Chasing value offerings through green supply chain innovation

Abstract

PurposeThe need for innovations to achieve economically viable and green supply chains has been illuminated in recent literature. Closed‐loop supply chains are part of green supply chain management and include traditional forward supply‐chain activities as well as additional activities of the reverse supply chain. Extant supply chain literature calls for a chain perspective in order to avoid sub‐optimization in the chain since changes at one stage can affect the performance at other stages. The purpose of the paper is to analyze how implementation of green supply chain innovations can enhance value offerings along the supply chain.Design/methodology/approachThis research is based on an explorative, single‐embedded case study of a food supply chain. The case is concerned with implementation of green supply chain innovation in terms of biogas technology. The single case comprises four actors in the food supply chain: a retailer, an industrial bakery, a mill, and a farmer. Data collection is based on semi‐structured interviews with persons responsible for sustainability in the respective companies.FindingsThe case demonstrates that in order to reach the full potential of a green supply chain innovation, the different supply chain actors must be included. What in isolation of one company's perspective is perceived as a waste can be transformed to a value when the problem area is analysed from a chain perspective.Research limitations/implicationsThe paper is based on a single case study that does not provide static generalizations, and it represents the first step on a road to building new theory about green supply chain innovations. Future research can expand the findings by elaborating upon cases of other types of supply chains and supply chain innovations.Practical implicationsThe perception of waste in a supply chain can be changed through green supply chain innovations. This case illustrates how obsolete food products at the retail level, which traditionally have been perceived as a waste product with related discarding costs, can be regarded as a valued input by implementation of biogas technology at the industrial bakery company. As a result, other food supply chains can investigate similar solutions.Originality/valueThe paper provides a case that visualizes how value offerings along a food supply chain can be chased through green supply chain innovations. Furthermore, the paper applies a supply chain perspective not only conceptually but also empirically. By focusing on the interfaces between each main actor in the supply chain, this paper contributes to existing research with valuable knowledge of inter‐organizational issues related to challenges of supply chain innovation.