Role of green policy on sustainable supply chain management

Abstract

Purpose – Green supply chain management (GSCM) has become the driver of sustainable strategy. This topic has been gaining increasing attention within both academia and industry for making the industry competitive. With the ever increasing demand for reducing carbon foot prints and greenhouse gas emission, there is a need to study the various parameters and drivers of sustainable development, especially in supply chain management. The need for developing the sustainable model including the drivers of sustainability needs to be designed. The paper aims to discuss these issues. Design/methodology/approach – Using resource-based theory and value chain analysis; the authors have developed a model for sustainable strategy. The data were collected and analyzed to find the key drivers of sustainability. The data were analyzed with the help of regression and correlation analysis. Findings – After providing a background discussion on GSCM, the authors categorize and review recent GSCM literature under three broad categories, with a special emphasis on investigation of adoption, diffusion, and outcomes of GSCM practices. Within this review framework, the authors also identified GSCM research questions that are worthy of investigation. The study suggests that the main drivers of GSCM include the environmental policy and the green human resource management by providing them training for adopting sustainability practices. Besides this, another key driver is the sustainability criteria in supplier selection which was found to be enhancing the outcomes of sustainability. Research limitations/implications – The model suggests that we need to have management support for implementing the sustainability strategy in the organization. Practical implications – The study guides the managers for implementing sustainable supply chain management practices in the organization. Social implications – The model including the environment policy (adoption), green human resource management (diffusion), green technology (diffusion), and GSCM. Originality/value – Additional organizational theories which are considered valuable for future GSCM research are also identified with a conclusion for this review.

Levers of Control for Supply Chain Sustainability: Control and Governance Mechanisms in a Cross-Boundary Setting

“…The TBL framework provides organizations with the possibility to more adequately measure organizational performance [16]. An often heard criticism of the TBL theory is that the profit bottom line is measurable, but one should be critical and look deeper into the measurement of performance of the people and planet bottom lines as they are less easily defined and quantified in an objective manner [8]. This shows a need for other management control and governance practices of a less mechanical nature to be applied in order to pursue all bottom lines simultaneously.…”

“…In addition to classical trade-offs, a Triple Bottom Line (TBL) stemming from the principles of corporate social responsibility (CSR) [7], now requires attention: social and environmental performance must be considered in addition to economic gains. In a study on the implementation of CSR, Bhardwaj [8] suggests further research to expand the understanding of this relationship by combining it with other points of view and showing implications for managers that can be discussed in comparison with other control and governance literature. The TBL poses new challenges, not only for executing departments such as purchasing but also for management when it comes to subjects such as goalsetting, control and governance.…”

Impact of Competitive Capabilities on Sustainable Manufacturing Applications in Romanian SMEs from the Textile Industry

“…This can also be applied to SMP when technical knowledge and expertise related to sustainable technologies are high. For example, promoting technical knowledge and skills concerning pollution, waste prevention, and the value of green technology are essential factors of firm's sustainable practices [25]. Technical knowledge competence also contributes in enhancing the performance of green product innovations in manufacturing firms [26].…”

“…Green practices can lead to vast savings in all types of resources, less downtime, better utilisation of by-products, safer workplace conditions, reductions in operations and product handling costs, higher product quality, and higher product resale and scrap value [38]. As a result, these enhancements in products and processes can also increase the adaptability of manufacturing operations and speed up product and responsiveness to customers [25]. Hence, sustainable manufacturing can yield valuable products with a high sustainable impact through the efficient use of resources [29].…”

“…Their study revealed that top management commitment is the main force that pushes SMP in Indian automotive companies. Bhardwaj [25] used resource-based theory and value chain analysis to develop a sustainability strategy model in Indian organisations. His findings suggested that management support is a key success for executing sustainable strategies in Indian organisations.…”