In view of the increasing importance of environmental sustainability, green supply chain management (GSCM) has become one of the main focuses of enterprises. However, when it comes to the case of a Multinational Corporation (MNC), green supply chain management among its worldwide subsidiaries is much more challenging. MNCs are composed of subsidiaries located in culturally different nations, and this feature could be either pros or cons. The cultural distance between headquarters and subsidiaries is very likely to affect how headquarters transfer mission to their subsidiaries, hence influence whether they can successfully cooperate with one another in green supply chain management. This research aims to investigate whether the national cultural distance has a strong influence on MNC subsidiaries’ green supply chain management, and how headquarters can alleviate the influence. We collected data from 141 subsidiaries of an MNC to test our research model. Based on our results, we found that cultural distance indeed has a negative impact on headquarter-subsidiary green compatibility. However, we propose that headquarters can conquer the cultural-distance problem by strengthening shared vision in response to each distinctive cultural background embedded in their subsidiaries. This study offers a managerial insight that headquarters can eventually benefit from the cross-national cooperation if they can take cultural characteristics into consideration when diffusing green with a mechanism that best suits local circumstances.

In view of the increasing importance of environmental sustainability, green supply chain management (GSCM) has become one of the main focuses of enterprises. However, when it comes to the case of a Multinational Corporation (MNC), green supply chain management among its worldwide subsidiaries is much more challenging. MNCs are composed of subsidiaries located in culturally different nations, and this feature could be either pros or cons. The cultural distance between headquarters and subsidiaries is very likely to affect how headquarters transfer mission to their subsidiaries, hence influence whether they can successfully cooperate with one another in green supply chain management. This research aims to investigate whether the national cultural distance has a strong influence on MNC subsidiaries’ green supply chain management, and how headquarters can alleviate the influence. We collected data from 141 subsidiaries of an MNC to test our research model. Based on our results, we found that cultural distance indeed has a negative impact on headquarter-subsidiary green compatibility. However, we propose that headquarters can conquer the cultural-distance problem by strengthening shared vision in response to each distinctive cultural background embedded in their subsidiaries. This study offers a managerial insight that headquarters can eventually benefit from the cross-national cooperation if they can take cultural characteristics into consideration when diffusing green with a mechanism that best suits local circumstances.

TABLE OF CONTENT
ABSTRACT…………………………………………………………………………i
1. INTRODUCTION………………………………………………………………1
2. LITERATURE REVIEW………………………………………………………3
2.1 Multinational corporations (MNC) and Green Supply Chain Management..3
2.2 Culture and MNC Performance……………………………………………5
3. THEORETICAL FOUNDATION AND HYPOTHESIS DEVELOPMENT…7
3.1.1 National Culture………………………………………………………7
3.1.2 Cultural Distance……………………………………………………...8
3.2 Research Model……………………………………………………………9
3.3 Total Responsibility Management (TRM)………………………………...14

4. METHODOLOGY……………………………………………………………16
4.1 Target MNC………………………………………………………………..16
4.2 Data Collection…………………………………………………………….17
4.3 Measurement………………………………………………………………17
5. DATA ANALYSIS………………………………………………………………22
5.1 Hypotheses Testing Results………………………………………………..22
5.2 Post-Hoc Analysis…………………………………………………………24
6. DISCUSSION…………………………………………………………………30
7. CONCLUSION…………………………………………………………………34
REFERENCES……………………………………………………………………35
APPENDIX. MEASUREMENT ITEMS USED IN THE STUDY………………40

LIST OF TABLES
TABLE 1. Prior research of Companies’ Green practices in different levels………....4
TABLE 2. Prior research of culture on MNC innovation adoption or performance…..6
TABLE 3 Variances of Hofstede’s cultural dimensions ….…………………………18
TABLE 4 Countries of Participating Subsidiaries ……………………………..……19
TABLE 5 Reliability and Convergent Validity of Reflective Constructs……………20
TABLE 6 Reflective Constructs: Discriminant Validity of Instruments…………….22












LIST OF FIGURES
FIGURE 1. Research Model…………………………………………………………..9
FIGURE 2 Results of structural model (H1-H4)…………………………………….23
FIGURE 3 Results of structural model (H1-H5)…………………………………….24
FIGURE 4 Results of post-hoc Analysis……………………………………………..30

REFERENCES

Amaeshi, K. M., Osuji, O. K., & Nnodim, P. (2007). Corporate social responsibility in supply chains of global brands: A boundaryless responsibility? Clarifications, exceptions and implications. Journal of Business Ethics, 81(1), 223-234.
Babiak, K., & Trendafilova, S. (2011). Csr and environmental responsibility: Motives and pressures to adopt green management practices. Corporate Social Responsibility and Environmental Management, 18(1), 11-24.
Bansal, P., & Roth, K. (2000). Why companies go green:A model of ecological responsiveness. The Academy of Management Journal, 43, 717-736.
Beamon, B. M. (1999). Designing the green supply chain. Logistics Information Management, 12, 332-342.
Björkman, I., Stahl, G. K., & Vaara, E. (2007). Cultural differences and capability transfer in cross-border acquisitions: The mediating roles of capability complementarity, absorptive capacity, and social integration. Journal of International Business Studies, 38, 658-672.
Brammer, S., Hoejmose, S., & Marchant, K. (2012). Environmental management in smes in the uk:Practices, pressures and perceived benefits. Business Strategy and the Environment, 21, 423-434.
Buysse, K., & Verbeke, A. (2003). Proactive environmental strategies: a stakeholder management perspective. Strategic Management Journal, 24(5), 453-470.
Chen, Y.-S. (2008). The driver of green innovation and green image–green core competence. Journal of Business Ethics, 81(3), 531-543.
Chien, M. K., & Shih, L. H. (2007). An empirical study of the implementation of green supply chain management practices in the electrical and electronic industry and their relation to organizational performances. International Journal of Environment Science and Technology, 4(3), 383-394.
Cruz, L. B., & Pedrozo, E. A. (2009). Corporate social responsibility and green management: Relation between headquarters and subsidiary in multinational corporations. Management Decision, 47(7), 1174-1199.
Cui, A. S., Griffith, D. A., Cavusgil, S. T., & Dabic, M. (2006). The influence of market and cultural environmental factors on technology transfer between foreign mncs and local subsidiaries: A croatian illustration. Journal of World Business, 41(2), 100-111.
Davis, G. K. J. H. J. (2000). National culture and innovation: Implications for locating global r&d operations. Management International Review, 40, 11-39.
De Bakker, F., & Nijhof, A. (2002). Responsible chain management: A capability assessment framework. Business Strategy and the Environment, 11(1), 63-75.
Delmas, M. (2001). Stakeholders and competitive advantage: the case of iso 14001. Production and Operations Management, 10, 343-358.
Dyer, J. H., & Singh, H. (1998). The relational view: Cooperative strategy and sources of interorganizational competitive. The Academy of Management Review, 23, 660-679.
Fornell, C., & Larcker, D. (1981). Evaluating structural equation models with unobserved variables and measurement error. Journal of Marketing Research, 18(1), 39-50.
Frambach, R. T. (1993). An integrated model of organizational adoption and diffusion of innovations. European Journal of Marketing, 27, 22-41.
Frambach, R. T., & Schillewaert, N. (2002). Organizational innovation adoption: A multi-level framework of determinants and opportunities for future research. Journal of Business Research, 55, 163-176.
Frohlich, M. T., & Westbrook, R. (2001). Arcs of integration:An international study of supply chain strategies. Journal of Operations Management, 19, 185-200.
Gadenne, D. L., Kennedy, J., & McKeiver, C. (2008). An empirical study of environmental awareness and practices in smes. Journal of Business Ethics, 84(1), 45-63.
Geert Hfstede, Gert Jan Hofstede, & Michael Minkov, 2010. Cultures and Organizations: software of the mind, New York: McGraw-Hill.
Ghoshal, S., & Bartlett, C. A. (1990). The multinational corporation as an interorganizational network. Academy of Management Review, 15, 603-625.
Gold, S., Seuring, S., & Beske, P. (2009). Sustainable supply chain management and inter-organizational resources: A literature review. Corporate Social Responsibility and Environmental Management, 17(4), 230-245.
Gomez-Mejia, L. R., & Palich, L. E. (1997). Cultural diversity and the performance of multinational firms. Journal of International Business Studies, 28, 309-335.
González-Benito, J., & González-Benito, Ó. (2006). The role of stakeholder pressure and managerial values in the implementation of environmental logistics practices. International Journal of Production Research, 44(7), 1353-1373.
Hair, J., Anderson, R., Tatham, R., & Black, W. (1998). Multivariate data analysis, Upper Saddle River, NJ: Prentice Hall.
Handfield, R., Walton, S.V., Seegers, L.K., Melnyk, S.A. (1997). 'Green' value chain practices in the furniture industry. Journal of Operations Management, 15(4), 293-315.
Henriques, I., & Sadorsky, P. (1996). The determinants of an environmentally responsive firm: An empirical approach. Journal of Environmental Economics and Management, 30(3), 381-395.
Holtbrügge, D., & Berg, N. (2004). Knowledge transfer in multinational corporations: Evidence from german firm. Management International Review, 44, 129-145.
Holt, D., & Ghobadian, A. (2009). An empirical study of green supply chain management practices amongst uk manufacturers. Journal of Manufacturing Technology Management, 20(7), 933-956.
Jeyaraj, A., Rottman, J. W., & Lacity, M. C. (2006). A review of the predictors, linkages, and biases in it innovation adoption research. Journal of Information Technology, 21(1), 1-23.
John Wu, S. D. H. F. (2012). A study on green supply chain management practices among large global corporations. Journal of Supply Chain and Operations Management, 10, 182-194.
Jung, J., Su, X., Baeza, M., & Hong, S. (2008). The effect of organizational culture stemming from national culture towards quality management deployment. The TQM Journal, 20(6), 622-635.
Killing, J.P. (1983). Strategies for joint venture success, New York: Praeger.
Kleindorfer, P. R., Singhal, K., & Wassenhove, L. N. V. (2005). Sustainable operations management. Production and Operations Management, 14, 482-492.
Kogut, B., & Singh, H. (1988). The effect of national culture on the choice of entry mode. Journal of International Business Studies, 19, 411-432.
Lamming, R., & Hampson, J. (1996). The environment as a supply chain management issue. British Journal of Management, 7(1), 45-62.
Lee, K.-H. (2009). Why and how to adopt green management into business organizations?: The case study of korean smes in manufacturing industry. Management Decision, 47(7), 1101-1121.
Lee, S.-Y., & Klassen, R. D. (2008). Drivers and enablers that foster environmental management capabilities in small- and medium-sized suppliers in supply chains. Production and Operations Management, 17(6), 573-586.
Lin, C.-Y., & Ho, Y.-H. (2010). Determinants of green practice adoption for logistics companies in china. Journal of Business Ethics, 98(1), 67-83.
Linton, J., Klassen, R., & Jayaraman, V. (2007). Sustainable supply chains: An introduction. Journal of Operations Management, 25(6), 1075-1082.
Lucas, L. M. (2006). The role of culture on knowledge transfer: The case of the multinational corporation. The Learning Organization, 13(3), 257-275.
Mathiyazhagan, K., Govindan, K., NoorulHaq, A., & Geng, Y. (2013). An ism approach for the barrier analysis in implementing green supply chain management. Journal of Cleaner Production, 47, 283-297.
Min, H., & Galle, W. P. (2001). Green purchasing practices of us firms. International Journal of Operations & Production Management, 21, 1222-1238.
Mitsuhashi, H., & Greve, H. R. (2009). A matching theory of alliance formation and organizational success:Complementarity and compatibility. Academy of Management Journal, 52, 975-995.
O’Reilly, C., & Chatman, J (1996). Culture as social control: Corporations, cults and commitment. In B Staw and L. Cummings (Eds.), Research in organizational behavior, 18. Greenwich, CT: JAI Press.
Peng, M. W. (2001). The resource-based view and international business. Journal of Management, 27, 803-829.
Peng, Y.-S., & Lin, S.-S. (2008). Local responsiveness pressure, subsidiary resources, green management adoption and subsidiary's performance: Evidence from taiwanese manufactures. Journal of Business Ethics, 79, 199-212.
Raghavendran, P. S., Xavier, M. J., & Israel, D. (2012). Green purchasing practices: A study of e-procurement in b2b buying in indian small and medium enterprises. Journal of Supply Chain and Operations Management,10(1), 13-23.
Rao, P., & Holt, D. (2005). Do green supply chains lead to competitiveness and economic performance? International Journal of Operations and Production Management, 25(9), 898-916.
Richard Florida, M. A. a. M. C. (2001). What makes companies green? Organizational and geographic factors in the adoption of environmental practices. Economic Geography, 77, 209-224.
Rogers, E.M. (2003). Diffusion of innovations (5th ed.). New York: Free Press.
Sarkis, J. (2003). A strategic decision framework for green supply chain management. Journal of Cleaner Production, 11(4), 397-409.
Schlegelmilch, B. A. B. B. (2008). Innovation in multinational firms: Does cultural fit enhance performance? Management International Review, 48, 189-206.
Seuring, S., & Müller, M. (2008). From a literature review to a conceptual framework for sustainable supply chain management. Journal of Cleaner Production, 16(15), 1699-1710.
Shane, S. (1993). Cultural influence on national rates of innovation. Journal of Business Venturing, 8, 59-73.
Sharma, S., & Vredenburg, H. (1998). Proactive corporate environmental strategy and the development of competitively valuable organizational capabilities. Strategic Management Journal, 19, 729-753.
Shore, B., & Venkatachalam, A. R. (1996). Role of national culture in the transfer of information technology. Journal of strategic information systems, 5, 19-35.
Simpson, M., Taylor, N., & Barker, K. (2004). Environmental responsibility in smes: Does it deliver competitive advantage? Business Strategy and the Environment, 13(3), 156-171.
Srivastava, S. K. (2007). Green supply-chain management: A state-of-the-art literature review. International Journal of Management Reviews, 9(1), 53-80.
Straub, D. (1989). Validating instruments in MIS research. MIS Quarterly, 13(2),147-169.
Taras, V., Kirkman, B. L., & Steel, P. (2010). Examining the impact of culture's consequences: A three-decade, multilevel, meta-analytic review of hofstede's cultural value dimensions. Journal of Applied Psychology, 95, 405-439.
Tornatzky, L. G., & Klein, K. J. (1982). Innovation characteristics and innovation adoption-implementation:A meta-analysis of findings. IEEE Transactions on Engineering Management, 29(1), 28-45.
Tsai, W., & Ghoshal, S. (1998). Social capital and value creation: The role of intrafirm networks. The Academy of Management Journal, 41, 464-476.
Vaaland, T. I., Haugland, S. A., & Purchase, S. (2004). Why do business partners divorce?The role of culural distance. Journal of Business-to-Business Marketing, 11(4), 1-21.
Vachon, S., & Klassen, R. D. (2006). Extending green practices across the supply chain: The impact of upstream and downstream integration. International Journal of Operations & Production Management, 26(7), 795-821.
Waddock, S., & Bodwell, C. (2002). From TQM to TRM: Emerging total responsibility management approaches. Journal of Corporate Citizenship, 1-22.
Waddock, S. A., Bodwell, C., & Graves, S. B. (2002). Responsibility: The new business imperative. The Academy of Management Executive, 16, 132-148.
Wagner, M. (2004). The effect of corporate environmental strategy choice and environmental performance on competitiveness and economic performance: An empirical study of EU manufacturing. European Management Journal, 22(5), 557-572.
Walker, H., Di Sisto, L., & McBain, D. (2008). Drivers and barriers to environmental supply chain management practices: Lessons from the public and private sectors. Journal of Purchasing and Supply Management, 14(1), 69-85.
Walton, S. V., Handfield, R. B., & Melnyk, S. A. (1998). The green supply chain: Integrating suppliers into environmental management processes. Journal of Supply Chain Management, 34(2), 2-11.
Zhu, Q., & Sarkis, J. (2004). Relationships between operational practices and performance among early adopters of green supply chain management practices in Chinese manufacturing enterprises. Journal of Operations Management, 22(3), 265-289
Zhu, Q., & Sarkis, J. (2006). An inter-sectoral comparison of green supply chain management in china: Drivers and practices. Journal of Cleaner Production, 14(5), 472-486.
Zhu, Q., Sarkis, J., & Geng, Y. (2005). Green supply chain management in china: Pressures, practices and performance. International Journal of Operations & Production Management, 25(5), 449-468.
Zhu, Q., Sarkis, J., & Lai, K.-h. (2012). Green supply chain management innovation diffusion and its relationship to organizational improvement: An ecological modernization perspective. Journal of Engineering and Technology Management, 29(1), 168-185.