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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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Related in: MedlinePlus

Importance-performance analysis of green supply chain initiatives.
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pone.0143115.g008: Importance-performance analysis of green supply chain initiatives.

Mentions: By combining the results of the importance and performance analyses, we can obtain the optimal solution for company X. For this purpose, we multiplied the value of “opportunity for improvement” for each green initiative (that is, one hundred minus the value of the performance) with its value of importance and calculated the contribution of the green initiatives in achieving the prioritised green strategies. Fig 8 illustrates the importance-performance matrix. The results of the final ranking of the green initiatives are given in Table 12. The highest rank goes to the green production initiative, with a value of 39.19% contribution in improving the company’s performance in green strategy adoption. Product design for the environment accounts for the lowest rank, with a value of 5.28%.


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

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

Importance-performance analysis of green supply chain initiatives.
© Copyright Policy
Related In: Results  -  Collection

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

pone.0143115.g008: Importance-performance analysis of green supply chain initiatives.
Mentions: By combining the results of the importance and performance analyses, we can obtain the optimal solution for company X. For this purpose, we multiplied the value of “opportunity for improvement” for each green initiative (that is, one hundred minus the value of the performance) with its value of importance and calculated the contribution of the green initiatives in achieving the prioritised green strategies. Fig 8 illustrates the importance-performance matrix. The results of the final ranking of the green initiatives are given in Table 12. The highest rank goes to the green production initiative, with a value of 39.19% contribution in improving the company’s performance in green strategy adoption. Product design for the environment accounts for the lowest rank, with a value of 5.28%.

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