with Customers
(External
Green Supply
Chain
Management
Practice)
*
**
**
*
**
Fig. 2. Structural model direct inuences. Note:

for p 6 0.05;

for p 6 0.01.
Table 4
Inner model/structural model result.
Latent variables R-square Effect size Q
2
predictive relevance GoF absolute VIF
CC_GSCM 0.0861 0.072894 0.874 0.927106
EMM 0.0222 0.1634/0.0861 0.045 0.8366
Firm size 0.0679 0.9321
GP_GSCM 0.1634 0.06304 0.171 0.93696
GP 0.2592 0.262 0.323523
QM 0.0222 0.9778
46 A.B.L.S. Jabbour et al. / Transportation Research Part E 67 (2014) 3951
GoF (Goodness of Fit Statistics), which measures the overall statistical tness of the model tested, has an effect near to
large (0.3235) for our study, meaning our proposed and tested model can be considered valid.
5. Discussion
Based on the fact that GSCM is a important subject (Sheu and Talley, 2011; Yang et al., 2013; Govindan et al., 2014), our
study explores a new model to determine whether quality management (QM), environmental management maturity (EMM),
and the adoption of external GSCM practices inuence the green performance (GP) of 95 Brazilian companies with ISO 14001
certication. All of the direct relationships proposed in our conceptual model of this research were validated statistically.
Thus the results we obtained are supported by the literature and highlight that QM appears to be an important antecedent
for the EMM in rms (Zhu et al., 2013a; Llanch et al., 2013; Pereira-Moliner et al., 2012). The EMM in rms also seems
Table 5
Path coefcients.
Relationship Sample mean (M) Standard error (STERR) T statistics (|O/STERR|) Sig. direct effect Sig. indirect effect
CC_GSCM?GP 0.2776 0.1051 2.6503 Yes
EMM?CC_GSCM 0.2959 0.0972 3.0175 Yes
EMM?GP_GSCM 0.4102 0.0824 4.9059 Yes
GP_GSCM?GP 0.2743 0.1157 2.2709 Yes
QM?EMM 0.2072 0.0757 1.989 Yes
EMM?GP_GSCM?GP 38.70153 Yes
EMM?CC_GSCM?GP 45.71777 Yes
QM?EMM?GP_GSCM 53.50966 Yes
QM?EMM?CC_GSCM 57.75888 Yes
Quality
Management
Environmental
Management
Level
Green
Purchasing
(External Green
Supply Chain
Management
Practice)
Green
Performance
Collaboration
with Customers
(External
Green Supply
Chain
Management
Practice)
**
**
**
**
Fig. 3. Structural model indirect/mediating effects. Note:

for p 6 0:05;

for p 6 0:01.
Table 6
Overview of the hypotheses test.
Hypotheses Result
H
1
QM inuences the environmental management maturity of rms Accept
H
2a
The environmental management maturity inuences the adoption of external GSCM practices such as cooperation with customers. Accept
H
2b
The environmental management maturity inuences the adoption of external GSCM practices such as green purchasing. Accept
H
3a
The adoption of external GSCM practices such as cooperation with customers inuences the environmental performance of rms Accept
H
3b
The adoption of external GSCM practices such as green purchasing inuences the environmental performance of rms Accept
H
4a
EMM mediates the relationship between QM and the adoption of external GSCM such as cooperation with customers. Accept
H
4b
EMM mediates the relationship between QM and the adoption of external GSCM practices such as green purchasing Accept
H
5a
External GSCM practices such as cooperation with customers mediate the relationship between EMM and the environmental
performance of rms
Accept
H
5a
External GSCM practices such as green purchases mediate the relationship between EMM and the environmental performance of
rms
Accept
A.B.L.S. Jabbour et al. / Transportation Research Part E 67 (2014) 3951 47
relevant in the adoption of external GSCM practices, especially for green purchasing (De Giovanni and Vinzi, 2012; Green
et al., 2012). In turn, GSCM practices may also inuence the green performance of rms (Zhu and Sarkis, 2004; Zhu et al.,
2007b, 2013b), which is also controlled by the size of the rm (Gonzlez-Benito and Gonzlez-Benito, 2006; Murillo-Luna
et al., 2011).
To our knowledge, a conceptual model of this nature has not been tested before considering the workings of Brazilian
companies with ISO 14001-certication. Furthermore, it was found that QM inuences GSCM practices when mediated by
EMM, and additionally, the level of EMM indirectly inuences green performance when mediated by the adoption of GSCM
practices.
In general, our model showed an acceptable level of statistical adjustment (GoF), demonstrating that the conceptually
formulated interrelationships are also relevant to organizational context. Our results extend the existing literature (Sheu
and Talley, 2011) using 9 hypotheses to test the relationships in it via a single model and in a developing country context,
Brazil, using a sample of ISO 14001-certied companies. These results reveal that environmental certication and rm size
can provide a favorable context for positive green scenarios in organizations.
This paper contributes to the relevant literature as it highlights that an improvement in Green Performance may require
attention to quality management, evolution of environmental management, and green supply chain management too. In the
context of GSCM, our study reveals that green purchasing perhaps deserves more attention than cooperation with customers,
ndings which may also be useful to managers pursuing sustainability initiatives.
6. Conclusions
The objective of our study was to determine whether quality management (QM), environmental management maturity
(EMM), and the adoption of external GSCM practices inuence the green performance (GP) of identied Brazilian companies
with ISO 14001 certication. Our testing of these relationships present an extension of the literature on this subject in that,
to date, they have not been tested simultaneously using, testing and conrming a conceptual model which uses both direct
and mediated relationships in the Brazilian context.
Our primary results determine that our hypotheses were valid. Thus, QM is an important antecedent for a rms EMM,
which in turn inuences the adoption of external GSCM practices that inuence green performance, the latter being also con-
trolled by the size of rms. Moreover, it was found that indirectly, the level of EMM mediates the relationship between QM
and the adoption of GSCM practices. In turn, GSCM practices mediate the relationship between the level of EMM and the
green performance of rms. These results not only conrm several arguments made by the literature in this eld but also
present empirical evidence from Brazilian companies and draw attention to the importance of the mediating effects in
the research on organizational sustainability. Thus, the contributions of the paper to the literature are: (a) QM has been
an important antecedent for the EMM in rms (Zhu et al., 2013a; Llanch et al., 2013; Pereira-Moliner et al., 2012); (b) the
EMM in rms is also relevant in the adoption of external GSCM practices, especially for green purchasing (De Giovanni
and Vinzi, 2012; Green et al., 2012); (c) GSCM practices inuence the green performance of rms (Zhu and Sarkis, 2004;
Zhu et al., 2007b, 2013b).
This study like any other has limitations. The rst limitation relates to the sample size, which, although statistically
appropriate, does not represent all Brazilian business contexts. Additionally, there may be a bias in the results because all
of the included companies have ISO 14001 certication. Another limitation is that only one respondent per company com-
pleted the entire questionnaire. Finally, the study is limited because we analyzed the green performance of businesses, a lim-
itation which cannot fully meet the expectations of all practitioners, who may also be interested in other types of
organizational performance too, such as nancial, marketing and operational performance. The assessment of the EMM var-
iable also need a future improvement. We recommended that future research replicate the model tested herein and extend it
by changing the type of organizational performance under analysis too.
6.1. Implications for practitioners
For practitioners e.g. business leaders interested in improving the green performance of rms, our study raises some
implications that they might wish to consider. First, it may be important to begin the search for better green performance
by investing in QM and by improving the level of EMM. Only after these phases have been consolidated should there be
investment in external GSCM practices. Special attention should be given to the GSCM practices that involve collaboration
with customers, which has been shown to be less sensitive to EMM. Finally, leaders of smaller companies should be prepared
to face more challenges than larger companies.
For industrial development policymakers, it is suggested that technical/conceptual support should be provided so that
companies can adopt QM as a rst step towards organizational sustainability. However, this support should also continue
for companies so that they can advance with the step-by-step implementation of other environmental management prac-
tices and then GSCM to nally improve their green performance. The public sector should pay special attention to smaller
companies, given that the rm size variable tends to control green performance; meaning smaller companies may need
specic training and differentiated environmental investments.
48 A.B.L.S. Jabbour et al. / Transportation Research Part E 67 (2014) 3951
Appendix A. Sample - Concepts, measures and codes research questionnaire
Concept Assertive Items
Quality management (QM) ISO 9001 QM1
Certication of suppliers based on quality criteria QM2
Total quality management QM3
Environmental management maturity (EMM) Environmental management maturity level EMM1
Green supply chain management green
purchasing (GP_GSCM)
Selection of suppliers with ISO 14001 certication GP_GSCM1
Collaboration with suppliers to achieve the goals of
environmental management
GP_GSCM2
Delivery of environmental guidelines for each
purchased product to providers
GP_GSCM3
Assessment of the environmental management of
second-tier suppliers
GP_GSCM4
Performance of environmental audits of suppliers GP_GSCM5
Green supply chain management customers
collaboration (CC_GSCM)
Collaboration with customers for cleaner production CC_GSCM1
Collaboration with customers for the development of
ecological packaging
CC_GSCM2
Collaboration with customers for ecodesign CC_GSCM3
Green performance (GP) Pollution emission/waste GP1
Environmental management compliance GP2
Environmental reputation of the company GP3
Environmental performance of the company GP4
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