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The Development of a Strategic Prioritisation Method for Green Supply Chain Initiatives.

Masoumik SM, Abdul-Rashid SH, Olugu EU - PLoS ONE (2015)

Bottom Line: To maintain a competitive position, companies are increasingly required to integrate their proactive environmental strategies into their business strategies.The elements of the decision model were derived from the literature.The causal relationships among the multiple decision variables were validated based on the results of structural equation modelling (SEM) using a dataset collected from a survey of the ISO 14001-certified manufacturers in Malaysia.

View Article: PubMed Central - PubMed

Affiliation: Centre for Product Design and Manufacturing (CPDM), Department of Mechanical Engineering, Faculty of Engineering, University of Malaya, Kuala Lumpur, Malaysia.

ABSTRACT
To maintain a competitive position, companies are increasingly required to integrate their proactive environmental strategies into their business strategies. The shift from reactive and compliance-based to proactive and strategic environmental management has driven companies to consider the strategic factors while identifying the areas in which they should focus their green initiatives. In previous studies little attention was given to providing the managers with a basis from which they could strategically prioritise these green initiatives across their companies' supply chains. Considering this lacuna in the literature, we present a decision-making method for prioritising green supply chain initiatives aligned with the preferred green strategies alternatives for the manufacturing companies. To develop this method, the study considered a position between determinism and the voluntarism orientation of environmental management involving both external pressures and internal competitive drivers and key resources as decision factors. This decision-making method was developed using the analytic network process (ANP) technique. The elements of the decision model were derived from the literature. The causal relationships among the multiple decision variables were validated based on the results of structural equation modelling (SEM) using a dataset collected from a survey of the ISO 14001-certified manufacturers in Malaysia. A portion of the relative weights required for computation in ANP was also calculated using the SEM results. A case study is presented to demonstrate the applicability of the method.

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Decision model for improvement of strategic green supply chain management.
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pone.0143115.g003: Decision model for improvement of strategic green supply chain management.

Mentions: To investigate how each decision element in a cluster influences its related elements in the other clusters, we evaluated the structural model to investigate the proposed relationship in our conceptual model. Table 6 shows the results presenting the significant and non-significant relationships. The decision model was formed based on the significant relationships. For example, according to the results, the element of society pressures has no significant relationship with the elements in the cluster green strategy, so we removed this element from our final decision model (see Fig 3).


The Development of a Strategic Prioritisation Method for Green Supply Chain Initiatives.

Masoumik SM, Abdul-Rashid SH, Olugu EU - PLoS ONE (2015)

Decision model for improvement of strategic green supply chain management.
© Copyright Policy
Related In: Results  -  Collection

License
Show All Figures
getmorefigures.php?uid=PMC4664245&req=5

pone.0143115.g003: Decision model for improvement of strategic green supply chain management.
Mentions: To investigate how each decision element in a cluster influences its related elements in the other clusters, we evaluated the structural model to investigate the proposed relationship in our conceptual model. Table 6 shows the results presenting the significant and non-significant relationships. The decision model was formed based on the significant relationships. For example, according to the results, the element of society pressures has no significant relationship with the elements in the cluster green strategy, so we removed this element from our final decision model (see Fig 3).

Bottom Line: To maintain a competitive position, companies are increasingly required to integrate their proactive environmental strategies into their business strategies.The elements of the decision model were derived from the literature.The causal relationships among the multiple decision variables were validated based on the results of structural equation modelling (SEM) using a dataset collected from a survey of the ISO 14001-certified manufacturers in Malaysia.

View Article: PubMed Central - PubMed

Affiliation: Centre for Product Design and Manufacturing (CPDM), Department of Mechanical Engineering, Faculty of Engineering, University of Malaya, Kuala Lumpur, Malaysia.

ABSTRACT
To maintain a competitive position, companies are increasingly required to integrate their proactive environmental strategies into their business strategies. The shift from reactive and compliance-based to proactive and strategic environmental management has driven companies to consider the strategic factors while identifying the areas in which they should focus their green initiatives. In previous studies little attention was given to providing the managers with a basis from which they could strategically prioritise these green initiatives across their companies' supply chains. Considering this lacuna in the literature, we present a decision-making method for prioritising green supply chain initiatives aligned with the preferred green strategies alternatives for the manufacturing companies. To develop this method, the study considered a position between determinism and the voluntarism orientation of environmental management involving both external pressures and internal competitive drivers and key resources as decision factors. This decision-making method was developed using the analytic network process (ANP) technique. The elements of the decision model were derived from the literature. The causal relationships among the multiple decision variables were validated based on the results of structural equation modelling (SEM) using a dataset collected from a survey of the ISO 14001-certified manufacturers in Malaysia. A portion of the relative weights required for computation in ANP was also calculated using the SEM results. A case study is presented to demonstrate the applicability of the method.

Show MeSH
Related in: MedlinePlus