Effects of supply chain position on the motivation and practices of firms going green

Abstract

Purpose

The aim of this study is to understand the effect of a firm's position in a supply chain in its industry on the attitude of the firm toward green strategies through empirical data analysis. This study aims to answer the following research questions: Do the environmental uncertainties a firm faces differ with the firm's position in the supply chain when going green?, Would the motivation of a firm for going green vary with uncertainties it faces in the supply chain? and Would green-related practices a firm accepts or executes vary with the firm's position in the supply chain?

Design/methodology/approach

The case study method was utilized in this study. The main objects are firms in the high-tech industry of Taiwan, and 12 firms were selected for in-depth investigation. The unit of analysis was a firm. Face-to-face in-depth interviews, approximately 90-105 minutes for each, were conducted with each of the 12 cases. The respondents were middle- to high-level managers. The interviews were recorded and transcribed. Additionally, second-hand information was acquired regarding each case through channels such as firm web sites, documents, and media reports. These integrated data were later utilized in the single-case and cross-case analysis stages.

Findings

In this study, firms of Taiwan's high-tech industry are divided into the upstream (raw material supplier), midstream (original design manufacturers/original equipment manufacturer), and downstream (brand company) categories. It is first found the uncertainties a firm encounters when implementing green practices are related to its position in the supply chain. The closer a firm is to the upstream of the supply chain, the higher the competitive uncertainty. In contrast, the closer a firm is to the downstream, the higher the demand uncertainty. Furthermore, the internal and external driving forces of firms in promoting green practices are related to the types of uncertainties the firms encounter in the supply chain. A firm's internal driving force is positively associated with the demand uncertainty it faces, however, negatively with the competition and supply uncertainties. On the other hand, a firm's external driving force is positively associated with the competition and supply uncertainties it faces, however, negatively with the demand uncertainties. Additionally, the association between firm willingness to promote green practices and its position in the supply chain is explored. It is found that, for firms located in the downstream of supply chain, it emphasizes more on the practices of green design, purchase, and internal environmental management. If a firm is located in the midstream of supply chain, it will focus more on the practice of green manufacturing and logistics.

Originality/value

This study has expanded the discussion of green supply chain management. It establishes the relationship between the uncertainties and the major driving forces of firms for implementing green practices. This approach is rare in previous literature. Furthermore, past literature has suggested that a specific relationship exists between driving factors and firm practices. The author believes that such a relationship must be based on the position of firms in the supply chain; thus, the author has identified the relationship between supply chain position and green practices.

Citation

M. Lo, S. (2014), "Effects of supply chain position on the motivation and practices of firms going green", International Journal of Operations & Production Management, Vol. 34 No. 1, pp. 93-114. https://doi.org/10.1108/IJOPM-04-2012-0133