Identifying Green Supply Chain Management Enablers in South African Mining Industry using Ecological Modernization Theory Approach

Abstract

Green supply chain management is a popular practice in any world class organization. The traditional supply chain was managed with the objectives to reduce cost without focusing on environmental and social dimensions. However with passage of time institutional pressures has directed firms to design supply chain network which takes care of environmental and social dimensions as well. Green supply chain management concept has evolved gradually over a period of time. The main reason behind evolution of green supply chain management is conservation of natural resources which human beings ignored for long. Published reports show that major portion of the energy is supplied by fossil fuels and thereby depletion of natural resources is occurring at an accelerating rate with time. Industrial manufacturing report also suggest that demand for manufacturing products is likely to double by the year 2050. This will result in high generation of pollutants and gases. If the greenhouse gases emissions remain unchecked, then it will create a catastrophic effect by 2050. Globally manufacturers and industry associations are now acting proactively to conserve the natural resources and curb greenhouse gases emissions. The level of popularity of green supply chain management can be estimated from the high research output in leading operations journals such as IJPE, IJPR, Resources, Conservation and Recycling Journals. Green supply chain management is a concept that is also gaining popularity in the South African region. For many organizations in this region it is a process to exhibit their sincere commitment to sustainability. However, if green supply chain management practices are to be fully adopted by all mining and minerals industry in South Africa, a demonstrable link between such measures and understanding the role of associated variables is necessary. This paper endeavors to develop a green supply chain management model for mining and minerals industry in the South African region. The approach extends the domain of green supply chain research and produce theories that have greater explanatory power than the current practices. For this purpose a conceptual model was developed from literature review and data collected using a structured questionnaire mailed to a sample of 174 firms which are leading edge ISO14001 certified mining companies in South Africa. Data analysis is further performed through exploratory factor analysis and regression analysis. This paper presents the first empirical evaluation of the link between green supply chain management practices amongst a sample of mining and minerals companies in South Africa.