The Effect of Environmental Capabilities on Environmental Strategy and Environmental Performance of Korean Exporters for Green Supply Chain Management

The objective of this research is to verify the relationships between environmental capabilities, environmental strategy and environmental performance. To achieve the objective, this research collects and analyzes 219 data responded by the members of the Korea International Trade Association. Reliability and validity of the data are tested by an exploratory factor analysis and a confirmatory factor analysis. The relationships between the variables are tested by an analysis of structural equation modeling. The results are as follows. First, environmental capabilities of Korean exporters have a positive effect on environmental strategy. Capabilities of the firms as an internal resource are based on performing strategy. Firms which have superior environmental capabilities can be possible to make an effort on cooperative environmental improvement among departments and this is based on environmental collaboration with customers and suppliers. Second, external environmental strategy of Korean exporters has a positive effect on environmental performance. Environmental collaboration with customers and suppliers is based on attaining superior environmental performance. Third, environmental capabilities of Korean exporters have a positive effect on environmental performance. Environmental capabilities as a strategic resource of the firms are based on achieving a high level of environmental performance, and the firms can attain a sustainable competitive advantage in the market. Therefore, environmental capabilities of Korean exporters have a direct effect of environmental strategy and environmental performance.