The Impacts of Quality Management on Green Material Utilization: A Small- and Medium-Sized Chinese Enterprises’ Perspective

Abstract

Small- and medium-sized enterprises (SMEs) play an important role in China’s sustainable development. With the increasing green awareness among SMEs, they have become more environmentally conscious, and many of them are considering the utilization of green materials as an effective method to reduce environmental impact. At the same time, Chinese SMEs must also ensure product quality when deciding to utilize green materials. Based on quality management theory, we developed a model to empirically explore the impact of quality training and quality standards on the utilization of green materials by SMEs. Firstly, we conducted an exploratory case study with four Chinese SMEs to identify important and common attributes and levels associated with SMEs’ utilization of green materials. Secondly, building on these case studies, we designed a discrete choice experiment (DCE). We conducted a survey involving 313 Chinese SMEs to collect data, which we analyzed using a random parameter logit model. The results show that quality training promotes SMEs’ green material utilization, while quality standards hinder it. In addition, both quality training and quality standards enhance the positive effects of heavy metal toxicity reduction and recycling rates on utilization, while weakening the positive effect of sewage reduction on utilization.

1. Introduction

Chinese SMEs make a significant contribution to Chinese industries, and they act not only as an essential part of the supply chains of large enterprises, but also as key players in the low-end product market [1,2]. This is largely attributable to their strong emphasis on product quality and the sustained focus on quality management (QM) in their operations. Ensuring quality is a crucial factor for maintaining long-term cooperative relationships with existing customers [3]. However, as environmental awareness continues to grow globally, products with only high quality can no longer meet customer demands. Many SMEs have started incorporating environmentally friendly elements into their products to attract customers [4]. The use of green materials has been regarded as an effective method [5]. Utilizing green materials plays a significant role in environmental protection due to their environmentally friendly properties. It significantly contributes to reducing waste [5], minimizing harmful effects on human health and the ecological environment [6], and reducing various pollutant emissions during processing or use [4]. Thus, green materials are gradually being recognized and adopted by many companies, due to their positive impacts on both environmental and business performance [7]. On the other hand, the use of green materials poses challenges in maintaining product quality stability, especially when they are applied to critical components [8]. As a result, ensuring product quality while utilizing green materials remains a significant challenge [9]. Many failure cases have been observed due to low levels of product quality when using green materials. For instance, Adidas introduced the Futurecraft Loop series, a line of shoes constructed entirely from recyclable materials. While these shoes were widely recognized for their environmental credentials, some customers reported that their durability and performance were inferior to those of traditional shoes. That large enterprises have also experienced many failures in the application of green materials, and that SMEs generally lack the abilities and resources to manage such risks [10]. Thus, many SMEs tend to adopt a conservative or even resistant attitude toward the utilization of green materials [11]. This has led to green material utilization among Chinese SMEs remaining in its initial phase, with these materials consistently not being used on a large scale, as they are in larger companies [10]. To alleviate the concerns of Chinese SMEs about the quality uncertainty impacts associated with green material utilization, reconsidering the impact of QM on green material utilization has become necessary and urgent.

Does QM facilitate or hinder green material utilization? The existing literature on this topic is limited, and there are mixed arguments regarding the relationship between QM and green material utilization [9,12]. Furthermore, some studies have adopted an integrated approach, viewing QM as a single concept and examining its influence on green material utilization [13]. Previous research on QM has distinguished between two aspects embedded within QM: “hard” and “soft” [14,15]. The hard aspect of QM pertains to production techniques, whereas the soft aspect of QM focuses on human factors [16,17]. However, most of these studies emphasize the hard aspects of QM, such as process management and quality control, while the soft aspect of QM is often overlooked. However, many researchers argue that soft QM is an essential and necessary dimension for the implementation of QM practices, and for ensuring the success of hard QM practices [9,18]. El Manzani et al. [19] suggested paying greater attention to exploring the influence of soft QM on green material utilization, particularly quality trainings and quality standards, as these are highly relevant to the application to green material utilization. For instance, the awareness and capabilities enhanced through quality training are often similar to those required for green material utilization [20]. Additionally, quality standards provide essential capabilities for firms planning to utilize green materials [19]. To develop a deeper and more comprehensive understanding of the impact of quality training and quality standards on green material utilization by Chinese SMEs, the first research question is, ‘How do quality training and quality standards influence green material utilization within the context of Chinese SMEs?’

In addition, researchers argue that the attributes and functions of green materials influence firms’ decisions to utilize them. For instance, price is a key attribute considered in green material utilization [21]. Firms also frequently consider the environmental functionality of green materials, such as renewability [22], recyclability [23], low toxicity [6], and low pollution [21]. Most previous studies have separately examined the impacts of soft QM and green material attributes on green material utilization [7,24]. However, there is a gap in the literature regarding the moderating effect of soft QM practices on the relationship between the environmental functionality of green materials and their utilization. Thus, the second research question is, ‘How do quality training and quality standards affect the impact of the environmental functionality of green materials on SMEs’ purchasing decisions?’

In order to address these two research questions, this study aims to empirically investigate the influence of quality training and quality standards on green material utilization by Chinese SMEs. The findings of this study address the literature gap concerning the impact of soft QM on the green transformation of Chinese SMEs [13]. Additionally, this study provides new insights into the environmental functionalities considered by SMEs when purchasing green materials in the context of existing soft QM practices among Chinese SMEs.

2. Literature Review and Research Hypotheses

2.1. Green Materials

Green materials refer to materials that have a reduced environmental impact throughout their lifecycle [25]. Green materials are typically characterized as renewable [22], recyclable [23], low in toxicity [5], and low in pollution [6].

Green materials are widely used in companies and are increasingly recognized as a key factor in environmental management [26]. Many studies have indicated that green materials are widely used because they reduce environmental impact and protect the environment in various ways, such as minimizing pollution from waste gas and sewage and reducing waste production. For instance, Glew et al. [27] compared the environmental impact of biomaterial and petrochemical products, concluding that biomaterial products are more easily recyclable and can reduce carbon emissions by up to 90% compared to petrochemical products. In addition, Kabir et al. [28] further highlighted that degradable plastics demonstrate enhanced biodegradability, with significant potential to conserve natural ecosystems and prevent ecological destruction. Degradable plastics can also avoid the toxic pollutants produced by thermal treatments, mitigating ecological deterioration. Another reason for regarding green material utilization as a vital aspect of green transformation is its widespread acceptance by firms. Many studies have shown that green materials not only reduce environmental impacts, but also benefit business operations [25,29]. For instance, Dangelico and Pujari [25] conducted a multiple-case study involving 12 companies, and found that 50% of the firms selected green materials as their primary green transformation practice. The study indicated that utilizing green materials enhances market competitiveness and creates opportunities to increase market share. Moreover, Tanksale et al. [30] also indicated that using green packaging materials can minimize carbon emissions and maximize waste recycling, while also reducing costs, attracting environmentally conscious customers, opening new market opportunities, and then achieving traditional profit maximization.

Even though green materials significantly contribute to environmental protection and business performance, some studies still show that many companies adopt a conservative and cautious approach to green material utilization [31]. Many firms are concerned about the potential negative impacts of green materials on product quality, including durability [32], functional quality [33], and changes to production processes [34]. For example, Gursel et al. [32] highlighted that the difference in durability is one of the major reasons why companies hesitate to use green materials. In addition, Dicker et al. [7] also specified that green materials often exhibit limited durability and rapid performance degradation, such as in mechanical properties and flexural strength, which risks reducing customer satisfaction and loyalty and can even lead to customer loss. To mitigate such risks, many companies cautiously use green materials only in less critical product components. In contrast, firms that use green materials in critical product components face higher risks.

To maximize the benefits of green materials and minimize associated risks, firms tend to consider both material-related factors and firm-related factors when they make a decision to utilize green materials [7,32]. With respect to material-related factors, many studies have found that some attributes of green materials have a significant impact on the green material utilization of firms. For example, Aftab et al. [35] indicated that low-toxicity materials are frequently considered by firms when they select green materials, and heavy metals are the main attributes of toxic materials. Moreover, Tansel [36] indicated that product use times have become shorter, causing waste quantities to increase, which has led to some raw materials being in short supply, making more firms pay greater attention to the recycling rate of materials. On the other hand, numerous studies have also found that many firm-related factors impact green material utilization. For instance, Rustam et al. [37] indicated that firms’ environmental awareness is one of the main prerequisites for companies to adopt green materials. Huang and Chen [38] indicated that institutional pressure promotes firms’ green material utilization. However, most studies focus on simple drivers, and previous studies have seldom considered the interaction impact between material-related factors and firm-related factors on green material utilization. Hence, this study attempts to fill this gap.

2.2. Quality Management

Quality management (QM) refers to the process of overseeing all activities and tasks aimed at maintaining a desired level of excellence in a firm’s products [39]. QM has been a topic of significant attention for a long time. With changes in market demand, technological advancements, and management philosophies, QM has continually evolved and developed. It has transitioned from simple quality inspection to a total management system and integrated environmental management into QM [11,40]. QM is divided into two dimensions, hard QM and soft QM, which differ in focus and methods of implementation [9]. Hard QM refers to practices focused on controlling processes and products using techniques and tools aimed at meeting product quality requirements [9,15]. Hard QM has long been regarded as the mainstream of QM, receiving substantial attention in research [19]. Studies on hard QM practices have thoroughly examined various tool- and technique-oriented QM practices, with process management and the use of quality information being the most representative practices [41,42]. With continuous development, research on hard QM has significantly advanced, resulting in a highly mature body of research.

In comparison, soft QM has not received the same level of attention as hard QM [24]. El Manzani et al. [43] explained that this is because soft QM is informal and reactive and has a short-term outlook, lacking professionals and experts to manage them. Soft QM focuses on practices related to involvement and commitment management, employee evaluation, training, and internal cooperation or teamwork [44]. Many researchers still highlight the importance of soft QM [9,18]. For example, Rahman and Bullock [45] stated that improving hard QM alone does not necessarily lead to successful QM, as “people make quality happen”. Similarly, Zeng et al. [9] indicated that neglecting soft QM may lead to the failure of QM implementation. As QM research has become more in-depth, researchers have increasingly recognized the importance of soft QM [44,46]. Consequently, this study focuses on soft QM.

The relationship between green material utilization and soft QM has been extensively studied by researchers. However, the assessment of this relationship remains inconclusive. Some studies have adopted an optimistic perspective and contended that soft QM promotes green material utilization [44,47]. This view suggests that soft QM helps establish teamwork, enhances knowledge and awareness, encourages creative ideas from employees, and promotes a communicative environment, thereby facilitating green material utilization. In contrast, some studies hold a pessimistic view of the relationship between soft QM and green material utilization. They argue that the primary aim of soft QM is to improve quality performance, and that it does not directly relate to green material utilization [9]. Furthermore, studies believe that the varying results in the relationship between soft QM and green material utilization are due to differences in the specific practices of soft QM. They propose that soft QM should be regarded as a multidimensional concept [16,17].

In the literature on soft QM, many studies have examined it from a top organizational perspective, primarily focusing on larger enterprises. For instance, Georgiev and Ohtaki [48] comprehensively identified critical factors for soft QM implementation, highlighting that top management involvement, leadership, and policy and strategy are the three crucial elements for the successful implementation of QM practices. Additionally, Teoman and Ulengin [49] investigated the influence of managers’ transformational leadership styles on quality performance, and found that this leadership style is a key determinant of success in all QM practices. Similarly, Valmohammadi and Roshanzamir [50] concluded that organizational culture is an antecedent of QM practices, with different types and strengths of culture significantly impacting the successful implementation of QM practices.

On the other hand, soft QM in SMEs places more emphasis on employee-level perspectives. Addis [10] explained that most SMEs use a large labor force relative to capital equipment, which is characterized by low labor productivity. Soft QM practices relating to employees play a critical role in helping to improve productivity and ensure quality. Quality training and quality standards are two of the main practices in the employee aspects of soft QM [51,52,53]. Quality training is defined as educational tools and training for improving employees’ skills, awareness, and competencies, aiming to improve the overall QM levels of enterprises [54], and quality standards are the process of assessing product quality [15]. Employees are rewarded or penalized based on the evaluation results, aiming to ensure quality performance, thereby enhancing the overall company performance [48]. Many studies highlight the importance of these two soft QM practices in SMEs. For example, Georgiev and Ohtaki [48] found that quality standards give employees incentive or encouragement, driving them to become involved with ensuring product quality. In addition, Zeng et al. [9] explored the function of employees’ training and quality standards in QM implementation. They found that quality training aims to update employees’ skills and knowledge to maintain a workforce with cutting-edge skills and abilities, help employees to better perform their tasks, and also transform workers into flexible problem-solvers. This study conducts research in the context of Chinese SMEs. It considers the characteristics of SMEs and the soft QM practices that SMEs frequently adopt, focusing on quality training and quality standards.

There are also some studies on the relationship between two practices of soft QM and green material utilization. With respect to QM training, most researchers believed it had a positive relationship with green material utilization [12,13,55]. Some researchers argued that some awareness and capabilities enhanced through quality training are indeed similar to those required for green transformation, and help us to better comprehend green material utilization and assist in promoting green material utilization. For example, Al-Dhaafri and Al-Swidi [20] found that quality training enhances employees’ awareness related to saving waste and energy and preventing pollution, which has commonality with green protections that drive firms to utilize green materials. In addition, Wang et al. [56] argued that quality training helps employees to strictly follow quality standards and then reduces the quality uncertainty associated with the use of green materials. In addition, Shahzad et al. [55] also indicated that quality training elevates awareness and capabilities with respect to continuous improvement, which support employees’ ability to innovate or improve existing products with green materials. For quality standards, one of the most under-researched aspects of soft QM, the results are also mixed [48]. For example, Wei et al. [57] believed that quality standards can help employees enhance their skills and awareness, which provides essential capabilities when they plan to utilize green materials.

2.3. Research Hypotheses

2.3.1. The Effect of Quality Training on Green Material Utilization

We argue that quality training has a positive impact on green material utilization. Chinese SMEs are increasingly focusing on both the environmental and the business benefits of green transformation [4]. The use of green materials reduces environmental impact, enhances brand image and attracts more customers [21]. However, the effective utilization of green materials depends not only on top management support, but also on the motivation and capabilities of employees, which relates to their environmental awareness, knowledge, and skills [58].

Over time, quality training has evolved from basic quality control to more comprehensive approaches, incorporating concepts like lean management, continuous improvement, and sustainable development. Therefore, it plays a critical role in enhancing employees’ motivations and capabilities regarding environmental protection. Quality training, for example, enhances employees’ awareness of value creation and waste elimination, helping SMEs increase efficiency, reduce costs, and improve customer satisfaction [59]. This approach aligns closely with green transformation principles, encouraging SMEs to minimize operational waste through discarded materials, the consumption of energy, or water usage [26]. Similarly, training on sustainable development raises environmental awareness among employees, especially top managers, making them more likely to adopt green materials. Lastly, quality training strengthens employees’ problem-solving skills and process knowledge [60], enabling them to address issues with experimental green materials and facilitating a smoother transition to green production [56]. Therefore, we propose the following hypothesis:

Hypothesis 1. 

Quality training encourages Chinese SMEs to utilize green materials.

2.3.2. The Effect of Quality Standards on Green Material Utilization

We argue that quality standards are negatively associated with green material utilization. Due to fierce competition, many Chinese SMEs focus on OEM and ODM models rather than building brand identity, which reduces their brand attractiveness [31]. Thus, in order to maintain market competitiveness and build customer loyalty, most SMEs prioritize stable and high product quality. Thus, they often set and use various quality standards to require or encourage employees to follow specific procedures to ensure the high quality of products. However, transitioning to green materials brings risks, including quality uncertainties [25,61]. The uncertainties in quality performance associated with green materials can harm SMEs’ reputation and market share, which runs counter to the objective of establishing quality standards.

Furthermore, Chinese SMEs limit resources, have a high level of cost sensitivity, and focus on short-term benefits, and most quality standards focus on short-term goals, such as yield rate and productivity [62]. However, utilizing green materials represents a long-term objective that requires ongoing investment, planning, and resources, and may negatively impact short-term operations, which is contrary to quality standards [63]. Thus, SMEs often adopt a conservative approach to avoid the additional costs associated with potential product returns or recalls resulting from green material use [29,31].

In addition, quality standards reward or penalize employees based on yield and productivity, which is directly linked to the employees’ financial benefit [31]. Green material utilization is a long-term activity with a longer transition period and uncertain quality performance [64], which both create obstacles to employees achieving yield rate. To meet the short-term yield rate and avoid reducing financial benefit, employees tend to adopt a conservative attitude in selecting raw materials to avoid any risks that may affect the quality performance, rather than tending to utilize green materials [61]. Therefore, we propose the following hypothesis:

Hypothesis 2: 

Quality standards hinder Chinese SMEs from utilizing green materials.

2.3.3. The Moderating Role of Quality Management

Sewage and gaseous pollution, waste, and toxicity are the primary pollutants or harmful substances generated during the production or use of products made from traditional materials. Environmental functionality refers to the positive functions or reduced negative impacts that a material, product, or system has on the environment throughout its lifecycle [5]. Green materials with a higher level of environmental functionality can significantly reduce sewage and gaseous waste during the production process. Additionally, these materials enhance the utilization rate of waste materials and reduce harm to the health of producers and users caused by product toxicity. Therefore, firms are more likely to utilize green materials with higher levels of environmental functionality. However, green materials with higher environmental functionality also carry higher risks of causing quality uncertainties [29,61]. SMEs, which generally have weaker risk management capabilities, must carefully balance the trade-off between quality uncertainties and the environmental performance of green materials. This study posits that quality training enhances the influence of the environmental functionality of green materials on SMEs’ adoption decisions. As the level of quality training increases, it extends beyond merely teaching how to meet quality standards. It emphasizes additional product attributes such as sustainability and environmental protection, fostering greater environmental awareness among enterprises. This shift in focus leads companies to prioritize not only product quality, but also the adoption of green materials with higher-level environmental functionality.

On the other hand, quality standards primarily focus on ensuring product quality. Green materials with higher levels of environmental functionality often carry a greater risk of quality uncertainty [25,61], which conflicts with the core principles of quality standards. While the use of green materials can protect the environment, attract new customers, and enhance market competitiveness [65], if these materials introduce quality uncertainty that contradicts the fundamental advantage of SMEs in delivering high-quality products, SMEs with stricter quality standards are more likely to prioritize quality over environmental functionality [36]. This leads to SMEs selecting materials with lower environmental functionality. Moreover, stricter quality standards make employees reluctant to allow material-related quality uncertainties to influence their quality assessments or the economic benefits tied to quality performance. This reluctance shifts their motivation and attention toward reducing product quality uncertainty, further deprioritizing the environmental functionality of materials in decision-making processes. Consequently, SMEs are likely to prioritize reducing quality uncertainty and keeping product quality while not considering the environmental functionalities of green materials when making decisions. Therefore, this study proposes the following hypotheses.

Hypothesis 3a: 

Quality training enhances the impact of the environmental functionality of the recycling rate on green material utilization.

Hypothesis 3b: 

Quality training enhances the impact of the environmental functionality of heavy metal toxicity reduction on green material utilization.

Hypothesis 3c: 

Quality training enhances the impact of the environmental functionality of sewage reduction on green material utilization.

Hypothesis 3d: 

Quality training enhances the impact of the environmental functionality of waste gas reduction on green material utilization.

Hypothesis 4a: 

Quality standards weaken the impact of the environmental functionality of the recycling rate on green material utilization.

Hypothesis 4b: 

Quality standards weaken the impact of the environmental functionality of heavy metal toxicity reduction on green material utilization.

Hypothesis 4c: 

Quality standards weaken the impact of the environmental functionality of sewage reduction on green material utilization.

Hypothesis 4d: 

Quality standards weaken the impact of the environmental functionality of waste gas reduction on green material utilization.

The research framework is presented in Figure 1.

3. Research Methods

In this study, we used the discrete choice experiment (DCE) method [66] and conducted a stated preference (SP) experiment to explore Chinese SMEs’ preferences between some hypothetical sets of green materials [67]. We conducted the DCE with a five-step process: (1) identify attributes and measure variables, (2) specify attribute levels, (3) create the experimental design, (4) administer a survey and present alternatives and choice tasks, and (5) estimate the choice model [68].

3.1. Identify Attributes and Measure Variables

This study identified attributes, specified attribute levels, and developed the measurement of variables through an exploratory multiple case study method. We collaborated with the Shaoxing General Chamber of Commerce (http://sxgcc.sx.gov.cn/) and explained the objectives of the research. The officials introduced the cases accordingly, and we used a theoretical sampling approach, selecting four cases who are SMEs in the manufacturing industries in Shaoxing City, China. The descriptive information about the four cases is provided in Appendix A.

We then collected data via semi-structured interviews [69]. We reviewed a large number of papers and developed an interview protocol that contained questions relating to the SMEs’ products and technologies, their processes of decision-making, and the quality training and quality standards they were using; all questions are listed in Appendix B. All data were collected through two rounds of interviews with SME owners, and all interviews were in Chinese and audiotaped. After the interview, the research teams transcribed and translated it into English within 24 h. Moreover, we also used some associated methods, including viewing documents, conducting field visits, and obtaining different features of green materials via the internet, to collect additional information for testing the reliability and validity of the interviews through cross-reference. For instance, when the cases introduced green materials that they were using, we conducted a field visit to check their green material utilizing situation. This study analyzed data using an open coding method via a multistep iterative process and NVivo 12. Based on the analysis of the interview data, we ultimately identified six key attributes. Among them, two attributes were related to the basic usage of green materials, while the remaining four were associated with the environmental impact of green materials. The detailed descriptions are provided sequentially in Section 3.1.1, Section 3.1.2, Section 3.1.3, Section 3.1.4, Section 3.1.5 and Section 3.1.6, and the details are shown in Appendix C.

3.1.1. Price

The case evidence suggests that the price of green materials is an important factor when Chinese SMEs are selecting them, and all cases mentioned that they tended to compare the price of green materials with that of traditional materials. For example, firm A indicated that they tended to compare green materials with traditional materials. As firm A commented, “when we decided whether to select green materials, we need to consider its price, as we need to long-term use this material, which maybe significant impact of our cost”. In addition, firm B also mentioned that they prefer a price of green materials that does not have a large difference from traditional materials. In addition, firm D also emphasized the importance of the price for green materials, and firm C also indicated this was more significant for important parts: “if we used green materials in some important parts…we will think more about price difference between green materials and traditional materials…as it impacts our cost…even relates to attract customers…that is why we focus on it”.

3.1.2. Weakened Product Performance

Some cases also paid attention to the impact on product performance when they considered selecting green materials. All cases mentioned that they were concerned about using some green materials as parts of products, especially some key parts. For example, firm A explained that one of the main reasons for using silicone instead of traditional rubber was that silicone does not weaken product performance. As firm A explained, “Comparing with traditional rubber… Silicone also have good durability… so it does not weak our product performance”. In addition, firm B also discussed green material utilization showing the possibility of weakening their product’s performance. As firm B commented, “Some traditional materials have good improvement effect… for example, normally, we used Polyvinyl Chloride (PVC) casing and fiberglass with halogen… which has Good fire resistance… if we used green materials which does not have halogen… its performance of fire resistance will become weaker…so we need to consider”. Moreover, firm C also mentioned that using green materials impacted product performance to some extent, and gave an example: “Now we used eco-friendly solders, it is difficult to weld, and it also weaken our product performance such as rotational speed… it is troubling to us”.

3.1.3. Heavy Metal Toxicity Reduction

The case evidence suggests that toxicity was frequently considered by Chinese SMEs, and most cases indicated that the main factor causing toxicity was heavy metals. For example, firm B explained that those heavy metals could enter the environment in various forms, and cause environment pollution and bodily harm. In addition, firm C also had the same view, and explained, “We need to use a solder… and employees’ skin always touch it… many heavy metals can be absorbed into the skin… harm health”. Moreover, firm D also considered toxicity with heavy metals when they selected paints, and firm D explained, “we used a large number of paints… if will be absorbed into the body when we use it… in addition, when paints are wearied… when paint is frayed or chipped… it also has possibility to take toxicity”.

3.1.4. Recycling Rate

The recycling rate is another important attribute when firms consider selecting green materials, and is closely related to the low-carbon and circular economy, so it is noticed by society. Most cases mentioned that they pay attention to material recycling when they select certain materials, especially packaging. For example, firm A believed the recycling rate was an important reason to switch from rubber to silicone. As firm A explained, “silicone can be recycled easily… unlike rubber… we can recycle old products with silicone and renew or remanufacturing it… it can reduce our cost”. Firm A also mentioned that they considered the recycling rate when they selected packaging materials. As firm A explained, “now we prefer select package materials which can be recycled easily… for example… we limited to use single-use plastic bags to package products… and we prefer to use carton… can reduce waste”. In addition, firm C also indicated that they preferred to use packaging that could be recycled. For example, firm C tended to use packaging that was easy to recycle and reuse, such as cardboard box packaging and plastic turnover boxes. Moreover, firm D also agreed and commented that “if customer is closed to our firm and we frequently send product to them… we tend to select turn over box although it is plastic… we can 100% recycle these boxes which will not cause waste and solid pollution caused by non-degradable plastics”.

3.1.5. Sewage Reduction

Sewage reduction refers to reducing sewage produced during the manufacturing process. Sewage reduction is the main feature that drives Chinese SMEs to utilize green materials, and most cases commented that they used different green materials, aiming to reduce the amount and variety of sewage. For example, firm A utilized environmentally friendly silicone surface treatment adhesive when aiming to reduce sewage creation. As firm A explained, “our sewage mainly comes from washing and spitting processes… so we used environmentally friendly silicone surface treatment adhesive for reduce organic matter in sewage”. In addition, firm B also mentioned that the main target of green material utilization was to reduce sewage production. They gave an example: “our main pollution is sewage, so our most green material utilization aims to reduce sewage. For example, one aim we selected environmentally friendly solder and heavy metal free PCB ink is to avoid produce sewage with heavy metal after following cleaning process. In addition, we used halogen-free solvent as we want to reduce Halogenated organic pollutants in sewage”. Furthermore, firm C also believed that they used some green materials that could reduce sewage production, especially paints and cleaning agents. Moreover, firm D indicated that they created a lot of sewage during their manufacturing processes, especially the steel pretreatment process, so they selected a green cleaning agent that did not seriously harm the environment. For example, firm D used a pickling agent, which had less impact on the environment and was not harmful to personal health like oxalic acid, to replace traditional cleaning agents such as vitriol.

3.1.6. Waste Gas Reduction

Waste gas reduction is another target that Chinese SMEs use green materials for, and all cases mentioned it. Firstly, firm A mentioned that they utilized a green silicone surface treatment adhesive aiming to reduce waste gas. As firm A explained, “Traditional silicone surface treatment adhesive produces a great number of waste gas, and the main pollutant in waste gas is VOCs… thus, now we utilized green silicone surface treatment adhesive which is low or no VOC solvents… it can reduce air pollution”. In addition, firm B also indicated that they used environmentally friendly paint and eco-friendly solder, both for limiting waste gas production. As firm B explained, “We have a large number of welding processes… so there are a lot of waste gas produced during welding processes… and it contains heavy metal particles”. Moreover, firms B, C, and D all mentioned that they used environmentally friendly paints to reduce air pollution. As firm B explained, “Traditional paints have pungent smell… and it has various Chemical substance such as formaldehyde… not only harm body health… but also cause air pollution”. In addition, firm C also commented “Paints cause serious air pollution… and environmental friendly paints can reduce the air pollution caused… as they limit pollutant content including VOCs, particulate matter, heavy metal particles…”. Additionally, firm D also mentioned, “We pay attention to air pollution, and our main source of air pollution is paints… so we selected environmental friendly paints… they does not contain a lot of pollutant”.

3.2. Specify Attribute Level

3.2.1. Price

As each case used different green materials and the prices of the different green materials varied widely, increasing the difficulty in specifying price levels, we decided to investigate the price of the coating that was widely used by all cases. According to the cases’ annual reports and material purchasing history, we found that, on average, A spent CNY 8000, B spent CNY 50,000, C also spent CNY 8000, and D spent CNY 12,000 each time they purchased eco-friendly paints.

In addition, we also double-checked the prices of the eco-friendly paints on the market. Thus, based on the case evidence and market information, we specified the attribute levels of prices as CNY 50,000, 80,000, and 100,000.

3.2.2. Weakened Performance, Toxicity, and Sewage Reduction

Based on the interviews, the cases did not quantify the level of toxicity, weakened performance, and sewage reduction with precise values, and they all mentioned that they were difficult to measure. Moreover, they all indicated that they used qualitative measures to evaluate toxicity, sewage reduction, and weakened performance. Therefore, we used “Positive, None, Negative” to describe weakened performance and “High, Medium, Low” levels to describe toxicity and sewage reduction.

3.2.3. Recycling Rate

The case evidence shows that the recycling rates for green materials used by firms A, B, C, and D were 75%, 70%, 50%, and 100%. Thus, we specified the attributes of the recycling rate as 50%, 70%, and 100%. Six attributes and the levels of each attribute are shown in

Table 1. Green material attributes and levels.

Attribute	No. of Levels	Levels
Price	3	5, 8, 10 (CNY 10,000)
Weakened performance	3	Positive, None, Negative
Heavy metal toxicity reduction	3	Low, Medium, High
Recycling rate	3	50%, 70%, 100%
Sewage reduction	3	Low, Medium, High
Waste gas reduction	3	Low, Medium, High

.

3.3. Questionnaire Design

The questionnaire included three parts. First, we provided participants with a concise overview of the survey’s objectives and detailed information regarding pollution control equipment and its attributes. Additionally, we introduced various levels of the attributes. This ensured that respondents had a comprehensive understanding of the concepts presented on the choice card, which is a tool used in DCE to present a set of product or service options to respondents, after which they are asked to select one from these options [67].

Secondly, we used Sawtooth software (https://sawtoothsoftware.com/) to design and generate 30 versions of the choice card to help us reduce the complexity of a full factorial design and optimize respondent engagement [68]. Each choice card presented three hypothetical pollution control equipment types and a no-purchase option [70].

The last part of the questionnaire focused on measuring quality training and quality standards, and was developed based on the case study [64]. All cases mentioned that they had regular quality training. For instance, firm A stated, “Although our process is simple… but we still have some quality training… in order to ensure that employee consistently recognize the importance of product quality and prevent them to be complacent about that”. Moreover, firm B also mentioned, “Quality training is an effective method that assist both managers and employees enhance awareness about keeping high level product quality… in addition, training also can improve employee’s capability in producing and sampling about ensuring product quality… that is why we regularly organize quality trainings”. Firm C also stated “ensuring high level of quality is the first target of our company… it requires the efforts of all employees… however, not all employees consistently strive to maintain product quality… in order to reduce the occurrence of such situations, quality trainings has become necessary and important… it can frequently remind employees to make effort to ensure product quality…”

The cases also commented that they provided various types of quality training. For example, firm A mentioned that their quality training mainly focused on enhancing employees’ awareness about product quality. Additionally, firm B also recorded the specific variety of quality training, which included enhancing the awareness of all employees and top managers about quality and improving the skills of the employees responsible for production. Moreover, firm C mentioned “Employees also need another capability like how to save raw material… and how to solve problems in producing such as repairing machine… these all relate to production quality… so only enhance awareness is not enough”. Furthermore, firm D also mentioned that their quality training related not only to ensuring product quality, but also to how to reduce raw material waste. Thus, based on the cases, we undertook training for employees related to improving their ability to effectively ensure product quality, reduce raw material waste, and solve production problems, and we undertook training for both employees and top managers related to enhancing awareness about product quality to measure the quality training. The average of the five items was used to gauge the quality training.

The evidence also shows the importance of quality standards in each case, and describes the quality standard items applied in their daily operations. For example, firm A described specific items of their quality standards, and stated that quality standards were the key point that ensured their product quality. In addition, firm B also described their detailed quality standard: “we have a very detailed quality performance evaluation… and every process has evaluation… and we also have target of product compliance for employees… if employees perform very well in the quality performance audits, we will reward them; conversely, they will receive certain penalties if their performance is poor… if so, most of them pay more attention to product quality”. Furthermore, firm C also emphasized the necessity of quality standards for firm operation, and also listed the details of their quality performance evaluation: “Every process has their own product qualification rate… and we record and summary each month… and we used incentive mechanism if employees exceed the specified product pass rate…”. In addition, firm D also believed quality performance evaluation was the key point in ensuring product quality.

Thus, based on the case interviews, we used a target product qualification rate, recording the frequency and incentive or mechanism for reaching the product qualification rate to measure the quality standard. The average of the three items was used to gauge the quality standard. An example of the questionnaire is shown in Appendix D.

3.4. Survey Administration

We conducted this experiment in November 2023 through an internet-based platform named SO JUMP (https://www.wjx.cn), and respondents completed the questionnaire with a survey link. Prior to the formal launch of the experiment, we conducted a pre-test aiming to estimate the time required to complete the questionnaire and rectify any design flaws. Based on the pre-tested questionnaire, it took 10–15 min to complete the survey, and there were no difficulties in comprehension when completing the survey.

We used random sampling selection. With the support of the Shaoxing General Chamber of Commerce, we randomly selected 10 Chinese business associations in different industries and invited their members to participate in the questionnaire. In the questionnaire, we first asked respondents to indicate their position and provide basic information about their companies to ensure that they were owners or top managers of SMEs, were all deeply involved in Chinese management, understood their firms’ current statements, and participated in the decision-making of Chinese SMEs. If members provided a valid questionnaire response, they received a gift, up until the point at which a sufficient number of questionnaires were received.

In total, we distributed 1000 questionnaires; 494 respondents completed the survey, and we double-checked the questionnaire answers and deleted 181 respondents when there were missing values, or respondents did not belong to a manufacturing company or were not SMEs. Ultimately, 313 surveys were used. The general characteristics of the samples are summarized in

Table 2. Firm characteristics.

Firm Characteristics		Frequency	Percentage
Annual sales (CNY)	Less than 10 million	40	12.88%
	10–50 million	133	42.39%
	50–100 million	97	30.99%
	More than 100 million	43	13.74%
Number of employees	Less than 50 employees	31	9.92%
	50–100 employees	134	22.04%
	100–150 employees	55	17.57%
	150–200 employees	65	20.76%
	200–250 employees	92	29.71%
The ratio of foreign customers	Lower than 10%	116	37.06%
	10–20%	91	29.07%
	20–30%	66	21.09%
	30–40%	28	8.95%
	More than 40%	12	3.83%
Industry	Electronic and electrical	76	24.29%
	Mechanical manufacturing	75	23.96%
	Food	18	5.75%
	Raw material manufacturing	27	8.63%
	Textile	21	6.71%
	Auto	24	7.67%
	Chemical engineering	21	6.71%
	Medical	18	5.74%
	Home decoration	33	10.54%

, and the regions of responders are summarized in

Table 3. Regions of responders.

Province	Number of Surveys	Percentage
Zhejiang	38	12.15%
Guangdong	36	11.50%
Shanghai	25	7.99%
Beijing	24	7.67%
Jiangsu	19	6.07%
Hebei	18	5.75%
Henan	17	5.43%
Sichuan	17	5.43%
Hubei	15	4.79%
Anhui	14	4.47%
Guangxi	14	4.47%
Shandong	14	4.47%
Hunan	13	4.15%
Fujian	10	3.19%
Shaanxi	10	3.19%
Liaoning	8	2.56%
Chongqing	8	2.56%
Heilongjiang	2	0.64%
Jilin	2	0.64%
Neimenggu	2	0.64%
Shanxi	2	0.64%
Yunnan	2	0.64%
Jiangxi	1	0.32%
Qinghai	1	0.32%
Tianjin	1	0.32%

.

3.5. Estimation of the Choice Model

In accordance with random utility theory, SMEs choose the alternative with the maximum utility among a series of choice sets. Typically, the utility (U) obtained by an SME consists of the observable deterministic term (V) and the unobservable stochastic term (ε). The utility functions of different pollution control equipment are as follows:

U_material1 = V_mateiral1 + ε_material1 = ASC_matrial1 + β_pr1P_price + β_tox1P_tox + β_weak1P_weak + β_recy1P_recy + β_sew1P_sew + β_gas1P_gas + β_trainZ_train + β_standZ_stand + β_trtox1Z_trainP_tox + β_trrecy1Z_trainP_recy + β_trsew1Z_trainP_sew + β_trgas1Z_trainP_gas + β_sttox1Z_standP_tox + β_strecy1Z_standP_recy + β_stgas1Z_standP_gas + β_stsew1Z_standP_sew + ε_material1

U_material2 = V_mateiral2 + ε_material2=ASC_material2 + β_pr2P_price + β_tox2P_tox + β_weak2P_weak + β_recy2P_recy + β_sew2P_sew + β_gas2P_gas + β_trainZ_train + β_standZ_stand + β_trtox2Z_trainP_tox + β_trrecy2Z_trainP_recy + β_trsew2Z_trainP_sew + β_trgas2Z_trainP_gas + β_sttox2Z_standP_tox + β_strecy2Z_standP_recy + β_stgas2Z_standP_gas + β_stsew2Z_standP_sew + ε_material2

U_material3 = V_mateiral3 + ε_material3 = ASC_material3 + β_pr3P_price + β_tox3P_tox + β_weak3P_weak + β_recy3P_recy + β_sew3P_sew+ β_gas3P_gas + β_trainZ_train + β_standZ_stand + β_trtox3Z_trainP_tox + β_trrecy3Z_trainP_recy + β_trsew3Z_trainP_sew + β_trgas3Z_trainP_gas + β_sttox3Z_standP_tox + β_strecy3Z_standP_recy + β_stgas3Z_standP_gas + β_stsew3Z_standP_sew + ε_material3

U_Nopurchase = V_Nopurchase + ε_{Nopurchase =} ε_Nopurchase

Here, the observable deterministic term includes an alternative-specific constant (ASC), six attributes of materials (i.e., price (P_price); toxicity reduction (P_tox); weakened performance (P_weak); recycling rate (P_recy); sewage reduction (P_sew) and gas reduction (P_gas), and two QM practice attributes including quality training (Z_train) and quality standards (Z_stand). In addition, as we postulate that the influence of QM practices (quality training and quality standards) alters the effect of environmental functionality (heavy metal toxicity reduction; weakened performance; recycling rate; sewage reduction, and gas reduction) on SMEs’ decision to utilize green materials, we include the impacts of the interaction terms of Z_trainP_tox, Z_trainP_recy, Z_trainP_sew, Z_trainP_gas, Z_standP_tox, Z_standP_recy, Z_standP_gas, and Z_standP_sew on the SMEs’ utility, and

Table 4. Description of variables in the utility functions.

Variable	Explanation	Coefficient
Pprice	Material attribute: price	βpr1, βpr2, βpr3
Ptox	Material attribute: heavy metal toxicity reduction	βtox1, βtox2, βtox3
Pweak	Material attribute: weakened performance	βweak1, βweak2, βweak3
Precy	Material attribute: recycling rate	βrecy1, βrecy2, βrecy3
Psew	Material attribute: sewage reduction	βsew1, βsew2, βsew3
Pgas	Material attribute: gaseous waste reduction	βgas1, βgas2, βgas3
Ztrain	Quality management attribute: quality training	βtrain
Zstand	Quality management attribute: quality standards	βstand
ZtrainPtox	Interaction term between quality training and heavy metal toxicity reduction	βtrtox1, βtrtox2, βtrtox3
ZtrainPrecy	Interaction term between quality training and recycling rate	βtrrecy1, βtrrecy2, βtrrecy3
ZtrainPsew	Interaction term between quality training and sewage reduction	βtrsew1, βtrsew2, βtrsew3
ZtrainPgas	Interaction term between quality training and waste gas reduction	βtrgas1, βtrgas2, βtrgas3
ZstandPtox	Interaction term between quality standards and heavy metal toxicity reduction	βsttox1, βsttox2, βsttox2
ZstandPrecy	Interaction term between quality standards and recycling rate	βstrecy1, βstrecy2, βstrecy3
ZstandPsew	Interaction term between quality standards and sewage reduction	βstsew1, βstsew2, βstsew3
ZstandPgas	Interaction term between quality standards and waste gas reduction	βstgas1, βstgas2, βstgas3

shows the description of all variables in the utility functions.

We used a random parameter logit (RPL) with maximum likelihood estimation to analyze the data using Nlogit 6 [66,70]. We used 200 scrambled Halton sequences to estimate the models. The RPL followed random utility theory in that Chinese SMEs will choose alternatives with the maximum utility among a series of choice sets [70], and it considered heterogeneity in the preferences of Chinese SMEs, which can overcome the IIA property and reflect preference heterogeneity [66]. In the case of green material utilization, the probability (P) that an SME selects alternative (i) among four alternatives (j) (i.e., material 1, material 2, material 3, no purchase) is

$$P(i)=\int {\displaystyle \frac{e^{v_i}}{{\sum }_{j=1}^4{e}^{v_j}}}f(\beta /\theta )d\theta$$

where f(β|θ) is the density function of β.

4. Empirical Results

Table 5. Results of hypothesis testing.

Attributes	Model 1	Model 2	Model 3	Model 4	Model 5	Model 6	Model 7	Model 8	Model 9
Price	0.022	0.030	0.017	0.022	0.072	0.027	0.017	0.025	0.043
Weakened performance	–0.292 ***	−0.319 ***	−0.296 ***	−0.292 ***	−2.187 **	−0.313 ***	−0.294 ***	−0.304 ***	−1.816 ***
Heavy metal toxicity reduction	0.224 ***	−1.005 *	0.212 ***	0.225 ***	1.154 **	−0.950 *	0.210 ***	0.246 **	0.963 **
Recycling rate	2.749 ***	2.946 ***	1.481 **	2.759 ***	14.67 ***	2.910 ***	1.407 **	2.916 ***	12.96 ***
Sewage reduction	0.262 ***	0.270 ***	0.258 ***	−0.263 ***	−12.964 ***	0.273 ***	0.257 ***	0.286 ***	13.409 ***
Waste gas reduction	0.368 ***	0.389 ***	0.358 ***	0.458	2.033.	0.389 ***	0.360 ***	1.123	1.944 ***
Quality training	2.056 ***	2.135 ***	1.997 ***	2.069 ***	15.377 **	2.110 ***	1.949 ***	2.216	13.083 ***
Quality standards	−1.533 ***	−1.598 ***	−1.489 ***	−1.542 ***	−11.347 **	−1.582 ***	−1.456 ***	−1.652	−9.733 ***
Quality training * heavy metal toxicity reduction		0.319 **
Quality training * recycling rate			0.324 *
Quality training * waste gas reduction				−0.022
Quality training * sewage reduction					3.718 ***
Quality standards * heavy metal toxicity reduction						0.300 ***
Quality standards * recycling rate							0.335 **
Quality standards * waste gas reduction								−0.185
Quality standards * sewage reduction									−2.915 ***
Log-likelihood	−1031.125	−1025.217	−1016.438	−1025.263	−1016.835	−1028.753	−1027.552	−1030.585	−1013.320

p > 0.05 non-significant. p < 0.05 *. p < 0.01 **. p < 0.001 ***.

presents the estimation results. Model 1 captures the direct impact of green material attributes on the utilization decisions of Chinese SMEs. The results indicate that price has a non-significant effect on purchasing intention (β = 0.022, p > 0.05). On the other hand, all functional indicators have significant impacts. Specifically, heavy metal toxicity reduction (β = 0.016, p < 0.001) and recycling rate (β = 2.539, p < 0.001) both have positive effects. Additionally, sewage reduction (β = 0.225, p < 0.001) and waste gas reduction also positively influence green material utilization. Conversely, the impact of product performance has a negative effect (β = −0.241, p < 0.001). The results further show that quality training has a positive impact on green material utilization by Chinese SMEs (β = 2.056, p < 0.001), supporting H1. On the other hand, quality standards have a negative impact on green material utilization decisions (β = −1.533, p < 0.001), providing support for H2.

Model 2 to Model 5 reveal the moderating effects of quality training on the relationship between environmental functionality attributes and green material utilization in Chinese SMEs. Model 2 shows the positive moderating effect of quality training on the relationship between heavy metal toxicity reduction and green material utilization in Chinese SMEs (β = 0.319, p < 0.01). In addition, Model 3 also shows the positive moderating effect of quality training on the relationship between the recycling rate and green material utilization in Chinese SMEs (β = 0.324, p < 0.05). Furthermore, Model 4 shows that quality training has a non-significant moderating effect on the relationship between waste gas reduction and green material utilization in Chinese SMEs (β = −0.022, p > 0.05). Moreover, Model 5 reveals the positive moderating effect of quality training on the relationship between sewage reduction and green material utilization in Chinese SMEs (β = 3.718, p < 0.001). Thus, H3a, H3b, and H3d are supported. Model 6 to Model 9 reveal the moderating effects of quality standards on the relationship between different green material environmental attributes and green material utilization in Chinese SMEs. Model 6 shows the positive moderating effect of quality standards on the relationship between heavy metal toxicity reduction and green material utilization in Chinese SMEs (β = 0.300, p < 0.01). In addition, Model 7 also shows that there is a positive moderating effect of quality standards on the relationship between recycling rate and green material utilization in Chinese SMEs (β = 0.335, p < 0.01). Moreover, Model 8 shows the non-significant moderating effect of quality standards on the relationship between sewage reduction and green material utilization in Chinese SMEs (β = −0.185, p > 0.05). Furthermore, Model 9 shows that there is a negative moderating effect of quality standards on the relationship between sewage reduction and green material utilization in Chinese SMEs (β = −2.915, p < 0.01). Thus, these findings support H4d, but not H4a, H4b, and H4c.

This study also conducted a robustness check by using the Monte Carlo sampling method. This is a random sampling method that selects samples by generating random numbers [66]. The results are presented in

Table 6. Robustness check.

Attributes	Model 1	Model 2	Model 3	Model 4	Model 5	Model 6	Model 7	Model 8	Model 9
Price	0.025	0.029	0.020	0.024	0.048	0.026	0.019	0.027	0.043
Weakened performance	−0.306 ***	−0.305 ***	−0.302 ***	−0.296 ***	−1.099 **	−0.300 ***	−0.300 ***	−0.304 ***	−1.271 ***
Heavy metal toxicity reduction	0.221 ***	−0.781 *	0.205 ***	0.216 ***	0.551 **	−0.719	0.202 ***	0.234 ***	0.733 ***
Recycling rate	2.776 ***	2.887 ***	1.428 ***	2.767 ***	7.924 ***	2.853 ***	1.361 **	2.909 ***	9.434 **
Sewage reduction	0.261 ***	0.263 ***	0.252 ***	0.254 ***	−6.672 **	0.265 ***	0.251 ***	0.276 ***	9.271
Waste gas reduction	0.366 ***	0.381 ***	0.356 ***	0.295	1.058 ***	0.381 ***	0.358 ***	1.046 ***	1.343 ***
Quality training	2.264 ***	2.007 ***	2.011 ***	2.032 ***	6.669 **	1.988 ***	1.971 ***	2.155 ***	9.528 *
Quality standards	−1.687 ***	−1.501 ***	−1.498 ***	−1.514 ***	−4.987 **	−1.489 ***	−1.472 ***	−1.604	−6.989 ***
Quality training * heavy metal toxicity reduction		0.257 **
Quality training * recycling rate			0.345 **
Quality training * waste gas reduction				0.017
Quality training * sewage reduction					1.905 **
Quality standards * heavy metal toxicity reduction						0.236 **
Quality standards * recycling rate							0.355 ***
Quality standards * waste gas reduction								−0.167
Quality standards * sewage reduction									−2.029 ***
Log-likelihood	−1028.139	−1031.203	−1029.280	−1032.869	−1019.350	−1031.456	−1028.963	−1032.425	−1024.033

p > 0.05 non-significant. p < 0.05 *. p < 0.01 **. p < 0.001 ***.

. The findings are consistent with the results reported in Table 5.

5. Discussion

This study determined that different soft QM practices play different roles in green material utilization in Chinese SMEs, and enhancing soft QM practices has an impact on the relationship between green material environmental factors and green material utilization. Specifically, quality training plays a positive role in green material utilization in Chinese SMEs (H1); this is consistent with the existing studies [71]. In addition, our results suggest that quality standards have a negative impact on green materials (H2), which confirms the findings of studies such as those by Zhou et al. [31] and Tseng et al. [61].

The results also show that quality standards enhance the impacts of heavy metal toxicity reduction and the recycling rate on green material utilization. This contradicts our hypothesis (H4a, H4b). This may be attributed to varying levels of customer sensitivity toward different attributes of green materials. With the growing awareness of environmental protection, Chinese consumers are gradually becoming more attentive to and accepting of green products. Among various aspects, the use of green materials has emerged as a particularly prominent area of consumer concern [26,30].

In recent years, the use of green materials has not only become a prevailing trend, but also gradually entered a phase of rapid growth [5,6]. To attract these customers, a large number of companies engage in greenwashing, using green claims as a means of marketing rather than demonstrating a true commitment to reducing environmental impact [42]. For example, Coca-Cola has been accused of greenwashing, as its claim that the bottles are “100% recyclable” may mislead consumers [72]. This is because most consumers’ attention to green materials is primarily directed toward environmental attributes that can be readily perceived [73], such as toxicity and the recycling rate. These two attributes are directly related to the customer’s experience. The higher level of perceived attributes of using green materials increases customer satisfaction, attracts new customers, keeps current customers, and further impacts Chinese SMEs’ brand reputation, market competitiveness, and even business performance [73]. This leads these companies to place a greater emphasis on heavy metal toxicity reduction and the recycling rate.

At the same time, higher quality standards can provide stronger assurance of the environmental attributes of heavy metal toxicity reduction and the recycling rate, thereby enhancing their appeal for consumers. The primary aim of quality standards is to ensure that employees’ work performance meets the organization’s quality objectives. Many specific practices associated with quality standards help Chinese SMEs minimize product quality uncertainties [62]. Quality standards involve regularly recording the latest product quality information and changes after utilizing green materials, allowing Chinese SMEs to promptly identify and address quality problems, thereby reducing quality uncertainty [74]. Additionally, quality standards include regular inspections of product quality, with rewards or penalties based on quality outcomes [13]. This approach motivates employees or puts pressure on them to maintain quality throughout the production process [75], enhancing the company’s overall quality performance and minimizing quality uncertainty. This assurance further supports Chinese SMEs in confidently utilizing green materials. With more effective quality standards in place, Chinese SMEs gain greater confidence in product quality and adopt a more positive attitude toward selecting green material attributes with higher levels of customer sensitivity, so as to attract and retain customers. On the other hand, many companies show little enthusiasm for environmental factors that do not directly appeal to customers, such as sewage reduction. Thus, as quality standards rise, customers tend to prioritize ensuring product quality over placing greater emphasis on issues such as sewage reduction (H4d).

Interestingly, there is an insignificant moderating effect of waste gas reduction on both quality training and quality standards’ influence on green material utilization in Chinese SMEs. The potential cause of the insignificant moderating effect may be because of the characteristics of waste gas. Much waste gas is invisible. In the production environment, Chinese SME employees, even top managers, often perceive pollution through sight, smell, or other senses. Because much waste gas is colorless and odorless, it is difficult for Chinese SMEs to notice waste gas reduction during production utilizing green materials, which leads to them being insensitive to the results. In addition, sewage needs to be collected before treatment, and sewage reduction during production is able to reduce the frequency of operation of sewage purification equipment, reducing the operation cost. On the other hand, the treatment and discharge of waste gas are both instantaneous and continuous, which is not the case for solid waste and sewage, which can be collected before treatment. Thus, waste gas reduction during production is unable to contribute to the operating cost of waste gas treatment equipment. Thus, these reasons cause both the insignificant moderating effect of waste gas reduction on quality training and quality standards’ influence on Chinese SME green material utilization. In addition, another possible explanation for the insignificant moderating effect lies in external factors, particularly institutional pressure. In China, the government places great emphasis on carbon peaking and carbon neutrality goals, and has imposed substantial regulatory pressure on enterprises to comply with environmental standards [76]. Many related policies have been implemented, including the establishment of the carbon trading market and carbon emission quota systems, which effectively place strict limits on corporate CO₂ emissions [77]. In this context, regardless of whether a firm has implemented high-level QM practices, it must respond to external institutional pressures by actively controlling air pollutant emissions and reducing environmental pollution. As a result, companies generally place a high level of importance on the issue of reducing air pollution. This widespread external pressure may have led to the moderating effect of quality management practices becoming insignificant.

5.1. Research Implications

This study contributes to the green transformation literature in two ways. Firstly, the results reveal that the relationship between QM and green material utilization is contingent on the specific type of QM practices. Existing studies report inconclusive results on the relationship between QM and green material utilization. This study reveals that this is because different QM practices have different goals and areas of emphasis. Previous studies mainly identified soft QM as a single concept [9,24], but did not consider the complexity of soft QM. In addition, the impacts of green material utilization may vary with the different specific practices of soft QM. Thus, it is necessary for soft QM to be considered concretely and separately. In addition, we also explored the specific practices of soft QM that Chinese SMEs frequently utilize, which provides a comprehensive and deep understanding of soft QM in Chinese SMEs. Existing studies did not explore in detail the soft QM of Chinese SMEs. With the limitations and special characteristics of Chinese SMEs, the practices of Chinese SMEs may show some differences from larger enterprises [48]. Thus, identifying Chinese SMEs’ soft QM practices is also necessary for these studies. We found that only quality training encourages Chinese SMEs to utilize green materials, while quality performance evaluation places barriers to Chinese SMEs’ green material utilization. Therefore, this offers a potential cause of the mixed results regarding the relationship between QM and green transformation. This study provides new insights that allow a deeper understanding of the relationship between QM and green transformation.

Secondly, this study provides empirical evidence that both quality training and quality performance evaluation have different moderating effects on the relationship between different green materials’ environmental features and green material utilization. Previous studies did not focus on these aspects. This finding highlights the importance of the functions of different green materials, provides new insight into promoting Chinese SME green transformation, and suggests that researchers should consider the attributes of green transformation practices.

5.2. Managerial Implications

This study provides guidelines for Chinese SMEs to develop green transformation. We recommend that Chinese SMEs use their current soft QM practices to improve their green transformation. SMEs should be aware that some of their current soft QM practices can be barriers to adopting green materials. Chinese SMEs can improve their current soft QM practices to enhance willingness to utilize green materials. For example, they can place greater emphasis on environmental awareness in quality training, and they can design a special QM evaluation method for products with green materials. In addition, Chinese SMEs should also be aware that the function of green materials can moderate the impact of the influence of soft QM practices on green material utilization. Thus, we recommend that they consider the variety and function of green materials, and consider which part of the product to use green materials in and the impact they have on product quality.

6. Conclusions

In this study, we answered two research questions. For the first research question, we empirically explored the inter-relationship between soft QM and green material utilization. We found that quality training and quality standards have opposite effects on green material utilization. Specifically, we found that quality training has a positive effect, while quality standards have a negative effect, on the green material utilization of SMEs. For the second research question, we found that quality training positively moderates the relationship between two environmental features (heavy metal toxicity reduction and sewage reduction) and green material utilization. In addition, quality standards positively moderate the relationship between two environmental features (heavy metal toxicity reduction and recycling rate) and green material utilization, while they negatively moderate the relationship between sewage reduction and green material utilization.

This study still has some limitations, which provide ideas for future research. Firstly, we only focused on two soft QM practices, namely, quality training and quality standards. Existing studies have proven that other soft QM practices also have a close relationship with green transformation, such as top management leadership and employee involvement [13,78]. Therefore, in the future, we can explore the impacts of other soft QM practices on green material utilization. Secondly, although this study has provided a detailed description of the industry and the regional characteristics of the sample, it did not examine how these characteristics may influence the research results. In future studies, we will expand the scope of sample coverage by increasing the number of SMEs and covering different industries and regions to ensure the representativeness of the samples. We also plan to add industry and regional factors as variables to further analyze how the findings may vary across different contexts. Thirdly, the measurements of quality training and quality standards in this study were derived from four case studies, and remain relatively general. In future research, we plan to refine these measurement indicators by integrating insights from the existing literature and conducting interviews with a broader range of SMEs. This will help us develop a more precise measurement framework and improve the accuracy of the research findings. Lastly, we relied solely on quantitative methods to obtain results, which may pose certain limitations in terms of the depth of the discussion of the results. In the future, we could consider incorporating case studies to discuss the results, thereby enhancing the discussion and explanation of the findings and improving the explanatory power and credibility of the conclusions. Thus, exploring the impact of soft QM practices on various green transformation practices can be an interesting topic.