The effects of environmental regulations on green supply chains

Abstract

This study examined the impact of the environmental regulations on green supply chain management. Specifically, what firms must address to comply with regulations and how firms deal with requests or requirements from their customers, as well as the impositions they place on their suppliers. The study conducted a case study that includes six manufacturing companies from the computer industry in Taiwan and China regarding their green supply chain and compliance practices. A longitudinal study with two rounds of field interviews was performed to fully assess the forming of green supply chains due to the regulations. The results indicated that: (1) EU directives foster green partnerships among manufacturing firms of all sizes located at different positions in international supply chains, and (2) A firm’s environmental management strategy affects its regulation compliance practices. The study also found that the process and progress of green collaboration can be explained and better understood from an institutional theory perspective. Accordingly, several research propositions were proposed to examine how various isomorphic pressures result in the adoption and permanent practice of green partnerships. Key words: Green supply chain, environmental regulations, institutional theory, case study.