The Development of a Strategic Prioritisation Method for Green Supply Chain Initiatives.

S Maryam Masoumik,Ezutah Udoncy Olugu,Salwa Hanim Abdul-Rashid,Yong Deng

doi:10.1371/journal.pone.0143115

S Maryam Masoumik, Ezutah Udoncy Olugu + Show 2 more

Open Access

https://doi.org/10.1371/journal.pone.0143115

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Journal: PloS one	Publication Date: Nov 30, 2015
Citations: 16	License type: CC BY 4.0

Affiliation: University of Malaya

Abstract

To maintain a competitive position, companies are increasingly required to integrate their proactive environmental strategies into their business strategies. The shift from reactive and compliance-based to proactive and strategic environmental management has driven companies to consider the strategic factors while identifying the areas in which they should focus their green initiatives. In previous studies little attention was given to providing the managers with a basis from which they could strategically prioritise these green initiatives across their companies’ supply chains. Considering this lacuna in the literature, we present a decision-making method for prioritising green supply chain initiatives aligned with the preferred green strategies alternatives for the manufacturing companies. To develop this method, the study considered a position between determinism and the voluntarism orientation of environmental management involving both external pressures and internal competitive drivers and key resources as decision factors. This decision-making method was developed using the analytic network process (ANP) technique. The elements of the decision model were derived from the literature. The causal relationships among the multiple decision variables were validated based on the results of structural equation modelling (SEM) using a dataset collected from a survey of the ISO 14001-certified manufacturers in Malaysia. A portion of the relative weights required for computation in ANP was also calculated using the SEM results. A case study is presented to demonstrate the applicability of the method.

Highlights

In today’s competitive market, the companies are increasingly being encouraged to incorporate environmental strategies into their business strategies
In order investigate the relationship between these elements, we have developed a causal relationship model and tested the model with a dataset generated from the survey amongst the ISO 14001-certified manufacturers in Malaysia
To obtain the relative intensities of the first three clusters and their elements with respect to the objective of the strategic improvement of green supply chain management, we suggest using the firm’s environmental management representative’s judgment for making pairwise comparison between the clusters and elements

Summary

Introduction

In today’s competitive market, the companies are increasingly being encouraged to incorporate environmental strategies into their business strategies. The increased competition and globalisation have caused organisations to shift from local optimisation at the firm level towards the entire supply chain [1]. The scope of environmental activities is extended beyond the firm’s internal borders [2]. This operational transition in environmental practice provides companies with opportunities for the broader development of sustainability [3]. In this respect, integrating environmental strategies into supply chain management has become a subject of growing interest among academics and practitioners.

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