Int. J Sup. Chain. Mgt Vol. 9, No. 1, February 2020 475 Green Supply Chain Management Practice and Performance of Manufacturing Companies in Batu Pahat, Johor Alina Shamsuddin #1 , Wan Nurul Karimah Wan Ahmad 2 , Leong Chun Peng 3 #1, 2, 3 Technology & Innovation Management Focus Group (TIM), Faculty of Technology Management & Business, Universiti Tun Hussein Onn Malaysia, Johor, Malaysia 1 alina@uthm.edu.my 2 karimah@uthm.edu.my 3 eta@uthm.edu.my Abstract - Environmental issues such as air and water pollutions are increasing because of the speedy growth of industrial modernization especially in the manufacturing industry. The industry is considered as one of the main sources of environmental problems. Green supply chain management (GSCM) practices can help companies in the industry improve firm sustainability performance through reduction of environmental risk, at the same time, provide economic and environmental benefit. In Malaysia, researchers were more focused on internal environmental management practices such as the implementation ISO 14001 and the number of research on GSCM practices is still low. This research aims to explore GSCM practices and sustainability performance through a survey among manufacturing companies in Batu Pahat, Johor. It also compares the practices and performance of two case companies using data gathered from interviews. The findings reveal that the manufacturing companies in Batu Pahat had a moderate level of GSCM implementation and sustainability performance. The GSCM practices that companies should focus more are internal environmental management and reverse logistics. Keywords - Green supply chain management, firm performance, manufacturing industry Introduction Nowadays, governments, societies, and businesses are giving more attention to environmental issues. The environmental problems such as global warming, waste and environmental pollutions had increased because of the growth of the industrial activities especially in the manufacturing sector. Manufacturing companies were considered as the source of most of the environmental problems [1]. The manufacturing process turns raw materials into products or goods. However, raw materials leftover or substances produced may be harmful to the environment and can cause pollutions. In order to solve the environmental issues, the Malaysian manufacturing sector spends around RM1.73 billion on environmental protection expenditure or 66.9% of overall contribution across sectors [Department of Statistics 2]. With the intensification of the competition in the 1990s, awareness of the green supply chain management (GSCM) practices has increased and prompted firm to manage their supply chains in ethically and socially responsible way [3]. GSCM is a useful tool to improve firm sustainability performance through reduction of environmental risk that can provide economic and environmental benefits [4]. According to Van Hoek [5], GSCM was developed as a crucial organizational principles to help companies achieve profit and market share objectives by decreasing the negative environmental risks and impacts, while increasing the ecological benefit of the companies and their partners. Current GSCM studies were mostly conducted in developed countries like the United States and Europe. The results from those researches might not portray the implementation of GSCM practices in the Malaysian manufacturing industry. In addition, researches in Malaysia were more focused on internal environmental management practices, specifically the implementation of environmental management systems such as ISO 14000. Therefore, this study aims to address the research gap on GSCM studies in the Malaysian industry context. It explores the implementation of GSCM practices and identifies the level of sustainability performance of manufacturing companies in Batu Pahat, Johor through a survey. In addition, the study uses interview to gather data from two case companies that allows for identification of similarities and differences of GSCM practices among companies that operate within the same industry. The findings can contribute towards increasing our knowledge regarding the GSCM practices and performance, which can be used as a guideline for future improvement and decision making by manufacturing companies. ______________________________________________________________ International Journal of Supply Chain Management IJSCM, ISSN: 2050-7399 (Online), 2051-3771 (Print) Copyright © ExcelingTech Pub, UK (http://excelingtech.co.uk/)