Green purchasing is another important practice under the cover of green supply chain management. In recent years, the notion of purchasing has been thought of as a bottom-line financial consideration, but recent research on purchasing practices indicates that purchasing is also deeply linked with environmental management. Globally it has been noted that the eco-friendly criteria of purchasing have a significant impact on the improved performance of organizations along with economic and environmental concerns (Liobikienė et al., 2016). There are numerous green purchasing strategies that firms adopt. The strategies differ in their nature and have different impacts on the environmental behaviors of providers. It focuses on products that have more eco-friendly attributes. This strategy is highly valuable as the consumers are more likely to prefer environment-friendly products and consequentially benefit the organization in the form of increased market share (Khoiruman and Haryanto, 2017).
Regarding eco-friendly products, eco-design has emerged as a significant strategy in the business management domain of Pakistan. The concept of eco-design was established by World Business Council for Sustainable Development, and since that time, it has been influencing the whole cycle of a product (Fernando, 2017). The production, packaging, and distribution of products are designed according to eco-design strategies. Among all the advantages, the sustainable performance of the organization is noteworthy. As far as the sustainability performance of the firm is concerned, eco-design gives a better environmental commitment and, therefore, a momentous practice in green supply chain management.
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The study intends to cover the gap in the literature by empirically investigating the impression of the components of GSCM practices on the sustainability performance of the manufacturing industry in Pakistan through the moderating role of institutional pressure. The study also feeds back to the literature on sustainability performance by debating how the green supply chain facilitates firms to achieve long-run sustainability performance growth. The novelty of this study is to use primary data by conducting surveys from the manufacturing sectors of Pakistan, including the textile, sugar, automobile, and tobacco industries, to explain sustainability performance through GSCM and its components. Few studies in the literature have empirically examined the impact of GSCM on, sustainability performance but research on the moderating role of institutional pressures between GSCM and sustainability performance is limited. This study objects to filling lacunas in the literature by conducting primary data on manufacturing industry sustainability performance.
The present study examines the impact of components of green supply chain management on the sustainability performance of the manufacturing industry of Pakistan. The gaps in the experiential research of sustainability, performance are filled by executing the following objectives: (1) examine the impact of green manufacturing and green purchasing on the sustainability performance, (2) examine the role of cooperation of customers in the sustainability performance, (3) examine the role of eco-design and green information systems on sustainability performance, and (4) analyze the moderating role of institutional pressure on the relationship between GSCM practices and sustainability performance.
With the growing concern for the environment, reducing costs and improving quality products have become the target for various businesses. There is now a focus on green production from product development up to the management of every step of the product life cycle. The environmental practice steps may involve eco-designs, recycling processes, reuse of the products with minimal cost expenditure, and clean production (Chavez et al., 2016). The literature on environmental management suggests that green operations are related to both products and their related practices of the environment. This reduces product damage and positively affects the supply chain processes involving natural resources (Choi and Hwang, 2015). The capacity of an organization to carry out its environmental practices and sustainable operations is highly important for its performance output. The value of green manufacturing and production has been well recognized in the literature, but the focus on the upstream suppliers is not enough for their performance enhancement role. This supply chain management system helps reduce ecological hazards and the burden on the environment from product production and disposal. This also aids in gaining profits for the manufacturing units and gives them a competitive edge (Arshad Ali et al., 2020).
Competition, customer demand, technological changes, supply chain pressure, cost benefits, incentives, top management commitment and future legislation are found the strongest drivers for ISGLSAMS. For administering the competition for ISGLSAMS policymakers must focus on the availability of organization resources, customer demand, future legislation, incentives, supply chain pressure and technological developments. 2ff7e9595c
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