Skip to main content

Full text of "Review on Green Supply Chain Management as a Strategic Approach for Better Corporate Performance"

See other formats

International Journal of Trend in Scientific Research and Development (IJ TSRD) 
Volume 5 Issue 5, July-August 2021 Available Online: e-ISSN: 2456 — 6470 

Review on Green Supply Chain Management as a 
Strategic Approach for Better Corporate Performance 
Sanath. N, Shreyas Modak, Dr. Nagesh. S 

Department of Mechanical Engineering, R V College of Engineering, Bengaluru, Karnataka, India 


Development based on sustainability is the key to ensure a firm’s 
endurance and green supply chain management practices improves 
performance by considering environmental laws and standards, 
increasing customer awareness, and reducing adverse environmental 
effects through products and services. Strategies aligned with the 
green supply chain helps firms with creation of opportunities for 
better performance and meet the requirements of sustainability. This 
review paper aims to gain insights based on management of the green 
supply chain and its strategic effect on corporate performance 
through competitiveness. Based on the review, it is confirmed that a 
greener supply network has various benefits related to it and 
implementing green supply chain practices in sync with strategic 
planning can enhance corporate performance of firms in varied 
aspects. However, it also highlighted a research gap as there are 
limited studies showcasing the measured effect of greener supply 
network strategies and initiatives on corporate performance of a firm. 
Lastly, the paper contributes with avenues for further research with 
the possibilities of strategic approaches for a greener value chain to 
elucidate its impact quantitatively. 

KEYWORDS: Supply chain management, green supply. chain 
management, Corporate performance, Strategic approach, Strategic 

How to cite this paper: Sanath. N | 
Shreyas Modak | Dr. Nagesh. S "Review 
on Green Supply Chain Management a 
a Strategic Approach ;-—.. I 
for Better Corporate 1 he: 
Published in 
International Journal 
of Trend in 
Scientific Research 
and Development 
(ijtsrd), ISSN: 2456-6470, Volume-S | 
Issue-5, August 2021, pp.289-294, URL: 

Copyright © 2021 by author (s) and 
International Journal of Trend in 
Scientific Research and Development 
Journal. This is an 

Open Access article 
distributed under the om 
terms of the Creative Commons 
Attribution License (CC BY 4.0) 


management, Environment, Competitiveness 


The changes in supply chain management practices 
can be observed as the related demands and 
conditions of the supply chain have transformed 
(Govindan et al. 2014). This transformation has been 
according to the requirements of the manufacturing as 
well as distributing companies in consideration of the 
social, economical and environmental impact (Lopes 
de Sousa Jabbour et al. 2011). Green Supply Chain 
Management sources from the green concept 
incorporated within the supply chain network and its 
scope ranges from green concept incorporated in 
procurement to consolidated supply chain to 
dissemination from supplier end to producer and then 
to consumer (Abdel-Baset et al. 2019). To attain 
competitive advantage and promote better corporate 
performance, green supply chain management 
practices are required to be implemented strategically. 
In this paper, the main focus is to understand the 
influence of following a strategic approach to pursue 
greener supply network practices for better corporate 

2. Literature Review 
2.1. Concept of 

Sustainability as a term and concept has been 
understood by the industries and research scholars 
from different perspectives and approaches (Thiele, 
2016). Sustainability is among the most vital and 
crucial topics in the area of supply chain management 
and this is leading the business organizations to 
consider it increasingly in their long and short term 
decision-making processes (Haghighi et al. 2016). 
The significance of combining — sustainable 
development practices with the supply-chain network 
has led to adoption of green practices with supply 
networks (Sanchez-Flores et al. 2020). The 'green' 
concept is defined as initiating and performing such 
activities which are integrated in consideration of 
environmental or ecological issues. Green concept in 
supply chain is a vital aspect as its operations and 
management has a crucial effect on the environment 
due to different emissions, types of pollutants 
generated, and health damage to the community 

Green Chain 


@ IJTSRD | Unique Paper ID — NTSRD43805 | Volume -—5 | Issue—5 | Jul-Aug 2021 

Page 289 

International Journal of Trend in Scientific Research and Development @ eISSN: 2456-6470 

(Tseng et al. 2019). 

Green supply chain management is explained as 
integration of environmental concerns within supply 
chain management that comprises activities related to 
product designing, selecting and sourcing material, 
manufacturing methods, end product delivery to the 
customers and also obsolescence management for 
adequate product use (Srivastava, 2007). The aspect 
of a green supply network requires collaborating with 
suppliers and customers to make their environmental 
performance better. The practices related to 
environmental performances concentrates on 
(Selvaraj, 2011): 

> Reduction or elimination of surplus materials 
utilized within the manufacturing techniques or 

> Supplier compliance status for operations based 
on impact on environment 

Green supply chain 


Table 1 Practices related to Green supply chain management 

Environmental Certificates and Environmental Management System 

Purchasing Products with Eco-Labels 
Supplier Evaluation based on Environmental Criteria 
Cooperating Supplier in Environmental Issues 

> Joint ventures for producing new environmental- 

friendly materials and products 

> Implementation and possibly certification for 

environmental management systems of suppliers 

> Awareness and education among suppliers 

concerning use of materials, pollution control 

Supply chain management based on the green concept 
is emerging as a vital aspect of the strategies related 
to environment as well as supply chain and requires 
considering all activities within the supply chain 
(Eltayeb et al. 2011). The practices related to Green 
supply chain management practices encourage 
different activities based on the green concept such as 
designing, purchase, manufacturing, distribution, 
marketing of logistics marketing and reverse logistics 
functions. The following table explains the different 
constituents of activities in context to green supply 
network practices (Sezen and Cankaya, 2017). 

Audit of suppliers’ compliance status 

Constituent of activity 

Selecting Green Transportation Modes 
Providing Efficiency in Vehicles 

Reducing the amount of packaging 

Using recyclable materials for packaging 

Decreasing Dangerous Emissions 
Decreasing or Preventing Waste 

of suppliers 
1 Green purchasing . Septet ouce 
2 Green Distribution > 
> Logistics Optimization 
i. Green Packaging > Packaging to allow reuse 
> Decreasing Input Resources 
4. | Green Production > 
> Reuse 
> Repair 
a: > Refurbishing 
5. | Reverse Logistics > Remanufacturing 
> Cannibalization 
> Recycling 

2.2. Benefits of Green Supply Chain and its 
Green supply chain management not only addresses 

the concerns linked with the environment, but it is 

driven by other factors that reflect the benefits 
associated with the concept. Due to the benefits of 
green supply chain and its management, there is an 
increased inclination of firms towards implementing a 

@ IJTSRD | Unique Paper ID —- NTSRD43805 | Volume—5 | Issue—5 | Jul-Aug 2021 

Page 290 

International Journal of Trend in Scientific Research and Development @ eISSN: 2456-6470 

greener supply chain network. The factors driving this 
implementation are rising customer demands for 
quality, highly competitive markets globally and the 
intrinsic financial returns linked with the green supply 
chain (Diabat and Govindan, 2011). The different and 
varied benefits related to adopting green supply chain 
management includes (Gajendrum, 2017): 

> Environmental and economic gains due to greater 

> Development of innovative environmental 
technologies with strong partnerships with 
suppliers based on suitable incentive systems 

> Suitable green design for positive environmental 
impact with no compromise on costs, profitability 
and other functionalities 

Further benefits identified based on implementation 
of green supply chain management include air 
pollution control , wastage reduction, improvement in 
product quality through Green Sourcing & 
Procurement, Green Manufacturing, Green 
Warehousing, Green Distribution, Green Packaging, 
and Green transportation. The anticipated benefits 
based on Green efforts for businesses and firms 
comprises better public relations, improved brand 
image, reduction in energy cost, increased customer 
brand loyalty, higher revenue, increased market share, 
enhanced productivity, reduction in service cost and 
packaging cost, reduction in raw material cost and 
manufacturing cost, and reduction in uncertainties 
(Javaid and Shoeb, 2015). 

2.3. Strategic approach and 

Rapid changes and variations are being identified in 
the economic environment based on global market 
competition and advanced information technologies. 
To sustain in the current competitive business 
environment, organizations are required to plan 
strategically, perform better decision-making and 
initiate strategically developed activities for better 
quality of products and outcome, reduction in 
product-related costs, encouraging product-based as 
well as process-based innovations, better product 
supply in marketplace, and enhanced consumers’ 
beneficence (Caliskan, 2010). It is evident from prior 
research that there is a significant relationship 
between strategic management and _ corporate 
performance. Strategic management or approach is an 
undoubted means to increase profits, improve quality 
of products and innovation-based initiatives, along 
with improved distribution time and increased 
consumer satisfaction (Unam and Aladeraji, 2015). 


Strategic management by means of strategies and 
approaches is observed as a continuous process with 

recurring and successive steps based on_ the 
company's mission and objectives. Strategic approach 
is based on strategic analysis with formulation of 
possible strategies, selection and execution of best 
strategies and controlling with correction during 
implementation (Dvorakova and Faltejskova, 2017). 
The core aim of business organization is to attain 
highest long term profit and develop sustainable 
competitive advantage within the external market 
place. Strategic approach and decisions facilitates the 
adequate potential and means to develop competitive 
advantage with superior firm performance. Through 
strategic management, corporate performances of the 
manufacturing firms are significantly increased with 
significant effect on their competitiveness (Muogbo, 
2013). The management and managers need to be 
involved in strategic planning as adopting a strategic 
approach is a forward-looking exercise. Based on 
adequate involvement in_ strategic planning, 
organizations are capable of predicting changes 
within the environment and act proactively. Corporate 
strategy is based on the experiences, assumptions and 
beliefs of management and strategic approach 
considers the entire decision-making process along 
with problems faced by the organization. The positive 
impact of following a strategic approach of corporate 
performance can be seen through the strategic 
planning that enables a supporting environment to 
attain and sustain superior overall performance and 
financial returns (Owolabi and MAKINDE, 2012). 

2.4. Green Supply Chain Management and 
Corporate Performance 

There are various impacts and outcomes of 
deployment of green supply chain management 
practices in the context of organization or business 
strategies. Strategic approaches followed for 
implementing green supply chain management have 
an impact on three dimensions of performance for an 
organization namely environmental, economic and 
social (Wittstruck and Teuteberg, 2011). Corporate 
performance is a composite assessment of the extent 
to which an organization performs and executes on 
the most important parameters, namely financial, 
market and shareholder performance (Aras et al. 
2010). Green supply chain management practices 
focuses on limiting the environmental effect of the 
forward system and reverse system of the supply 
chain, with possibly generating economic gain and 
lowering expenses for the firm. This assists in 
improving the financial performance of the firm 
(Testa and Iraldo, 2010). 

The firms adopting environmental sustainability and 
successful execution of greener supply network 
practices have reduced wastage, green concept based 

@ IJTSRD | Unique Paper ID —- JTSRD43805 | Volume —5 | Issue—5 | Jul-Aug 2021 

Page 291 

International Journal of Trend in Scientific Research and Development @ eISSN: 2456-6470 

marketing practices and awareness, better public 
response, and increased demand for environmentally 
friendly products. Such operating strategies influence 
the marketing performance of the firms. Based on this 
performance, interaction with suppliers, producers 
and consumers enhances efficiency and yield 
(Mallikarathna and Silva, 2019). Strategic approaches 
to implement green concept based supply practices 
are generally initiated by discovering enhancements 
these practices can fetch to the economic and 
financial side of a firm and this also includes other 
dimensions such as the operational, social and 
environmental image of the organization. A research 
to explore the influence of implementing green 
supply network strategies on different dimensions of 
corporate performance was conducted and the results 
revealed that organizations that adopted green supply 
chain management practices maintained an 
environmentally benign position with constantly 
continuously improving environmental, operational, 
economic and social aspects of corporate performance 
(Younis et al. 2015). From a strategic perspective, a 
green concept based supply chain facilitates a 
platform for firms to continue their business 
operations based on sustainability and environment 
friendliness. A research was conducted to assess the 
impact of green supply chain management on green 
performance and firm competitiveness and the study 
outcomes showed that the internal activities/ practices 
based on green concept of a firm significantly and 
positively affect the external green alliance; internal 
activities/ practices based on green concept and 
external green alliance significantly and positively 
affect the firm's green performance; and internal 
activities/ practices based on green concept, external 
green alliance and the firm's green performance 
significantly and positively affect the firm’s 
competitiveness. Therefore, it can be concluded that 
having a strong management of a green supply 
network can improve the green performance of the 
firm that eventually increases firm competitiveness 
(Marhamati and Azizi, 2017). 

3. Research Gap 

From a macro perspective, giving attention to green 
supply chain implementation and related aspects is 
important for sustaining the market and providing 
products as well as services compatible with the 
environment. Various literature studies have studied 
the sustainable supply chains and _ crucial 
improvements in environmental initiatives for the 
green supply chain and its impact on the performance 
of the firms. These studies are particularly significant 
as they represent the critical aspects of the green 
supply chain and their impacting sustainable results. 
However, there are still areas of research opportunity 

concerning implementing the green concept based 
supply chain initiatives in a strategic manner. There 
are few studies discussing the positive and significant 
impact of green supply chain management practices 
on corporate performance based on various positive 
outcomes observed but the extent impact is not 
measured. The effect of executing green supply chain 
management practices on corporate performance has 
not gained a high amount of attention in terms of 
empirically measuring the effect. Therefore, a clear 
research gap is analyzing the extent of impact of 
green supply chain strategies on corporate 
performance of firms that encourages organizations to 
consider environmental as well as economic 
dimensions for implementing green supply chain. 

4. Conclusion 

The supply chain and its management has become a 
consolidated and collaborative approach which 
pursues the firm's strategy. In present modernization 
of the supply chain, integration of the ecological spirit 
is done into the strategy and this integration created 
the green supply chain management. Organizations 
are attempting to minimize environmental effects by 
combining environmental issues in supply chain 
operations through green supply chain management 
practices. The studies reviewed have highlighted 
these aspects from different perspectives and 
analyzed the effects of implementing green practices 
on firms’ performance through different dimensions. 
This review is an effort made to enhance the 
knowledge in this domain through acknowledged 
gaps and opportunities. There is a need for further 
research to investigate and estimate the individual 
effect of vital components over measures of corporate 
performance of firms. The outcomes and further 
research indications of this review facilitates a new 
platform for more consideration and contribution to 
this domain. 


[1] Abdel-Baset, M., Chang, V., Gamal, A., 2019. 
Evaluation of the green supply chain 
management practices: A novel neutrosophic 
approach. Comput. Ind. 108, 210-220 doi: 

[2] Aras, G., Aybars, A., Kutlu, O., 2010. 
Managing corporate performance: Investigating 
the relationship between corporate social 
responsibility and financial performance in 
emerging markets. Emerald.59(3), 229- 

[3] Caliskan, E. N., 2010.The Impact of Strategic 
Human Resource Management On 
Organizational Performance. J. Nav. Sci. Eng. 

@ IJTSRD | Unique Paper ID —- NTSRD43805 | Volume —5 | Issue—5 | Jul-Aug 2021 

Page 292 









International Journal of Trend in Scientific Research and Development @ eISSN: 2456-6470 

6(2), 100-116. , Accessed: Jun. 02, 2021. [12] 
[Online]. Available: 

Diabat, A., Govindan, K., 2011.An analysis of 
the drivers affecting the implementation of 
green supply chain management. Resour. 
Conserv. Recycl. 55(6), 659-667. doi: 
10.1016/j.resconrec.2010.12.002. [13] 

Dvofrakova, L., Faltejskova, O., 2017. Strategic 
Corporate Performance Management: A 
Customer- Oriented Approach. Chapters, in: 
Okechukwu Lawrence Emeagwali (ed.), 
Corporate Governance and Strategic Decision [14] 
Making, IntechOpen. DOI: 

Eltayeb, T. K., Zailani, S., Ramayah, T., 
2011.Green supply chain initiatives among 
certified companies in Malaysia and 
environmental sustainability: Investigating the [15] 
outcomes. Resour. Conserv. Recycl. 55(5), 
495-506. doi: 10.1016/j.resconrec.2010.09.003. 

Gajendrum, N., 2017. Green Supply Chain 
Management - Benefits, Challenges and Other 
Related Concepts.JInt. J. Appl. Sci. Eng. Manag. 

Govindan, K., Azevedo, S. G., Carvalho, H., 
Cruz-Machado, V., 2014. Impact of supply 
chain management practices on sustainability. 
J. Clean. Prod. 85, 212-225. — doi: 

Haghighi, S. M., Torabi, S. A., Ghasemi, R., 
2016. An integrated approach for performance 
evaluation in sustainable supply chain networks 
(with a case study). J. Clean. Prod. 137, 579- 

Javaid, M., Shoeb, M., 2015. BENEFITS ON 




Lopes de Sousa Jabbour, A. B., Gomes Alves 
Filho, A., Backx Noronha Viana A., José 
Chiappetta Jabbour C., 2011. Measuring supply 
chain management practices. Meas. Bus. Excell. 
15(2), 18-31. doi: 
10.1108/13683041111131592. [20] 


Mallikarathna, H. K. D., Silva, C. W. C., 
2019.The Impact of Green Supply Chain 
Management Practices on Operational 
Performance and Customer Satisfaction. 

Marhamati, A., Azizi, I., 2017. The Impact of 
Green Supply Chain Management on Firm 
Competitiveness. 102.pdf 

Muogbo, U. S., 2013. The Impact of Strategic 
Management on Organisational Growth and 
Development (A Study of Selected 
Manufacturing Firms in Anambra State). JOSR 
J. Bus. Manag. 7(1), 24-32. 12432 

Owolabi, S. A.,. MAKINDE, O. G., 2012. THE 
Manag. Rev. 2(4), [Online]. Available: 

Sanchez-Flores, R. B., Cruz-Sotelo, S. E., 
Ojeda-Benitez, S., Ramirez-Barreto, Ma. E., 
2020. Sustainable Supply Chain 
Management— A _ Literature Review on 
Emerging Economies. Sustain. 12(17), 6972. 
doi: 10.3390/su12176972. 

Selvaraj, R. K., 2011. A Study on _ the 
Implementation of Green Supply Chain-A 
Comparative Analysis between Small Scale 
Industries in India and Developed Nations KPP 
231 Master Thesis work, Innovative Production 
30 Credits, D-level Master Program in Product 
and Process Development - Production and 
Logistics Ranjith Karthick. [Online]. Available: 
https://www.diva- 1/FULLTEX 

Sezen, B., Cankaya, S. Y., 2017. Green Supply 
Chain Management Theory and Practices.DOI: 

Srivastava, S. K., 2007. Green supply-chain 
management: A _ state-of-the-art literature 
review. Int. J. Manag. Rev. 9(1), 53-80. doi: 

Testa, F., Iraldo, F., 2010.Shadows and lights 

@ IJTSRD | Unique Paper ID — MTSRD43805 | Volume —5 | Issue—5 | Jul-Aug 2021 Page 293 




of GSCM (Green Supply Chain Management): 
determinants and effects of these practices 
based on a multi-national study. J. Clean. Prod. 
18(10-11), 953-962., doi: 

Thiele, L. P., 2016. Sustainability. Cambridge, 
Uk ; Malden, Ma: Polity Press. 

Tseng, M.-L., Islam, M. S., Karia, N., Fauzi, F. 
A., Afrin, S., 2019. A literature review on green 
supply chain management: Trends and future 
challenges. Resour.Conserv. Recycl. 141, 145— 
162. doi: 10.1016/j.resconrec.2018.10.009. 

Unam, M. J., Aladeraji, O. K., 2015. Strategic 
Management and Corporate Performance: A 
resource-based approach. 



International Journal of Trend in Scientific Research and Development @ eISSN: 2456-6470 

lication/3 13475579_Strategic_Management_an 

Wittstruck, D., Teuteberg, F., 2011. 
Understanding the Success Factors of 
Sustainable Supply Chain Management: 

Empirical Evidence from the Electrics and 
Electronics Industry. Corp. Soc. Responsib. 
Environ. Manag. 19(3), 141- 

Younis, H., Sundarakani, B., Vel, P., 2015. The 
impact of implementing green supply chain 
management practices = on corporate 

@ IJTSRD | Unique Paper ID - MTSRD43805 | Volume-—5 | Issue—5 | Jul-Aug 2021 

Page 294