Factors influencing the implementation of green supply chain management: The case of Pakistan SMEs

Fariha Naqvi, Nicoleta Isac, Waqar Badshah

Article ID: 2222
Vol 7, Issue 2, 2023

VIEWS - 755 (Abstract) 393 (PDF)

Abstract


The implementation of green supply chain management (GSCM) in developing countries is represented by less advanced economic growth than in industrialized countries. It is reasonable to presume that different nations may have different constructs influencing GSCM adoption. Even though, there is a gap in the literature regarding the execution of GSCM in developing nations like Pakistan. This demonstrates the necessity and importance of undertaking empirical research on the variables influencing GSCM adoption from the perspective of Pakistan small and medium enterprises (SMEs). To close the gap in GSCM research, this study tries to pinpoint the variables influencing GSCM adoption among Pakistan SMEs. SPSS software version 23 is used to apply statistical techniques to the primarily obtained data. The survey form was administrated to 600 target respondents from all administrative levels. There were 210 complete and usable survey forms, showing a response rate of around 35%. First, the reliability of all questions is checked; second, we use multiple regression analysis to identify which factors are affecting the implementation of green supply chain management in Pakistani SMEs. The findings suggest that environmental factors and organizational factors have a great influence on managers’ intention to adopt GSCM. Meanwhile, technological factors have no significant impact on managers’ intentions to adopt GSCM.

Keywords


green supply chain management; environmental factor; technological factor; organizational factor; managers intentions; Pakistan SMEs

Full Text:

PDF


References


Abdeljawed HB, Amraoui LE (2021). Prospects for synergies between low-voltage DC microgrid technology and peer-to-peer energy trading markets. Sustainable Production and Consumption 28: 1286–1296. doi: 10.1016/J.SPC.2021.07.029

Alam SS, Ali Md Y, Mohd FJ (2011). An empirical study of factors affecting electronic commerce adoption among SMEs in Malaysia. Journal of Business Economics & Management 12(2): 375–399. doi: 10.3846/16111699.2011.576749

Alam SS, Khatibi A, Ahmad MIS, Ismail H (2008). Factors affecting e-commerce adoption in the electronic manufacturing companies in Malaysia. International Journal of Commerce and Management 17(1–2): 125–139. doi: 10.1108/10569210710776503

Arif M, Egbu C, Haleem A, et al. (2009). State of green construction in India: Drivers and challenges. Journal of Engineering, Design and Technology 7(2): 223–234. doi: 10.1108/17260530910975005

Asif MS, Lau H, Nakandala D, et al. (2020). Adoption of green supply chain management practices through collaboration approach in developing countries—From literature review to conceptual framework. Journal of Cleaner Production 276: 124191. doi: 10.1016/J.JCLEPRO.2020.124191

Bag S, Gupta S, Kumar S, Sivarajah U (2020). Role of technological dimensions of green supply chain management practices on firm performance. Journal of Enterprise Information Management 34(1): 1–27. doi: 10.1108/JEIM-10-2019-0324

Bai C, Sarkis J, Wei X, Koh L (2012). Evaluating ecological sustainable performance measures for supply chain management. Supply Chain Management 17(1): 78–92. doi: 10.1108/13598541211212221

Balasubramanian S, Shukla V, Chanchaichujit J (2020). Firm size implications for environmental sustainability of supply chains: Evidence from the UAE. Management of Environmental Quality: An International Journal 31(5): 1375–1406. doi: 10.1108/MEQ-01-2020-0004

Baumann-Pauly D, Wickert C, Spence LJ, Scherer AG (2013). Organizing corporate social responsibility in small and large firms: Size matters. Journal of Business Ethics 115(4): 693–705. doi: 10.1007/S10551-013-1827-7

Campbell JL (2007). Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility. The Academy of Management Review 32(3): 946–967. doi: 10.5465/AMR.2007.25275684

Chen IJ, Paulraj A (2004). Towards a theory of supply chain management: The constructs and measurements. Journal of Operations Management 22(2): 119–150. doi: 10.1016/j.jom.2003.12.007

Choudhary K, Sangwan KS (2019). Adoption of green practices throughout the supply chain: An empirical investigation. Benchmarking, An Inerntional Journal 26(6): 1650–1675. doi: 10.1108/BIJ-09-2018-0293

da Silva AR, Cirani CBS, Serra FAR, et al. (2023). Determining factors on green innovation adoption: An empirical study in Brazilian agribusiness firms. Sustainability 15(7): 6266. doi: 10.3390/su15076266

Darnall N, Jolley GJ, Handfield R (2008). Environmental management systems and green supply chain management: Complements for sustainability? Business Strategy and the Environment 17(1): 30–45. doi: 10.1002/BSE.557

De Sousa Jabbour ABL, Jabbour CJC, Govindan K, et al. (2013). Factors affecting the adoption of green supply chain management practices in Brazil: Empirical evidence. International Journal of Environmental Studies 70(2): 302–315. doi: 10.1080/00207233.2013.774774

Delmas M, Toffel MW (2004). Stakeholders and environmental management practices: An institutional framework. Business Strategy and the Environment 13(4): 209–222. doi: 10.1002/BSE.409

Diabat A, Govindan K (2011). An analysis of the drivers affecting the implementation of green supply chain management. Resources, Conservation and Recycling 55(6): 659–667. doi: 10.1016/J.RESCONREC.2010.12.002

Dögl C, Behnam M (2015). Environmentally sustainable development through stakeholder engagement in developed and emerging countries. Business Strategy and the Environment 24(6): 583–600. doi: 10.1002/BSE.1839

Dong T, Shi Y, Nan Z (2023). The interaction mechanism and dynamic evolution of digital green innovation in the integrated green building supply chain. Systems 11(3): 122. doi: 10.3390/systems11030122

European Environment Agency (2014). Environmental Indicator Report 2014: Environmental Impacts of Production-Consuption Systems in Europe. Available online: https://www.eea.europa.eu/publications/environmental-indicator-report-2014 (accessed on 9 August 2023).

Feng T, Jiang Y, Xu D (2020). The dual-process between green supplier collaboration and firm performance: A behavioral perspective. Journal of Cleaner Production 260: 121073. doi: 10.1016/J.JCLEPRO.2020.121073

Ferreira LMDF, Silva C, Azevedo SG (2016). An environmentally balanced scorecard for supply chain performance measurement. Benchmarking, An International Journal 23(6): 1398–1422. doi: 10.1108/BIJ-08-2013-0087

Flynn BB, Sakakibara S, Schroeder RG, et al. (1990). Empirical research methods in operations management. Journal of Operations Management 9(2): 250–284. doi: 10.1016/0272-6963(90)90098

Gable GG (2017). Integrating case study and survey research methods: An example in information systems. European Journal of Information System 3(2): 112–126. doi: 10.1057/EJIS.1994.12

Golicic SL, Smith CD (2013). A meta-analysis of environmentally sustainable supply chain management practices and firm performance. Journal of Supply Chain Management 49(2): 78–95. doi: 10.1111/JSCM.12006

Govindan K, Muduli K, Devika K, Barve A (2016). Investigation of the influential strength of factors on adoption of green supply chain management practices: An Indian mining scenario. Resources, Conservation and Recycling 107: 185–194. doi: 10.1016/j.resconrec.2015.05.022

Hameed MA, Counsell S, Swift S (2012). A conceptual model for the process of IT innovation adoption in organizations. Journal of Engineering and Technology Management 29(3): 358–390. doi: 10.1016/j.jengtecman.2012.03.007

Harris PG (2006). Environmental perspectives and behavior in China: Synopsis and bibliography. Environment and Behavior 38(1): 5–21. doi: 10.1177/0013916505280087

Hassan MG, Abidin R, Nordin N, Yusoff RZ (2016). GSCM practices and sustainable performance: A preliminary insight. Journal of Advanced Management Science 4(5): 430–434. doi: 10.12720/JOAMS.4.5.430-434

Ho YH, Lin CY, Tsai JS (2014). An empirical study on organizational infusion of green practices in Chinese logistics companies. Journal of Economic and Social Studies 4(2): 65–78. doi: 10.14706/JECOSS11427

Ikram M, Zhang Q, Sroufe R, Ferasso M (2021). Contribution of certification bodies and sustainability standards to sustainable development goals: An integrated grey systems approach. Sustainable Production and Consumption 28: 326–345. doi: 10.1016/j.spc.2021.01.024

Ikram M, Zhou P, Shah SAA, Liu GQ (2019). Do environmental management systems help improve corporate sustainable development? Evidence from manufacturing companies in Pakistan. Journal of Cleaner Production 226: 628–641. doi: 10.1016/J.JCLEPRO.2019.03.265

Jayaram J, Avittathur B (2015). Green supply chains: A perspective from an emerging economy. International Journal of Production Economics 164: 234–244. doi: 10.1016/J.IJPE.2014.12.003

Jeyaraj A, Rottman JW, Lacity MC (2006). A review of the predictors, linkages, and biases in IT innovation adoption research. Journal of Information Technology 21(1): 1–23. doi: 10.1057/PALGRAVE.JIT.2000056

Jones C (2010). Exploring new ways of assessing the effect of regulation on environmental management. Journal of Cleaner Production 18(13): 1229–1250. doi: 10.1016/J.JCLEPRO.2010.04.007

Jum’a L, Ikram M, Alkalha Z, Alaraj M (2021). Factors affecting managers’ intention to adopt green supply chain management practices: Evidence from manufacturing firms in Jordan. Environmental Science and Pollution Research 29(4): 5605–5621. doi: 10.1007/S11356-021-16022-7

Jum’a L, Zimon D, Ikram MA (2021). Relationship between supply chain practices, environmental sustainability and financial performance: Evidence from manufacturing companies in Jordan. Sustainability 13(4): 2152. doi: 10.3390/su13042152

Kafa N, Hani Y, el Mhamedi A (2013). Sustainability performance measurement for green supply chain management. IFAC Proceedings Volumes 46(24): 71–78. doi: 10.3182/20130911-3-BR-3021.00050

Kalyar MN, Shoukat A, Shafique I (2020). Enhancing firms’ environmental performance and financial performance through green supply chain management practices and institutional pressures. Sustainability Accounting, Management and Policy Journal 11(2): 451–476. doi: 10.1108/SAMPJ-02-2019-0047

Khan SAR, Yu Z, Golpira H, et al. (2021). A state-of-the-art review and meta-analysis on sustainable supply chain management: Future research directions. Journal of Cleaner Production 278: 123357. doi: 10.1016/J.JCLEPRO.2020.123357

Khan SAR, Chen J, Yu Z, Golpira H (2019). Effect of green purchasing, green logistics, and ecological design on organizational performance: A path analysis using structural equation modeling. In: Jain Lc, Zhao X, Balas VE (editors). Information Technology and Intelligent Transportation Systems. IOS Press. pp. 183–190. doi: 10.3233/978-1-61499-939-3-183

Kimber D, Lipton P (2005). Corporate governance and business ethics in the Asia-Pacific region. Business & Society 44(2): 178–210. doi: 10.1177/0007650305275300

Klassen RD, Whybark DC (1999). The impact of environmental technologies on manufacturing performance. Academy of Management Journal 42(6): 599–615. doi: 10.5465/256982

Laari S, Töyli J, Ojala L (2017). Supply chain perspective on competitive strategies and green supply chain management strategies. Journal of Cleaner Production 141: 1303–1315. doi: 10.1016/J.JCLEPRO.2016.09.114

Lai K, Wong CWY (2012). Green logistics management and performance: Some empirical evidence from Chinese manufacturing exporters. Omega 40(3): 267–282. doi: 10.1016/J.OMEGA.2011.07.002

Lin CY, Alam SS, Ho YH, et al. (2020). Adoption of green supply chain management among SMEs in Malaysia. Sustainability 12(16): 6454. doi: 10.3390/su12166454

Lin CY, Ho YH (2011). Determinants of green practice adoption for logistics companies in China. Journal of Business Ethics 98: 67–83. doi: 10.1007/s10551-010-0535-9

Lin CY, Ho YH (2009). RFID technology adoption and supply chain performance: An empirical study in China’s logistics industry. Supply Chain Management 14(5): 369–378. doi: 10.1108/13598540910980288

Lippert SK, Govindarajulu C (2006). Technological, organizational, and environmental antecedents to web services adoption. Communications of the IIMA 6(1): 14. doi: 10.58729/1941-6687.130

Luthra S, Garg D, Haleem A (2014). Green supply chain management: Implementation and performance—A literature review and some issues. Journal of Advances in Management Research 11(1): 20–46. doi: 10.1108/JAMR-07-2012-0027

Maignan I, Ferrell OC (2001). Antecedents and benefits of corporate citizenship: An investigation of French businesses. Journal of Business Research 51(1): 37–51. doi: 10.1016/S0148-2963(99)00042-9

Mangla S, Kumar P, Barua MK (2014). An evaluation of attribute for improving the green supply chain performance via DEMATEL method. International Journal of Mechanical Engineering and Robotics Research 1(1): 30–35.

Martínez CV, González LR, Barrie MA (2022). Understanding the expansion of circular markets: Building relational legitimacy to overcome the stigma of second-hand clothing. Sustainable Production and Consumption 30: 77–88. doi: 10.1016/j.spc.2021.11.027

Masudin I (2019). A literature review on green supply chain management adoption drivers. Jurnal Ilmiah Teknik Industri 18(2): 103–115. doi: 10.23917/JITI.V18I2.7826

Mathiyazhagan K, Datta U, bhadauria R, et al. (2018). Identification and prioritization of motivational factors for the green supply chain management adoption: Case from Indian construction industries. OPSEARCH 55: 202–219. doi: 10.1007/S12597-017-0316-7

Ming-Horng W (2011). Determinants of green innovation adoption for small and medium-size enterprises (SMES). African Journel of Business Management 5(22): 9154–9163. doi: 10.5897/AJBM11.273

Mitra S, Datta PP (2014). Adoption of green supply chain management practices and their impact on performance: An exploratory study of Indian manufacturing firms. International Journal of Production Research 52(7): 2085–2107. doi: 10.1080/00207543.2013.849014

Mumtaz U, Ali Y, Petrillo A, de Felice F (2018). Identifying the critical factors of green supply chain management: Environmental benefits in Pakistan. Science of the Total Environment 640–641: 144–152. doi: 10.1016/J.SCITOTENV.2018.05.231

Nunnally JC (1975). Psychometric theory—25 years ago and now. Educational Researcher 4(10): 7–21. doi: 10.3102/0013189X004010007

Petrudi SHH, Ahmadi HB, Rehman A, Liou JJH (2021). Assessing suppliers considering social sustainability innovation factors during COVID-19 disaster. Sustainable Production and Consumption 27: 1869–1881. doi: 10.1016/J.SPC.2021.04.026

Piaralal S, Nair S, Yahya N, Karim JA (2015). An integrated model of the likelihood and extent of adoption of green practices in small and medium sized logistics firms. American Journal of Economics 5(2): 251–258. doi: 10.5923/75345805.06.258

Pinsonneault A, Kraemer KL (1993). Survey research methodology in management information systems: An assessment. Journal of Management Information Systems 10(2): 75–105. doi: 10.1080/07421222.1993.11518001

Rahman AB, Ho JA, Rusli KA (2014). Pressures, green supply chain management practices and performance of ISO 14001 certified manufacturers in Malaysia. International Journal of Economics and Management 8: 1–24.

Rao P, Holt D (2005). Do green supply chains lead to competitiveness and economic performance? International Journal of Operations and Production Management 25(9): 898–916. doi: 10.1108/01443570510613956

Rehman E, Ikram M, Rehman S, Feng MT (2021). Growing green? Sectoral-based prediction of GHG emission in Pakistan: A novel NDGM and doubling time model approach. Environment, Development and Sustainability 23(8): 12169–12191. doi: 10.1007/S10668-020-01163-5

Rogers E, Singhal A, Quinlan MM (2008). Diffusion of innovations. In: Stacks W, Salwen MB (editors). An Integrated Approach to Communication Theory and Research. Routledge. p. 17. doi: 10.4324/9780203710753-35

Russell DM, Hoag AM (2004). People and information technology in the supply chain: Social and organizational influences on adoption. International Journal of Physical Distribution & Logistics Management 34(2): 102–122. doi: 10.1108/09600030410526914

Sarkis J, Zhu Q, Lai KH (2011). An organizational theoretic review of green supply chain management literature. International Journal of Production Economics 130(1): 1–15. doi: 10.1016/J.IJPE.2010.11.010

Seuring S (2013). A review of modeling approaches for sustainable supply chain management. Decision Support Systems 54(4): 1513–1520. doi: 10.1016/j.dss.2012.05.053

Shashi CP, Cerchione R, Ertz M (2020). Managing supply chain resilience to pursue business and environmental strategies. Business Strategy and the Environment 29(3): 1215–1246. doi: 10.1002/BSE.2428

Sharma S, Henriques I (2005). Stakeholder influences on sustainability practices in the Canadian forest products industry. Strategic Management Journal 26(2): 159–180. doi: 10.1002/SMJ.439

Shaw S, Grant DB, Mangan J (2010). Developing environmental supply chain performance measures. Bench-marking: An International Journal 17(3): 320–339. doi: 10.1108/14635771011049326

Shibin KT, Gunasekaran A, Papadopoulos T, et al. (2016). Enablers and barriers of flexible green supply chain management: A total ınterpretive structural modeling approach. Global Journal of Flexible Systems Management 17(2): 171–188. doi: 10.1007/S40171-015-0109

Srivastava SK (2007). Green supply-chain management: A state-of-the-art literature review. International Journal of Management Reviews 9(1): 53–80. doi: 10.1111/J.1468-2370.2007.00202

Straub D, Boudreau M, Gefen D (2004). Validation guidelines for IS positivist research. Communications of the Association for Information Systems 13. doi: 10.17705/1CAIS.01324

Tian Y, Govindan K, Zhu Q (2014). A system dynamics model based on evolutionary game theory for green supply chain management diffusion among Chinese manufacturers. Journal of Cleaner Production 80: 96–105. doi: 10.1016/J.JCLEPRO.2014.05.076

Tippayawong KY, Tiwaratreewit T, Sopadang A (2015). Positive ınfluence of green supply chain operations on Thai electronic firms’ financial performance. Procedia Engineering 118: 683–690. doi: 10.1016/J.PROENG.2015.08.503

Tseng ML, Islam MS, Karia N, et al. (2019). A literature review on green supply chain management: Trends and future challenges. Resources, Conservation and Recycling 141: 145–162. doi: 10.1016/J.RESCONREC.2018.10.009

Vanalle RM, Ganga GMD, Godinho Filho M, Lucato WC (2017). Green supply chain management: An investigation of pressures, practices, and performance within the Brazilian automotive supply chain. Journal of Cleaner Production 151: 250–259. doi: 10.1016/J.JCLEPRO.2017.03.066

Walker H, di Sisto L, McBain D (2008). Drivers and barriers to environmental supply chain management practices: Lessons from the public and private sectors. Journal of Purchasing and Supply Management 14(1): 69–85. doi: 10.1016/J.PURSUP.2008.01.007

Wang H, Khan MAS, Anwar F, et al. (2021). Green innovation practices and its impacts on environmental and organizational performance. Frontiers in Psychology 11: 553625. doi: 10.3389/FPSYG.2020.553625

Wang M, Feng C (2019). Impacts of oriented technologies and economic factors on China’s industrial climate mitigation. Journal of Cleaner Production 233: 1016–1028. doi: 10.1016/J.JCLEPRO.2019.06.134

Wang Z, Mathiyazhagan K, Xu L, Diabat A (2015). A decision making trial and evaluation laboratory approach to analyze the barriers to Green Supply Chain Management. Journal of Cleaner Production 117: 19–28. doi: 10.1016/j.jclepro.2015.09.142

Wang Z, Wang Q, Zhang S, Zhao X (2018). Effects of customer and cost drivers on green supply chain management practices and environmental performance. Journal of Cleaner Production 189: 673–682. doi: 10.1016/J.JCLEPRO.2018.04.071

Welsh DHB, Alon I, Falbe CM (2006). An examination of international retail franchising in emerging markets. Journal of Small Business Management 44(1): 130–149. doi: 10.1111/J.1540-627X.2006.00158

Wu GC, Ding JH, Chen PS (2012). The effects of GSCM drivers and institutional pressures on GSCM practices in Taiwan’s textile and apparel industry. International Journal of Production Economics 135(2): 618–636. doi: 10.1016/J.IJPE.2011.05.023

Wu KJ, Tseng ML, Vy T (2011). Evaluation the drivers of green supply chain management practices in uncertainty. Procedia - Social and Behavioral Sciences 25: 384–397. doi: 10.1016/J.SBSPRO.2012.02.049

Zaid AA, Jaaron AAM, Bon AT (2018). The impact of green human resource management and green supply chain management practices on sustainable performance: An empirical study. Journal of Cleaner Production 204: 965–979. doi: 10.1016/j.jclepro.2018.09.062.

Zailani SHM, Eltayeb TK, Hsu CC, Tan KC (2012). The impact of external institutional drivers and internal strategy on environmental performance. International Journal of Operations and Production Management 32(6): 721–745. doi: 10.1108/01443571211230943

Zhu J, Xu J (2019). Driving factors of green supply chain management in building materials enterprises. IOP Conference Series: Earth and Environmental Science 295(2): 012063. doi: 10.1088/1755-1315/295/2/012063

Zhu Q, Feng Y (2016). The role of customer relational governance in environmental and economic performance improvement through green supply chain management. Journal of Cleaner Production 155: 46–53. doi: 10.1016/j.jclepro.2016.02.124

Zhu Q, Geng Y, Sarkis J, Lai K (2011). Evaluating green supply chain management among Chinese manufacturers from the ecological modernization perspective. Transportation Research Part E: Logistics and Transportation Review 47(6): 808–821. doi: 10.1016/J.TRE.2010.09.013

Zhu Q, Sarkis J, Geng Y (2005). Green supply chain management in China: Pressures, practices and performance. International Journal of Operations and Production Management 25(5): 449–468. doi: 10.1108/01443570510593148

Zhu Q, Sarkis J, Lai K (2012). Examining the effects of green supply chain management practices and their mediations on performance improvements. International Journal of Production Research 50(5): 1377–1394. doi: 10.1080/00207543.2011.571937

Zhu Q, Sarkis J, Lai K (2008). Confirmation of a measurement model for green supply chain management practices implementation. International Journal of Production Economics 111(2): 261–273. doi: 10.1016/j.ijpe.2006.11.029

Zhu Q, Sarkis J, Lai K, Geng Y (2008). The role of organizational size in the adoption of green supply chain management practices in China. Corporate Social Responsibility and Environmental Management 15(6): 322–337. doi: 10.1002/CSR.173

Zhu Q, Sarkis J, Lai K (2007). Green supply chain management: Pressures, practices and performance within the Chinese automobile industry. Journal of Cleaner Production 15(11–12): 1041–1052. doi: 10.1016/J.JCLEPRO.2006.05.021

Zhu Q, Sarkis J, Lai K (2013). Institutional-based antecedents and performance outcomes of internal and external green supply chain management practices. Journal of Purchasing and Supply Management 19(2): 106–117. doi: 10.1016/j.pursup.2012.12.001




DOI: https://doi.org/10.24294/jipd.v7i2.2222

Refbacks

  • There are currently no refbacks.


Copyright (c) 2023 Fariha Naqvi, Nicoleta Isac, Waqar Badshah

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

This site is licensed under a Creative Commons Attribution 4.0 International License.