Supply Chain Governance Mechanisms, Green Supply Chain Management, and Organizational Performance

Abstract

While firms understand that implementing green supply chain management (GSCM) is important, they seem uncertain about how to manage their green initiatives by looking beyond their own facilities. Building a green supply chain requires the participation of all partner firms across the supply chain. However, partner firms are different in size, situation, capabilities, and even industries. Thus, encouraging them to participate in green initiatives is difficult. Many small and medium enterprises (SMEs) hesitate to comply with green initiatives as they require a substantial amount of investment. This study empirically examines the causal relationship between the partnership governance mechanism and the success of GSCM. Based on transaction-cost economics theory (i.e., opportunism) and relational perspectives (i.e., trust) as the theoretical background, this study found that governance mechanisms between suppliers and manufacturers are positively related to GSCM performance. It showed that formal governance is important in the process-management side, while relational governance is critical for sharing knowledge in GSCM. The implications of the study results provide strategic insights on how the choice of governance mechanism affects GSCM performance and thus a firm’s competitiveness.

Green Supply Chain Management With Sustainable Economic Growth by CS-ARDL Technique: Perspective to Blockchain Technology

“…When it comes to implementing eco-friendly sustainable logistics operations, four obstacles were found: consumer priorities, management complexity, network imbalance and uncertainty over new technical or legal developments as the four main hurdles (15). It has been shown that GL innovation may lower the environmental effect of logistics activities and boost company competitiveness and sustainability (16). Upstream supply chain measures can enforce environmental friendliness on logistics businesses, a downstream supply chain participant (17).…”

“…Their study showed that how choice of governance mechanism can affect the companies green supply chain management performance and competition. It showed that formal governance can affect process management (16). In 2021, research was conducted on south Asian countries using panel data estimation.…”

“…Managing sources early in design process is critical for developing eco-friendly goods. Indeed, relational supervisory activities have been identified as critical component for product innovation cooperation (16). Companies may engage in global supply chains and collaborate closely with a variety of partners by utilizing collaborative product design.…”

Impact of knowledge management capabilities on new product development performance through mediating role of organizational agility and moderating role of business model innovation

“…It has become difficult for organizations to achieve sustained innovation and competitive advantage internally. Therefore, some of the large organizations, like Xerox and Hitachi, had made collaborations outside the organizations to achieve sustained competitive advantage and innovation (Lee and Choi, 2021 ). Such collaborations may facilitate the KM or result out from the firm's pursuit to use new knowledge.…”

“…Illustratively, Apple assessed the market potential of smart wearables, quickly focused on the development of smartwatches, and released it within 2 years, which captured 75.5% of the smartwatch market's share globally (Cai et al, 2019 ). On the other hand, attaining this kind of agility is not easy for most of the business organizations (Lee and Choi, 2021 ). However, it is necessary to understand how organizational agility contributes to the development of a new product.…”