Abstract
Green Supply Chain Management (GSCM) is a common practice among eco-friendly companies that want to remain successful in the modern world. GSCM implies several practices, including internal environmental management (IEM) and external environmental management (EEM). Different aspects may have a contrasting impact on the supply chain and the company itself, but the overall effect of GSCM is more often investigated. The current study aims to examine the impact of IEM and EEM on the work of organizations adopting the GSCM approach, in particular, on their green innovation.
The study applies a survey approach to collect the data needed to answer research questions. The results will demonstrate how GSCM practices such as IEM and EEM affect organizations. The study contributes to society by disseminating information about ecologically-friendly approaches to business and describing their advantage, which contributes to saving the environment. At the same time, the study’s practical implications are a description of the possibilities for improving performance and an effective organization of GSCM. Finally, the study offers new knowledge about the impact of IEM and EEM, making a theoretical contribution to the existing knowledge base. At the moment, research is more focused on the general benefits and features of GSCM, so studying its practices has research value.
Topic Importance
Society is concerned about the environment and seeks to take measures in various areas of human activity to help preserve nature. Green Supply Chain Management (GSCM), also called sustainable supply chain management (SSCM), is supply chain control consistent with ethical and environmental practices, which supports the sustainability of the company (Tarigan et al., 2021). Actions aimed at ecological protection should cover all chain elements – from the search for raw materials to logistics and product processing (Khan et al., 2022). As a result, GSCM includes practices of various levels, namely green production, design, logistics, purchasing, marketing, and green internal and external management (Ali, 2022). Each identified practice can have consequences for the chain and the entire company. The current paper focuses on the impact of internal environmental management (IEM) and external environmental management (EEM) on supply chain integration (SCI) and the subsequent green innovation of organizations.
Previous Studies
GSCM and its features in the operation of companies is a widely discussed topic in the scientific literature. Previous studies have highlighted the practices of such a chain, the importance of sustainability of the chain for the success of the company, consumer opinion, and other aspects. For example, following Wang and Dai (2018), internal and external management affect firms’ environmental, social, and financial performance. IEM presents practices aimed at transforming the company’s internal activities related to the supply chain and EEM – external activities. According to a study by Tarigan et al. (2021), integration in both IEM and EEM, enhanced by efficient information sharing, contributes to improving GSCM. In particular, integration with suppliers ensures that the necessary materials meet environmental standards, and internal one makes GSCM more efficient (Tarigan et al., 2021). Such a chain not only contributes to the company’s environmental responsibility but also improves its work.
GSCM and its practices can benefit firms that take this approach significantly. For example, Mumtaz et al. (2018) study revealed that IEM and EEM are negatively related to operational cost and environmental pollution. Moreover, the authors conclude that GSCM leads to green innovation in the company (Mumtaz et al., 2018). Khan et al. (2022) also confirmed the association with innovation in their research. In particular, the study offers the following connection: GSCM, especially IEM, and the search for ways for environmentally friendly work lead to technological progress and, as a result, to innovations, which increases operational efficiency (Khan et al., 2022). The broad discussion of GSCM issues, its practices, and their impact make the topic relevant to research.
Research Scope, Goal, and Questions
Despite the extensive literature base on the topic, less research has focused on the effect of individual GSCM practices rather than their overall effect. Therefore, the scope of current research narrows the focus to the role of IEM and EEM in the SCI and the subsequent green innovation of companies. The study aims to determine how IEM and EEM in GSCM impact green innovation. The following research questions were posed to achieve the goal:
- What practices are characteristic of GSCM, and what are their features?
- What are the role and features of IEM and EEM, among other GSCM practices?
- What is SCI, and what effect does it have on company performance?
- What is the impact of information sharing in GSCM on SCI?
- What is the connection between IEM, EEM, SCI, and green innovation?
Research Model
In accordance with the questions and goal posed, the paper offers a research model (see Fig. 1).
Research model: Impact of IEM and EEM practices on green innovation under the mediated influence of SCI, enhanced with information sharing.
Contributions
The paper’s author seeks to contribute theoretical knowledge about GSCM and the green innovation of organizations. With this study, the author aims to fill in the gaps associated with understanding individual GSCM practices. To achieve these goals, the researcher will conduct a survey, analyze the data and present their results for distribution and practical use. The author also provides directions for future research, which may expand the current work in the future.
References
Ali, Z. (2022). Predicting SMEs performance through green supply chain practices: A mediation model link of business process performance. Asia Pacific Journal of Marketing and Logistics, 1-19. Web.
Khan, M. T., Idrees, M. D., Rauf, M., Sami, A., Ansari, A., & Jamil, A. (2022). Green supply chain management practices’ impact on operational performance with the mediation of technological innovation. Sustainability, 14(6), 1-22. Web.
Mumtaz, U., Ali, Y., & Petrillo, A. (2018). A linear regression approach to evaluate the green supply chain management impact on industrial organizational performance. Science of the Total Environment, 624, 162-169. Web.
Tarigan, Z. J. H., Siagian, H., & Jie, F. (2021). Impact of enhanced Enterprise Resource Planning (ERP) on firm performance through green supply chain management. Sustainability, 13(8), 1-20. Web.
Wang, J., & Dai, J. (2018). Sustainable supply chain management practices and performance. Industrial Management & Data Systems, 118(1), 2-21. Web.