Emerging challenges to greening of supply chains: an empirical study

Abstract

PurposeThis study aims to investigate the greening practices adopted by micro, small and medium enterprises in India and recommend an empirically tested and validated green supply chain management (GSCM) practices construct. The study also aims at measuring the influence of pressures created by external and internal stakeholders on the GSCM score.Design/methodology/approachThe study used a mixed-method approach. Qualitative methods, including literature review, expert opinion, focused group discussions and questionnaire-based surveys, were used for item generation and data collection. Quantitative methods included exploratory factor analysis (EFA) to find out the reasonable number of constructs to include in the scale of the GSCM practice, confirmatory factor analysis (CFA) to purify/confirm the scale, and finally, structural equation modelling (SEM) to select the best fit model and to test all causal relationships as portrayed in the base model. In the two-stage survey, convenience and purposive sampling methods were applied.FindingsThe study develops an empirically validated scale of GSCM practices, which has 6 dimensions and 16 items. This scale can measure the greening score of GSCM practices implementation. Further, findings confirm that the pressures from external and internal stakeholders are the significant forces for micro, small and medium enterprises to adopt GSCM practices. Finally, mediation function of external/internal pressures and green factors also does occur where GSCM is the mediator.Research limitations/implicationsThe study is an extension of available literature on GSCM practices utilizing the survey data from India. It contributes to the literature on micro, small and medium enterprises and GSCM practices implementation and expands the scope of theoretical applications.Practical implicationsFor the managers, it provides useful insights about innovative practices to become eco-efficient. The second-order of scale reveals that managers need to equally focus on all factors rather than on any single one. Less GSCM practices score indicates the dearth of external and internal pressures on micro, small and medium enterprises. Therefore, managers need to collaborate with local customers, overseas customers, competitors and legislative agencies. Besides, training of employees, literacy of employees and support from top management also emerge as critical measures that help the industry implement GSCM practices.Originality/valueGSCM as a topic had been extensively explored within different business areas and functions in the available literature. However, this study has some significant values. At prima facie, the study is the first that elucidates GSCM practices by incorporating the effects of pressures of different stakeholders in the context of Indian micro, small and medium enterprises which is considered as the most unorganized sector. Second, the proposed model of the study could provide useful direction for GSCM practices implementation in the unorganized sector in developing nations. Third, the study can also benefit academicians interested in the researched topic, organizations within different sectors and any other party interested in understanding more the concept of GSCM.