2.1 Green Supply Chain Management
The concept of GSCM has could be traced to the first United Nations Conference on Human Environment in 1972, or few years to the conference (Fiorini et al., 2018; Sarkis et al., 2011). Meanwhile, the practice of GSCM can be dated to the 1990s, and academic debates on it started in the 2000s (Fahimnia et al., 2015; Srivastava, 2007). The swift embracement of GSCM especially in developed countries was due to the health consequences of different industrial pollutants on their environment and citizens (Asif et al., 2020). This led to several ameliorative measures such as transferring hazardous industries and technologies to developing countries (Copeland and Taylor, 2004; Antweiler et al., 2001). This generated barrage of debates and hypotheses viz pollution haven hypothesis, pollution halo hypothesis among scholars and practitioners (Wang et al., 2019; Baek, 2016; Tamazian et al., 2009). However, it is undeniable that developed countries have devised means of achieving environmental performance and further conceptualized GSCM into their industrial practices (Zhu et al., 2013; Yu et al., 2014; Eltayeb et al., 2011).
Interestingly, since the introduction of the GSCM concept, there is no universal definition for it, meanwhile, the various definitions has some common themes, namely, ‘environmental management’, ‘green procurement’, and ‘sustainability’ (Tseng et al., 2019; Singh and Trivedi, 2016; Gandhi et al., 2015). According to Sarkis et al (2011), GSCM can be defined as the integration of environmental concern into organisational practices for sustainability with the consideration to reverse logistics. GSCM is also described as an integration of sustainable practices into the design, manufacturing, material management, distribution, and end-of-life management of products (Dadhich et al., 2015; Wibowo et al., 2018). Thus, GSCM connotes the practice that considers environmental principle in the lifecycle of a product with great importance in achieving environmental performance, risk control, meeting market expectations, etc. (Malviya et al., 2015; Amemba et al., 2013; Zhu et al., 2012).
2.2 Drivers of Green Supply Chain Management
There are certain drivers of GSCM in production organisations. In a study conducted in Taiwan, the drivers of GSCM includes environmental collaboration with suppliers, desire to satisfy customers’ need, the quest to improve performance in the organisation (Wu et al., 2011). The study concluded that the efforts of the organisation play a significant role in embracing ‘green practices. It is worthy to note that reference was not made to government policy and regulation in the assessment, meanwhile, Diabat and Govindan (2011) considered government regulation as the most critical driver of GSCM through interpretive structural model conducted. The construct of drivers of GSCM in Germany revealed that collaboration with suppliers and commitment to environmental performance are determinants of green purchasing (Large and Thomsen, 2011). Interestingly, Wang et al (2018) simply grouped the drivers of GSCM into customer and cost drivers. This was to capture the drivers into external or internal green practices that lead to environmental performance. On the part of Brik et al (2013), the six drivers of GSCM investigated in Dubai also hovers around internal and external drivers. Thus, this confirms the submissions in different scholarly articles that the drivers of environmental performance initiatives could be categorized into external and internal (Longoni et al., 2018; Zeng et al., 2011)
The desire to engage in international trade transactions is an enabler of green productions (Amakom, 2012; Turker and Altuntas, 2014). When goods produced in one country are moved to other countries as well as purchased by the residents of the countries is referred to as export. Export is the oldest forms of trade and industry transference that take place on a large scale among countries and makes establishments that distribute into foreign markets to expand innovative understanding and involvement (Hessels and Stel, 2009; Wieland, 2021). Export gives room for unearthing fresh technologies, and promotional practices with foreign players. Export contributes significantly to an economy (Amakom, 2012). Thus, the desire to engage in the exportation of products propels organisations to engage in productions that meet international standards (Wood et al., 2015; Weiss and Jacobson, 2000). Import, on the other hand, is another important aspect of international trade. It is worthy to note that the reasons why companies export products and services include: to increase sales and incomes; build new markets or enlarge surviving ones, as well as create a chance to capture important international market segment (Pär, and Nan, 2004; Brooks et al., 2018).
The provision of regulatory policy on GSCM on the part of the government is regarded as a starting point in most cases and an essential part in ensuring ‘green’ practice (Khan and Yu, 2020; Niemann et al., 2016). Regulations mean a set of rules and code of practice that governs or dictates what is considered to be legitimate or illegitimate (Ostrom, 2010; Daliu et al., 2019). Regulations often comprised forms of penalties for defaulters to ensure standardization and equal treatment of business transactions. In the context of this study, regulations refer to a compendium of instruction issued by the government to ensure a safe and favorable environment for the residents of a particular country (Amakom, 2012). Previous studies proved that there is a correlation between governmental regulations, green buying objectives, and environmental performance (Thomas and Littlewood, 2010; Khan et al., 2019a). For instance, countries of the world like America and Denmark have on many occasions adopted market-based methods, voluntarism as well as other plain policy resourcefulness like incorporation; conglomerates; membership; purposeful elegances of decision-making; erudition; collaboration, and New Environmental Governance (NEG) to control environmental dreadful conditions (Khan et al., 2020; Holley, 2017). Therefore, enforcement of the regulations is important to achieve the aim of formulating the policy (Koski, 2006; Adeniyi et al., 2020).
Formulating green strategies in an organization complements the success of an organization, enhances its operations, or augments its asset approaches (Holley, 2017). The green strategy essentially assists an organization ineffective decision-making capable of progressive influence on the environment (Olson, 2008; Head, 2014). Therefore, promoting green principles is essential, thus stimulate ideologies that make up green strategies and operative decisions centered on firm commercial soundness and sustainable development (Insch, 2011; Khan et al., 2019b). The kind of activities being undertaken in an industry is also a determinant of GSCM. This encompasses material management, storing, conservation decisions; management activities or dumping strategies, etc. (Teshome and Thakur, 2017; Olson, 2008). Besides, discarded material, or by-products; material management locations; waste sites, and the likes could also be considered (Glaser, 2006; Grant et al., 2017).
Consumers’ awareness is also significant in green buying decision-making practices as well as consumers’ buying purpose. This is also referred to as ‘Eco literacy’. As long as an individual is aware of the environmental damages of a particular product, a negative perception about such product and even the organization, as a whole is expressed (Ayodele et al., 2017). Therefore, enlightening the consumer has been suggested as a suitable way to maintaining reliability in terms of being environmentally responsive (Olamuyi, 2012; Gupta and Palsule-Desai, 2011). Environmental awareness has an uninterrupted influence on customers’ preparedness to pay for a green product (Muhammad et al., 2014). Thus, the awareness helps to enhance the quality of life of people and their immediate environment.
The desire of an organisation to possess a green brand image as a means to enhance organisational reputation and market strategy cannot be undermined (Olamuyi, 2012). Green brand development emphasizes end-of-pipe technology where firms are conscious about environmental matters through the process of production as well as product design (Othman, 2011). Thus, a firm with a green brand promotes a reduction in the usage of non-repeatable resources and toxic materials. The use of a renewable resource is very important because it helps to sustain the brand among its competitive brands (Rizwan et al., 2013). Therefore, the development of eco-friendly goods is imperative (Olamuyi, 2012).
The need to involve the societal organisation in the campaign for sustainable consumption and production is very important. This organisation focuses on encouraging values such as global accountability, community-based economics, as well as sustainability. This is why Non-Governmental Organizations (NGOs) across the globe are making frantic efforts to educate and implement green strategies in their administrative platforms (Rizwan, et al., 2013). However, green movement activism embraces a broad collection of individuals as well as organizations working with systematic, collective, eco-friendly, and political grounds to address the worries of ecology. These individuals and organizations according to Payne (1996) are recognized communally as a fragment of the ecological or green movement. Thus, it could be said that green movement activists may not possess a political alliance or agenda but, pursue solutions to environmental problems.
Finally, a company’s initiative and desire to improve its products through a mutual relationship with its customers via responsibility in the environment where it operates is important (Jo et al., 2015; Tanner and Wölfing, 2003). This kind of initiative according to Falck and Heblich (2007) may be a section of the company’s vision for the future and this is what describes the obligations of the company to the members of the environment, which is termed ‘Corporate Social Responsibility’. A company’s initiative is a task to find a lasting solution to an in-house problem or to satisfy their customers’ needs.