An empirical study of the implementation of green supply chain management practices in the electrical and electronic industry and their relation to organizational performances

*Corresponding Author Email: [email protected] Tel.: +886 8 8647367; Fax: +886 8 8647123 ABSTRACT: This study aims to investigate the green supply chain management practices likely to be adopted by the electrical and electronic industry in Taiwan, which is dominated by Original Equipment Manufacturing and Original Designing and Manufacturing manufacturers, after the European Union implementation of the Restriction of Hazardous Substances and Waste Electrical and Electronic Equipment directives. The relationship between green supply chain management practices and environmental performance, as well as financial performance, is studied. The approach of the present research includes a literature review, in depth interviews and questionnaire surveys. The companies in the electrical and electronic industry approved by the International Organization for Standardization 14001 certification in Taiwan before December 2004 were sampled for empirical study. The data were then analyzed using statistical package for the social sciences, and structural equation modelling was used as a path analysis model to verify the hypothetical construction of the study. The results indicate that the original equipment manufacturing and original designing and manufacturing manufacturers in Taiwan’s electrical and electronic industry have adopted green procurement and green manufacturing practices in response to the current wave of international green issues and have generated favorable environmental and financial performances for the respective companies.