Strategic orientations, sustainable supply chain initiatives, and reverse logistics: Empirical evidence from an emerging market

Fuzzy multi-objective optimization model to design a sustainable closed-loop manufacturing system

Republicans and Democrats practically everywhere have been demonstrating concerns about environmental conservation to achieve sustainable development goals (SDGs) since the turn of the century. To promote fuel (energy) savings and a reduction in the amount of carbon dioxide CO2 emissions in several enterprises, actions have been taken based on the concepts described. This study proposes an environmentally friendly manufacturing system designed to minimize environmental impacts. Specifically, it aims to develop a sustainable manufacturing process that accounts for energy consumption and CO2 emissions from direct and indirect energy sources. A multi-objective mathematical model has been formulated, incorporating financial and environmental constraints, to minimize overall costs, energy consumption, and CO2 emissions within the manufacturing framework. The input model parameters for real-world situations are generally unpredictable, so a fuzzy multi-objective model will be developed as a way to handle it. The validity of the proposed ecological industrial design will be tested using a scenario-based approach. Results demonstrate the high reliability, applicability, and effectiveness of the proposed network when analyzed using the developed techniques.

Green Manufacturing for a Green Environment from Manufacturing Sector in Guangdong Province: Mediating Role of Sustainable Operations and Operational Transparency

This work investigates the manufacturing operations of focal firms to manage the enhancement of environmental sustainability (EnS). To achieve this, indirect and direct effects of operational transparency (OPT) and sustainable operations (SUP) between environmental business practices (EBPr) and EnS are proposed. By leveraging the resource-based view theory, this study seeks to clarify how integrating transparency and sustainable operations can enhance a firm’s ability to manage environmental challenges effectively. Aligning environmental business practices with sustainable operations and transparency concepts appears to be an appropriate choice for environmental sustainability. A well-designed questionnaire was formed and used to collect the observations from 1214 focal firms. FsQCA and SEM approaches are employed to analyze one of the research questions of operations management: How do OPT and SUP mediate the effects of EBPr on the environmental sustainability of a firm? The final results clarify that the indirect effects of OPT and SUP significantly completely exist and are positive. The findings describe that firms with operational transparency and sustainability perform well in resolving operational and sustainable issues.

Modeling the significance of green orientation and culture on green innovation performance: moderating effect of firm size and green implementation

The current global trend in sustainable business practices is to optimize green innovation performance. To protect the environment and maintain their own survival, organizations must strengthen their green innovation capabilities. Drawing on the recourse-based view and ecology modernization theory (EMT), this study examines the direct effect of green strategic orientations, green entrepreneurial orientation, green market orientation, green innovation orientation, and green organizational culture on the firm's green innovation capability, as well as the mediating effect of green innovation capability on the relationship of these four factors and green innovation performance. Besides, this study also explored the moderating effects of green management system implementation and firm size on the association between green innovation capability and green innovation performance. To test the hypothesized model, a questionnaire survey was administered to gather responses from 293 medium-sized and large manufacturing firms operating in Pakistan. The partial least squares method was used for data analysis. The results revealed that green entrepreneurial orientation, green market orientation, green innovation orientation, and green organizational culture positively impacted green innovation capability, which subsequently positively influenced green innovation performance. Moreover, effective implementation of green management systems can bolster the effect of green innovation capability on green innovation performance, and the mediating effect of green innovation capability has also been confirmed. These indicated that the management of medium and large manufacturing firms operating in Pakistan should focus on encouraging green innovation and training employees regarding the latest eco-friendly technologies to attain performance and sustainable development goals. Policymakers should implement green business development programs and offer rewards or penalties for promoting compliance. The present study contributes greatly to the literature by applying EMT as an alternative to address the mediating role of green innovation capability and the moderating effect of green management system implementation in enhancing firms' green innovation performance.

The long-run stock performance following announcements of sustainable supply chain management initiatives

Purpose

This study aims to examine and analyze the determinants of the stock market performance after firms announce sustainable supply chain management (SSCM) practices.

Design/methodology/approach

The study focuses on the long-run stock performance of firms announcing SSCM investments. The authors collected a sample of 280 SSCM announcements from 2010 to 2017 and estimated the buy-and-hold abnormal stock returns up to three years following the announcements. Numerous analyses were conducted to analyze the effect of environmental and social sustainability on long-run stock returns.

Findings

The findings show a significantly positive stock performance in the three-year period after announcements. Moreover, the evidence indicates that the post-announcement abnormal stock return has an inverted-U relationship with corporate environmental sustainability but not with corporate social sustainability. Finally, whether firms expand the firms' corporate sustainability strength to SSCM practices or not, firms secure long-run wealth as long as SSCM programs are carried out.

Research limitations/implications

The research focuses on the stock performance of USA public firms to draw conclusions about firms' market performance. This research leaves out the private and born-sustainable firms.

Practical implications

The findings offer firms incentives to invest in SSCM and suggest the magnitude of value provided by each sustainability type to help firms set firms' supply chain (SC) sustainable investment level.

Originality/value

The study is the first to investigate the long-run stock performance of firms announcing SSCM practices and the contribution of different sustainability types to stock performance.

Driving sustainability in supply chain management for a more inclusive and responsible future

Purpose

Nowadays, a prominent research area is the development of competitive advantages in companies, due to their environmental commitment and orientation. Based on resource-based view (RBV) and institutional theory (InT), this paper aims to investigate the influence of internal and external orientation on businesses' sustainable performance while considering the effect of sustainable supply chain management (SSCM) practices.

Design/methodology/approach

Data from 351 manufacturing companies in the Kingdom of Saudi Arabia have been collected and analysed through structural equation modelling (SEM) using the partial least squares (PLS) method.

Findings

The results indicated that both internal and external environmental orientation have important effects on SSCM practices, which in turn have a considerable beneficial effect on environmental, social and economic performance.

Originality/value

Although SSCM is constantly gaining ground in the literature, most SSCM research and models examine its effects, antecedents or motivation, mainly adopting a qualitative approach. Research on the topic adopting a large-scale empirical approach is still limited. In this context, this study contributes to the SSCM management literature by exploring the role of environmental orientation in facilitating the adoption of SSCM practices and improving companies' performance.

The Threshold Effect of Executive Compensation on Corporate Environmental Responsibility: Based on the Moderating Effect of Industry Competition

In recent years, the relationship between the executive characteristics and corporate environmental responsibility has attracted much attention from academia, especially the relationship between executive compensation and corporate environmental responsibility. Based on the panel data of China’s Shanghai and Shenzhen A-share listed manufacturing companies from 2006 to 2018, this paper empirically tests the threshold effect of executive compensation on corporate environmental responsibility and explores this relationship under the moderation of industry competition. The results show the following: (1) The impact of executive compensation on corporate environmental responsibility represents a U-shaped threshold effect; that is, the promotion of corporate environmental responsibility by executive compensation only appears after reaching a certain boundary. (2) Industry competition has a positive moderating effect, which will shift the inflection point of the U-shaped curve between executive compensation and corporate environmental responsibility to the left. (3) Executive compensation of companies of different attributes, sizes, and regions has an impact on corporate environment responsibility, and industry competition has a varying impact on executive compensation and corporate environmental responsibility. This paper is based on the special situation of China and can be used for reference to other developing countries. This study not only expands the research perspective of corporate environmental responsibility and further reveals and verifies the manager effect in the field of environmental performance, but also has practical significance to further give full play to the incentive effect of compensation on corporate non-financial performance.

Impact of sustainable supply chain management and customer relationship management on organizational performance

Purpose

This paper aims to assess the effect of sustainable supply chain management (SSCM) , competitive advantage (CA) and customer relationship management (CRM) on organizational performance (OP).

Design/methodology/approach

A self-administered questionnaire was employed in the present study as a research tool, consisting of 20 items. Information was gathered from 93 executives employed in the supply chain management (SCM) division of the multiple organizations in Chattogram, the commercial hub of Bangladesh and the findings of the research were evaluated using SMART PLS 3.0.

Findings

The findings supported the hypotheses that were formulated. The analysis shows that SSCM and CRM are significantly related to OP. The results show, however, a positive but insignificant relationship between CA and OP. In developing countries, SSCM and CA are more likely to be employed by businesses in order to accomplish OP. However, the relation between CRM and OP has been given comparatively less importance. It has been suggested that CRM, together with SSCM, should be considered in order to achieve OP.

Originality/value

Earlier study neglected to use the CRM in the measurement of OP along with CA and SSCM. This research seeks to emphasize the influence of CRM in the organization, together with SSCM. This lets companies understand the effect of SSCM and CRM in general since those companies must respond to consumer demands to product and industry developments and transfer appropriate resources to enhance manufacturing processes that combine technological and managerial efficiency.

Proposal for a Preliminary Model of Integrated Product Development Process Oriented by Green Supply Chain Management

For sustainable product development, activities related to the selection of raw materials, product design, manufacturing, packaging, and distribution must be considered in a way that respects environmental limits and implements alternatives to reduce the consumption of natural resources. Due to this context, companies have sought to create environmentally sustainable alternatives for products and processes, once exposed to government, market, and regulatory pressures. Given this scenario, the question of this study is presented: Is it possible to define a conceptual model from existing models in the literature that guides companies in their Integrated Product Development Process (IPDP) and is oriented by Green Supply Chain Management (GSCM)? To answer the research problem question, a preliminary model integrating the IPDP and GSCM themes was presented. The elaboration of the preliminary model was only possible from the systematic literature review and content analysis previously carried out and presented in the general data in this article. The general aim of the study is to present a preliminary model in which IPDP is oriented to GSCM. As specific objectives, this study intends to present models previously published that have some relation to the IPDP related to green design, green purchase, green manufacturing, green distribution, and reverse logistics, which are related to GSCM; in addition, it presents guidelines to integrate the stages of product development and GSCM to reduce the environmental impact. The contribution of the preliminary model for companies is to present criteria that reduce the environmental impact of products in different GSCM activities within the IPDP. The contribution of this study is to present an analysis of the existing models, which will be the basis for the development of a conceptual model.

Case Study of Municipal Waste and Its Reliance on Reverse Logistics in European Countries

The authors have examined municipal waste, its components and their integration with reverse logistics processes. Background: The theoretical part begins with a definition of municipal waste. Later, the integration between municipal waste and reverse logistics is provided, including presentation of the hierarchy of qualitative methods and models. Methods: The authors constructed a correlation matrix and applied a dynamic regression model to identify that the level of municipal waste impacts recycling of biowaste which demands reverse logistics. Results: The authors provided a dynamic regression model which could be applied for forecasting the size of recycled municipal waste into biowaste indicated in European Union countries. Conclusions: The variety of components in municipal waste prevents the increase of the recycling rates and has to be changed to ones that have higher recycling rates.

Sustainable orientation and purchasing: what about a remanufactured component?

Purpose

This paper aims to investigate how the sustainable orientation (SO) of companies and the strategic importance of components strategic importance may affect the decision to purchase remanufactured items.

Design/methodology/approach

This study employed a 2 × 2 full-factorial (combining between and within-subjects), scenario-based, role-playing experiment. Subjects in the study were US managers familiar with purchasing/supply chain topics. The hypotheses were tested using linear regression models.

Findings

The findings suggest that before becoming aware of any social benefits, a company's SO directly affects purchasing decisions, especially when the component is strategic. Perceptional aspects also play a significant role.

Research limitations/implications

This study may help managers develop strategies for adopting the use of remanufactured components. New studies can benefit from the findings by focusing on how awareness of social benefits may increase the likelihood of using remanufactured components.

Originality/value

The findings suggest that before becoming aware of any social benefits, a company's SO directly affects purchasing decisions, especially when the component is strategic. Perceptional aspects also play a significant role.

Sustainability practices during COVID-19: an institutional perspective

Purpose

The purpose of this paper is to investigate how sustainable practices in supply chains are affected by the COVID-19 pandemic through the lens of institutional theory.

Design/methodology/approach

This research applies a twofold data collection approach: 1) qualitative semistructured interviews and 2) secondary data collection that includes sustainability reports, newspaper articles, journal articles, strategic plans, research reports and statements made by authorities and stakeholders concerning decision-making. In total, managers representing six companies in Norway were interviewed.

Findings

The study suggests that during the COVID-19 pandemic, companies tend to focus on short-term decisions and economic issues. The long-term focus on sustainability has, however, increased at the cluster level. The research also indicates that the pandemic has led to the development of new business routines that may transform institutional norms. The diversity of institutional contexts can, on the one hand, drive sustainability transitions through pressures and supportive programs but, on the other hand, also hinder the development of sustainability thinking.

Research limitations/implications

Institutional factors must be included when analyzing the effects of crises and sustainable transitions. Researchers are encouraged to explore the COVID-19 implications in the form of longitudinal studies.

Practical implications

Policymakers can benefit from in-depth knowledge on the adverse effects of an institutional environment on sustainability. For managers, the outbreak of the pandemic can afford them additional time to revise their strategies and seek innovation. The pandemic highlights the need to build more resilient and sustainable systems that will aid managers in responding rapidly during future uncertainties and enduring sustainability trajectories in operations.

Originality/value

The paper offers an in-depth investigation of COVID-19 effects on the sustainability of supply chains by drawing on institutional theory.

Identification of the Critical Factors for Global Supply Chain Management under the COVID-19 Outbreak via a Fusion Intelligent Decision Support System

Under the ravages of COVID-19, global supply chains have encountered unprecedented disruptions. Past experiences cannot fully explain the situations nor provide any suitable responses to these fatal shocks on supply chain management (SCM), especially in todays’ highly intertwined/globalized business environment. This research thus revisits and rechecks the crucial components for global SCM during such special periods, and the basic essence of such management covers numerous perspectives that can be categorized into a multiple criteria decision making (MCDM) approach. To handle this complex issue appropriately, one can introduce a fusion intelligent system that involves data envelopment analysis (DEA), rough set theory (RST), and MCDM to understand the reality of the analyzed problem in a faster and better manner. Based on the empirical results, we rank the priorities in order as cash management and information (D), raw material supply (B), global management strategy (C), and productivity and logistics (A) for improvement in SCM. This finding is confirmed by companies now undergoing a downsizing strategy in order to survive in this harsh business environment.

Evaluation of Green Procurement Practices Among Mining Companies' Hospitals in Ghana: A Qualitative Analysis

This study focuses on the evaluation of the green procurement practices among 7 mining hospitals in Ghana via qualitative analysis techniques. Thus, in this study, based on a 5-year case study, the practices of procurement officers in 7 hospitals belonging to mining companies in Ghana are explored. Within this period, interviews were conducted with key persons with recognizable responsibilities within the supply chain and procurement setup of the facilities. Details of their procurement practices, procedures, and policies were analyzed. A qualitative approach to organizational learning and practice is used to appreciate the existence of these differences observed and also to give a meaning to new perspectives on the challenges in establishing green procurement in the 7 mining companies' hospitals. The results of the analysis demonstrated that adjustments in the buyers' practices are not as much dependent on whether they understand, for instance, policies, tools, and procedures, but rather a matter of whether the buyers actually put their knowledge into practice.

Understanding the implications of Belt and Road Initiative for sustainable supply chains: an environmental perspective

Purpose

This research aims to explore the potential impacts of the Belt and Road Initiative (BRI) on sustainable supply chains.

Design/methodology/approach

This study employs twenty qualitative interviews with supply chain managers located on the BRI lane from Asian countries.

Findings

Findings revealed that if not managed properly, BRI can pose a serious threats to sustainable supply chains from environmental perspective. The findings also revealed additional properties which lead to the emergence of these perspective.

Research limitations/implications

The findings of this study may not be generalizable to a broader population. Second, this study explores supply chain managers’ interpretations from Asian countries only.

Practical implications

Supply chain firms can use the findings from this study to understand the implications of BRI for sustainable supply chains. Particularly, firms can understand how the BRI may harm the organization's sustainable supply chains from the environmental perspective.

Originality/value

This is, perhaps, the first study which provides empirical evidence concerning the potential impacts of BRI on the management of sustainable supply chains.

Reverse supply chain management in manufacturing industry: a systematic review

Purpose

In a quest to meet increasing pressure to incorporate environmental and sustainability factors due to the legislations and growing public awareness, companies are rethinking of strategizing their supply chain network to take control of the reverse flow of products as well. This growing interest has also led to tremendous growth in publications occurring in several reputed journals in the last few years. In this context, the purpose of this article is to perform a systematic literature survey of recent and state-of-the-art papers in order to draw insights and highlight the future directions.

Design/methodology/approach

This paper has selected and reviewed 204 papers published from the year 2002–2017. The papers were collected from the web of science and Google scholar database which have the DOI number. The selected papers were then categorized into main five core areas of RSC management namely reverse supply chain (RSC), Reverse Logistics (RL), Remanufacturing, Closed-Loop Supply Chain (CLSC) and Product Recovery Systems (PRS) and then analyzed with great detail. Finally, the research gaps that were identified from the study have been highlighted for future research opportunities.

Findings

This paper would serve as a roadmap to the managers who wish to align their forward and reverse supply chains for overall growth and development. It provides an in-depth knowledge on RSC to the researchers working in this domain. The scholars would be able to identify the areas of RSC which have been already addressed and the areas which remain unaddressed.

Originality/value

This paper presents a systematic literature survey of state-of-the-art papers that was published in the reputed journal in the area of RSC. Total 204 numbers of papers which were published in the reputed journals between 2002 and 2017 are reviewed, categorized and analysed to draw the opportunities and future research direction in the area of RSC.

Antecedents to supply chain innovation

Purpose

The purpose of this study is to examine organizational and environmental (competition, capital scarcity and organization of labor) factors that affect firms' innovation activities within the supply chain.

Design/methodology/approach

This study empirically examines the factors that affect firms' innovation activities using firm-level data from the last round of Business Environment Enterprise Performance Surveys (BEEPS). The analysis covers major supply chain functions: production, delivery and support systems.

Findings

The study shows that drivers of innovation vary with the type of innovation activity; as such, innovation efforts across supply chain functions should prioritize strategic resources that will create competitive advantages. Our results also reveal that sustainability efforts in the Eastern Europe and Central Asia (EECA) region should prioritize labor market reforms over capital market reforms.

Originality/value

Current research on innovation and supply chain issues does not explicitly analyze innovations that occur in different sustainable supply chain functions, and empirical studies that focus on the determinants of innovations in the supply chain network are very limited. The data used in this study cover 30 economies in EECA, many of which are low- and middle-income countries, and thus contribute to the implementation of sustainable practices in developing countries.

Process Innovation as a Moderator Linking Sustainable Supply Chain Management with Sustainable Performance in the Manufacturing Sector of Pakistan

Purpose: The aim of this research paper is to significantly contribute to empirical research on the impact of sustainable supply chain management (SSCM) practices on sustainable performances of firms, with the moderating effect of process innovation (PI), in the manufacturing sector in Pakistan. This paper also theorizes comprehensive SSCM practices and sustainable performance models of firms and evaluates them empirically. Two aspects of SSCM experiences have been integrated into the model: internal management and external management practices of a firm’s sustainability impact assessment. Research methodology: Using the data from 297 manufacturing firms in Pakistan, this research paper analyzes the influence of sustainable supply chain management practices on sustainable performances of firms with the moderation of process innovation in the said relationship. In this study, we used partial least-squares structural equation modelling (PLS-SEM) for data analysis. Results: The findings demonstrate that both internal management and external management SSCM practices have a positive and significant impact on a firm’s sustainable performance, thus supporting hypotheses (H1–H4). Moreover, process innovation as a moderator has a statistically significant relationship between hypotheses H5 and H5c. Originality: For Pakistani firms, comprehensive performance models of SSCM practices are proposed and empirically evaluated. The results of this study help to support the hypotheses that internal and external SSCM practices are necessary for the service sector. Process innovation plays an important role if managed and implemented properly. A number of internal and external SSCM approaches and implications are recommended, along with firm size as a moderator.

The Impact of Green Supply Chain Management on Firm’s Performance

As the world grows and develops, people become more aware of business operational processes that are extremely harmful to our environment. Recently, customers’ demands, and governmental legislations have forced domestic and global organizations to implement environmentally sustainable practices in order to cure what has been damaged in the previous decades. This study focuses on the impact of green supply chain management practices on firm’s performance. These practices are green purchasing, green packaging, green manufacturing, green design and green marketing. A questionnaire was circulated among two companies of two industries: shipping and automobile. 80 managers and supervisors were targeted; 59 responses were received indicating a response rate of (74%). For testing, regression analysis and T-test were used. From the analysis, it was found that most of green practices influence firm’s performance with green manufacturing the most adopted practice that shapes the industries, followed by green marketing and green purchasing. On the other hand, little impact was found in green packaging and negative impact of green design on firm’s performance. Overall, the study indicates that the tested sample is moving towards the green concept but still it is in its first stages and needs more efforts and support from firms, suppliers and customers.

The role of orientation towards sustainability in supply chains

Purpose

The purpose of this paper is to analyse how a company’s orientation enables sustainable practices in its supply chains. Specifically, it focusses on how the strategic orientation of a company may stimulate new behaviours in supply chains.

Design/methodology/approach

Two in-depth qualitative case studies were conducted. Each company’s orientation to sustainable supply chains was studied using cross-case analysis.

Findings

The organisations in this study have a market-driving (i.e. proactive) orientation instead of market-driven (i.e. responsive) behaviour. Using analysis from the process of change for sustainability and explaining some challenges faced by both organisations, findings indicate that a corporate strategy of sustainability modified the companies’ management processes, even for the company that changed its orientation during the time (i.e. sustainability was not the main strategy at first). Practical examples of actions are provided to illustrate the study’s conclusion that a corporate orientation towards sustainability is an enabling factor in developing sustainable supply chain management (SCM).

Research limitations/implications

Strategic management plays an important role in a company’s orientation towards sustainability – internally and throughout its supply chains. Based on the findings, future research should measure the effect of a company’s orientation on sustainable SCM.

Practical implications

This study contributes to the understanding of companies’ strategic orientations and explores ways to introduce sustainability into supply chains.

Originality/value

The paper examines an underexplored debate regarding to how strategic orientations are related to sustainable SCM, focussing on both market-driving (i.e. proactive) and market-driven (i.e. responsive) orientations.

Strategic and operational remanufacturing mental models

Purpose

Remanufacturing is the only end-of-life (EOL) treatment process that results in as-new functional and aesthetic quality and warranty. However, applying mental model theory, the purpose of this paper is to argue that the conception of remanufacturing as an EOL process activates an operational mental model (OMM) that connects to resource reuse, environmental concern and cost savings and is thus opposed to a strategic mental model (SMM) that associates remanufacturing with quality improvements and potential price increases.

Design/methodology/approach

The authors support the argument by empirically assessing consumers’ multi-attribute decision process for cars with remanufactured or new engines among 202 car buyers in China. The authors conduct a conjoint analysis and use the results as input to simulate market shares for various markets on which these cars compete.

Findings

The results suggest that consumers on average attribute reduced utility to remanufactured engines, thus in line with the OMM. However, the authors identify a segment accounting for about 30 per cent of the market with preference for remanufactured engines. The fact that this segment has reduced environmental concern supports the SMM idea that remanufactured products can be bought for their quality.

Research limitations/implications

A single-country (China) single-brand (Volkswagen) study is used to support the conceptualised mental models. While this strengthens the internal validity of the results, future research could improve the external validity by using more representative sampling in a wider array of empirical contexts. Moreover, future work could test the theory more explicitly.

Practical implications

By selling cars with remanufactured engines to customers with a SMM that values the at least equal performance of remanufactured products, firms can enhance their profit from remanufactured products. In addition, promoting SMM enables sustainable business models for the sharing economy.

Originality/value

As a community, the authors need to more effectively reflect on shaping mental models that disconnect remanufacturing from analogies that convey inferior quality and performance associations. Firms can overcome reduced utility perceptions not only by providing discounts, i.e. sharing the economic benefits of remanufacturing, but even more by increasing the warranty, thus sharing remanufacturing’s performance benefit and reducing consumers’ risk, a mechanism widely acknowledged in product diffusion but neglected in remanufacturing so far.

Considering JIT in Assigning Task for Return Vehicle in Green Supply Chain

The purpose of this study was to achieve supply chain sustainability by considering Just in Time (JIT) in return vehicle usage. In response to a general increase in modern environmental awareness, consumer and government attention towards product and service compliance with environmental protection standards has increased. Consequently, manufacturers and stakeholders are pressured to use eco-friendly supply chains. In this paper, we analyzed the JIT model, a transportation network that ensure agile responses and delivery of goods in a supply chain, which reduces inventory costs. We then compared two return vehicle transportation scenarios. In the first, goods were transported from the central warehouse to the distribution base, and the return vehicle delivered recyclable packaging materials back to the central distribution warehouse. In the second scenario, goods were transported from the manufacturer to the distribution center (warehouse) more frequently, leading to reduced inventory. We then utilized the aforementioned JIT system with ILOG CPLEX12.4 to ascertain which scenario would produce the lowest carbon emissions for the lowest total cost.

The impact of multinational corporations’ socially responsible supplier development practices on their corporate reputation and financial performance

Purpose

In the literature on sustainable supply chain management, the social pillar of sustainability has received relatively little attention, especially in developing countries. The purpose of this paper is to test empirically the impacts of supplier development practices on suppliers’ social performance. Furthermore, the impact of suppliers’ social performance on MNCs’ social performance was investigated and corporate reputation was proposed as a potential explanation for the relationship between MNCs’ social and financial performance.

Design/methodology/approach

Data were obtained from a survey of 141 multinational companies (MNCs) in Malaysia which were listed in the Federation of Malaysia Manufacturers’ directory 2017. Data were analyzed using partial least squares structural equation modeling.

Findings

The results show that among the four proposed practices, supplier development and supplier collaboration have significant effects on suppliers’ social performance and consequently on the multi-national companies’ social performance. According to these results, multi-national companies’ corporate reputation mediates the relationship between their social and financial performance.

Practical implications

These results will be useful in helping managers of MNCs to realize that simply monitoring suppliers and giving them incentives are not effective ways of enhancing social responsibility among suppliers; instead, supplier development and collaboration such as technical support and training are needed.

Originality/value

The results extend the literature on socially responsible supplier development practices by testing empirically the impacts of four popular practices in the literature and showing that supplier monitoring and incentives have no effect.

Sustainability Initiatives in Emerging Economies: A Socio-Cultural Perspective

This paper explains how and why sustainable supply chain management (SSCM) is different in an emerging economy by investigating sustainability initiatives in the United Arab Emirates. This exploratory qualitative study uses activity theory (AT) as a framework of analyses to investigate the sustainable supply chain practices in the context of emerging economies. AT’s hierarchical breakdown structure allows complex and dynamic activities to be broken down across multiple levels providing a simplified explanation of the triple bottom line initiatives across 16 participant organizations. Our findings corroborate with some of the sustainability initiatives in developed countries, such as the contribution of suppliers and the importance of employee engagement to the sustainable efforts of the focal firm; however, there were significant differences too. Customer and investor pressure was the top driver toward sustainability in developed economies, but our research identifies government pressure as the principal motive for sustainability. Similarly, we observe a narrow perspective on sustainability from the studied organizations as sustainability measures were seen as “costly”. We attribute this to a lack of accounting for the costs associated with being “unsustainable”. We contribute to the literature by developing four propositions that identify the key contributors to successful sustainability outcomes in the context of emerging economies: (a) the dynamic influence of governments on the adoption and implementation of SSCM; (b) accounting for the costs associated with the “unsustainable” measures, which enables a strategic perspective on sustainability; (c) the inclusion of sustainability as an “order qualifier” for the suppliers; and (d) the employees’ transition from compliance to taking ownership of sustainability initiatives.

A Decision-making Model for Supplier Selection in Indian Pharmaceutical Organizations

Supplier selection is the process by which firms identify, evaluate and contract with suppliers. The supplier selection process deploys a tremendous amount of a firm’s operational and financial resources and is considered as an important determinant of the success of its supply chain. In spite of being strategically important to organizations, the decision for supplier selection is often complex and unstructured. Furthermore, it is inherently a multi-criterion decision-making (MCDM) problem, which pertains to structuring and solving decision problems involving multiple criteria. The paper provides a framework to analyze and evaluate supplier selection in Indian pharmaceutical sector (IPS) using MCDM technique of fuzzy analytic hierarchy process. It intends to improve managerial decision-making in the IPS in developing a supplier selection strategy based on multi-criteria evaluation technique.

The effect of motivators, supply, and lean management on sustainable supply chain management practices and performance

Purpose

The purpose of this paper is to conceptualize a model for sustainable supply chain management (SSCM) that integrates the antecedents, practices and performance measures of sustainability. It also examines if lean management (LM) and supply management (SM) are antecedents of SSCM.

Design/methodology/approach

A systematic review of literature was undertaken across multiple streams, including operations management, SCM, sustainability, business ethics and performance management. Articles relevant to SSCM published over a span of 31 years (1988–2018) were searched using keywords and specific selection criteria.

Findings

From the literature, three dependent constructs – motivators of sustainability, LM and SM – and three independent constructs – environmental practices in SCM, social practices in SCM and SSCM performance – are identified and defined. Linkages between these constructs are hypothesized to develop a theoretical framework called the “integrated lean/supply management with sustainability motivators, practices and performance model.”

Research limitations/implications

Built on the principles-practices-outcomes framework proposed earlier, this model is comprehensive in its coverage of sustainability antecedents, practices and performance. Further, it covers the SCM triad – the supplier, the focal firm and the customers – as well as the roles they play in sustainability performance.

Originality/value

By identifying LM and SM as additional antecedents of SSCM, this study suggests that sustainability may be realized through LM and SM principles. Further, the proposed model presents a novel integration of literature from diverse domains.

Motives, processes and practices of sustainable sourcing: a literature review

Purpose

This paper aims to attempt to examine pressures, incentives, processes and practices used for sustainable sourcing. Further, it also proposes a framework to provide a composite method for monitoring and controlling the sustainability aspects of supply management. This would enable suppliers to consider buyers’ requirements, translate these into suitable strategies, assess suppliers’ capabilities and also judge the impact of these strategies on suppliers.

Design/methodology/approach

This study opts for literature review as a method. In total, 150 research papers in peer-reviewed English language journals were reviewed to examine the pressures, incentives, processes and practices used for sustainable sourcing.

Findings

This study attempts to answer the “why”-, “what”- and “how”-related questions about sustainable sourcing. It is observed that research in sustainable sourcing is multileveled and involves various functional departments in a firm. It is diverse and fragmented and is more concentrated on certain geographic areas, industries and methodologies.

Practical implications

This study can be helpful to both researchers and practicing managers. It provides a snapshot of the work done on sustainable sourcing, which can be used as a base for research addressing specific aspects of sustainable sourcing or for building strategies related to sustainable sourcing.

Originality/value

This study takes the present reviews available in the literature forward and provides a generic view of sustainable sourcing and proposes a composite method for monitoring and controlling the sustainability aspects of supply management. It attempts to consolidate the diverse literature presently available on sustainable sourcing.

Achieving supply chain excellence through supplier management

Purpose

The purpose of this paper is to develop a supplier selection and management program to improve overall supplier performance.

Design/methodology/approach

Supplier performance is measured in terms of quality and delivery within a fast moving consumer goods (FMCG) business of a multinational company based in Thailand using a case study methodology. The quality and delivery related data were collected from daily deliveries at the manufacturing plant both before and after implementing the supplier management program.

Findings

Findings of the study suggest that the selection of suppliers based on their performance is important for manufacturing firms. Moreover, the supplier selection and management program can contribute effectively to improving suppliers’ performance.

Research limitations/implications

This case study has been conducted based on a single company within the FMCG industry. Hence, it limits the generalizability of the findings across industries.

Practical implications

The study provides a real-life tool for practitioners to learn about the importance of strategic decision-making process pertaining to the supplier selection and management program.

Social implications

This study demonstrates that through a transparent supplier evaluation process, the firms can develop trust and long-term relationship with their suppliers for pursuing the goals of product development and innovation.

Originality/value

Implementing a supplier management system is a critical step in enhancing an organization’s overall competitiveness. To develop an effective supplier management system firms must have objective measures and share those with their suppliers. Developing metrics for suppliers’ evaluation is the key to achieving continuous improvement as evidenced in this case.

Pathways for Sustainable Supply Chain Performance—Evidence from a Developing Country, Malaysia

Malaysia has recently started to adopt sustainable business best practices to benefit companies, environment and stakeholders. Therefore, this study demonstrates pathways to sustainable supply chain triple bottom line performance derived from linkages of institutional pressures (IP) and organizational identity (OI) to environment and social sustainable practices. It shows that the superordinate goal of sustainable supply chain management is met in spite of unyielding external pressures and desirable OI driving the unequivocal environmental and responsible social practices of firms. A survey approach was adopted to gather the data required for this study. A total of 118 completed questionnaires were received from respondents, who were managers and senior executives in supply chain management (SCM) in Malaysia. The data were analyzed using structural equation modeling with partial least squares (PLS-SEM) version 3.0. Our findings showed that all hypothesized relationships are significant except both process- and market-based social practices could not directly impact economic performance. This is in sharp contrast to environmental practices. However, the significant linkage between social practices and social performance is a pathway for the former to economic performance. Therefore, the economic benefits derived from social practices are salvaged through its performance outcomes. The novel and useful impact of institutional pressures on sustainable supply chain practices are also unearthed.

Benchmarking the logistics management implementation using Delphi and fuzzy DEMATEL

Purpose

From last few decades, logistics management (LM) constitutes a global concern among organization’s supply chain (SC) to improve their business effectiveness. The purpose of this paper is to uncover and analyze the critical factors (CFs) related to the implementation of effective LM concept and benchmark the SC performance.

Design/methodology/approach

The most common (16) CFs were identified and selected through literature and use of the Delphi method. Subsequently, the selected most common CFs were analyzed to distinguish their causal relations using the fuzzy Decision Making Trial and Evaluation Laboratory (DEMATEL) technique under unclear surroundings. A case example of Indian Logistics Company is also discussed to reveal the practical applicability of the research.

Findings

Provision of the effective information communication and technological developments in the system and Management dedication, support and involvement CFs are found to have the top most influences in the effective implementation of LM. This paper also groups the CFs into cause and effect relationship which provides valuable insights for analyzing the factors in successful implementation of LM.

Practical implications

This work attempts to understand the different CFs, their relative position and the importance rating in the system, due to which, managers can differentiate the factor which greatly affects the concepts of implementing LM, and thus, improvements can be made accordingly.

Originality/value

First, this work offers 16 CFs to LM implementation from a SC scenario. Second, in the context of contributing to the theory, the combined Delphi and fuzzy DEMATEL-based model is provided that helps in managing the logistic related issues effectively.

Doing good across organizational boundaries

Purpose

The purpose of this paper is to theoretically hypothesise and empirically test the impact of sustainable supply chain practices (SSCPs) on firms’ financial risk.

Design/methodology/approach

This research adopts signalling theory to explain the signalling role of SSCPs and the moderating role of the signalling environment in terms of supply chain characteristics. It collects and combines longitudinal secondary data from multiple sources to test the direct impact of SSCPs on firms’ financial risk and the moderating role of supply chain complexity and efficiency. It conducts various additional tests to check the robustness of the findings and to account for alternative explanations.

Findings

This research shows that SSCPs help firms reduce financial risk but do not affect their returns. Moreover, the risk reduction of SSCPs is greater for firms with more complex and efficient supply chains. The findings are robust to alternative variable measurements and analysing strategies.

Research limitations/implications

This research reveals the role of SSCPs in reducing financial risk, urging researchers to pay more attention to the financial risk implications of supply chain practices in general and SSCPs in particular.

Practical implications

This research encourages firms to engage in SSCPs to reduce financial risk and enables them to assess the urgency of their SSCPs investments in view of the complexity and efficiency of their supply chains.

Originality/value

This is the first research examining the impact of SSCPs on financial risk, based on longitudinal secondary data and signalling theory. The empirical evidence documented and the theoretical perspective adopted offer important implications for future practice and research on SSCPs.

A Capability Maturity Model for Life Cycle Management at the Industry Sector Level

One approach to incorporate environmental sustainability in organisations is the implementation of Life Cycle Management (LCM). LCM is a comprehensive and integrated approach for measuring and managing environmental impacts. Successful sector-wide uptake of LCM has the potential to enable the environmental impacts associated with an industry sector to be efficiently measured and managed in a continual improvement process. There is an opportunity for the New Zealand primary sector to strengthen its competitiveness in the global market place by demonstrating the environmental credentials of its products and supporting the country’s “green and clean” image. Previous research has identified the barriers and enablers to successful LCM uptake by New Zealand primary sector Small and Medium sized Enterprises (SMEs) in a sector-based context. This paper builds on that foundation and presents a Life Cycle Management Uptake Evaluation Framework (LUEF) that allows both individual organisations and industry sectors to identify the key factors affecting successful LCM uptake and assess their level of maturity for each factor. The key factors used in this study are structure, culture, resource availability, LCM strategy, knowledge, market requirements and communication. The study employed a qualitative methodology and used face-to-face interviews with different stakeholders in the value chain for the New Zealand kiwifruit sector to inform the development of the framework. In the framework, each factor is represented as a maturity scale to allow organisations as well as industry sectors to assess their position on the scale. This will help them to create a baseline assessment, both for themselves as an organisation, as well as on an industry sector level. The baseline assessment will allow them to identify areas for improvements, which can be tracked over time by checking the progress on the scales in the individual areas. It can also be used as a communication tool for stakeholders in the supply chain (e.g., growers, post-harvest operators and staff from industry boards). These stakeholders can use the tool to measure and compare performance, including evaluating their own performance against the industry average, as well as performance of the industry sector over time. This is useful to engage these stakeholders and demonstrate that changes (such as reducing carbon footprints) have a positive impact and lead to progress (as well as highlighting any actions that need to be reviewed and adjusted).

Resource commitment and sustainability: a reverse logistics performance process model

Purpose

The purpose of this paper is to extend existing and motivate future sustainable supply chain management (SCM) and logistics research by examining a structure-conduct-performance framework linking resource commitment to sustainable SCM, reverse logistics, and operational performance. A sustainable reverse logistics capability is investigated as mediating the performance benefits associated with resource commitments to sustainable SCM.

Design/methodology/approach

Survey methods and structural equation modeling were used to collect and analyze data from 180 supply chain professionals.

Findings

The results of a mediated model suggest that resource commitments may be used to develop a sustainable reverse logistics capability, reducing the environmental impact of reverse logistics activities. A strong sustainable reverse logistics capability results from resources committed specifically to sustainable reverse logistics and a commitment to the sustainability of the supply chain.

Research limitations/implications

This study applied a purposefully general sampling procedure. Specific industries may have additional constraints (e.g. risk, transparency, governance factors) that directly impact reverse logistics. These constraints are limitations of the study as well as opportunities for future research. Resource commitment is critical to the success of an overall firm strategy to build a sustainable supply chain, especially when considering reverse logistics.

Practical implications

As managers examine the benefits of sustainable SCM, they must consider the resources required. For firms engaging in sustainable SCM, developing a sustainable reverse logistics capability is a key success factor for improved performance.

Originality/value

Given the growing acceptance and importance of sustainable SCM, this research provides insights to managers and academics regarding the key mediating role of a sustainable reverse logistics capability when integrated into existing and future supply chain research frameworks and processes.

Conquering in emerging markets: critical success factors to enhance supply chain performance

Purpose

In the context of emerging economies, the purpose of this paper is to seek the critical success factors (CSFs) of supply chain and identify their relationships to enhance the supply chain performance (SCP) in a sample of Indian manufacturing firms.

Design/methodology/approach

On the basis of a comprehensive literature review, the authors conducted this study and proposed a new model of antecedent and outcomes for SCP in emerging markets. The empirical data for this study were drawn from a survey of 227 Indian firms, resulting in a response rate of 52 percent. The method of confirmatory factor analysis was applied to refine the CSFs and SCP scale for empirical analysis. The data were analyzed by employing the structural equation modeling technique.

Findings

The results reveal that all the identified CSFs, namely, agility, flexibility, flexible innovation, information and communication technology, collaboration among conglomerate divisions, process structure, and training and leadership programs, are positively associated with SCP. The empirical study of 227 Indian firms lent good support to the hypotheses and validates it by the data analysis. Consequently, these findings highlight the prominence of these factors of supply chain for gaining a sustainable competitive advantage in emerging market scenario.

Research limitations/implications

The study emphasizes on CSFs in emerging markets that will help to boost the organization’s SCP through agility and flexibility in supply chain. This study is applicable for growing markets in which there is ample amount of resources.

Originality/value

As economic growth stagnates in developed economies, emerging markets grow at near double-digit rates. Somehow, this study is pioneer in terms of enhance SCP in emerging market scenario. Moreover, the outcome of the study could provide empirical evidence of the effects of CSFs on SCPs.

Integrated resource efficiency: measurement and management

Purpose

Drawing on the systems theory and the natural resource-based view, the purpose of this paper is to advance an integrated resource efficiency view (IREV) and derive a composite “integrated resource efficiency index” (IRE-index) for assessing the environmental, economic, and social resource efficiencies of production economies.

Design/methodology/approach

Using sub-national input-output data, the IRE-index builds on the human development index (HDI) and the OECD green growth indicators by including functions for environmental resource efficiency, energy, and material productivity. The study uses multiple regressions to examine and compare the IRE-index of 40 countries, including 34 OECD nations. The study further compares the IRE-index to similar composite indicators such as the human sustainable development index (HSDI) and the ecological footprint.

Findings

The IRE-index reveals a discrepancy between social development and resource efficiency in many of the world’s wealthiest production economies. Findings also show that material productivity has been the key driver for observed improvements in IRE over time. The index is a robust macro-level methodology for assessing resource efficiency and sustainability, with implications for production operations in global supply chains.

Originality/value

The IREV and IRE-index both contribute towards advancing green supply chain management and sustainability, and country-level resource efficiency accounting and reporting. The IRE-index is a useful composite for capturing aggregate environmental, economic, and social resource efficiencies of production economies. The paper clearly outlines the managerial, academic, and policy implications of the IREV and resulting index.