Adoption of green supply chain management practices in multi-tier supply chains: examining the differences between higher and lower tier firms

Kim, Seongtae; Foerstl, Kai; Schmidt, Christoph G.; Wagner, Stephan M.

doi:10.1080/00207543.2021.1992032

Cited by 34 publications

(21 citation statements)

References 75 publications

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“…Since the parts procurement market is extremely competitive, the focal companies barely meet the price, quality, and environmental requirements to pursue further GSCM practices such as collaborating with their supplier firms. Within the relationship between parts suppliers and the final product manufacturer, the latter typically have the authority to make a purchasing decision, bring in suppliers for cooperation in assembling parts [9]. Therefore, it seems that survey companies might not have the chance to realize economic profits through green purchasing.…”

Section: Discussionmentioning

confidence: 99%

“…Managing suppliers differ by the tier group they belong to. Suppliers categorized in different tiers could have a different priority when deciding on their environmental, social, and economical strategies [9]. Some supplier management strategies can be adapted to the depth of the tier suppliers belong to.…”

Section: Sustainable Supplier Management and Tier-dependenct Characte...mentioning

confidence: 99%

“…The majority of prior tier-based research on GSCM has examined companies in different tiers at the same time, ignoring a need to understand the tier-specific performance of GSCM practices. Suppliers categorized in different tiers could have a different priority on GSCM practices [9]. By the same token, same-tier suppliers would share a similar understanding regarding their GSCM practices [10].…”

Section: Introductionmentioning

confidence: 99%

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Green Supply Chain Management Efforts of First-Tier Suppliers on Economic and Business Performances in the Electronics Industry

2022

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Green supply chain management (GSCM) has a necessary goal of performing a firm’s social and environmental responsibilities, and SMEs employ GSCM practices with constrained resources. SMEs need to determine which areas they need to concentrate their limited resources to result in positively noticeable economic outcomes. This study aims to identify what GSCM practices would influence economic and business profitability for first-tier suppliers in the electronics industry. Specifically, this examines whether internal environmental management (IEM), green purchasing (GP), cooperation with customers (CC), and eco-design (ECO) have a role in enhancing an organization’s economic performance (ECP) and business performance (BP). Survey data from 193 South Korean electronics firms were collected to test the proposed model. The survey responses were analyzed using structural equation modeling (SEM). The results of the present study showed that IEM, CC, and ECO of the responding SMEs had direct positive influences on ECP. Moreover, economic performance has a statistically significant influence on BP. However, GP did not show a significant relationship with ECP. This study investigated first-tier suppliers within the electronics industry and identified what GSCM practices would be important in improving the performances of SME manufacturing companies.

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Section: Discussionmentioning

confidence: 99%

Section: Sustainable Supplier Management and Tier-dependenct Characte...mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Green Supply Chain Management Efforts of First-Tier Suppliers on Economic and Business Performances in the Electronics Industry

2022

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“…Current studies show how much firms struggle to integrate environmental and social principles into their supply chains and to overcome potential trade-offs (Sodhi and Tang, 2018;Longoni et al, 2019;Nunes et al, 2020). Monitoring and managing supplier relationships is key to implementing sustainability practices and hedging against potential risks (Kim et al, 2021). Well-known cases from the past, such as Nike, BP, Nestl e and Apple, are examples of supplier-related sustainability issues that buyers could not anticipate (Lee and Vachon, 2016).…”

Section: Purchasing Absorptive Capacity and Sustainabilitymentioning

confidence: 99%

Purchasing realized absorptive capacity as the gateway to sustainable supply chain management

Difrancesco

Luzzini

Patrucco

2022

IJOPM

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PurposeCompanies' ability to build sustainable supply chains and achieve strategic sustainability objectives largely depends on their supply network characteristics and the nature of the relationships with strategic suppliers. This poses the question of how purchasing departments can help to translate this sustainability commitment into performance benefits. The authors focus the attention on buyer-supplier information sharing practices and study how the availability of information interplays with the purchasing realized absorptive capacity (PRAC) to positively impact performance (operational, environmental and social).Design/methodology/approachThe study collected data from 305 procurement executives in four European countries and tested the hypotheses empirically using structural equation modeling. Mediation analysis is used to test the effect of PRAC on the relationship between buyer-supplier information sharing and performance.FindingsThe results show that increasing buyer-supplier information sharing is sufficient to obtain a positive impact on operational performance. To improve purchasing sustainability performance, companies need to develop their PRAC to adequately transform and exploit external information and identify opportunities in the environmental and social areas. Thanks to these purchasing capabilities, organizations can overcome potential trade-offs between different performance dimensions.Originality/valueIn the context of collaborative buyer-supplier relationships, this study is one of the first to propose purchasing knowledge management capabilities (i.e. PRAC) as a key factor to improve multiple performance dimensions. Additionally, it captures different sustainability aspects, concluding that organizations can improve purchasing operational, environmental and social performances by implementing appropriate information sharing mechanisms with suppliers and developing their PRAC.

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“…Manufacturers and retailers in GSCM are incentivized to take into account green products while they make business decisions. Implementing GSCM for manufacturers as well as retailers is a win-win strategy [5][6][7].…”

Section: Introductionmentioning

confidence: 99%

Green Supply Chain Management with Nash Bargaining Loss-Averse Reference Dependence

Feng

Tan

et al. 2021

Mathematics

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This paper investigates a two-echelon green supply chain (GSC) with a single loss-averse manufacturer and a single loss-averse retailer. Since the Nash bargaining solution exactly characterizes endogenous power and the contribution of the GSC members, it is introduced as the loss-averse reference point for the GSC members. Based on this, a decision model of the two-echelon GSC with loss aversion is formulated. The optimal strategies of price and product green degree are derived in four scenarios: (a) the centralized decision scenario with rational GSC members, namely the CD scenario; (b) the decentralized decision scenario with rational GSC members, namely the DD scenario; (c) the decentralized decision scenario with the GSC members loss-averse, where the manufacturer’s share is below its own loss-averse reference point, namely the DD(∆m ≥ πm) scenario; (d) the decentralized decision scenario with the GSC members loss-averse, where the retailer’s share is below its own loss-averse reference point, namely the DD(∆r ≥ πr) scenario. Then, a comparative analysis of the optimal strategies and profits in these four scenarios is conducted, and the impacts of loss aversion and green efficiency coefficient of products (GECP) on the GSC are also performed. The results show that (i) GECP has a critical influence on the retail price and the wholesale price; (ii) the GSC with loss aversion provide green products with the lowest green degree; (iii) the retail price, the wholesale price and product green degree are decreasing monotonically with the loss aversion level of the GSC member without incurring loss; (iv) furthermore, the effect of the loss aversion level of the GSC member with incurring loss on the optimal strategies is related to GECP and the gap between the GSC members’ loss aversion levels.

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Adoption of green supply chain management practices in multi-tier supply chains: examining the differences between higher and lower tier firms

Cited by 34 publications

References 75 publications

Green Supply Chain Management Efforts of First-Tier Suppliers on Economic and Business Performances in the Electronics Industry

Green Supply Chain Management Efforts of First-Tier Suppliers on Economic and Business Performances in the Electronics Industry

Purchasing realized absorptive capacity as the gateway to sustainable supply chain management

Green Supply Chain Management with Nash Bargaining Loss-Averse Reference Dependence

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