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The research in the field of Green Supply Chain Management (GSCM) is gradually becoming more and more widespread, even though the literature is limited to the subject of the GSCM ability to affect the firms performance. Therefore in-depth research of the ability of green practices combined with Supply Chain Management (SCM) to yield positive results if of relevance for determining whether the firm`s performance may be improved in this regard.
The findings of the research present theoretical and practical basis needed to show results of the operationalization of the GSCM concept as well as the strategic implications for firm orientations. Moreover, the research paper also illustrates how the firm`s competitiveness may improved through the implementation of green practices.
Keywords: Green Supply Chain Management (GSCM), Strategic Orientations Supply Chain Orientation, Environmental Orientation, Firm Performance, Cost Efficiency, Customer Effectiveness, Environmental Differentiation
CHAPTER 1: INTRODUCTION
Chapter 1 aims to introduce the new era of business operation which is based on creating new values able to move a firms performance to a higher level. There will also be stated the research objectives which will define the purpose of the study.
Businesses are facing scarcity of resources, increasing awareness among stakeholders, implementation of strict laws regarding being green all of these pose a real challenge today. Businesses were challenged in creating integrated organization before until the intro (Bidgoli, 2010). Using these strategic weapon and new technologies, businesses become very successful provided these new practices allow them to gain competitive advantages.
Environmental crises happen regularly and pose major challenge to organizations. Many companies are now implementing environmental management in supply chain, also known as Green Supply Chain Management (GSCM) (Tan, 2001).
Organizations have implemented environmental practices into their strategic plans and also in their daily operations, which they believe to shape firms performance in ways like improving reputation, better controlling of waste and reducing overall costs (Sarkis, 2003).
1.2 StudyBusinesses that have built their own global networks of suppliers may no longer have as significant competitive advantages as they had before. The major challenge to supply chains now is to balance low costs and innovations to substantiate both environmental and economic sustainability. The solution is to implement Green Supply Chain Management (GSCM) in the business that helps managers to balance such issues. This purpose of this study is show that GSCM is able to shape firms performance.
1.3 Research GapsGreen practices in SCM as a concept oriented on helping to improve firms performance have not been thoroughly examined (Zhu & Sarkis, Relationships between operational practices and performance among early adopters of green supply chain management practices in Chinese manufacturing enterprises, 2004). Many authors explored the GSCM capabilities as a functional mechanism and it`s likelihood to contribute to a firms performance. In general, the capabilities and features of GSCM have been perceived as the competitive advantage that leads to improvement of a firms performance (Rao & Holt, Do green supply chains lead to competitiveness and economic performance?, 2005).
Most of the literature focuses on the firms external business environment like regulation that is imposed by the government or dictated by the demands of the stakeholders, etc. These facts are to be considered as motivations for enterprises to adopt green practices (Chang, Kenzhekhanuly, & Park, 2013). It is unclear whether the directives aimed at adoption of green practices lead to improvement of firms performance. There seems to be a missing piece of information about the concept of internal corporate cultures or orientations that encourage companies to adopt GSCM practices.
1.4 Aims and Objectives of the PaperAs it was mentioned in the Research Gaps, current research in GSCM lacks defined evaluation of the contribution GSCM makes on increasing firm`s performance and also the concept of adopting GSCM. Therefore the aim of the paper is:
To provide a comprehensive understanding of GSCM.
To explore relevant concepts, models and theories in the field of GSCM benefits.
To identify, through the evaluation in Resource Base View, values that contribute to higher firm performance.
1.5 OutlineThis dissertation is structured in five chapters. Chapter 1 introduces the problems businesses encounter as well as the aims and objectives. It is followed by Chapter 2, which concerns review of literature regarding GSCM and other relevant concepts and models like Supply Chain orientation, Environmental orientation, Firm Performance (Cost Efficiency, Customer Effectiveness and Environmental Differentiation) and Resource Base Views. Chapter 3 focuses on research methodology, which relates to data collection. Chapter 4 concerns data analysis and findings. Finally, chapter 5 is the conclusion of the dissertation and also the layout of the limitation of this study. Chapter 5 also suggests some ground for future research.
CHAPTER 2: LITERATURE REVIEW
This chapter is wholly dedicated to the reviews of literature. The following literature review will identify and discuss the characteristics of GSCM and other concepts. It develops further a set of specific research survey...
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