integrating environmental management into the supply ... · supply chain environmental management...

Integrating Environmental Management into the Supply Chains: A Systematic Literature Review and New Construct Development

Chee Yew Wong1, Sakun Boon-itt2 & Christina W.Y. Wong3

www.greensupplychains.org

1Leeds University Business School

2Thammasat Business School

3The Hong Kong Polytechnic University

1

E: [email protected]

Existing concepts of environmental management in supply chains

Integration?

Monitoring

Assessing

Assisting

Collaborating

Supply chain environmental management (Rao, 2002) Green supply chain management (Zhu & Sarkis, 2004) Environmental purchasing (Handfield et al., 2005) Green supply chain practices or environmental collaboration (Vachon & Klassen, 2008)

Sustainable supply chain management integration (Wolf, 2011)

www.greensupplychains.org 2

Recognizing the importance of integrated environmental management

• Collaborative and integrative approaches are the ways forward (Gold et al., 2010; Hassini et al., 2012; Ashby, 2012)

• Concerted efforts to integrate internally within a focal firm and externally with suppliers, customers and stakeholders (Meimzzyk et al., 2012; Sarkis, 2012)

• Winners of AMR Supply Chain Top 25 in 2010 to re-examine vertical integration & aggressively advance efforts in sustainability development (Gartner, 2012)


Objectives

1. Conduct a systematic review of the related existing literature

2. Identify and develop new constructs and measurement scales for “Green Supply Chain Integration” (GSCI)


The systematic literature review (SLR)

• Denyer and Tranfield’s (2009) SLR methods

• Primary question: “What constitute practices for integrating environmental management into the supply chains?”

• Three main keywords: integration, supply chain & environment

• Peer-reviewed journal articles from ABI/INFORM were examined

• A total of 312 articles, reduced to 142


Summary of literature search Keywords Equivalent keywords and search strings

Number of articles

Searched title Searched abstract

Environment Environment; environmental; pollution; eco;

green; stewardship; sustainable, sustainability

2191 19914

Integration Integration; Integrated; integral; collaborate;

collaborative; collaboration; coordinate;

coordination

1364 14963

Supply chain Supply chain; purchasing; procurement;

production; operations manufacturing; logistics

3001 16750

Environment

AND integration

(Environment; environmental; pollution; eco;

green; stewardship; sustainable, sustainability)

AND (Integration; Integrated; integral)

101 (61) 3567

Environment

AND Supply

chain



AND (Supply chain; purchasing; procurement;

production; operations manufacturing; logistics)

199 (145) 2402

Environment

AND integration

AND Supply

chain



AND (Integration; Integrated; integral) AND

(Supply chain; purchasing; procurement;

production; operations manufacturing; logistics)

12 (7) 1027


( ) number of articles after considered duplication, reading abstract, etc.

Some statistics…

• 1994-2004: 31 articles (11 years); 2005-2009: 49 articles (5 years); 2010-2012: 62 articles (3 years)


0

2

4

6

8

10

12

IJPE BSE CSREM POM SCMAJ MEQ IJOPM IJPR

Some history on integration of environmental management

• “Integrate environmental issues into manufacturing” Klassen (1993)

• “Include” technology, process, resource and strategy while implementing environmental management (Shrivastava, 1995; Klassen, 1996; Klassen and Whybark, 1999)

• “Integrated environmental management” (Margerum and Born, 2000)

• Integration and environmental management are closely related (Carter & Carter, 1998; Bowen et al., 2001; Vachon & Klassen, 2006)

• Integrate ethical, societal and environmental issues into business strategy and management systems (Angell and Klassen, 1999; Gond et al., 2012, etc.)

• Sustainable supply chain management integration (Wolf, 2012)


Defining integrated environmental management

“Integrated environmental management” strives to address more complex problems through a more holistic, inter-connective and effective

approach; integration is both a process and an approach to attaining the environmental goals

defined by the participants (Margerum and Born, 2000)


Identifying “integrative” advantage

• A single integrating management systems including quality management system (QMS), Environmental management system (EMS), audit systems, and other functional management systems (Bernardo et al., 2009)

• Organizational integration (Gond et al., 2012)

• Technical integration (Vachon & Klassen, 2006; Gond et al., 2012)

• Green information (Lai & Wong, 2012)

10 www.greensupplychains.org

Defining green supply chain integration (GSCI)

• Green supply chain integration (GSCI) is defined as the strategic collaboration and integration of functions in a focal firms and partner firms in a supply chain to manage the environmental impacts of supply chain activities

• Grounded in relational view (Dyer & Singh, 1998), information processing theory (Galbraith, 1973), integrative advantage (Frohlich Westbrook, 2001) & natural resource-based view (Hart, 1995)


The four emerging themes

1. Internal integration for green supply chain management

2. Supplier integration for green supply chain management

3. Customer integration for green supply chain management

4. External stakeholder coordination for green supply chain management


Developing constructs & measurement scales for the 4 themes

13

1. Internal Integration

2. Supplier Integration

3. Customer Integration

1. Integrated business Strategy (4) 2. Integrated environmental Management System (7) 3. Cross-functional collaboration (5)

1. Exchange information (6) 2. Assistance (5) 3. Process integration (4) 4. Collaboration (5)

1. Exchange information (6) 2. Process integration (4) 3. Collaboration (5)

4. Stakeholder Coordination

1. Communication, involvement / participation, collaboration (6)


Novelties in our conceptualisation of green supply chain integration

• Balancing relational view, information processing, integration advantage

• Complement existing concepts by adding information exchange, process integration, integrated business strategy and management systems and stakeholder coordination

• Comprehensively include internal, supplier, customer and external stakeholders (Vachon & Klassen, 2006; Wolf, 2012)

• A rigour approach in developing measurement scales (Q-sort)


Q-sort method to develop / validate measurement scales

• Q-sort method for pre-assessing initial construct validity and reliability

• Experts act as judges and sort the items into groups (Moore and Benbasat, 1991)

• Two evaluation indices can be used to measure inter-judge agreement levels: 1. Cohen’s kappa - proportion of joint judgment in

which there is an agreement after chance agreement is excluded

2. Moore and Benbasat’s hit ratio - how many items are placed by judges within the target construct


Q-sort results

Country Round 1 Round 2 Round 3

Hit % Agree % Hit % Agree % Hit % Agree %

HK 84% 81% 98% 96%

TH 55% 52% 78% 72%

UK 72% 83%


Round 1 – hit ratio (UK) Round 1 – Agree ratio (UK)

Contributions and implications

• Synthesizing and bringing together different practices for integrating environmental management into supply chains from different disciplines

• Identify and developed 11 constructs for green supply chain integration (GSCI)

• Develop measurement scales for future empirical investigation as well as benchmarking in practice

17

Acknowledgement

This research is supported in part by Economic and Social Research Council (ESRC ES/J016799/1), the Research Grants Council (RGC) of the Hong Kong Special Administration Region, and Thammasat Business School.



integrating environmental management into the supply ... · supply chain environmental management...

Documents