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    International Journal of Production Research,

    Vol. 45, No. 2, 15 January 2007, 401423

    Supply chain management and environmental technologies:

    the role of integration

    S. VACHON*y and R. D. KLASSENz

    yHEC Montreal, Montreal, Quebec, Canada, H3T 2A7

    zRichard Ivey School of Business, University of Western Ontario,

    London, Ontario, Canada N6A 3K7

    (Revision received January 2006)

    As corporations attempt to move toward environmental sustainability, manage-ment must extend their efforts to improve environmental practices across theirsupply chain. To date, the literature characterising environmental managementwithin the supply chain has been slowly building, but remains sparse. Moreover,investment by plants in environmental technologies cannot be made indepen-dently of other organisations in the supply chain. The linkage between supplychain characteristics, such as the degree of integration with primary suppliers andmajor customers, and the resources invested in different environmentaltechnologies is assessed with plant-level survey data. The results indicate thatresources were increasingly allocated toward pollution prevention when plantsdeveloped extensive strategic-level integration with suppliers, including suchaspects as product development and knowledge sharing. However, these effects

    were not mirrored with customers. Instead, greater supply chain integration withcustomers was significantly related to pollution control. Collectively, thesefindings suggested that downstream supply chain members tend to favourprevention while simultaneously shifting the burden for control to upstreammembers.

    Keywords: Environmental management; Suppliercustomer relationship

    1. Introduction

    Over the past 15 years, an increasing awareness regarding climate changes andnatural resource depletion has been evident across several industries and in the

    population. International agencies and national governments met three times over

    that period (Rio, Kyoto, and Johannesburg) to establish goals regarding ozone

    depletion, gas emissions, and waste reduction. Meeting these collective goals will

    require significant adjustments and modifications in the production and consump-

    tion habits of the industrialised world. Given the current manufacturing processes

    and the different competitive pressures, it is generally accepted that both processes

    and products must be changed in order to maintain the pace of consumption in an

    environmentally sound and sustainable way. The production of undesired output

    *Corresponding author. Email: [email protected]

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    (i.e. pollution) amplifies the urgency for manufacturing organisations to select and/

    or develop technologies to reduce the environmental impact of their production

    activities and their products.

    The selection of environmental technologies is one way to characterise a

    manufacturing organisations position on environmental management, which in turnhas been linked to performance (Klassen and Whybark 1999b). Despite the

    performance-related merits associated with pollution prevention (Christmann 2000,

    Hart 1995, King and Lenox 2002, Zhu and Sarkis 2004), organisations still widely

    implement off-the-shelf, end-of-process, add-on solutions often characterised by

    end-of-pipe technologies. For example, Statistics Canada (2003) reported that the

    environment-related capital expenditures by Canadian plants were almost equally

    divided between end-of-pipe technologies (i.e. pollution control) and integrated

    process technologies (i.e. pollution prevention), defined as process modification and

    material substitution leading to reuse of waste and water in order to reduce emissions

    of pollutants and the amount of waste.So why does the high allocation toward end-of-pipe technologies continue?

    First, while typically quite expensive, these end-of-pipe solutions tend to cause little

    disruption to organisations primary operations by leaving their core processes and

    products unchanged. However, barriers to pollution prevention also emerge from

    more subtle and challenging concerns. A second major explanation for such

    behaviour is embedded in the design and management of supply chains. Ashford

    (1993) proposed that customers unwillingness to relax product specifications and

    lack of supplier resources and expertise can partly explain the bias toward end-

    of-pipe technologies. Other possible explanations can include resistance to change,

    incomplete understanding of the production process, and a lack of collaboration in

    the supply chain (Dieleman and De Hoo 1993, Kemp 1993). Therefore, activitiestaking place among organisations in the supply chain have a critical influence on

    the selection of environmental technologies within each of these organisations.

    This paper presents a detailed analysis that explores the impact of supply chain

    management on manufacturing organisations investments in environmental

    technologies. In particular, it examines the influence of two types of integration

    that occur between a plant and its suppliers and customers, namely logistical and

    technological integration. In the next section, both types of integration are developed

    and defined. In section 3, the characterisation of investments in environmental

    technologies is presented. The fourth section sets the hypotheses linking supply chain

    integration and investment in environmental technologies. Next, the researchmethodology is presented in section 5. Finally, the empirical analysis takes place

    in section 6 followed by the discussion of the results, presented in the last two

    sections.

    2. Supply chain integration

    Integration between a buying organisation and its suppliers is undertaken to improve

    the operations in the buying organisation and/or in the supply network. A review of

    the literature pertaining to buyersupplier integration reveals two broad categoriesof studies: (i) those focusing on the logistical linkage between buyers and suppliers,

    and (ii) those associated with strategic activities such as process design or

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    reengineering and product development. The first category mainly refers to tactical

    activities, and is often related to the logistical management of goods recurrently

    transacted between organisations (Noordewier et al. 1990, Gardner et al. 1994).

    The second category refers to more strategic issues and activities that usually entaila richer communication setting (Purdy and Safayeni 2000) to transfer and share

    technical know-how (St. John and Harrison 1999, Dyer and Nobeoka 2000). These

    two categories of integration can be respectively referred to as logistical integration

    and technological integration (Vachon and Klassen 2006). Both logistical integration

    and technological integration can take place upstream with suppliers and down-

    stream with customers (figure 1).

    2.1 Logistical integration

    Logistical integration has been widely studied under a number of different labels

    such as vertical co-ordination (Buvik and John 2000), supply management (Shin

    et al. 2000), or partnership (Corbett et al. 1999). While several aspects can be

    considered which assessing this form of integration, including both informational

    and delivery aspects (Frohlich and Westbrook 2001), much of the literature has

    emphasised the notion of information flow between organisations in the supply

    chain as the main enabler of delivery integration (Stocket al. 2000, Chen and Paulraj

    2004).

    Thus, logistical integration is defined here as information exchange in the supply

    chain that enables tactical-level delivery activities. The type of information

    exchanged associated with tactical level activities take the form of inventory levels,

    production planning, and operating procedures in the supply chain. Such

    information can be characterised as explicit rather than tacit (Dyer and Nobeoka

    2000) because it involves easily transferable knowledge. Hence, a high degree of

    logistical integration is characterised by frequent and open information exchange.

    High logistical integration also implies the presence of flexibility in material

    management particularly when facing unforeseen events (Noordewier et al. 1990).

    2.2 Technological integration

    Technological integration can be characterised as tacit knowledge sharing taking

    place between a buying and a supplying organisation in strategic areas like product

    Focal plant

    Primary suppliers

    Technological integration Logistical integration

    Major customers

    Technological integration Logistical integration

    Environmental technology

    Level Extent of investmentsForms Pollution prevention Pollution control Management systems

    Figure 1. Simplified supply chain with investments in environmental technology.

    Supply chain management and environmental technologies 403

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    development (Eisenhardt and Tabrisi 1995), process re-engineering (Hammer and

    Champy 1993), and best management practices transfer (MacDuffie and Helper

    1997). As such, interactions are less likely to be directed at routine operational tasks,

    but instead more likely to occur around particular projects. The term technological is

    defined broadly to include not only structural aspects such as product- and process-related changes but also infrastructural aspects related to methods and managerial

    systems. As such, there are at least two related aspects that determine degree of

    technological integration: the extent of sharing of technical and tacit knowledge, and

    the extent of interaction on new product and process design.

    Technological integration provides opportunities and potential benefits for both

    parties. For example, a supplier can provide its expertise on its customer product

    development effort or process re-engineering, which can decrease the time-to-market

    of new products and increase the effectiveness of new processes (Kaufman

    et al. 2000). On the other hand, the buying organisation can seek to develop

    the competence and capability of its supplier by providing its own expertise.For example, a buying organisation can assist its supplier in the implementation of a

    quality management system (e.g. ISO 9001), thereby assuring a more reliable source

    of material or components. This last possibility is often referred to as a supplier

    development activity (Krause et al. 2000).

    3. Investment in environmental technologies

    Based on the operations strategy and environmental management literatures, three

    exhaustive and mutually exclusive categories of environmental technologies have been

    proposed: pollution prevention, pollution control, and management systems. Thisclassification put forward by Klassen and Whybark (1999a) and used in this paper is

    consistent with the most recent developments in measuring different environmental

    technologies (Jones and Klassen 2001). It is important to emphasise that environ-

    mental technologies are broadly defined to include design, equipment, and operating

    procedures that limit or reduce negative impacts of products or services on the

    natural environment (Shrivastava 1995, Klassen and Whybark 1999a). It should be

    emphasised that the form of investment (i.e. pollution prevention, pollution control,

    or management systems) is independent of the level of total investment in

    environmental technologies, and captures the allocation of investment across

    technological options (Klassen and Whybark 1999a, Klassen and Vachon 2003).Pollution prevention technologies are structural investments in operations that

    involve process- or product-based changes. Material substitution and source

    reduction are examples of such technologies. The adoption of an environmental

    management system (e.g. ISO 14001), better housekeeping, and environmental

    considerations in production planning, often associated with pollution prevention

    (Hart 1995), are not considered in this category. These infrastructural investments

    are captured separately as management systems elsewhere to retain the historical

    differentiation between structural and infrastructural investments in operations

    management (Wheelwright 1984). Pollution prevention focuses exclusively on

    fundamental changes to the physical product and/or process. In contrast, pollutioncontrol technologies are structural investments that capture, treat or dispose of

    pollutants or harmful by-products at the end of a manufacturing process.

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    Pollution control technologies include both end-of-pipe equipment and remediation

    projects to clean-up earlier harmful practices. Finally, management systems are

    infrastructural investments that improve the way that environmental issues in

    manufacturing are managed.

    4. Linking integration to environmental investments

    The literature is slowly building evidence that links inter-organisational activities

    and a firms environmental management. For example, Henrique and Sadorsky

    (1999) examined the importance of different stakeholders, including suppliers and

    customers, for corporations commitment in environmental management. In this

    section, such linkage is refined to focus on the influence of supply chain integration

    on environmental technology investments within a focal plant.

    4.1 The influence of technological integration

    Technological integration, through its strategic activities pertaining to knowledge

    transfer and sharing, contributes to identifying and evaluating a greater variety

    of options that might address particular environmental challenges (Bonifant et al.

    1995). As these options can lead to improvement in other manufacturing

    performance dimensions such as quality and delivery, they can prompt further

    investment in projects that are related to the natural environment and, simulta-

    neously, can reduce the actual resistance to change that is associated with structural

    changes in production processes or products. For instance, collaborative activities

    with major customers which mainly comprise the extent of knowledge exchange

    (e.g. training, site visits) have also been positively linked to a shift in investmentfrom management systems to pollution prevention technologies (Klassen and

    Vachon 2003).

    As noted earlier, pollution control only affects the operations of a single plant

    and can be implemented in an isolated fashion. In contrast, product-based actions

    that leverage design-for-environment, to make such improvements as reduced

    packaging, are likely to be much easier to recognise and implement as one aspect of

    other collaborative supplierplant or plantcustomer activities. This is likely to be

    the case for other initiatives, too, such as joint recycling of parts and components,

    and process changes that reduce the use of hazardous materials.

    A good example of such collaborative activities can be found in chemicalmanagement services. These services, undertaken by a chemical supplier, guide a

    buying plant to properly use and handle chemicals, thereby potentially reducing

    spills and consumption. For example, Castrol, a lubricant supplier to the automotive

    industry, worked jointly within one of its customers plants. The resulting process

    modifications reduced the consumption of lubricants, leading to lower cost and

    environment impact (Reiskin et al. 2000). Similar case-based evidence has been

    reported elsewhere in the automotive industry. A paint supplier effectively worked

    on-site in the paint shop of an automaker to develop a better solution to the ever-

    increasing pressure for lower emissions of volatile organic compounds (VOCs)

    (Geffen and Rothenberg 2000). Thus, co-operative activities can shift environmentalinvestment away from pollution control technologies toward more efficient and

    effective preventive technologies (Klassen and Vachon 2003).

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    Cross-fertilisation of resources can lead to systemic changes through new product

    development or process re-engineering (Dyer and Nobeoka 2000, Takeishi 2001).

    For example, technological integration can influence a plants structural elements,

    such as product quality design (Fynes and Voss 2002) and process re-engineering

    pertaining to a lean production system (MacDuffie and Helper 1997). These strategicactivities are also associated with the sharing of resources, such as equipment and

    personnel, among supply chain members in order to improve manufacturing

    performance along the chain. Hence, technological integration can lead to product

    adaptation and fundamental process modifications, which is the main premise

    underlying pollution prevention technology.

    H1: As technological integration in the supply chain increases, investment in

    environmental technologies in the plant is increasingly allocated toward

    pollution prevention.

    While directing resources towards pollution prevention technologies, co-operationamong supply chain members can also alter the level of investment in environmental

    management. Klassen and Vachon (2003) found a link between similar collaboration

    with the primary suppliers and the extent of investments in environmental

    technologies. In fact, as reasoned for H1, many preventive technologies require

    cross-fertilisation of know-how among multiple organisations in the supply chain for

    effective implementation. Because this cross-fertilisation is an outcome of technolo-

    gical integration, more projects become technically feasible and attractive to

    manufacturing organisations as technological integration increases. Hence, environ-

    mental projects that might have been discarded without appropriate level of

    technological integration can be undertaken, resulting in greater resources invested

    in the environmental technologies. The incentives to do so are especially strong if

    shared-savings contracts are in place to encourage investments and innovation from

    multiple parties along the supply chain (Corbett 2001).

    H2: As technological integration in the supply chain increases, the level of

    investments in environmental technologies in the plant increases.

    4.2 The influence of logistical integration

    The extensive low-level data sharing that occurs with logistical integration

    contributes to better inventory management and improved scheduling andproduction planning. As logistical integration improves the efficacy of the supply

    chain, managers can be reluctant to invest in new technologies that would have the

    potential to disrupt and inhibit the gains from greater logistical integration. Hence,

    in a high logistical integration context, managers can be motivated to direct

    resources towards less disruptive end-of-pipe/pollution control technologies.

    On the other hand, improvements in inventory management and production

    scheduling have implications for environmental management, as inventory manage-

    ment affects waste disposal, and production planning can reduce energy consump-

    tion and scrap generation. However, all of these improvements are infrastructural in

    nature. Thus, it is expected that greater logistical integration would be consistentwith greater allocation of environmentally-related investments to management

    systems. For instance, vertical co-ordination was found to influence the participation

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    of the purchasing department in environment-related product and process

    modifications (Carter and Carter 1998). Logistical integration is also associated

    with more environmental monitoring in the supply chain (e.g. questionnaires and

    site audits), which is infrastructural in nature (Vachon and Klassen 2006).

    H3: As logistical integration in the supply chain increases, investment in environ-

    mental technologies in the plant is increasingly allocated toward management

    systems.

    Greater logistical integration can foster manufacturing organisations to invest

    more in particular environmental areas, such as reverse logistics. Reverse logistics is

    broadly defined to include all materials management activities related to product

    recovery, including reuse, recycling, remanufacturing and refurbishing of used

    products (Fleischmann et al. 1997, Stock 1998). In isolation, these activities may

    directly affect the design and management of forward-flow operations, and tend to

    require more complex inventory management and scheduling systems (Guide et al.1997, Gungor and Gupta 1999). However, logistical integration can improve

    effectiveness, decrease risk and reduce complexity of managing reverse flows, thereby

    enabling manufacturing organisations to more readily adopt a reverse logistics

    programme. It is also easier for suppliers to spearhead green logistics projects

    (e.g. reusable packaging) when they already have a good understanding of the

    logistical requirements and constraint faced by their customers (GEMI 2004). Thus,

    some barriers to investment in environmental technologies are reduced and benefits

    enhanced, suggesting that more will investment will be undertaken.

    H4: As logistical integration in the supply chain increases, the level of investments in

    environmental technologies in the plant increases.

    4.3 Supply base and customer concentration

    In addition to the degree of integration along the supply chain, the size of the supply

    network and the degree of concentration of the customers constitute two important

    characteristics that should be examined here. In the literature, the notions of supply

    base reduction and buyersupplier relationship are fundamentally linked (Harland

    et al. 1999, Chen and Paulraj 2004). A carefully crafted strategic framework must be

    in place in order to sustain the benefits coming from integration and supply base

    reduction (Cousins 1999). However, the relationship between the size of the supplybase and environmental technologies selection has received little attention, although

    the literature pertaining to organisational networks can offer one theoretical

    perspective.

    Network theory suggests that the degree of process and product innovation is

    positively linked to the number of direct ties that an organisation has in its network

    (Ahuja 2000). These direct ties increase the domain of knowledge sharing and

    complementary assets that can be accessed and leveraged, while increasing the

    number of indirect ties which have, to a lesser extent, the same beneficial properties

    (Powellet al. 1996). If these findings are transferred to supply chain management, a

    larger supply base is likely to lead to more innovation. Because pollution preventiontechnologies are greatly driven by product and process innovation (Porter and van

    der Linde 1995, Geffen and Rothenberg 2000), it is then expected that, as the number

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    of direct ties in the supply chain increases, the form of investment in environmental

    technologies would be affected. By way of empirical support, research is emerging

    that indicates multiple sourcing is preferred over single sourcing in the context of

    uncertain technological paths (Burt et al. 2003), which in turn is driven by

    innovation. Thus, given that pollution prevention technologies continue to be quiteinnovative, a larger supply network affords potential advantages.

    H5: As the number of suppliers and customers increases, investment in environ-

    mental technologies in the plant is increasingly allocated toward pollution

    prevention.

    5. Research methods

    The relationships between supply chain integration and the extent and form of

    investment in environmental technology was tested using a survey in the packageprinting industry. A single industry approach was adopted to control for the type of

    manufacturing processes and workflow, which were quite standardised in the

    package printing industry. Several other studies in environmental management have

    focused on a single industry (Klassen and Whybark 1999a, Christmann 2000, Geffen

    and Rothenberg 2000). Furthermore, the printing industry legislative requirements

    and customers concerns were actively pushing many plants to investigate and

    implement a variety of new environmental technologies, including such pollution

    prevention technologies as water-based inks or control technologies such as oxidisers

    to burn VOC emissions. The unit of analysis for this study was the plant, which is

    often used in environmental management research (Curkovic et al. 2000, King andLenox 2002).

    Before administrating the survey, interviews were conducted with six industry

    experts and senior managers in five plants in order to validate the conceptual model

    and to ensure proper language use in the questionnaire. Next, a list of 366 plants with

    at least 90 employees was compiled from two exhaustive sources: the Packaging

    Sourcebook for the United States and Scotts Industrial Directory for Canada.

    The survey was conducted during the summer of 2002. After an initial telephone call

    to the plant manager to confirm contact information and to introduce the research

    project, a three-wave survey process similar to that prescribed by Dillman (2000) was

    followed. The survey was translated into French for the plants located in the

    Province of Quebec. As suggested by Dillman (2000), two inducements were used to

    encourage active participation. The respondents were promised a summary report

    with information on each question by industry segment (folding carton, flexible

    package, labels). Also, a $5 pledge to the not-for-profit organisation Medecins sans

    Frontieres(Doctors Without Borders) was promised for each response received.

    A total of 84 plant managers responded, a response rate of 23%, which is similar

    to other studies (Frohlich 2002). A chi-square test of independence revealed no

    evidence that the respondent pool differed significantly from the target pool along

    (i) the geographical location of the respondents (United States versus Canada);

    (ii) the three industry sub-segments (folding box, flexible, labels); and(iii) parent company size (large multi-plant companies versus single/few plants

    companies).

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    5.1 Supply chain integration, supply base, and customer concentration

    Based on a growing understanding and depth of knowledge for supply chain

    integration, this research expanded the one-dimensional scales employed by others

    (Frohlich and Westbrook 1999, Rosenzweig et al . 2003) to capture the two

    dimensions of logistical and technological integration. Two multi-item scales were

    used to assess logistical and technological integration based on items reported by

    others (Carr and Pearson 1999, DeToni and Nassimbeni 1999). These scales were

    constructed to capture the level of logistical and technological integration that is in

    place between (i) the focal plant (respondent) and its primary suppliers and (ii) the

    focal plant and its major customers. It should be stressed that all the scales were

    reported from the perspective of the responding plant manager to ensure that

    management did not have to speculate about the operations of another organisation

    (e.g. our plant provides information to help our primary suppliers improve; our

    major customers provide our personnel with training) (see the Appendix).

    First, the integration scales were tested for internal reliability (Cronbachs alpha);all exceeded 0.70. Second, a confirmatory factor analysis (CFA) was conducted

    for the two supplier-related integration scales (logistical and technological), then

    the two customer-related scales. For each CFA, a covariance measurement model

    was estimated using maximum likelihood. All parameter estimates were statistically

    significant. Fit statistics were well within acceptable ranges (i.e. normed chi square

    0.9, and TuckerLewis index >0.85) (Hair et al. 1998),

    although the chi-square statistic was significant for the customer-related scales

    (p

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    were defined as the way people worked; including environmental audits and training(see the Appendix). This set of measures had been previously validated (Klassen and

    Whybark 1999a). The extent of investment in environmental technologies was

    measured by asking the plant mangers to report the percent of manufacturing costs

    that was devoted to environmental management and the proportion of the capital

    budget allocated to investment in environmental technologies.

    5.3 Control variables

    Four variables were used to control the following plant characteristics: plant size,parent company size, average age of presses, and level of investment in new

    manufacturing equipment. Size is an important contextual variable that is widely

    used in operations strategy and environmental management literature (Grant et al.

    2002). For example, Min and Galle (2001) found that larger organisations are more

    inclined to adopt green purchasing practices. In contrast, small organisations tend to

    be more pre-occupied with short-term issues not necessarily linked to environmental

    management and are more reactive to environmental issues and regulations (Arora

    and Cason 1995). They also have fewer resources and less knowledge to share with

    their major customers, which will likely translate into a decrease in co-operative

    activities with them. Respondents were asked to report the number of employees(full-time equivalent) working at their plants and for the parent company

    (H1 and H2).

    Table 1. Confirmatory factor analysis supply chain integration with suppliers.

    Standardised loading

    ItemsLogistical

    integrationTechnological

    integration Tstatistics

    A1a 0.756 1

    A1b 0.707 5.424A1c 0.435 3.504A1d 0.401 3.236A1e 0.637 5.010A2a 0.687 1

    A2d 0.734 5.879A2e 0.876 6.563A2g 0.671 5.431

    Construct reliability 0.731 0.822Variance extracted 0.365 0.541

    Fit statisticsChi square 29.043 (df 26, p 0.31)Normed chi square 1.117 (df 1, p 0.29)Goodness of fit index (GFI) 0.933TuckerLewis index (TLI) 0.981Adjusted goodness of fit (AGFI) 0.884Comparative fit index (CFI) 0.986Normed fit index (NFI) 0.888Root mean square error of approximation (RMSEA) 0.038

    1 t-statistics for these parameters were not available because they were fixed for scaling purposes.

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    Two variables capture the state of internal processes. First, the age of the pressesis used as a proxy for the age of technology in the plant. Old equipment is more

    susceptible to breakdowns and stoppage, forcing managers to troubleshoot more

    often and to turn their focus away from environmental issues. In contrast,

    investment in new equipment can be viewed as an opportunity to incorporate

    more environmental considerations in the process or products as new technologies

    provide new ways to address environmental issues.

    6. Results

    Bivariate correlations and descriptive statistics are presented in table 3. The

    parameter estimates (standardised betas) and the squared multiple correlation

    coefficients for each regression model are reported in tables 4 and 5. Ordinary least

    square (OLS) regressions were used and all measures of multicollinearity were within

    recommended limits.

    6.1 Form of environmental investments

    Results pertaining to the form of environmental investments are presented in table 4.For each dependent variable, a regression model was estimated for supplier only,

    customer only, and then finally, a joint suppliercustomer model using hierarchical

    Table 2. Confirmatory factor analysis supply chain integration with customers.

    Standardised loading

    ItemsLogistical

    integrationTechnological

    integration Tstatistics

    B2b 0.804 1

    B2c 0.681 5.923B2d 0.554 4.769B2e 0.647 5.622B2f 0.562 4.843B1a 0.580 1

    B1b 0.725 4.585B1c 0.750 4.656B1d 0.506 3.617

    Construct reliability 0.787 0.739Variance extracted 0.430 0.420

    Fit statisticsChi square 45.889 (df 26, p0.010)Normed chi square 1.750 (df 1, p0.186)Goodness of fit index (GFI) 0.906TuckerLewis index (TLI) 0.879Adjusted goodness of fit (AGFI) 0.837Comparative fit index (CFI) 0.912Normed fit index (NFI) 0.824Root mean square error of approximation (RMSEA) 0.095

    1 t-statistics for these parameters were not available because they were fixed for scaling purposes.

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    Table3.

    Correlations.

    Means.d.

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

    13

    14

    Enviro

    nmentaltechnologies

    1.Pollutionprevention

    47.2

    25.9

    2.Pollutioncontrol

    19.8

    21.20.4

    9

    3.Managementsystems

    33.0

    24.30.6

    40.3

    6

    4.Percentageofcapitalbudget

    4.0

    5.30.0

    8

    0.2

    90

    .17

    5.Percentageofmanufacturingcosts

    3.2

    2.60.1

    5

    0.1

    80

    .01

    0.5

    6

    Suppliercharacteristics

    6.Logisticalintegration

    5.4

    0.80.0

    6

    0.0

    90

    .02

    0.0

    50.0

    2

    7.Technologicalintegration

    4.8

    1.1

    0.3

    00.1

    20

    .210.0

    40.0

    6

    0.4

    9

    8.Supplybase

    0.7

    1.4

    0.2

    30.0

    70

    .18

    0.0

    00.1

    6

    0.0

    0

    0.02

    Custom

    ercharacteristics

    9.Logisticalintegration

    4.6

    0.9

    0.0

    60.2

    00

    .120.2

    20.0

    9

    0.3

    3

    0.33

    0.0

    8

    10.Technologicalintegration

    4.1

    1.00.0

    1

    0.1

    10

    .080.1

    0

    0.0

    1

    0.4

    7

    0.40

    0.0

    3

    0.4

    6

    11.Customerconcentration

    0.5

    0.20.2

    0

    0.0

    80

    .14

    0.0

    7

    0.1

    4

    0.0

    8

    0.08

    0.1

    8

    0.1

    4

    0.2

    5

    Plantc

    haracteristics

    12.Plantsizea

    4.9

    0.60.0

    5

    0.1

    00

    .03

    0.1

    50.0

    4

    0.0

    90.10

    0.1

    9

    0.0

    0

    0.0

    6

    0.0

    2

    13.Parentcompanysize

    b

    7.0

    2.20.3

    6

    0.1

    80

    .23

    0.1

    0

    0.1

    1

    0.0

    90.09

    0.0

    20.0

    6

    0.1

    1

    0.4

    00.33

    14.Investmentinnewequipment

    7.5

    8.0

    0.1

    7

    0.0

    50

    .22

    0.0

    3

    0.0

    1

    0.2

    2

    0.25

    0.0

    6

    0.1

    4

    0.2

    8

    0.1

    20.04

    0.1

    8

    15.Ageofpresses

    11.3

    6.70.2

    1

    0.0

    80

    .15

    0.1

    6

    0.0

    60.1

    00.18

    0.0

    50.1

    50.0

    50.1

    30.06

    0.3

    20.2

    9

    Nforb

    ivariatecorrelationsvariesfrom79

    to84becauseofmissingdata.

    Cor

    relationsgreaterthan0.2

    9aresignificantatp