Abstract
As ‘green’ issues continue to become a global concern in the manufacturing supply chain, developing appropriate performance measurement systems for specific supply chains is imperative. Various green supply chain management strategies have been proposed in different contexts. On the other hand, a number of performance management systems (PMS) have been proposed. However, given the variations in the contexts of the available green strategies and the performance measurement approaches, selecting or developing suitable performance measures and the ensuing PMS under a given supply chain context is not trivial. The purpose of this study is to develop a structured taxonomic approach to developing PMS under various green supply chain conditions, contexts, and business objectives. Therefore, we (i) explore extant empirical studies on green supply chain activities and environmental management, (ii) develop a taxonomy of green supply chain strategies, (iii) derive a structured approach to developing green performance management systems, and (iv) provide a taxonomic performance measurement framework consisting of environmental, economic, and social performance metrics. Unlike past studies, the taxonomic framework forms a practical platform to assist decision makers when developing a suitable set of performance measures and the ultimate PMS while considering the particular context of specific green strategies under which the PMS is supposed to operate.
Highlights
As environmental issues are rapidly becoming one of the most important topics in supply chain management, managers consider improvements in environmental or ‘green’ performance a basic competitive priority besides lower cost, short lead time, and high quality [1,2,3]
Interesting results were obtained with regard to the common trends in the development of performance measurement and management systems
Managerial implications The motivation for the adoption of green supply chain management (GSCM) practices varies across different organizations
Summary
As environmental issues are rapidly becoming one of the most important topics in supply chain management, managers consider improvements in environmental or ‘green’ performance a basic competitive priority besides lower cost, short lead time, and high quality [1,2,3]. The introduction of green strategies for environmental management bears a significant impact on the choice and successful implementation of a performance measurement system. In this connection, it can be seen that linking specific green strategies to appropriate performance measurement systems is a serious challenge to most supply chain decision makers. The implementation of green strategies requires changes in performance management in one or more of the following problem areas [1,6]: Procurement policies: New environmental performance requirements often demand significant modifications in materials and supply procedures; Product technology: The introduction of new environmental targets often demands new product structure in relation to design, components, and materials; Process technology: Environmental strategies often require new technologies, e.g., closed-loop and cleaner technologies with reduced environmental impact; Logistics and distribution: Environmental policies may require new ways of managing physical flows of goods and collaboration with other players in the supply chain
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