Supply Chain Management: An International Journal

Green supply chain management in food retailing: survey-based evidence in Croatia

Kristina Petljak, Katrin Zulauf, Ivana Štulec, Stefan Seuring, Ralf Wagner,
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Kristina Petljak, Katrin Zulauf, Ivana Štulec, Stefan Seuring, Ralf Wagner, (2018) "Green supply chain management in food
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 Green supply chain management in food
retailing: survey-based evidence in Croatia
Kristina Petljak
Department of Trade, Faculty of Economics and Business Zagreb, University of Zagreb, Zagreb, Croatia
Katrin Zulauf
Dialog Marketing Competence Center, University of Kassel, Kassel, Germany
Ivana Štulec
Department of Trade, Faculty of Economics and Business Zagreb, University of Zagreb, Zagreb, Croatia
Stefan Seuring
Chair of Supply Chain Management, University of Kassel, Kassel, Germany, and
Ralf Wagner
Dialog Marketing Competence Center, University of Kassel, Kassel, Germany

Abstract
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Purpose – Green supply chain management (GSCM) research is so far dominated by studies focusing on manufacturing companies, while research
on retailers is missing. The purpose of this study is to assess the interaction between green in-store activities (environment-related infrastructure and
retail in-store processes), GSCM and environmental and economic performance outcomes.
Design/methodology/approach – The paper builds on empirical evidence gathered from 190 responses by Croatian food retailers to a self-
administered survey. The identified relationships in the conceptual model are tested using partial least squares structural equation modeling.
Findings – The results reveal a positive relation between green in-store activities and GSCM in food retailing regarding environmental and
economic performance. The relevance of these relationships accrues from the positive association between GSCM and food retailers’ environmental
performance, which in turn drives economic performance. It is noteworthy that green supply chain practices drive environmental and then also
economic performance.
Research limitations/implications – The study extends the application of GSCM to retailing and, therefore, broadens its scope. However, the data
collected are based on one country and, thus, should be extended to assess the impact of green retailing practices in the supply chain on
environmental and economic performance in other countries.
Originality/value – This study, to the best of the authors’ knowledge, is the first empirical analysis on the relationship between green in-store
activities and GSCM in the context of food retail. This important link to customers has rarely been explored. Further, the representative sample of
food retailers in Croatia is unique as generally data from Central and Eastern European countries are still rare. Finally, the operationalization of
GSCM practices into three constructs as green logistics, green purchasing and cooperation with suppliers’ offers conceptual contributions to the
GSCM field.
Keywords Retailing, Croatia, Operational performance, Supply chain management, Food industry, Green supply chains
Paper type Research Paper

1. Introduction progress (for an overview, see Akkerman et al., 2010) and

documenting relevance. As evident from sectors listed in
Retailers have been identified as one of the most important related literature (Seuring and Müller, 2008; Ashby et al.,
actors who contribute to changes in consumer consumption 2012; Winter and Knemeyer, 2013; Wong et al., 2015; Darkow
patterns (Lehner, 2015). However, a majority of green supply et al., 2015), retailers and downstream distribution channels
chain management (GSCM) studies has examined samples of have been addressed less often in empirical research than other
manufacturing companies (Golicic and Smith, 2013; Liu et al.,
2016; Balasubramanian and Shukla, 2017). Notably,
operations research approaches have already been applied The authors would like to thank two anonymous reviewers for their
various times in retailing contexts achieving considerable valuable comments helping them improving the paper. They would like to
express their sincere gratitude to the Croatian Bureau of Statistics,
Croatian Chamber of Economy, Gfk Croatia, Nielsen Croatia and all food
The current issue and full text archive of this journal is available on retailers for their generous help and assistance during the data collection
Emerald Insight at: www.emeraldinsight.com/1359-8546.htm process.

Received 3 April 2017

Revised 4 September 2017
Supply Chain Management: An International Journal 20 November 2017
© Emerald Publishing Limited [ISSN 1359-8546] 7 December 2017
[DOI 10.1108/SCM-04-2017-0133] Accepted 7 December 2017
 Green supply chain management Supply Chain Management: An International Journal
Kristina Petljak et al.

members of the supply chain (SC). This is surprising given that thereby presenting a showcase for the implementation of the
retailers play an important role in the SC because they offer GSCM concept in the food retail industry.
customer contact and experience (Kolk et al., 2010). Research The remainder of this paper is organized as follows: In
concerning green retailing tends to focus on customer Section 2, the literature on green in-store processes, GSCM,
interactions (Lai et al., 2010; Lehner, 2015). Despite retailers’ sustainability and environmental initiatives in retailing is
importance in the SC (Ganesan et al., 2009), research on green reviewed. This allows us to design a structural model and to
and sustainability aspects in retailing remains an emerging formulate research hypotheses in Section 3. Next, we describe
domain (Erol et al., 2009; Kotzab et al., 2011; Chkanikova and the scales used to measure each construct of the structural
Mont, 2015; Wilson, 2015; Fuentes and Fredriksson, 2016). It model. In Section 4, we present details concerning the data
appears that the traditional measures of retailers’ competitive collected in the survey and the method of partial least squares
advantage (e.g. price, quality, service and store location) have structural equation modeling to test the proposed model.
been amended by the influence of retail activities on the Section 5 is reserved to relating the results regarding the model
environment and society (Wilson, 2015), which also impacts to the current knowledge in the field. Sections 6 and 7 conclude
consumers’ purchasing behavior (Kolk et al., 2010). In line with emphases on the main theoretical and managerial
with pressure placed on companies and their supply chains contributions as well as the limitations of the research and
(Mollenkopf et al., 2010; Wong et al., 2015), retailers are future research proposals.
expected to identify the environmental impact of their
processes (Chkanikova and Mont, 2015). 2. Literature review
In addition to environmentally responsible actions at the
Green retailing constitutes a well-elaborated stream of research
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store level, retailers must also take responsibility for processes

that explores a range of divergent aspects and issues, from retail
in the SCs (Jones et al., 2005; Kirchoff et al., 2016). This
sustainability challenges (Iles, 2007; Erol et al., 2009),
responsibility not only drives environmental awareness along
consumer’s perception of environmental retailing performance
the SCs but also leads to an improvement of SCs’
to sustainable consumer behavior (Ytterhus et al., 1999). A
environmental performance and sustainability in general
core aspect of research on retailing is the link between in-store
(Styles et al., 2012). Presenting a detailed overview of
activities and logistics (Lai et al., 2010). This has been affirmed
sustainability research in retailing, Wiese et al. (2012) state that,
by Youn et al. (2017), who provide a list of measures for
to date, much research has focused on the individual aspects of
sustainable retailing, as well as Erol et al. (2009), who were
sustainability, such as corporate social responsibility (CSR) in
among the first ones to develop sustainability indicators in the
retailing, whereas potential research opportunities lie in more
retailing industry. By closely examining measures provided by
cross-functional analyses that rather account for an integrated
Youn et al. (2017) and connecting them to the wider body of
or holistic approach to GSCM (Winter and Knemeyer, 2013).
green in-store literature, a focus on energy, waste and water
Considering the recent discussion of retailing’s sustainability,
management at retailing sites can be detected (Chkanikova and
the domain of food retaining is one of the most critical because
Mont, 2015) and serves as a basis for related environmental
of time pressure due to perishability, the need for cooling and
engagement (Jones et al., 2005; Erol et al., 2009; Lai et al.,
the related waste management challenge. Consequently, this
2010; McKinnon, 2010). Such activities offer a sound starting
study addresses the following research question:
point to conceptualize related antecedents driving the
RQ. How are green in-store processes related to GSCM and conceptual model. In contrast to the aforementioned emphasis
performance outcomes in a food retail setting? on green logistics (Lai et al., 2010), the links to the wider supply
chain processes are not well established yet. This will be
The contributions of the study are as follows: it links retail explained in the next section, while we turn to green in-store
operations-based antecedents (green in-store processes) to processes first.
green SC processes and environmental and economic
performance outcomes. Furthermore, it presents empirical 2.1 Green in-store processes
data from an emerging country, which are rarely studied in the Kotzab and Teller (2005) consider in-store logistics as a “hot-
literature. There is a growing interest and understanding of the topic” due to the dominance of store-based retailing. While
importance of retail supply chain-oriented research, which is Reiner et al. (2013) identify ways of improving in-store logistics
gaining momentum in Croatia. Renko (2008) focuses on processes for handling dairy products, from the incoming dock
investigating how the process of internationalization enhances to the shelves of supermarkets and hypermarkets, Holweg et al.
the sustainability of the Croatian retailing. Also, Renko et al. (2016) focus more on in-store logistics beyond the point of sale
(2010) analyzed environmental responsibility of the Croatian with respect to the economic, ecological and social benefits for
retailing, while Petljak et al. (2016) focused more on green retailers, as well as other stakeholder and focus more on
transportation issues in the food retail supply chain prevention of wastage of supply chain resources.
management (SCM). Arguments regarding greening in-store processes require
Our research contribution can be seen in the shift in focus companies to appropriately manage their own resources and
from the store level to the SC level. While the former is processes before demanding related actions from their
associated with the retail business operations, the latter suppliers or customers (Vachon and Klassen, 2006). A growing
includes the retailers’ involvement in their suppliers’ number of food retailers are concerned about the impact of
environmental activities and the environmental impact of the their business activities on the environment (Piacentini et al.,
retail SC. Moreover, we connect the SC and store levels, 2000). The retailers implement environmentally responsible
 Green supply chain management Supply Chain Management: An International Journal
Kristina Petljak et al.

activities, mainly at the company level, which are then extended by the European Union waste legislation. Some retailers take
to stores (Jones et al., 2005). Lehner (2015) argues that retail further action to reduce volumes of in-store generated waste or
stores are significant contributors to the operationalization of use waste to produce biogas (Chkanikova and Mont, 2015).
sustainable consumption. Because the issue of plastic shopping bags has been widely
Environmental practices that retailers pursue in store include communicated in various media, customers are becoming
energy efficiency, waste reduction and the use of renewable increasingly aware of it. Also, reducing packaging size and
energy (Lai et al., 2010). As for the assortment, retailers weight is popular in the retail environment, as it is directly
introduce fair trade and organic food products in their stores linked to economic savings associated with material efficiency
and communicate their environmentally responsible activities and logistics optimization (Kaipia et al., 2013).
to the consumers (Jones et al., 2005). Overall, retailers tend to 2.1.2.1 Operationalizing waste management. Further on,
focus on direct environmental impacts at the point of sale, waste management (WM) is measured on a three-item scale from
which they can observe, and measure, take responsibility for explorative research (Jones et al., 2005; Erol et al., 2009; Kaipia
and control (Jones et al., 2007). In addition, much of the et al., 2013) including the following items: collecting packaging
previous research on retailers’ environmental issues centers on waste separately by material type (primary/secondary
internal operational practices and environmental process packaging) (WM_1), monitoring composition (types) of
improvements in stores, such as product assortment packaging waste (WM_2) and offering reusable bags to
(Chkanikova and Mont, 2015), waste management and eco- customers (WM_3).
efficiency (Lai et al., 2010), store construction, waste
generation and energy efficiency (Iles, 2007). In general, 2.2 Green supply chain management
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common green in-store practices by retailers are water and The integration of environmental concerns within SCM has
energy efficiency (Jones et al., 2005; Erol et al., 2009; Lai et al., itself evolved into a separate and growing field of GSCM
2010; McKinnon, 2010) and waste management (Jones et al., (Sarkis, 2012). Pressure from stakeholders causes retail
2005; Erol et al., 2009; Lai et al., 2010; Kaipia et al., 2013). companies to shift their focus from internal to external activities
These practices are relevant both at a distribution warehouse as (Ytterhus et al., 1999). Maloni and Brown (2006) argue that
well as within the single retail facility. food retailers must be prepared to not only offer environment-
friendly products to consumers but also to demonstrate
2.1.1 Water and energy management at the store level
responsible environmental practices in their SCs. They are
Retailers do not consider water management as a major area of
required to manage upstream activities by integrating
concern when analyzing environmental initiatives; rather, they
environmental criteria and targets in supplier and purchasing
prioritize water management by monitoring and reducing water
policies and influence downstream activities aimed at
usage within stores (Jones et al., 2005; Chkanikova and Mont,
consumers (Ytterhus et al., 1999). Wiese et al. (2012) report a
2015). Water management is particularly relevant e.g. in areas
research gap regarding the role of retailers in implementing
where fresh meat is handled and hygiene standards have to be
sustainability along SCs and the need to focus on sustainability
met accordingly.
in the context of retail and supply chain management.
Energy efficiency is a common activity area for European
However, their work “provides added value for retail and SC
food retailers given the associated cost savings and legislative
research by linking sustainability considerations in retail
requirements. The energy performance of food retailers is
research with retail practice and other research areas and
characterized by a high energy demand. In case of food
industries along the supply chain” (Wiese et al., 2012, p. 332).
retailers, typically, 50 per cent of the energy is consumed by
Given that the body of research on GSCM has grown
products that demand temperature-controlled facilities, i.e.
tremendously in recent years (Ashby et al., 2012; Wong et al.,
frozen and chilled food. For food retailers, lighting generally
2015), alongside the development of different measurement
consumes less than 30 per cent of energy, while heating,
scales, an increasing number of constructs have already been
ventilation and air conditioning account for 15-20 per cent
used to measure GSCM (Golicic and Smith, 2013; Kirchoff
(Styles et al., 2012).
et al., 2016). From the viewpoint of green retailing, retailing-
2.1.1. 1 Operationalizing water and energy management. In
related processes link in-store activities to SC-related processes
our empirical research, water and energy management (WEM) is
well beyond logistical processes (Akkerman et al., 2010).
measured on a three-item scale compiled and adapted from
Ganesan et al. (2009) use purchasing measures as a key process,
previous research (Jones et al., 2005; Erol et al., 2009;
which complements operational logistical processes at a more
McKinnon, 2010) and covering the following items: reducing
tactical level. The same is true for purchasing processes, which
energy consumption (WEM_1), using energy-saving lamps
have received much research attention in the sustainability
(WEM_2) and regularly checking water consumption using
domain (Miemczyk et al., 2012). Thus, it seems justified to take
water meters (WEM_3), thus avoiding unexplained increases
up green purchasing as a second supply chain process that
in water use. The use of energy-saving lamps might be
retailers must implement.
subordinate to reducing overall energy consumption.
Retailers’ SC activities at an operational level strongly focus
2.1.2 Waste management at the store level on logistics and purchasing. Logistics ensure the frequent and
Waste collection and management emerged as the most swift supply of products and provide an operational foundation.
popular methods adopted by a large number of companies, Purchasing establishes contact and contracts with suppliers,
particularly for packaging waste (Kovács, 2008). Waste sorting which is, therefore, at a more tactical level. It implements
in stores and distribution centers or warehouses is a common strategic decisions made in assortment planning, thereby
activity for European retailers given the requirements outlined ensuring that the right products will be available on time.
 Green supply chain management Supply Chain Management: An International Journal
Kristina Petljak et al.

Achieving related environmental goals often requires demonstrates a link between cooperation and suppliers, the
cooperation with suppliers, adding the more strategic level. latter is more operational.
Overall, these three constructs comprehensively explain
2.2.3 Cooperation with suppliers
retailers’ SC-related processes and have major implications for
A central element of GSCM is cooperation and collaboration
greening-related processes.
with suppliers (Zhu and Sarkis, 2004; Miemczyk et al., 2012;
2.2.1 Green logistics Beske and Seuring, 2014). It offers a more strategic perspective
Before considering SC practices in large, retailing must first and complements green logistics and purchasing constructs.
ensure day-to-day operations, within which retailers’ central Taken together, the three constructs offer a sound
logistics activities are transportation and warehousing conceptualization of SC activities in the retailing sector,
(Björklund et al., 2016). Green logistics cover all activities comprising an operational, tactical and strategic construct
related to the selection of the best transportation means, load each, that represent managerial-level decisions (Björklund
carriers and transportation routes to reduce the environmental et al., 2012).
impact of the whole SC (Murphy and Poist, 2000; Abukhader Collaboration with suppliers is the most strategic construct at
and Jönson, 2004). The food retail sector is logistics intensive the SC practices level. There are numerous factors motivating
(Fernie et al., 2000), which justifies green logistics as a SC retailers to engage their suppliers in sustainability issues; for
process-related construct. Because transportation tends to have example, the need to satisfy increasing stakeholder pressure, to
the highest environmental impact in the logistics system reduce SC risk, to identify new collaboration opportunities and
(Abukhader and Jönson, 2004), retailers are taking the to ensure long-term SC resilience (Hübner et al., 2016).
initiative to make their SCs more environment friendly, for
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Retailers have an extensive supplier selection and this is the

example, by reducing transportation distances and optimizing reason why collaboration and assessment of the suppliers’
warehouse locations (Murphy and Poist, 2000; McKinnon, performance is of importance. Collaboration with suppliers
2010). includes interaction between organizations in the SC, including
2.2.1.1 Operationalizing green logistics Green logistics (GL) is aspects such as setting environmental goals, environmental
measured using a two-item scale based on Murphy and Poist planning and reduction of environmental impact (Vachon and
(2000) and McKinnon (2010), which covers two items: item Klassen, 2006). Environmental collaboration in the SC entails
one refers to choosing the location of the warehouse/ the direct involvement of an organization with its suppliers or
distribution center while accounting for emission reduction and customers to jointly develop environmental solutions (Walton
renewable energy usage in the center (GL_1). This is related to et al., 1998; Kaipia et al., 2013).
the second item, that is, using renewable energy energy- 2.2.3.1 Operationalizing cooperation with suppliers.
efficient lightning, such as sensor lamps and energy-saving Cooperation with suppliers (COOP) is measured on a five-item
lamps, solar power on the roofs, etc.) in the warehouse scale developed by Walton et al. (1998), Humphreys et al.
distribution center (GL_2). In this context, carbon dioxide (2003) and Bai and Sarkis (2010). It covers the following items:
emissions are frequently cited as a detrimental effect of collaborating with suppliers to design environmentally friendly
logistical activities (Abukhader and Jönson, 2004; Wong et al., packaging (COOP_1), conducting seminars/workshops for
2015). While the first indicator is more strategic in nature and suppliers related to environmental protection (COOP_2),
points to the impact of logistics on the environment, the second attending suppliers’ seminars/workshops related to
is operational and relates to day-to-day operations. Together, environmental protection (COOP_3), encouraging suppliers to
they allow a meaningful assessment of green logistics establish their own environmental programs (COOP_4) and
constructs. encouraging active cooperation with suppliers to reduce the
2.2.2 Green purchasing impact of business activities on the environment (COOP_5),
According to Min and Galle (2001), green purchasing is the which is consistent with the GSCM literature. The reduction of
practice of making environmentally aware purchases by packaging and related waste management is an item included in
considering waste reduction and promoting the recycling and the green purchasing construct, while in cooperation with
reuse of materials. Purchasing determines product assortments suppliers, the focus is on improving the environmental
in retailing. To reduce the environmental footprint (Jensen, friendliness of the packaging. Seminars and workshops by both
2012) of their operations and SCs, retailers are promoting retailers and suppliers allow for a mutual exchange of
environmentally sustainable sourcing and production of information. This is also seen as an enabler of mutual
products to have a lower impact on the environment (Zsidisin cooperation, which drives suppliers’ environmental programs
and Siferd, 2001). Companies are increasingly managing their and joint product- and process-related initiatives (Tachizawa
suppliers’ environmental performance to ensure that their et al., 2015). This closes a gap in related research, as these
products are produced and supplied in an environment- constructs have not been analyzed jointly yet. They have also
friendly manner (Seuring and Müller, 2008). not been assessed in the context of retailing.
2.2.2.1 Operationalizing green purchasing. Green purchasing
(GP) is measured on a two-item scale based on Min and Galle 2.3 Environmental and economic performance
(2001) and Zsidisin and Siferd (2001). It includes the Supply chain processes drive related environmental and
evaluating the suppliers’ environmental practices (GP_1) and economic performance (Zhu and Sarkis, 2004; Zhu et al.,
collaborating with suppliers to reduce packaging or packaging 2007). The link between environmental and economic
waste (GP_2) (Beske et al., 2008). While the former item performance has been explored several times, where typically,
 Green supply chain management Supply Chain Management: An International Journal
Kristina Petljak et al.

the former drives the latter (Hervani et al., 2005; Wong et al., reduction of transportation, storage and reverse logistics costs
2015). are typical win–win measures that are appropriate in the
Measuring green performance by separating environmental context of an emerging country, where retailers are still working
and economic performance construct has become somewhat toward improving their operational processes.
standard in the related research (Zhu and Sarkis, 2004;
Hervani et al., 2005; Zhu et al., 2007). While there are different 3. Hypothesis development
forms of conceptualizing interrelations between environmental
Many empirical studies have been conducted on the
and economic performance, we follow the arguments by
relationship among antecedents, GSCM practices and
Seuring and Müller (2008), who propose that environmental
company performance (Golicic and Smith, 2013; Wong et al.,
(and social) performance criteria often serve as order qualifiers
2015); however, none of these works were in the context of
that have to be fulfilled. Considering the economic
service supply chains. According to Zhu et al. (2007), a more
performance is also required as a company not making profits
detailed study analyzing the relationship between individual
will not exist in the long run. Accordingly, it is expected that
GSCM practices and individual factors in performance is
environmental performance will drive economic performance.
needed to help managers identify GSCM practices that best
2.3.1 Environmental performance enforce activities and require improvement. To this effect, our
Environmental performance (ENV) is measured on a five-item study is expected to make valuable contributions to the GSCM
scale adapted from Zhu and Sarkis (2004), Hervani et al. as well as food retail literature.
(2005), Zhu et al. (2007) and Tachizawa et al. (2015). It The structural equation model (SEM) follows the dominant
includes items related to green performance in food retail logic in the field: it begins with antecedents, followed by an
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SCM: reducing greenhouse gas emissions (ENV_1), reducing analysis of practices and an evaluation of impact on the
waste water (ENV_2), reducing solid waste (ENV_3), reducing performance outcomes (Golicic and Smith, 2013).
use of dangerous/hazardous/toxic materials (ENV_4) and The antecedents of the structural model are green in-store
cooperation with suppliers in terms of environmental processes: water and energy management and waste
protection (ENV_5). management. They motivate the implementation of further-
reaching SC management practices, where green logistics,
2.3.2 Economic performance green purchasing and cooperation with suppliers form the
Economic performance (ECON) is measured on a three-item central constructs. These practices along the green SC
scale adapted from Zhu and Sarkis (2004), Hervani et al. processes affect the environmental and economic performance.
(2005) and Zhu et al. (2007) and it covers items related to The conceptual model is illustrated in Figure 1. Subsequently,
reducing transportation cost (ECON_1), reducing we introduce each construct and measurement item used for
warehousing cost (ECON_2) and decreasing reverse logistics the empirical study (Appendix Table AI). Furthermore,
costs (ECON_3). The economic performance measures in this references are provided for the construct measurement to
study are, therefore, directly related to environmental aspects, justify the overall model.
which can be measured by means of accounting. This is a We reiterate that without a sound internal conduct,
narrower logic than, for example, management accounting- convincing suppliers (or customers) to implement related
based measures that are frequently suggested (Golicic and measures will be difficult (Vachon and Klassen, 2006).
Smith, 2013), yet such operational measures are appropriate Therefore, in-store activities are antecedents of supply chain
for the present study. Emphasis is placed on cost reduction processes. This holds for logistical processes, purchasing and
since in retail much of the competition is cost based. The for more strategic collaboration. The core objective of the

Figure 1 Conceptual model for GSCM in food retailing

Green in-store processes Green supply chain processes Performance outcomes

(5) Cooperation
with Suppliers H5a (+)
H1c (+)
(1) Water and (6)
H5b (+)
Energy Environmental
H1b (+)
Management Performance
H4a (+)
H1a (+)
(4) Green
H2c (+)
Purchasing H4b (+) H6 (+)

H2b (+)
(2) Waste H3a (+) (7) Economic
Management H3b (+) Performance
H2a (+)
(3) Green
Logistics
 Green supply chain management Supply Chain Management: An International Journal
Kristina Petljak et al.

structural model is to outline a sound comprehensive approach and Müller, 2008), where better environmental performance
that links the three parts of the framework. In particular, helps to improve the economic performance. Usually,
energy-related indicators of energy management and green economic performance is modeled as the overarching outcome,
logistics constructs are directly related to each other. Such a as firms need to make a profit in the medium to long run for
clear link is more difficult to establish for waste management staying competitive. Hence, we formulate Hypothesis 6 as
and, for example, warehouse locations. Nevertheless, waste follows:
management options are often based on related logistical
solutions and even warehouse locations, so that causality exists H6. Environmental performance positively influences
for these indicators too. Similarly, waste management and economic performance.
green purchasing indicators are directly related to each other,
and in the related literature they can be observed in cooperation
with supplier constructs. Waste and water measures are present 4. Research design
in environmental performance constructs, while transportation 4.1 Research setting and data collection
and logistics have relevance for the economic performance The empirical analysis aims to test the hypothesized
constructs. relationships. Owing to its economic importance and
Therefore, internal measures drive the greening of SC dominance in the retail market (Darkow et al., 2015), we chose
processes, which substantiate Hypotheses 1 and 2: food retailing as the application context of our study. First,
explorative research was conducted by six expert interviews
H1a. Water and energy management positively influence with retailers of different business sizes (two small, two
green logistics.
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medium-sized and two large retailers) in Croatia. The aim of

H1b. Water and energy management positively influence the explorative research was to identify environment-related
green purchasing. activities that food retailers consider in stores and SC. As
research instrument, a semi-structured interview, similar to the
H1c. Water and energy management positively influence ones by Piacentini et al. (2000) and Marques et al. (2010), was
cooperation with suppliers. performed. The semi-structured nature of interviews provided
an excellent opportunity to explore the breadth of
H2a. Waste management positively influences green environmental initiatives that food retailers implement in store
logistics. and, consequently, SCs. Thereafter, drawing on the existing
scales and new knowledge received from the practitioners, we
H2b. Waste management positively influences green
developed a questionnaire about GSCM in food retailing.
purchasing.
Before conducting the field research, the questionnaire was
H2c. Waste management positively influences cooperation pre-tested with the same expert interviewees and was slightly
with suppliers. modified, as our respondents have different roles ranging from
retail store owners to SC managers, so that the questionnaire
This argument linking antecedents to SC processes is then was pre-tested to assure that respondents were confident with
extended to outcome constructs which follows the answering the questions and to assure measures are valid.
conventional logic in the field (Zhu and Sarkis, 2004; Zhu et al., The questionnaire consists of two parts. In the first part, data
2007). Green logistics, green purchasing and cooperation with characterizing retailers’ operational processes und business
suppliers should all lead to performance improvements in both performance were collected and in the second, respondents
environmental and economic dimensions. Due to that, were asked to assess the implementation of environmentally
Hypotheses 3, 4 and 5 are formulated as follows: responsible activities in retail stores, followed by GSCM
activities and environmental and economic performance.
H3a. Green logistics positively influences environmental Respondents’ perceptions of greening in-store activities,
performance. GSCM and performance measurement were examined using a
five-point Likert scale ranging from “strongly disagree” (1) to
H3b. Green logistics positively influences economic
“strongly agree” (5). The food retailers’ demographics are
performance.
presented in Appendix Table AII.
H4a. Green purchasing positively influences environmental While a total of 1,050 surveys were sent out, the sample in
performance. our study comprised 210 retailers from Croatia, accounting for
a response rate of 18.1 per cent. From these, 190 were
H4b. Green purchasing positively influences economic completed and eligible for further analysis applying the partial
performance. least square algorithm for fitting a SEM (Parwoll and Wagner,
2012). Validating the sample characteristics with the company
H5a. Cooperation with suppliers positively influences
demographics of the Croatian populations of retailers
environmental performance.
(Armstrong and Overton, 1977) leads to the conclusion that
H5b. Cooperation with suppliers positively influences sample is not subject to a non-response bias and provides us
economic performance. with information representative for the basic population. The
respondents included retail store owners, retail directors,
Finally, we argue the interrelation between environmental and logistics directors and SC managers/executives. The
economic performance. We follow a win–win logic (Seuring information about the retailers was taken from BIZNET, a
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Kristina Petljak et al.

register for business entities under the Croatian Chamber of Table I Constructs and internal consistency of measures
Economy. Furthermore, representativeness of the sample was
Average
crosschecked with data obtained from Gesellschaft für
variance
Konsumforschung Consumer Panel Services, household panel.
Cronbach’s Composite extracted
Data were gathered from April to September 2013.
Construct Items a reliability (AVE)
Because it was the aim to address the respondents’
knowledge about the topic, we targeted owners, directors and Water and energy
managers in companies with the following NACE code management
classification and used codes related to food retailing: sale in (WEM) 3 0.755 0.860 0.673
non-specialized stores with food, beverages or tobacco Waste management
predominating (G47.11); other retail sale in non-specialized (WM) 3 0.764 0.864 0.680
stores (G47.19) and retail sale of food, beverages and tobacco Green logistics
in specialized stores (G47.2). The vast majority of retailers in (GL) 2 0.761 0.893 0.807
the sample (41.1 per cent) mentioned that the proportion of Green purchasing
revenue from food product sales in total revenue was 50-75 per (GP) 2 0.721 0.877 0.781
cent, and 27.9 per cent of the retailers in the sample mentioned Cooperation with
more than 75 per cent food sales in 2012. Additionally, the suppliers
sample consisted of retailers whose revenue proportion from (COOP) 5 0.904 0.929 0.723
food products sales in total revenue was 25-50 per cent (17.4 Environmental
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per cent) and less than 25 per cent (13.7 per cent) in 2012. performance (ENV) 5 0.875 0.910 0.670
Retailers working with up to 50 food suppliers (65.3 per cent) Economic performance
were highest in number, followed by those conducting business (ECON) 3 0.856 0.912 0.775
with 50-100 food suppliers (15.8 per cent) and more than 100
suppliers (18.9 per cent). Food retailers who participated in the Notes: Thresholds: Cronbach’s a = 0.7 (Nunnally, 1978); composite
study predominantly operated convenience stores (55.8 per reliability ≥ 0.7 (Bagozzi and Yi, 1988); AVE ≥ 0.5 (Bagozzi and Yi, 1988)
cent), since a majority of food retailers in Croatia are small,
independent retailers even though market concentration
appears to be growing. These are followed by retailers mean square residual is a badness-of-fit index with a threshold
predominantly operating supermarkets (10.0 per cent) and
0.08. With 0.061 (0.074) for the composite (common factor)
hypermarkets (4.7 per cent) and 29.5 per cent of the retailers model, we meet the criteria.
operated in different retail formats, for example, supermarkets
and hypermarkets (Appendix Table AIII).
5. Results
4.2 Measures and their consistency The results of our SEM analyzed with SmartPLS 3 (Ringle
All measurement scales used in our survey are reflective, multi- et al., 2015) show the path coefficients (Table II) and total
item constructs and adapted from existing items and scales, effect size (Table III). SEM has become a quasi-standard in
where possible. To ensure the correct meaning of the items, the business research when it comes to analyzing the cause–effect
questions were translated and then re-translated. We used a relations between latent constructs (Hair et al., 2011). This is
five-point Likert scale (1 = strongly disagree and 5 = strongly also supported by the increasing number of studies in SCM
agree). The questionnaire was pretested, which resulted in using SEM (Green et al., 2012; Lee, 2015; Eng, 2016;
minor changes in the wordings. The constructs and their Vanpoucke et al., 2016). The desire to test concepts or even
internal consistency are presented in Table I. Considering the complete theories is one of the major reasons authors
results in Table I, we conclude that all common quality conducting business research are using SEM (Steenkamp and
standards are met. Baumgartner, 2000; Henseler et al., 2009).
Furthermore, we tested for moderating effects that turned
4.3 Reliability out to be neither substantial nor significant computing 5,000
We conducted an exploratory factor analysis to purify the used bootstrap draws.
scales. Items with communalities
0.4 were deleted. In We hypothesized that water and energy management is
addition, items with loadings
0.5 and those with a low significantly and positively associated with all three observed
variance were deleted. We checked the indicator reliability GSCM practices: cooperation with suppliers, green purchasing
following Hulland (1999) and used standardized indicator and green logistics (H1a, H1b, H1c). The internal management
loadings ≥0.7 and checked loadings ≥0.4. All measures meet of these resources drives retailers to focus on their relationships
the recommended levels for Cronbach’s a; composite reliability with suppliers. Waste management is not significantly linked to
and average variance extracted (AVE) provide evidence on the green logistics (H2a) but positively linked to green purchasing
internal consistency reliability and convergent validity. (H2b) and cooperation with suppliers (H2c). While purchasing
Discriminant validity is checked using the Fornell–Larcker and the management of cooperation determine how much
criterion (Fornell and Larcker, 1981). Each construct’s AVE is waste should be created in operational activities, logistics must
higher than its squared correlation with any other construct also play a role but not decide on waste management issues,
(Hair et al., 2012). We also checked for cross-loadings. which is in line with other research linking related operations
According to Hu and Bentler (1999), the standardized root processes (Zhu et al., 2007).
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Kristina Petljak et al.

Table II Path coefficients of SEM

Bootstrap Standard
Original sample deviation T statistics
Hypothesis sample (O) mean (M) (STDEV) (|O/STDEV|) p values
H1a: water and energy management fi green logistics 0.538 0.539 0.062 8.629 <0.001***
H1b: water and energy management fi green purchasing 0.377 0.377 0.068 5.541 <0.001***
H1c: water and energy management fi cooperation with suppliers 0.409 0.409 0.070 5.813 <0.001***
H2a: waste management fi green logistics 0.099 0.102 0.066 1.505 0.133
H2b: waste management fi green purchasing 0.270 0.272 0.064 4.231 <0.001***
H2c: waste management fi cooperation with suppliers 0.130 0.135 0.069 1.867 0.062*
H3a: green logistics fi environmental performance 0.150 0.148 0.084 1.779 0.075*
H3b: green logistics fi economic performance 0.002 0.001 0.105 0.017 0.986
H4a: green purchasing fi environmental performance 0.221 0.222 0.092 2.395 0.017**
H4b: green purchasing fi economic performance 0.005 0.001 0.104 0.049 0.961
H5a: cooperation with suppliers fi environmental performance 0.271 0.277 0.102 2.661 0.008***
H5b: cooperation with suppliers fi economic performance 0.058 0.056 0.115 0.505 0.614
H 6: environmental performance fi economic performance 0.362 0.367 0.088 4.139 <0.001***

Notes: *p < 0.1; **p < 0.005; ***p < 0.001

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Table III Total effect size of SEM

Original Sample Standard T statistics Hypotheses
Hypothesis sample (O) mean (M) deviation (STDEV) (|O/STDEV|) p values supported
H1a Water and energy management ! green 0.538c 0.539 0.062 8.629 <0.001*** Yes
logistics
H1b Water and energy management ! green 0.377c 0.377 0.068 5.541 <0.001*** Yes
purchasing
H1c Water and energy management ! cooperation 0.409c 0.409 0.070 5.813 <0.001*** Yes
with suppliers
H2a Waste management ! green logistics 0.099a 0.102 0.066 1.505 0.133 No
H2b Waste management ! green purchasing 0.270b 0.272 0.064 4.231 <0.001*** Yes
H2c Waste management ! cooperation with 0.130b 0.135 0.069 1.867 0.062* Yes
suppliers
H3a Green logistics ! environmental performance 0.150b 0.148 0.084 1.779 0.075* Yes
H3b Green logistics ! economic performance 0.056a 0.056 0.111 0.508 0.611 No
H4a Green purchasing ! environmental 0.221b 0.222 0.092 2.395 0.017* Yes
performance
H4b Green purchasing ! economic performance 0.085a 0.084 0.111 0.770 0.441 No
H5a Cooperation with suppliers ! environmental 0.271b 0.277 0.102 2.661 0.008** Yes
performance
H5b Cooperation with suppliers ! economic 0.040a 0.044 0.125 0.322 0.747 No
performance
H6 Environmental performance ! economic 0.362c 0.367 0.088 4.139 <0.001*** Yes
performance
Waste management -> perf_ECON 0.034a 0.034 0.025 1.340 0.180
Waste management -> perf_ENV 0.110b 0.116 0.039 2.792 0.005**
Water and energy management -> perf_ECON 0.079a 0.082 0.041 1.907 0.057*
Water and energy management -> perf_ENV 0.275b 0.278 0.048 5.761 <0.001***

Notes: *p < 0.1, **p < 0.005, ***p < 0.001; effect size: f 2 ≥ 0.02 weak effectsa, f 2 ≥ 0.15 moderate effectsb, f2 ≥ 0.35 strong effectsc

Noteworthy findings are observed in the link between green 2015). This can be linked to achieving win–win situations if
supply chain practices and performance (Figure 2). All three companies invest in related initiatives, both internally and in
GSCM practices are positively related to environmental supplier relationships (Miemczyk et al., 2012; Beske and
performance (H3a, H4a, H5a). This is well in line with Seuring, 2014). In addition, none of the GSCM practices
previous research and confirms the overall positive impact of positively affects economic performance (H3b, H4b, H5b). This
GSCM on environmental performance (Tachizawa et al., is surprising and contradictory to existing findings that establish
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Kristina Petljak et al.

Figure 2 Hypotheses test results

Green in-store processes Green supply chain processes Performance outcomes

(5) Cooperation
with Suppliers H5a (+)
H1c (+)
(1) Water and (6)
H5b (+)
Energy Environmental
H1b (+)
Management Performance
H4a (+)
H1a (+)
(4) Green
H2c (+)
Purchasing H4b (+) H6 (+)

H2b (+)
(2) Waste H3a (+) (7) Economic
Management H3b (+) Performance
H2a (+)
(3) Green
Logistics

Hypothesis supported
Hypothesis not supported
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a direct link between GSCM practices and economic et al., 2016) and in such way, it links downstream with
performance (Golicic and Smith, 2013). We conclude that this upstream activities in the supply chain. The results also support
may have resulted from economic performance being mainly the proposition that retailers who demonstrate proactive
based on cost and, therefore, accounting-related measures. In environmental initiatives within stores are more likely to engage
other words, the focus on cost savings might be too narrow as a in GSCM practices, which in turn leads to improvements in
measure compared to the performance outcomes achieved, environmental performance. Examining the overall structural
which can also be perceived as contributing to a better service. model, we extended the well-established GSCM-related
To this effect, GSCM practices are enforced as a result of research to the context of food retailing and thus, broadened its
environmental performance positively impacting economic field of application to the service supply chains, where it has
performance (H6). Similar results were observed in Zhu and rarely been applied. Owing to the operationalization of a single
Sarkis (2004) and Green et al. (2012). A wider interpretation part of the conceptual model, the overall model offers the first
would be that retailers who achieve economic performance approach to the analysis of GSCM practices and performance
must accomplish greening their entire supply chain and on all outcomes for food retailers.
levels: strategic, tactical and operational. Without greening the Second, this study highlights the importance of green in-
overall supply chain, one cannot expect to achieve benefits in store processes by means of water and energy management as
economic performance. well as waste management (Lai et al., 2010; Lehner, 2015).
Complementing the hypotheses, we checked for the total While this might only capture a limited set of retailer activities,
effects among the green in-store processes and performance the two constructs enable a sound and parsimonious
outcomes. A significant positive total effect is observed for comprehension of these activities. Here as well, the constructs
water and energy management driving both environmental and
and items used are in line with related research on
economic performance. A possible explanation is the typical
manufacturing companies (Zhu and Sarkis, 2004; Mollenkopf
win–win situation, in which a reduction in the use of water and
et al., 2010; Golicic and Smith, 2013) but differ in their field of
energy decreases environmental impact and cost. In the case of
application, that is, service SCM.
waste management, there is a positive link to environmental
Third, a comprehensive conceptualization of retailers’ green
performance. While this is straightforward, the missing
supply chain practices is offered by introducing the three
influence on economic performance can be explained by the
constructs: green logistics, green purchasing and cooperation
fact that waste management often needs additional investment
with suppliers. This summarizes the analyzed constructs. Zhu
or the sorting and handling of waste, which increases cost and
and Sarkis (2004) examine operational practices, while Zsidisin
complexity.
and Siferd (2001), for example, have already explored
environmental purchasing. Wong et al. (2015) analyze aspects
6. Discussion and contributions to theory and of cooperation. Yet, a combination of the three constructs in
practice one empirical study and their interrelation was yet to be
The contributions of this paper are summarized as follows. To presented and further examined. As outlined in the literature
the best of our knowledge, this is the first study on GSCM in review section, these established core processes well represent
food retailing that provides empirical evidence. More the operational (logistics), tactical (purchasing) and strategic
specifically, it empirically confirms prior notions that greening (cooperation) levels.
in-store activities contributes to the overall greening of SCM Despite its contribution to the GSCM, as well as food retail
practices (Zhu et al., 2007; Golicic and Smith, 2013; Kirchoff literature, this study is not free from limitations. Theoretically,
 Green supply chain management Supply Chain Management: An International Journal
Kristina Petljak et al.

such a study must account for the limited number of specificities of certain product categories, it would be
constructs. The conceptual model offers a sound interesting to examine the greening of SCs with respect to
comprehension of antecedents, practices and performance alternative product categories and preconditions, such as
outcomes for retailers. temperature-controlled chains, as well as to measure and
However, the sample size, which is adequate to test the provide the typology of environmental impacts for food
conceptual model, poses certain empirical limitations. Given retailers. Attention to the green issues related to the process-
Croatia’s retail industry, a reasonable number of retailers based and product-based greening of the supply chain is
responded allowing generalizing results obtained from this expected in the time of circular and bio economy.
sample. The example of Croatia even might serve as specimen Promising research directions might employ constructs from
for similar transition economies in the European context, e.g. a dynamic capability perspective (Beske and Seuring, 2014),
Serbia or Bosnia-Herzegovina. which are increasingly employed in research on sustainable
The research methodology of using the PLS algorithm for a SCM. This allows a dynamic comprehension of relationships
SEM entails two limitations. First, the analysis is restricted to among retailers and the greening of their supply chains. This
evaluating prior defined or assumed relationships by testing
would include addressing the perspectives of different supply
hypotheses rather than discovering unexpected patterns.
chain members.
However, the explanatory factor analysis does not indicate a
A second research direction would cover social aspect, which
structure inherent to the data at hand that is departing from the
are also relevant for retailing, such as the working conditions,
model. Second, the PLS algorithm emphasizes predictive
both of staff members at the retailers such as their suppliers.
performance, but is weak in comparing competing theoretical
This would broaden the comprehension on how this impacts
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explanations (Hair et al., 2011). However, since our study is

exploratory in nature and, so far, there is no competing economic performance, thereby interlinking with this stream of
explanation established in the related literature, the study is not research.
subject to this disadvantage. Third, the blend of online and offline retailing provides new
Nevertheless, further research by means of empirical theory challenges for the in-store logistics integration (Herhausen
evaluation using covariance-based algorithms can be hampered et al., 2015). Notably, the offline retailing provides an interface
by the non-normal distributions of indicators of the enabling the customers to explore and validate the
measurement models proposed herein. Finally, our research sustainability claims of green retailers. This is of particular
design builds on the assumption that the observations in the relevance not only for retailers in transitions economies because
data set are drawn from the same distribution. This is justified up to now there are no standards and green quality labels
given that we consider Croatia as a case study that provides established for the in-store logistics.
retailers with heterogeneous conditions. Studies aiming to
replicate such heterogeneous environments could adopt a
multi-group analysis or finite-mixture approach. 7. Conclusions
This brings us to the next limitation of this research, that is, Retailers, especially food retailers, operate one of the most
to focus on retailers who predominantly sell food in Croatia, complex SCs. Yet, GSCM research tends to focus on the
although empirical research in the field of GSCM lacks large perspectives of manufacturing companies or secondary data
samples from emerging countries. Croatia has been labeled as a analysis of, for example, green activities that retailers publish on
transition economy. Such countries are characterized by their corporate web pages or in CSR reports. The relationship
changing price regimes and market structures. The expectation between internal and external greening of the SC has not been
of more mature retail markets with a smaller number of conceptualized or empirically tested in the food retail setting.
independent actors will further drive efforts for GSCM in Therefore, this study aimed to empirically analyze the
(food) retail. To elaborate, we expect waste management to relationship between green in-store practices, GSCM practices
impact economic performance by increasing disposal costs. We
and environmental and economic performance in the food
argue that these findings are likely to be observed in other
retail industry. To do so, structural equation modeling, was
transition economies as well, thus allowing for our findings to
applied, assessing the links among green in-store practices,
be generalized beyond Croatia.
GSCM practice and SC performance in the food retail context.
This links into the implications for managers. The results of
Given the lack of studies on relationships between greening in-
this study can guide managers in the process of prioritizing the
successful implementation of given practices to generate store activities, GSCM practices and overall performance of the
improvements in performance. Without investment into in- food retail SC, this study empirically contributes to the growing
store processes, measures on the supply chain level would discussion on retail sustainability issues from the narrow focus
usually not work. Regarding suppliers, all three processes are of of retailers as focal companies in SCM. This provides the
relevance, i.e. green logistics, green purchasing and answer to our research question. Green in-store processes serve
cooperation with suppliers are all relevant and have to be as antecedents for GSCM-related processes, which are
implemented jointly. This holistic perspective of managing the operationalized in the constructs of green logistics, green
supply chain will be required to reap related environmental and purchasing and collaboration with suppliers. These constructs
economic performance improvements. drive respective environmental and then also economic
Future GSCM research in the food industry that includes all outcomes. This opens up further questions on how related
actors in the SC, that is, retailers as well as product-centered resources and capabilities would have be developed in retailing
companies, is needed to complement the SC picture. Given the so to further drive GSCM in such service contexts.
 Green supply chain management Supply Chain Management: An International Journal
Kristina Petljak et al.

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Appendix 1. Measurement scales

Table AI. Scales

Construct Items Sources
Water and energy WEM_1_reducing energy consumption Jones et al. (2005); Erol et al. (2009); McKinnon (2010); Lai
management (WEM) WEM_2_using energy-saving lamps et al. (2010)
WEM_3_regularly checking water consumption using water
meters
Waste management WM_1_separately collecting packaging waste by type of material Jones et al. (2005); Erol et al. (2009); Lai et al. (2010); Kaipia
(WM) (primary packaging, secondary packaging) et al. (2013)
WM_2_monitoring composition (types) of packaging waste
WM_3_offering reusable bags to customers
Green logistics (GL) GL_1_selecting the location of the warehouse/distribution center Murphy and Poist (2000); McKinnon (2010)
GL_2_using renewable energy in the warehouse distribution
center
Green purchasing (GP) GP_1_evaluating the environmental practices of suppliers Min and Galle (2001); Zsidisin and Siferd (2001); Beske et al.
GP_2_collaborating with suppliers to reduce packaging/ (2008)
packaging waste
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Cooperation with COOP_1_collaborating with suppliers to create environmentally Walton et al. (1998); Humphreys et al. (2003); Bai and Sarkis
suppliers (COOP) friendly packaging (2010)
COOP_2_conducting seminars/workshops for suppliers related to
environmental protection
COOP_3_attending suppliers’ seminars/workshops related to
environmental protection
COOP_4_encouraging suppliers to establish their own
environmental programs
COOP_5_encouraging active cooperation with suppliers to reduce
the impact of business activities on the environment
Environmental ENV_1_reducing greenhouse gas emissions Zhu and Sarkis (2004); Hervani et al. (2005); Zhu et al.
performance (ENV) ENV_2_reducing waste water (2007); Zhu et al. (2007)
ENV_3_reducing solid waste
ENV_4_reducing use of hazardous/harmful/toxic materials
ENV_5_cooperation with suppliers in terms of environmental
protection
Economic performance ECON_1_reducing transportation costs Zhu and Sarkis (2004); Hervani et al. (2005); Zhu et al.
(ECON) ECON_2_reducing warehousing costs (2007)
ECON_3_decreasing reverse logistics costs
 Green supply chain management Supply Chain Management: An International Journal
Kristina Petljak et al.

Appendix 2. Sample description

Table AII Food retailers’ demographics

Variable Level n (%)
Origin of capital Domestic 181 95.3
Mixed or foreign 9 4.7
Total revenue in 2012 Less than e131,580,00* 39 20.5
From e131,580,00-e6,578,950,00 115 60.5
More than e6,578,950,00 36 18.9
Number of employees Up to 10 employees 110 57.9
From 10 to 50 employees 38 20.0
From 50 to 250 employees 17 8.9
More than 250 employees 25 13.2
Market Local 161 84.7
Regional 18 9.5
National or international 11 5.8
Notes: *1 EUR  7.4 HRK; HRK = currency of Croatia (Kuna)
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Table AIII Sample characteristics related to food retail

Variable Level n (%)
Length of doing business in Croatian market Less than 5 years 14 7.4
From 5 to 10 years 14 7.4
More than 10 years 162 85.3
Revenue from food products sale Less than 25% 26 13.7
From 25 to 50% 33 17.4
From 50 to 75% 78 41.1
More than 75% 53 27.9
Number of suppliers of food products Up to 50 suppliers 124 65.3
From 50 to 100 suppliers 30 15.8
More than 100 suppliers 36 18.9
Retail formats Convenience stores 106 55.8
Supermarkets 19 10.0
Hypermarkets 9 4.7
Different retail formats 55 29.5

Corresponding author
Stefan Seuring can be contacted at: [email protected]

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