THEME: GREEN SUPPLY CHAIN MANAGEMENT

TITLE: THE RELATIONSHIP BETWEEN GREEN SUPPLY CHAIN

MANAGEMENT AND PERFORMANCE: A META-ANALYSIS OF EMPIRICAL
EVIDENCES IN ASIAN EMERGING ECONOMIES

YEAR: 2017

AUTHOR: RUOQI GENG, S. AFSHIN MANSOURI & EMEL AKTAS

FRAMEWORK:

LIMITATION:

Nowadays environmental awareness is growing in the minds of each and every

individual in the world. People are aware of the world’s environmental issues such as global
warming, toxic substance stage, and inadequate resources. Several businesses responded to
this by applying green principles to their company such as using environmental friendly raw
mineral, reducing the usage of petroleum power, and using the recycle papers for packing and
so on. Green supply chain management is one of the emerging technologies in the last few
years which concentrates on and environment friendly way of manufacturing products from
first to last stage of its life cycle, from product design to recycle.
Green supply chain management practice–performance relationship is the strongest for
economic performance, which is followed by operational and environmental performance,
respectively. Surprisingly, the Green Supply Chain Management practices did not have any
significant impact on the social performance. Moreover, the results also indicate that several
Green Supply Chain Management practice-performance relationships are moderated. Firstly,
our meta-analysis implies that the adoption Green Supply Chain Management practices
contributed to firm performance, but at deferent levels. Secondly, this ending also instils more
confidence in the adoption of Green Supply Chain Management practices as a profitable
environmental strategy that can be used to reduce environmental impact while increasing the
economic performance. Meta-analysis indicated that the adoption of Green Supply Chain
Management practices is becoming more significant in contributing to firm performance as
the supply chains become more complex. As for the globalization, the adoption of Green
Supply Chain Management practices will play a larger role in manufacturing companies not
only in reducing environmental impact but also in contributing to the firm performance.
JOURNAL: THE DRIVERS OF GREEN SUPPLY CHAIN MANAGEMENT:

A THEORETICAL FRAMEWORK

Green supply chain management is relatively a new phenomenon that some

researchers use the term interchange with sustainable supply chain. The research problem
identified in the extant literature is that companies engage in a tick the box exercise as a
barometer for gauging their effects on the environment reacting to environmental laws. Green
Supply Chain Management emphasises the concern for the environment in the entire supply
chain and needs long-term and strategic partnerships among the supply chain players. Green
Supply Chain Management include the life cycle management of a product, from
manufactures and consumption until the end-of-product life. Green supply refers to the way
in which innovations in supply chain management and industrial purchasing may be
considered in the context of the environment. Environmental supply chain management
consists of the purchasing function’s involvement in activities that include reduction,
recycling, reuse and the substitution of materials. Green product innovation as a multi-faceted
process aimed at minimising environmental impacts while striving to protect and enhance the
natural environment by conserving energy and resources. Green innovation is recognised as
one of the key factors to achieve environmental and economic success in markets, the
problem arises with regulation which companies view as limiting their production. The
supply chain management is currently focusing on the green product innovation where
corporate operations find ways to minimise the direct and indirect environmental effects of
their final product. The direct environmental effects start from inputs that reproduce waste
during distribution, processing, use or disposal. The green supply chain practices have made
environmental partnership a strategic concern in the whole supply chain management
procedure concerning green new product development. This extensive justification covers the
activities with suppliers and connections with downstream customer firms in the supply
chain. Green supply chain is a panacea to environmental degradation. Once the products are
engineered ethically with a green element for example green engineering will produce green
products, which can be recycled and disposed off without harming the environment. The
environment can be saved by legislation since companies will not want to default the laws for
fear of harsh punishments from the courts of law. Even though legislation on its own cannot
make the wrong right, but with companies buying in the idea of green supply chain, treating it
as a system establishing partnerships along the chain not the traditional adversarial approach.
THE IMPACT OF GREEN SUPPLY CHAIN MANAGEMENT ON
FIRM COMPETITIVENESS

The purpose of this, to investigate the effect of green supply chain management on
green performance and firm competitiveness in Shiraz Industrial Estate. Data were collected
from 110 executives and managers in companies on the Estate using a pre-designed
questionnaire. Data were analyzed using structural equation modelling and partial least
squares path analysis. So, the results suggest that strengthening green supply chain
management improves green performance, which in turn increases firm competitiveness. This
study brought into account papers both from internal and external green supply chain
practices in order to elucidate the impact of green performance and practices on firm
competitiveness. The model is designed to assess the impact of green supply chain indicators
on firm competitiveness. The H1 is internal green practice has a significant impact on
external green collaboration. Many previous studies have illustrated the impact of cross-
functional and cross organizational performance on firm performance derived that there is a
positive relationship between internal performance and operational performance. The H2 is
Internal green practice has a significant impact on the company's green performance. Green
activities and integration have potential strategic value because they influence the value chain
in many areas, producing unique profit at each level of the supply chain. Next H3 is internal
green performance has a significant impact on firm competitiveness. External cooperation
enables companies to form relationships based on cooperation with their trading partners and
reduces transaction costs while acknowledging their core competencies. Besides that H4 is
external green collaboration has a significant impact on a company's green performance.
Wider collaboration between members of the chain may enhance the development of
improved environmental activities and reduce pollution. In addition H5 is external green
collaboration has a significant impact on firm competitiveness. Lately, environmental or
green considerations have appeared as sources of competition. Successful environmental
management can better corporate structure and provide new opportunities for companies to
strengthen their capability and facilities organizations can strengthen their position in a
competitive environment by improving their green performance to be dependable with
environmental regulations. Lastly H6 is a company's green performance has a significant
impact on its competitiveness.
MAPPING THE LANDSCAPE AND EVOLUTIONS OF GREEN

SUPPLY CHAIN MANAGEMENT

ISO 14000 standards provide operational guidelines and standards for the
transformation of enterprises to eco-sustainable business practices. It is regarded as the world
standard for environmental management systems. In the government policy guidance and
related laws and regulations, combined with the consumer market for the growing demand for
green products, many foreign manufacturing enterprises have begun to consciously combine
the green supply chain theory and model to guide the overall strategic planning, specific
operational practices, and the improvement of business efficiency and social responsibility to
achieve the initial expected results. The concept of green supply chains originates from the
concept of green purchasing proposed by Webb in 1994, first proposed for the Environmental
Responsibility Manufacturing (ERM) study in 1996. It is normally identified as integrating
environmental factors into the supply chain in procurement, product design, manufacturing,
logistics and other aspects. In a nutshell, the core idea of green supply chain management is
the integration of environmental considerations into supply chain management. The purpose
is to improve competitive advantages, raise ecological efficiency, and lower environmental
risks or impacts at the same time.

The subject green supply chain management has its roots in both environment
management and supply chain literature. It refers to various categories, including
management, operations research, environmental sciences, industrial engineering, and so on.
Green supply chain management arises from the demand of industries and other corporate
entities, especially for manufacturing corporate. Before 2000, there are few works which
cover all the elements of green supply chain management. It’s focuses on evaluation or
processes in green purchasing and dirty chains. Between 2000 and 2005, research focuses on
strategy implications, concerning green and lean appears during the period, and social
responsibility is involved in inter organizational management. Since 2005, there is a great-
leap-forward development in the knowledge domain. As a novel knowledge discipline, more
works attempt to conceptualize the entire domain or research topics related, like metrics and
models, concerning the newly identified target. As for future inquiries, formulation or
managerial relevance of practice and exploration of impact mechanism in green supply chain
is the main duty in today’s research. It also provides an integrated point of view to understand
landscape of green supply chain management both for researchers and practitioners.