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View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Universiti Teknologi MARA Institutional Repository GREEN SUPPLY CHAIN MANAGEMENT AND COMPANY PERFORMANCE: A CASE OF LOGISTICS COMPANIES IN KEMAMAN GREEN SUPPLY CHAIN MANAGEMENT AND COMPANY PERFORMANCE: A CASE OF LOGISTICS COMPANIES IN KEMAMAN NUR ZARITH SOFEA BINTI MOHAMED 2010917749 A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF DEGREE OF THE BACHELOR IN BUSINESS ADMINISTRATION (HONS) OPERATIONS MANAGEMENT JANUARY 2013 NUR ZARITH SOFEA MOHAMED 2013 GREEN SUPPLY CHAIN MANAGEMENT AND COMPANY PERFORMANCE: A CASE OF LOGISTICS COMPANIES IN KEMAMAN DECLARATION OF ORIGINAL WORK BACHELOR OF BUSINESS ADMINISTRATION WITH (HONS) OPERATIONS MANAGEMENT FACULTY OF BUSINESS MANAGEMENT MARA UNIVERSITY OF TECHNOLOGY I, NUR ZARITH SOFEA MOHAMED, (I/C Number: 890131035578) Hereby, declare that:  This work has not previously been accepted in substance for any degree, locally or overseas, and is not being currently submitted for this degree or any other degrees.  This project paper is the result of my independent work and investigation, except where otherwise stated.  All verbatim extracts have been distinguished by quotation marks and sources of my information have been specifically acknowledged. Signature: ZARITH NUR ZARITH SOFEA MOHAMED 2013 Date: 14.01.2013 Page GREEN SUPPLY CHAIN MANAGEMENT AND COMPANY PERFORMANCE: A CASE OF LOGISTICS COMPANIES IN KEMAMAN TABLE OF CONTENT TABLE OF CONTENTS PAGE DECLARATION OF ORIGINAL WORK i LETTER OF TRANSMITTAL ii ACKNOWLEDGEMENT iii TABLE OF CONTENTS iv - vi LIST OF FIGURES AND TABLES vii ABSTRACT viii CHAPTER 1: INTRODUCTION 1.0 Introduction 1-3 1.1 Background of Company 4 1.2 Problem Statement 5-7 1.3 Research Objectives 7 1.4 Background and Scope of the Study 8 1.5 Significance of the Study 9 1.6 Limitation of the Study 10 1.7 Operational Definition 1.7.1 Supply Chain 11 1.7.2 Green Supply Chain Practices 11 1.7.3 Internal Environmental Management 11 1.7.4 Green Purchasing 11 1.7.5 Cooperation with Customers 11 1.7.6 Eco-Design 11 1.7.7 Warehouse and Green Building 12 1.7.8 Environmental Performance 12 1.7.9 Economic Performance 12 1.7.10 Operational Performance NUR ZARITH SOFEA MOHAMED 2013 12 Page GREEN SUPPLY CHAIN MANAGEMENT AND COMPANY PERFORMANCE: A CASE OF LOGISTICS COMPANIES IN KEMAMAN CHAPTER 2: LITERATURE REVIEW 2.0 Introduction 13 2.1 Green Supply Chain 14-15 2.2 Independent Variables 2.3 2.2.1 Internal Environmental Management 15-16 2.2.2 Green Purchasing 16 2.2.3 Cooperation with Customers 16-17 2.2.4 Eco-Design 17 2.2.5 Warehouse and Green Building 17-18 Dependent Variables 2.3.1 Environmental Performance 18 2.3.2 Economic Performance 19 2.3.3 Operational Performance 19-20 CHAPTER 3: RESEARCH METHODOLOGY 3.0 Introduction 22 3.1 Theoretical Framework 22 3.2 Hypothesis 23 3.3 Research Design 24 3.4 Sampling Design 3.5 3.4.1 Sampling Technique 24 3.4.2 Sample Population 24 3.4.3 Sampling Frame 24 3.4.4 Sampling Size 25 3.4.5 Unit of Analysis 25 Data Collection Method 25 3.5.1 25-26 Primary Data 3.6 Measurement of Variables 3.7 Research Instrument 3.7.1 3.8 Questionnaires Design 26 27 Procedure on Data Analysis 28 3.8.1 Factor Analysis 28 3.8.2 Reliability Test 28 NUR ZARITH SOFEA MOHAMED 2013 Page GREEN SUPPLY CHAIN MANAGEMENT AND COMPANY PERFORMANCE: A CASE OF LOGISTICS COMPANIES IN KEMAMAN The purpose of this study is to indicate the impact of green supply chain practice on company’s performance. There are five independent variables used in this study which are internal environmental management, green purchasing, cooperation with customers, eco-design and warehouse and green building. The objective of this study is to examine the relationship between all independent variables with company’s environmental, economic and operational performance, to identify the factors that influence company’s environmental, economic and operational performance the most and to evaluate whether there are differences in the average environmental, economic and operational performance of companies based on the type of environmental management system that they adopt. For this study, the researcher has collected questionnaires from logistics companies in Kemaman, Terengganu. In order to collect the questionnaires, researcher used convenience sampling technique where the researcher randomly picks the logistics companies in Kemaman including in Kemaman Supply Base (KSB) area as her respondents. Besides that, for testing the objectives of this study, researcher was used three method of SPSS data analysis which is Pearson Correlation Analysis, Multiple Regression Analysis and One-way ANOVA. From the findings, the result for first objectives shows there is a significant relationship between independent variables and dependent variables. For second objective, the result shows eco-design is the factor that influences company’s performance the most. For last objectives, is shows environmental management system only affected environmental performance. However, in order to complete this study, there are some limitations faced by researcher. The first limitation is in term of gaining accurate and correct information and second limitation is in term of sample size. For this study, there recommendation was given by researcher which is adding others variables, give more attention to eco design and have effective internal environmental management. Keywords: GSCM, GSC Practices, Environmental, Economic and Operational performance NUR ZARITH SOFEA MOHAMED 2013 Page