Green Supply Chain Management: A Study Based on SMEs in India

Abstract

This empirical study explores the extent of implementation of green supply chain initiatives for small and medium enterprises (SMEs) in Chennai area, in the southern part of India. The green supply chain management (GSCM) framework, which has been adopted in the research, comprises three phases of the green supply chain. These phases are: S greening the inbound logistics of the supply chain, categorized into green sourcing and green process. S greening production or internal supply chain S greening the outbound logistics of the supply chain SMEs have always been the backbone of industrial activity in manufacturing, as well as service sector. Thus, if greening of industry is to be achieved it is very important for SMEs to be green. Using a questionnaire as research instrument, survey was conducted amongst the environmental management representatives (EMR) or the chief executive of SMEs in Chennai area. The database generated thereby was analyzed using significance testing followed by structural equation modeling. From the results obtained one observes that greening of Inbound Logistics on sourcing aspect is significantly being achieved but greening of Inbound Logistics on process is not significantly being achieved yet. Greening of production is being achieved but not outbound logistics. Economic performance is achieved significantly but environmental performance is not significantly achieved, as in the current state. All the same, to achieve environmental performance the outbound logistics adopted by SMEs must be significantly enhanced.

Keywords: Small and Medium Enterprises, Green Supply Chain Management, Environmental Performance

View PDF