Impact of green practices through green product and service innovation: sustainable product-service system performance model

Figures & data

Figure 1. Conceptual framework.

Table 1. Constructs used in the research questionnaire.

Construct	Items Code					References
Top Management Commitment
Goal and Objectives	TMC1			To implement green practices, our top management is committed to setting policies and strategies based on green practices		(Padma, Ganesh, and Rajendran 2008; Henry, Buyl, and Jansen 2019)
	TMC2			Communicate green practice-related initiatives to all employees
	TMC3			Assess green practice policies periodically and consequently
	TMC4			Emphasising ongoing review and improvement of green practices
Partnership	TMC5			Our top management engages suppliers in decision-making about green practices
	TMC6			Our suppliers are the organisation’s green partners and have ISO certification		(Santos, Lannelongue, and Gonzalez-Benito 2019; Hutomo, Mohd Saudi, and Sinaga 2018)
	TMC7			Collaborate with suppliers and integrate into green practices
Resource Allocation	TMC8			To implement green practices, our top management allocates sufficient resources		(Padma, Ganesh, and Rajendran 2008; Jahanshahi and Brem 2017)
	TMC9			Allocate sufficient resources to learn and innovate
	TMC10			Allocate sufficient fencing for green practices
Pollution Prevention Practices
Reduce	PPP1			To implement green practices, our organisation reduces energy use		(Rusinko 2007; Kloas et al. 2015; Niyitanga et al. 2021)
	PPP2			Reduce the use of materials
	PPP3			Reduce solid waste
	PPP4			Reduce emissions
	PPP5			Chemically stabilising/solidified B3 sewage treatment
Recycle	PPP6			To implement green practices, our organisation recycles Products		(Miller et al. 2014; Fazli and Rodrigue 2020; Sala and Serra 2004; Tiew et al. 2015)
	PPP7			Recycling solid waste
	PPP8			Recycling water
Repair	PPP9			To implement green practices, our organisation makes improvements to the quality of existing products		(Terzioğlu and Wever 2021)
	PPP10			Improved quality of new products
Repurposed	PPP11			To implement green practices, our organisation uses materials and parts that have been reused		(Pérez-Martínez et al. 2021; Chris, Thompson, and Swan 2020)
Product Stewardship Practices
Design Product	PSP1			To implement green practices, our organisation redesigns products to improve sustainability	(Rusinko 2007; Szalavetz 2019)
	PSP2			Redesign the process to improve sustainability
	PSP3			Sustainable product research and development
Eco Production	PSP4			To implement green practices, our organisation uses renewable materials	(Baines et al. 2012)
	PSP5			Using environmentally friendly energy
	PSP6			Using environmentally friendly certification
	PSP7			Eco-efficiency
Green Product Service Innovation
Green Product Innovation	GPSI1			To implement green product innovation, our organisation improves new product processes or process systems	(Waheed et al. 2020; Chang 2016)
	GPSI2			Development of innovative and environmentally friendly materials in product design
	GPSI3			End-of-life product management
Green Product Service Innovation
Green service Innovation	GPSI4			To implement green service innovation, our organisation expands products/services based on environmental concern	(Chen et al. 2015)
	GPSI5			Creating and establishing new green product/service practices based on concern for the environment
	GPSI6			Offering new product/customer service green practices based on concern for the environment
	GPSI7			Offering new green practices in products/after-sales services based on the commitment to the environment
	GPSI8			Offering new green practices in product/service development based on environment and concern
	GPSI9			Propose new green practices in promoting products/services related to environmental reputation
	GPSI10			Propose new green practices related to internal administration and operations based on environmental concerns
Sustainable Product Service Systems Performance
Economic		SPSSP1	Implementing green practices helps our organisation achieve sustainability by saving on energy consumption costs				(Lin, Hua Tan, and Geng 2013; Laosirihongthong, Adebanjo, and Choon Tan 2013; Zhu, Sarkis, and Hung Lai 2008)
		SPSSP2	Reduce the cost of purchasing materials
		SPSSP3	Launch of new environmentally friendly products
		SPSSP4	Increase product demand
		SPSSP5	Improving the quality of products and services
Environment		SPSSP6	Implementing green practices helps our organisation achieve sustainability by creating products that benefit the environment				(Laosirihongthong, Adebanjo, and Choon Tan 2013; Zhu, Sarkis, and Hung Lai 2008)
		SPSSP7	The product is not harmful to the environment
		SPSSP8	Reduce the negative impact on the environment
		SPSSP9	Products of slight pollution
Social		SPSSP10	Implementing green practices helps our organisation achieve sustainability by increasing organisational agility				(Yong et al. 2020; Sari et al. 2021)
		SPSSP11	Create an environmentally friendly organisational culture
		SPSSP12	Assist in customer and supplier collaboration
		SPSSP13	Increase customer satisfaction
		SPSSP14	Shaping environmentally friendly purchasing attitudes and behaviours
		SPSSP15	Well-being and caring for employees
		SPSSP16	Safety and health of employees

Table 2. Result of the measurement model.

Construct	Items Code	Outer loadings	rho_A	CR	AVE	Cronbach’ Alpha
Top Management Commitment	TMC1	0,808	0,942	0,944	0,628	0,934
	TMC2	0,812
	TMC3	0,849
	TMC4	0,894
	TMC5	0,842
	TMC6	0,782
	TMC7	0,775
	TMC8	0,715
	TMC9	0,732
	TMC10	0,692
Pollution Prevention Practices	PPP1	0,833	0,964	0,964	0,711	0,959
	PPP2	0,867
	PPP3	0,888
	PPP4	0,887
	PPP5	0,903
	PPP6	0,827
	PPP7	0,872
	PPP8	0,770
	PPP9	0,826
	PPP10	0,820
	PPP11	0,770
Product Stewardship Practices	PSP1	0,830	0,948	0,952	0,742	0,941
	PSP2	0,860
	PSP3	0,865
	PSP4	0,925
	PSP5	0,913
	PSP6	0,872
	PSP7	0,753
Green Product Service Innovation	GPSI1	0,848	0,968	0,971	0,770	0,966
	GPSI2	0,831
	GPSI3	0,898
	GPSI4	0,920
	GPSI5	0,913
	GPSI6	0,936
	GPSI7	0,927
	GPSI8	0,836
	GPSI9	0,842
	GPSI10	0,810
Sustainable Product-Service System Performance	SPSSP1	0,835	0,967	0,969	0,663	0,966
	SPSSP2	0,845
	SPSSP3	0,825
	SPSSP4	0,861
	SPSSP5	0,879
	SPSSP6	0,878
	SPSSP7	0,868
	SPSSP8	0,806
	SPSSP9	0,825
	SPSSP10	0,762
	SPSSP11	0,730
	SPSSP12	0,757
	SPSSP13	0,764
	SPSSP14	0,752
	SPSSP15	0,816
	SPSSP16	0,799

Figure 2. Research methodology.

Table 3. Discriminant validity.

Construct	GPSI	PPP	PSP	SPSSP	TMC
GPSI	0,877
PPP	0,332	0,843
PSP	0,412	0,356	0,861
SPSSP	0,707	0,394	0,559	0,814
TMC	0,508	0,331	0,453	0,697	0,792

Table 4. Direct relationship.

Paths	(O)	(M)	(STDEV)	T Statistics	P Values	Hypotheses
GPSI -> SPSSP	0,414	0,385	0,111	3,742	0,000	Supported
PPP -> GPSI	0,139	0,140	0,070	1,969	0,049	Supported
PPP -> SPSSP	0,063	0,070	0,069	0,912	0,362	Not Supported
PSP -> GPSI	0,193	0,194	0,095	2,025	0,043	Supported
PSP -> SPSSP	0,196	0,210	0,100	1,969	0,050	Supported
TMC -> GPSI	0,375	0,365	0,117	3,199	0,001	Supported
TMC -> SPSSP	0,377	0,386	0,074	5,062	0,000	Supported

Table 5. Mediation effect.

Paths	(O)	(M)	(STDEV)	T Statistics	P Values	Hypotheses
PPP -> GPSI -> SPSSP	0,057	0,051	0,027	2,156	0,032	Supported
TMC -> GPSI -> SPSSP	0,155	0,148	0,074	2,093	0,037	Supported
PSP -> GPSI -> SPSSP	0,080	0,070	0,034	2,350	0,019	Supported

Figure 3. Structure model.

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