Moving from the Traditional Practices to the Green Era

Abstract

As environmental issues have become of prime importance, green supply chain management (GSCM) has become a proactive approach for industries to improve their environmental performance and develop a competitive advantage. GSCM has been widely implemented by different industrial sectors to minimize the environmental impact of their supply chain activities, such as waste generation and pollution. Nowadays, industries are seeking to convert their traditional supply chain management (TSCM) to (GSCM) due to concerns about environmental sustainability and to improve their overall performance, develop a competitive advantage, and gain a brand image. This paper started with an interest in understanding the factors that lead companies to convert their traditional practices to more environmentally friendly activities. Many theories in the literature were employed to explore the topic of GSCM; three theories have been observed to be the vital theoretical pillars within the GSCM literature namely, institutional theory, stakeholder theory, and resource-based view theory. These theories will be discussed in this paper. The aim of reviewing these theories is to understand the transition process from TSCM into GSCM. Additionally, the transition from TSCM to GSCM is associated with tensions that may arise as companies still prioritize the economic goals over the environmental dimensions. This paper will investigate the potential tensions and conflicts GSCM barriers may cause between various stakeholders. Therefore, the goal of this paper is to explore what the pressures are for companies to implement green supply chain management, what drives or prevents companies from adopting GSCM. To accomplish this task, literature is reviewed, focusing on theories, tensions, drivers, and barriers that are related to the field of GSCM.