Green Supply Chain Management PDF

International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 3, No.
1, March 2012
GREEN SUPPLY CHAIN MANAGEMENT: A

REVIEW AND RESEARCH DIRECTION
Noor Aslinda Abu Seman1, Norhayati Zakuan1, Ahmad Jusoh1 and Mohd Shoki
Md Arif
1
Faculty of Management and Human Resource Development, Universiti Teknologi

Malaysia, 81310, UTM Skudai Malaysia
[email protected]
Muhamad Zameri Mat Saman2
Faculty of Mechanical, Universiti Teknologi Malaysia, 81310, UTM Skudai Malaysia
ABSTRACT
Green Supply Chain Management (GSCM) has appeared as an environmental innovation which
integrates environmental concerns into supply chain management. GSCM has gained popularity with
both academic and practitioners. The purpose of the paper is to briefly review the recent literatures of the
GSCM and also determine the new direction area of this emerging field. A detailed review is used to sort
out the literature and develop the research direction of the study. The review is focused on development
of GSCM in a developed and developing countries including all those researchers which is relevant to
environmental and social sustainability towards operation management and the supply chain. It shows
that lack researches to examine the adoption and implementation of GSCM practices especially in
developing countries such as Malaysia. Thus, the authors bring forward a proposed research direction on
GSCM adoption and implementation in Malaysias manufacturing industries.
KEYWORDS
Supply Chain Management, Green Supply Chain Management, Environmental Management, ISO 14001
Certified Manufacturing Firms
1. INTRODUCTION
The economic growth increases the level of energy and material consumption, which contribute
to the environmental issues and resource depletion problems. It has become increasingly
significant for organizations facing competitive, regulatory, and community pressures to balance
economic and environmental performance [1]. Nowadays, most organizations are starting to go
green in their business as concern to environmental sustainability. They have realized the
greater benefit of the green technology adoption in business operation, which also affected
suppliers and customers. Environmental issues under legislation and directives from customer
especially in the US, the European Union (EU), and Japan become an important concern for
manufacturers [2]. As a result, Green Supply Chain Management (GSCM) emerges as a new
systematic environmental approach in supply chain management and has been increasingly
accepted and practices by forward-thinking organization [3].
The current changing in environmental requirements that influenced manufacturing activities
had increased attention in developing environmental management (EM) strategies for the supply
chain [4]. Thus, the concept of GSCM arises as a new systematic approach and becoming an
important factor for business activities today. Zhu et al. [5] also claimed GSCM can be regarded
as an environmental innovation. By integrating the green concept to the supply chain concept,
it has created a new research agenda where the supply chain will have a direct relation to the
DOI: 10.5121/ijmvsc.2012.3101
01
International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 3, No. 1, March 2012
environment [6]. Thus, it becomes interesting issue because the past literatures showed these
two paradigms were related each other [7].
The purpose of this paper is to discuss an overview of the development of GSCM literature in a
developed countries and developing countries. This study also is performed to determine the
new research area of issues related GSCMs implementation. This paper will then provide a
thorough review from previous studies. At the end, this paper will propose the research
direction framework for the study.
2. LITERATURE REVIEW
2.1. Green Supply Chain Management
It is important to integrate environmental management practices into the whole supply chain
management in order to achieve a greener supply chain and maintain competitive advantage [8]
and also increase business profit and market share objectives. Various definition of GSCM exist
in the literature. Accordingly, Zhu and Sarkis [3] defines GSCM as has ranged from green
purchasing to integrated supply chains starting from supplier, to manufacturer, to customer and
reverse logistics, which is closing the loop. According to Srivastava [7], GSCM can be
defined as integrating environmental thinking into supply chain management, including
product design, material sourcing and selection, manufacturing process, delivery of the final
product to the consumers as well as end-of-life management of the product after its useful life.
The quality revolution of the 1980s and the supply chain revolution of the 1990s extend the
green supply chain literature with the beginning of corporate environmental management,
environmentally conscious manufacturing strategy, and supply chain management literature [9].
It has become clear that the best practices call for integration of environmental management
with ongoing operations [7]. Green supply-chain management (GSCM) is gaining increasing
interest among researchers and practitioners of operations and supply chain management. The
past literature also shows that most researchers have studied the GSCM adoption and
implementation on developed countries such as Japan, Germany, Portuguese, UK and Taiwan
and so on. Still limited studies have examined the GSCM practices in developing countries.
2.2. Green Supply Chain Management in Developed Countries

Developed countries can be described as a high level development of countries based on certain
characteristics. These characteristics consist of economic, industrialization and Human
Development Index (HDI). The economic characteristic is income per capita. Countries with
high income or gross domestic product per capita can be categorized as developed countries.
Then, developed countries according to industrialization characteristic are the tertiary and
quaternary sectors of industry. Another recently measure, the Human Development Index (HDI)
integrate an economic measure, country income, with indices for expectancy and education.
Developed countries can be defined from this characteristic as those have a higher HDI rating.
Thus, the developed countries are believed to deal with lots of environmental issues and
depletion problems due to their increasing economic development. Most researchers conducted
their study in developed countries to examine the integration of environmental concept and
supply chain management.
One study from Germany conducted by Large and Thomsen [10] identified five potential
drivers of green supply chain management performance: green supply management capabilities,
the strategic level of purchasing department, the level of environmental commitment, the degree
of green supplier assessment, and the degree of green collaboration with suppliers. Azevedo et
al. [11] examined the links between green practices of supply chain management and supply
chain performance in the context of the Portuguese automotive supply chain. This study
obtained the conceptual model from data analysis that provide evidence as to which green
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practices have positive effects on quality, customer satisfaction and efficiency also negative
effects on supply chain performance.
In the study of Chiou et al. [12] in Taiwan has explored the correlation between greening the
supplier and green innovation in Taiwan industry by using Structural Equation Modeling. They
concluded that greening the supplier through green innovation leads to significant benefits to the
environmental performance and competitive advantage of the firm. Through a study in Italy by
Cagno et al. [13] examined the GSCP adopted by Third Party Logistics (3PLs) service providers
such as specific practices implemented and level of adoption of each practices and also
examined the relationship of various GSCP implementation and company performance. In this
study, the work offers a depth understanding of potential effects of GSCP on company
performance.
The study from Japan conducted by Arimura et al. [14] determined the influence of ISO 14001
certification on the green supply chain management (GSCM) by using Japanese facility leveldata. The study proved that ISO 14001 and also voluntary EMS government program are
significantly influence GSCM practices. These programs highly perhaps the facilities will
evaluate their suppliers environmental performance and ask suppliers to undertake specific
environmental practices. Another study from Japan by Zhu et al. [5] sought to introduce
environmental, green supply chain management experiences of large Japanese manufactures.
This work shows that the large companies can green their supply chain by creating win-win
relationships with their partners, and hence realize the sustainable growth for the entire supply
chains. Besides, it also indicates that suitable regulations and policies set by government can
help GSCM circulation from larger leading companies to smaller companies.
Hsu and Hu [15] investigated the consistency approaches by factor analysis that determines the
adoption and implementation of GSCM in Taiwanese electronic industry. The fuzzy analytic
hierarchy process method was applied to prioritize the relative importance of four dimensions
and 20 approaches among nine firms in electronic industry. Meanwhile, Shang et al. [16]
explored key green supply chain management (GSCM) capability dimensions and firm
performance based on electronics-related manufacturing firms in Taiwan. On the basis of a
factor analysis, six green supply chain management dimensions were identified: green
manufacturing and packaging, environmental participation, green marketing, green suppliers,
green stock, and green eco-design.
Holt and Ghobadian [17] investigated the level and nature of greening the supply chain in the
UK manufacturing sector. In this study, the work explores the driving forces behind
environmental, the specific management practices that result, and the relationship between
them. The study by Nawrocka et al. [18] in Sweden, has concentrated on the role of ISO 14001
in environmental supply management practices in Swedish companies. The study described the
existing and potential role of ISO 14001 for three key operational tasks of environmental supply
chain management: to communicate the requirements to the supplier, to motivate and enable the
supplier, and to verify that the supplier follows the requirements.
Moreover, the study from South Korea carried out by Lee [19] has identified the drivers of
participation in green supply chain initiatives by considering small and medium-sized suppliers
and their most important stakeholders, including buyers and the government. Raymond et al.
[20] examined the relationship between supply chains and environmental performance of SMEs
in Canada. This study proved that time and financial resources to deal with solid waste and
energy issues are the most limiting factors.
In addition, Chen [21] looked into the relationship between green innovation and green image of
companies in Taiwan. The study proposed a new concept of green core competence. Chien and
Shih [22] examined the adoption of GSCM practices among the electrical and electronic
industry in Taiwan. The relationship between green supply chain management practices and
environmental performance, as well as financial performance has been studied.
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One study from Australia, conducted by Simpson et al. [23] explored the moderating impact of
relationship conditions existing between a customer and its suppliers and effectiveness of the
customers environmental performance requirements (otherwise known as green-supply).
Practically no research exists on the actual effectiveness of green supply requirements when
placed in context with the realities of inter-organizational dynamics.
2.3. Green Supply Chain Management in Developing Countries
Green supply chain practice commonly is believed to represent the environmentally-friendly
image of products, process, systems and technologies, and how the business is conducted [24].
Nonetheless, as stressed by Anbumozhi and Kanda [25] most companies especially in
developing countries adopted the green solutions into their business more tries to reduce the
negative environmental effects rather than adopting a proactive approach to reduce the sources
of waste or pollution. Then, these adopted green solutions continue to be the traditional
command-and control or end-of-the-pipe solutions [25]. Therefore, there is needed to put
more interest in studying the adoption and implementation of GSCM in developing countries
due to the end-of-the-pipe approach. Little research attention has been devoted to the concern
of GSCM in developing countries especially in Asian Regions. The GSCM concept is a
relatively new concept in South East Asian Region and probably only a few companies are
actually able to implement it [26]. However, as claimed by Rao [26] in his study on green
supply chain in South East Asian Region (Philippines, Indonesia, Malaysia, Thailand, and
Singapore) found that environmental supply chain practices had started to take place. Thus, the
findings from those researches in Asian Region can be useful for manufacturing in developing
countries in order to develop the appropriate GSCM practices and help to reduce the
environmental problems.
Recent literature showed that most researchers starting investigate on GSCM in East Asian
Region especially China as developing country. The issues related to GSCM have become even
more critical in China. Although China gains more opportunities as a major manufacturing
country, they also deal with huge environmental problems with this opportunity [26]. Zhu et al.
[27] investigated whether different Chinese manufacturer clusters varying in their extent of
implementing GSCM exist from the ecological modernization perspective. The study also
examined whether Chinese manufacturers awareness of local and international environmental
ESPR-oriented (enhancing energy savings and pollution reduction) compliance is related to
GSCM implementation and also either a mediating effect of regulatory pressure plays a major
role. Then, study found that the varying pace of Chinese manufacturers to ecological modernize
with GSCM practices and the significance of regulatory pressure to distribute the practices
adoption by Chinese manufacturing industry.
The study by Liu et al. [28] in China has analyzed the relationship between green supply chain
management level (LGSCM) and the classified determinant factors. The study confirmed that a
companys environmental management capacities will be strongly enhanced by frequent internal
training of employees to increase its involvement in GSCM practices. Another research from
China, studied by Yan Li [29], examined the adoption levels of GSCM practices in China and
explored the performance measurement for GSCM. The findings demonstrated that GSCM was
strongly balancing to other advanced management practices, and contributed to improving
environmental performance.
Zhu et al. [30a] evaluated GSCM practices relating GSCM to closing the supply chain loop for
four Chinese industries (power generating, chemical/petroleum, electrical/electronic and
automobile). They concluded that adoption of GSCM practices in different industrial contexts is
not uniform across the four industries. Another study also by Zhu et al. [31] in China has
evaluated and explained GSCM drivers, practices and performance among diverse Chinese
manufacturing firms. They concluded that the higher environmental awareness and pressures in
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Chinese enterprise has not contributed into strong or higher GSCM practice adoption, let alone
to improvements expected in some areas of performance.
Concern about the environmental issue has also rise the interest of researchers to investigate the
adoption and implementation of GSCM practices in another Asian Countries such as Thailand,
India and Malaysia. A study of Ninlawan et al. [2] in Thailand analyzed the recent green
activities in computer parts manufacturers and also measured the level of green supply chain
management. The in-depth interview regarding green procurement, green manufacturing, green
distribution, and reverse logistic has been conducted. The study conducted in India by Diabat
and Govindan [32] identified the drivers influencing the implementation of GSCM using an
Interpretive Structural Modeling (ISM) methodology and extracted 11 drivers collected through
past literature: Certification of suppliers environmental management system; environmental
collaboration with suppliers; collaboration between product designers and suppliers to reduce
and eliminate product environmental impacts; government regulation and legislation; green
design; ISO 14001 certification; integrating quality environmental management into planning
and operation process; reducing energy consumption; reusing and recycling materials and
packaging, environmental collaboration with customers; and reverse logistics.
The concept of GSCM is relatively newer in Malaysia. Recent literature found that still lack of
researchers study on GSCM adoption and implementation based on Malaysian context as a
developing country. One study from Malaysia that has been carried out by Eltayeb and Zailani
[33] has identified the four key drivers or motivators to green supply chain initiatives:
Regulations, customer requirements, expected business gains, and social responsibility. Eltayeb
et al. [34] analyzed the relationship between green supply chain initiatives and performance
outcomes and identified the key initiatives (eco-design) that have positive effect on the four
types of outcomes (environmental, economic, cost reductions, and intangible outcomes).
2.4. Review of Previous Studies on Green Supply Chain Management
The following is a review of previous literatures about issues related to GSCM and has been
summarized into three sections which by manufacturing (various industry), by manufacturing
(focus industry) and by Malaysian country.
Table 1 shows the previous studies of GSCM according to various industries in manufacturing.
Most researchers used manufacturing industry as their sample of study in order to investigate
the GSCM adoption and implementation either in developed and developing countries.
Manufacturing is believed to be the main causes to the emerging environmental problems due to
its traditional business operation. Various industries in manufacturing companies such as
manufacturers in paper; textile and dyeing; chemicals, plastics and rubbers; metals; machinery
and equipment manufacturing; electronics; automobile; printing; construction and others.
Traditional polluting industries such as manufacturers in chemical, electrical and paper
industries generally experience higher environmental pressure. Therefore, the manufacturing
industry as traditional polluters tend to be the potential sample of study as they tend to
implement GSCM practices.
Table 1. Summary of the previous studies of GSCM according to manufacturing industry
(Various Industry)
Year Title/Author
2011 Drivers of Green
Supply Chain
Management
Performance:
Evidence from
Germany
Findings
The degree of green
supplier assessment and
green collaboration has
direct influence on
environmental
performance.
Variables
Five potential
drivers of green
supply management
performance:
Green supply
management
Country
Germany
Large, R.O. &

Thomsen, C.G.
2011
2011
Is ISO 14001 a
gateway to more
advanced voluntary
action? The case of
green supply chain
management
These two practices are

driven by the strategic
level of the purchasing
department and the level
of environmental
commitment of the firm.
Commitment influences
green assessment directly,
the impact of commitment
on green collaboration is
mediated by the
capabilities of the
purchasing department.
Environmental
performance has a positive
impact on purchasing
performance.
ISO 14001 contributed to

GSCM practices which
facilities with ISO 14001
are 40% more likely to
evaluate their suppliers
environmental
performance and 50%
Arimura et al.
more likely to ask their
suppliers undertake
specific environmental
practices.
Government program of
encouraging EMS
adoption indirectly
influences ISO 14001
adopters to implement
GSCM practices.
The Influence of
Greening the suppliers
Greening the
leads to green innovation
Suppliers and Green
and competitive
Innovation on
advantage.
Environmental
The finding also support
Performance and
that the intervening
Competitive
variables of green
Advantage in Taiwan
innovation contribute to
competitive advantage.
Chiou, T.Y. et al.
Taiwanese companies
have started to implement
actions toward greening
their suppliers and
developing greener
products and
capabilities
The strategic
level of
purchasing
department
The level of
environment
commitment
The degree of
green supplier
assessment
The degree of
green
collaboration
with suppliers
Performance:
Environmental
performance and
purchasing
performance
ISO 14001
Facilitys GSCM
practices
Green innovation
(Product
innovation,
Process
innovation,
Managerial
Innovation)
Environmental
performance
Competitive
advantage
Japan
Taiwan
manufacturing process.
2011
2011
2011
2011
Research on the
Performance
Measurement of
Green Supply Chain
Management in
China
Chinese enterprises have

tried to implement a
variety of GSCM practices
to improve their
environmental
performance in response to
the export philosophy.
Yan Li
Internal environmental
management,
(commitment from toplevel managers and
support from mid-level
managers) will be
necessary for development
of any GSCM programs in
China.
Sustainable
Chinese companies are
Production: Practices
still at a preliminary stage
and Determinant
of GSCM practices.
Factors of Green
Their environmental
Supply Chain
management in
Management of
cooperation with external
Chinese Companies
members of the supply
chain is very marginal.
Liu, X. et al.
A companys LGSCM is
significantly and
positively associated with
external pressures from
regulatory, domestic
clients and business
competitors.
A companys learning
capacity in internal factors
greatly measured LGCM.
Evaluating Green
The results highlighted the
Supply Chain
varying pace of Chinese
Management among
manufacturers to
Chinese
ecological modernize with
Manufacturers from
GSCM practices and the
the Ecological
significance of regulatory
Modernization
pressure to diffuse the
Perspective
practices adoption by
Chinese manufacturing
Zhu et al.
industry
The impact of green
Still limited adoption of
supply chain
GSCP among the 3PLs
practices on company
service providers,
performance: the
sometimes oriented only to
case of 3PLs
a compliance with
environmental regulations.
Eco-design level;
green purchasing
level; green
manufacturing
capacity; green
marketing and
consumption;
recycling products
processing ability;
level of information
technology;
comprehensive level
China
External
pressures
Internal factors
GSCM practices
Controls
(companys size,
industrial sector)
China
Awareness of
environmental
regulations/ policies
China
Green supply
chain practices
(GSCP)
3PLs
performance
Italy
Cagno et al.
2010
2009
2009
Some participant have

shown a pro-active attitude
and gained significant
benefit from the adoption
of GSCP.
Green Supply Chain Japanese large
Management in
manufacturers implement
Leading
one key GSCM practice,
Manufacturers- Case
internal environmental
Studies in Japanese
management at a
Large Companies
significantly higher level
than Chinese
Zhu et al.
manufacturers.
The four other GSCM
practices were
implemented at similar
levels when compared to
Chinese manufacturers.
It was found that large
Japanese companies have
made significant
improvements for
environmental and
financial performance but
not for operational
performance.
An Empirical Study
Manufacturers identify the
of Green Supply
greatest pressure to
Chain Management
increase environmental
Practices Amongst
performance is legislation
UK Manufacturers
and internal drivers (IDs).
GSCM practices among
Holt, D. &
the UK manufacturers are
Ghobadian, A.
focusing on internal higher
risk, descriptive activities.
Environmental attitude
(EA) is a key predictor of
GSCM activity and those
organizations that have
progressive attitude are
also operationally very
active.
ISO 14001 in
ISO 14001 has a
environmental supply
facilitating role in the
chain practices
environmental activities
between a customer and a
Nawrocka et al.
supplier.
Closer relationship with
suppliers was seen as
beneficial both for the
successful outcomes of
projects and as a facilitator
GSCM drivers
(Normative
pressure,
Coercive
pressure, Mimetic
pressure)
GSCM practices
(Internal &
external
dimensions)
GSCM
performance
(Economic,
financial,
operational)
External drivers
(Legislation,
competitive,
supply chain,
societal)
Internal drivers
Communication
of environmental
requirements
between a
customer and a
supplier.
Motivation and
enabling of a
supplier company
to comply with
Japan
UK
Sweden
2008
2008
2008
2005
for environmental work.

The purchasing function,
and its interplay with the
environmental function
and other company
functions, was seen as
important for engaging in
supply chain activities
Green Supply Chain Investment recovery
Management
seemed to get less
Implications for
attention in China.
Closing the Loop
However, more Chinese
manufacturing have
Zhu et al.
realized the importance of
GSCM due to potential
regulatory pressure in
China as well as pending
marketing pressure from
Europe when they export
products.
Drivers for the
Buyer environmental
participation of small
requirements and support
and medium-sized
have positive effect to
suppliers in green
their suppliers willingness
supply chain
to participate in green
initiatives
supply chain initiatives.
The government can play
Su-Yol Lee
an important role in
motivating these suppliers.
The more slow resources
and organizational
capabilities suppliers had,
the more willingly they
were to participate in those
initiatives.
Influences, practices Small suppliers and
and opportunities for
medium-sized enterprises,
environmental supply
have difficulties in
chain
allocating resources to
management in Nova
initiatives that are not
Scotia SMEs
viewed as directly related
to their core function,
Raymond et al.
namely manufacturing the
product or providing the
service.
This study clearly
demonstrated that
opportunities exist to
reduce greenhouse gas
emissions and solid waste
within supply chains.
Green Supply Chain Chinese enterprises have
the requirements.
Mechanisms for
control and
follow-up.
GSCM dimensions:
Internal
environmental
management, green
purchasing,
customer
cooperation with
environmental
concern, investment
recovery, and ecodesign
Buyer GSC
practices,
government
involvement, GSC
readiness, GSC
participation
China
South
Korea
Environmental
performance
Environmental
issues
Canada
GSCM drivers
China
9
Management in
China: Pressures,
Practices and
Performance
Zhu et al.
increased their
(regulatory,
environmental awareness
supply chain
due to regulatory,
partners,
competitive and marketing
competitors,
pressures and drivers.
market)
However, this awareness
GSCM practices
has not been translated
GSCM
into strong GSCM practice
performance
adoption, let alone into
improvements in some
areas of performance,
where it was expected.
Meanwhile, Table 2 also presents the previous studies of GSCM among manufacturing industry
but it only study certain industries from the various type of industries. These researchers had
focused to specific industry in order to get depth understanding of GSCM practices without
comparing to different industries.
Table 2. Summary of the previous studies of GSCM according to manufacturing industry
(Focus Industry)
Year
2011
2011
Title/Author
Findings
The Influence of
The critical green
Green Practices on
practices are reverse
Supply Chain
logistic (Downstream),
Performance: A
minimizing waste and
Case Study
ISO 140001 (Focal
Approach
Company).
The most widely adopted
Azevedo, S.G. et
green practices in the case
al.
study companies: [ISO
140001, minimizing
waste, decreasing the
consumption of hazardous
and toxic materials-Focal
company] and [reverse
logistic- Downstream].
The performance
measures that were most
extensively used in the
case study companies are:
Operational (customer
satisfaction, quality) and
economic (cost).
The
For GSCM practices,
Implementation of
three products
Green Supply
(semiconductor, hard disk
Chain
drive, print circuit board)
Management
with carrying out from
Practices in
some degree to full
Electronics
adoption.
Variables
Green
practices:
Upstream
(suppliers),
Focal company
(internal
operations,
Downstream
(customers)
Supply chain
performance:
Economic,
Operational,
Environmental
GSCM
practices
GSCM
performance
GSCM pressure
(market,
regulatory,
Country/
Industry
Portuguese;
Automotive
sector
Thailand;
Electronic
(Computer
Part)
sector
10
Industry
2011
2010
2008
Both environmental and

positive economic were in
Ninlawan et al.
relatively significant in
GSCM performance.
Pressure from
environmental regulations
is the highest driver,
followed by export
pressure for Thai
electronics supply chain
to implement GSCM.
An Analysis of the Government regulation
Drivers Affecting
and legislation and
the
reverse logistics are
Implementation of
significant drivers to
Green Supply
achieve the collaboration
Chain
between product
Management
designers and suppliers to
reduce and eliminate
Diabat &
product environmental
Govindan
impact driver, which to
achieving the GSCM
certification of suppliers
environmental
management system
driver.
A taxonomy of
The green marketing
green supply chain
oriented group performed
management
best.
capability among
According to the
electronics-related
resource-based view
manufacturing
(RBV), the capability of
firms in Taiwan
the green marketing
oriented group was
Shang et al.
considered to be the use
of a collection of
resources that enables it
to successfully compete
against competitors
The importance of green
marketing as a GSCM
capability and strategic
asset/critical resources for
electronics-related
manufacturing firms to
obtain a competitive edge
is therefore highlighted in
this study.
Green Supply
The enterprises would
Chain
emphasize on supplier
Management in
management performance
the Electronic
in the crucial role of
competition)
Drivers of
GSCM (11
types of drivers
involved in this
study, collected
through several
previous
studies)
India;
Aluminium
sector
Green
manufacturing
and packaging
Environmental
participation
Green
marketing
Green suppliers
Green stock
Green ecodesign.
Taiwan;
Electronic
Industry
Approach for
implementing
GSCM: Supplier
management,
Taiwan;
Electronic
Industry
11
Industry
2008
2007
2007
implementing GSCM.
The most important
Hsu, C.W. & Hu,
approaches included
A.H.
establishing an
environmental database of
products, asking for
product testing report and
top management support.
The Driver of
Green core competences
Green Innovation
of firms were positively
and Green Image
linked to their green
Green Core
innovation performance
Competence
and green images.
Two types of green
Yu-Shan Chen
innovation performance
had partial mediation
effects between green
core competences and
green images of firms.
Green core competence,
two types of green
innovation performance,
and green images of
medium & small
enterprises (SMEs) were
all significantly less than
those of large enterprises
in the information and
electronics industry in
Taiwan.
Original equipment
An empirical
study of the
manufacturing and original
implementation of designing and manufacturing
green supply chain manufacturers have adopted
management
green procurement and green
practices in the
manufacturing practices in
response to the current trend
electrical and
electronic industry of international green issues
and have caused positive
and their
relation to
environmental and financial
performances for the
organizational
performances
respective companies.
Chien, M. K. and
Shih, L. H.
Greening the
automotive supply
chain: a
relationship
perspective
Simpson et al.
Traditional operations
theory on interorganizational
performance
improvement is just as
relevant to the use of
environmental
product
recycling,
organizational
involvement, life
cycle
management
Green core
competence
Green
innovation:
green product
innovation
performance,
green process
innovation
performance,
and green
images
information
Taiwan;
Electronics
industry
Environmental
regulations,
External
stakeholders,
GSCM practices,
Environmental
performance,
Financial
performance
Taiwan;
Electrical and
electronic
industry
Customer
environmental
performance
requirements
Supplier
environmental
commitment
Australia;
Automotive
industry
12
performance
requirements.
Suppliers were found to
be more responsive to
their customers
environmental
performance requirements
where increasing levels of
relationship-specific
investment occurred.
Based on Table 3, the previous studies of GSCM in Malaysia are presented. From the table
below, it shows clearly how many researchers were attempt to promoting this relatively new
concept in Malaysia. As a matter of fact, Malaysia is moving forward to be an industrialized
economy. Malaysia shifted from material production to manufacturing. The manufacturing
industry remained to be an important contributor to Malaysians economy in recent years. But,
the rapid industrialization had caused negative impact on the environment because of the
increase in the pollution, waste, and rapid consumption of natural resources [35]. It is clearly
showed that manufacturing industry is the most contributors to the environmental problem.
Environmental issues have become very important issues of concern for the Malaysian
government and the public [34]. With regards to environmental concern into manufacturing
industry, it is necessary for the study to investigate the level of adoption and implementation
GSCM among certified companies in Malaysia.
However, the studies in Malaysia are still lacking and the findings are also not conclusive. Most
researchers conducted study on GSCM practices in several Asian countries such as China may
have similar market and social-cultural situation with Malaysia. However, as stressed by
Christmann and Taylor [36], different industries sectors of different countries are facing
different pressures. It is also supported by Rao [26] stated the level and mode of implementation
of GSCM practices vary significantly in different countries. It means manufacturing industry in
Malaysia is differed to other countries due to different background or culture.
In addition, a lot of companies in Malaysia are still behind and yet to adopt the green supply
chain concept in their business operation [37]. According to Eltayeb and Zailani [35], Malaysian
fully owned companies have lower level of adoption and participation in green supply chain
practices compare to foreign based companies and MNC (Multinational Company). The barriers
in the adoption of GSCM in Malaysia depend on the companies size [19] and high cost of
adopting green supply chain practice [25]. Other than that, the establishment of the Ministry of
Energy, Green Technology and Water on April, 9 2009 by the Prime Minister, Y.A.B Datuk Sri
Najib Tun Razak has pushed business organization to adopt a green culture in their business
operation. However, the level of readiness to adopt green technology among Malaysian
manufacturing companies is still unclear. Therefore, given of these above issues, the future
study is required to investigate in more depth the adoption and implementation of GSCM in
Malaysia and also other variables that relevant to the field.
Table 3. Summary of the previous studies of GSCM in Malaysia
Year
2011
Title/Author
Green Supply Chain
Initiatives among
Certified Companies
in Malaysia and
Environmental
Findings
Eco-design has
significant positive effect
on the four types of
outcomes.
Reverse logistic was
Variables
Green supply
chain
initiatives
(Eco-design,
green
Area
Manufacturing
(EMS IS0
14001Certified
Firms)
13
Sustainability:
Investigating the
Outcomes
found to have significant

positive effect on cost
reductions only, while
green purchasing was not
found to have significant
effect on any of the four
types of outcomes.
Eltayeb, T.K. et al.
2011
Greening of the
Supply Chain
Through Supply
Chain Initiatives
towards
Environmental
Sustainability
Al Khidir, T. &
Zailani, S.H.M.
Expected business
benefits have the greatest
influence on green
supply chain initiatives
followed by regulations
and customer pressures,
and finally social
responsibility.
Malaysian firms tend to
respond regulations and
customer pressures that
require them to adopt
green supply chain
initiatives but the
decision is based mainly
on evaluating the benefits
that return to the firms
from adopting such
initiatives.
purchasing,
reverse
logisticcommonly
adopted in
Malaysia)
Green supply
chain
outcomes
(Environment
al, economic,
operational,
intangible)
Drivers:
Regulations,
customer
requirements,
expected
business gains,
social
responsibility
Manufacturing
(EMS IS0
14001Certified
Firms)
Based on these tables, the authors can see that most studies were explored on developed
countries and more focus to the manufacturing area. It can be concluded that most developed
countries are chosen because they were facing a lot of environmental problems due to the
greater economic consumption. Then, the manufacturing industry can be seen as the major
contributor to the environmental problems [34].
3. RESEARCH DIRECTION
Green supply chain management continues to be an important research agenda among the
researchers. However, there is still limited of studies to investigate GSCM adoption and
implementation in developing countries. Therefore, our research direction will be focus on ISO
14001 certified manufacturing firms in Malaysia context in order to extend the study about
GSCM in more depth. ISO 14001 certified firms will be focused because they are expected to
be involved in the adoption of GSCM practices. This is supported by the studies of Darnall et al.
[38] and Zhu et al. [30b]. The research direction of this paper is showed in Figure 1.
14
Developed Countries
Japan, Germany, Portuguese, UK,
Taiwan, Italy, Australia, South
Korea, Sweden, Canada
Developing Countries
China, India, Thailand, Malaysia
Malaysia
Manufacturing
ISO 14001 Certified Firms
Non ISO 14001 Certified Firms
Figure 1. Research direction framework
4. CONCLUSIONS
The purpose of this paper is to discuss an overview of the development of GSCM literature in a
developed countries and developing countries. Although some studies in the literature discussed
the GSCM implementation includes drivers, practices, and performance over the world, but
there has still little research about the GSCM implementation and adoption in developing
countries especially Malaysia. Further study still required for more understanding toward the
adoption and implementation of GSCM and also the organization awareness level on
environmental problems that caused by their business operation.
15
ACKNOWLEDGEMENTS
The authors would like to thank to the Faculty of Management and Human Resource
Development, GUP research grant Vot.Q.J130000.7129.03J72 (MOHE) and UTM Johor Bahru.
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18

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International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 3, No.

GREEN SUPPLY CHAIN MANAGEMENT: A

Faculty of Management and Human Resource Development, Universiti Teknologi

Muhamad Zameri Mat Saman2

Faculty of Mechanical, Universiti Teknologi Malaysia, 81310, UTM Skudai Malaysia

2.2. Green Supply Chain Management in Developed Countries

Large, R.O. &

These two practices are

ISO 14001 contributed to

Chinese enterprises have

Some participant have

for environmental work.

Both environmental and

found to have significant

Eltayeb, T.K. et al.

ISO 14001 Certified Firms

Non ISO 14001 Certified Firms

Figure 1. Research direction framework

Srivastava, S.K., (2007) Green supply-chain management: a state-of-the-art literature review,

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