Environmentally responsive supply chains

Abstract

PurposeThe arrival of global manufacturers has brought about new challenges such as environmental concerns and sustainability of supply chains. The purpose of this paper is to identify implementation level, major drivers, various practices and performance of environmentally and socially‐conscious supply chain management (SCM) in the context of the automobile industry in India.Design/methodology/approachThe literature is reviewed to understand various challenges/barriers to the adoption of green supply chain management (GSCM) practices; statistical analysis of various drivers, practices and performance of environmentally and socially conscious supply chain is carried out in the case of an automobile cluster in central India. Personal interviews are conducted and a structured questionnaire is used for data collection from 30 organizations including original equipment manufacturers, first‐ and second‐tier suppliers.FindingsEnvironmentally and socially responsive supply chains are in the early adoption stages in India. Companies studied in the auto cluster are not adequately addressing these measures in supply chain design and operations; though awareness and inclination to adopt has been on the rise – actual implementation lacks a holistic approach.Originality/valueInvestigation of GSCM along with social concerns is rarely done in the Indian context. This paper will offer valuable insights for managers in understanding the consequences of non‐compliance, especially with the Indian automobile industry recently becoming global.