Adoption of green supply chain management practices and their impact on performance: an exploratory study of Indian manufacturing firms

Research on green supply chain management (GSCM) or sustainable supply chain management (SSCM) has attracted increased attention in recent years. Although GSCM/SSCM has been studied for developed and developing countries, there has been little information about the adoption of GSCM/SSCM practices in India. This article presents one of the earliest surveys on GSCM practices in Indian manufacturing firms. The items for the survey were developed based on the extant literature and feedback from corporates. Some of the major findings of the survey are as follows. We found that the state of adoption of GSCM practices by Indian firms was still in its infancy, the awareness of environmental sustainability was quite low among consumers, and the regulatory framework was also lacking in terms of promoting environmental sustainability. Results of data analysis showed that supplier collaboration for environmental sustainability had a positive impact on environmentally sustainable product design and logistics, which in turn was positively related to competitiveness and economic performance of the firm. We compared the results with the observations made by other researchers for developed and developing countries and provided managerial implications for the government and manufacturers as to what steps need to be taken to generate awareness towards environmental sustainability and facilitate the adoption of GSCM practices among Indian firms to a greater extent. We conclude the paper by indicating directions for future research on GSCM/SSCM.     

Simulation and performance evaluation of partially and fully integrated sales and operations planning

This article presents rolling horizon simulation models and performance analysis of partially and fully integrated sales and operations planning (S&OP) against traditional decoupled planning in a multi-site make-to-order (MTO) based manufacturing supply chain. Three simulation models are developed illustrating, respectively, the fully integrated S&OP model, which integrates cross-functional planning of sales, production, distribution, and procurement centrally; the partially integrated S&OP model, in which the joint sales and production planning is performed centrally while distribution and procurement are planned separately at each site; and the decoupled planning model, in which sales planning is carried out centrally while production, distribution, and procurement are planned separately and locally. A solution procedure is provided for each model so that a more realistic planning process can be simulated. Performances of rolling horizon simulation models are evaluated against those of the fixed horizon deterministic models. The results demonstrate that while deterministic models are important for theoretical studies, they are insufficient for decision support and performance evaluations in a real business environment. A rolling horizon simulation model is required to provide more realistic solutions. The effects of demand uncertainties and forecast inaccuracies are incorporated in the evaluation. The study is carried out based on a real industrial case of a Canadian-based oriented strand board (OSB) manufacturing company.     

Strategic purchasing,supply management practices and buyer performance improvement: an empirical study of UK manufacturing organisations

Purchasing is increasingly seen as an important strategic activity of the firm. However, there is little evidence examining the effects of strategic purchasing on a firm's inter-organisational supply management practices and performance. The purpose of this paper is to examine the effect of strategic purchasing on the supply management practices of socialisation, supplier integration and supplier responsiveness, together with relationship performance. Using empirical data collected from 111 United Kingdom purchasing executives, a structural equation model is used to test the theoretical framework. The results provide support for four of the six hypotheses developed. Strategic purchasing was found to have an indirect, significant effect on improving buyer performance, acting through supplier integration. Strategic purchasing also had a significant effect on the use of socialisation mechanisms, but not on supplier responsiveness. Our research indicates that close, long-term supplier relationships can lead to the creation of relational rents. Implications for future research and suggestions for improving the rigour of strategic purchasing research are made.     

Agile supply chain strategy and supply chain performance: complementary roles of supply chain practices and information systems capability for agility

The paper examines the mediating effect of supply chain (SC) practices on the relationship between agile supply chain (ASC) strategy and SC performance. It further examines the moderating effect of information systems (IS) capability for agility on this mediated relationship. Using the theoretical lenses of complementarity and the information processing view of the supply chain, we hypothesise that strategic supplier partnership, customer relationship, postponement and lean practices, mediate the relationship between ASC strategy and SC performance. We further hypothesise that IS capability for agility moderates each of these mediated relationships. We empirically test the hypotheses using survey data from members of senior and executive management in the logistics/supply chain functions of 205 firms. The paper contributes to the literature on ASCs by theoretically explaining and empirically demonstrating how SC practices and IS capability for agility act together to effect a positive relationship between ASC strategy and supply chain performance.     

An empirical study on the impact of critical success factors on the balanced scorecard performance in Korean green supply chain management enterprises

Rapid industrial modernisation and economic reform have been features of the Korean economy since the 1990s, and have brought with it substantial environmental problems. In response to these problems, the Korean government has been developing approaches to promote cleaner production technologies. Green supply chain management (GSCM) is emerging to be an important approach for Korean enterprises to improve performance. The purpose of this study is to examine the impact of GSCM CSFs (critical success factors) on the BSC (balanced scorecard) performance by the structural equation modelling, using empirical results from 249 enterprise respondents involved in national GSCM business in Korea. Planning and implementation was a dominant antecedent factor in this study, followed by collaboration with partners and integration of infrastructure. However, activation of support was a negative impact to the finance performance, raising the costs and burdens. It was found out that there were important implications in the implementation of GSCM.     

Determinants of mobile supply chain management system diffusion: a structural equation analysis of manufacturing firms

Mobile supply chain management (SCM) is gaining recognition as a major source of cost reduction and supply chain performance improvement. The current literature related to mobile SCM needs to be extended further in order to provide insights into how manufacturing firms can implement mobile SCM successfully. Specifically, there is a need to provide empirical and systematic analysis of the variables that can explain the various stages of mobile SCM diffusion. A review of recent literature suggests that existing e-supply chain technology adoption literature is not strongly grounded in theory. A theoretical model with six hypotheses was proposed based on the technology–organisation–environment (TOE) framework and innovation diffusion theory (IDT). This study draws its survey responses from a group of manufacturing firms in order to investigate the factors that affect the diffusion of mobile SCM. The results show that the variables derived from TOE and IDT can explain mobile SCM diffusion well. However, interorganisational relationships (IORs) play a crucial role in determining the success of mobile SCM routinisation. This is one of the first known empirical studies on the factors influencing the diffusion of mobile SCM. The results of this study will help decision makers better understand the implementation process of mobile SCM and formulate strategies for successful diffusion of mobile SCM.     

The impact of operations capability on firm performance

We propose that a firm's operations capability is manifested through its new product design and development, just-in-time, and quality-management efforts. Moreover, we propose that operations capability, so defined, directly and positively impacts firm performance. Survey data were used to independently calibrate and validate a structural equation model linking operations capability, a second-order construct, to firm performance. Results provide support for the model and demonstrate a positive relationship between operations capability and firm performance.     

Lean and green combine to impact environmental and operational performance

We assess the antecedent link between lean and green practices and assess the combined impact of lean and green practices on both environmental and operational performance. A lean and green practices performance model is proposed that incorporates lean and green practices as antecedents to both environmental and operational performance. Structural equation modelling was used to analyse data collected from a sample of 182 manufacturing managers in U.S. plants. We found that lean manufacturing practices are positively associated with environmental performance and operational performance and that green supply chain management practices are positively associated with environmental performance and environmental performance is positively associated with operational performance. No support was found for the idea that green supply chain management practices are positively associated with operational performance. While lean practices were found to directly affect environmental performance, the indirect effect of lean practices on environmental performance through green practices is stronger, indicating complementarity.     

The impact of supply chain analytics on operational performance: a resource-based view

This study seeks to better understand the role of supply chain analytics (SCA) on supply chain planning satisfaction and operational performance. We define the architecture of SCA as the integration of three sets of resources, data management resources (DMR), IT-enabled planning resources and performance management resources (PMR), from the perspective of a resource-based view. Based on the data collected from 537 manufacturing plants, we test hypotheses exploring the relationships among these resources, supply chain planning satisfaction, and operational performance. Our analysis supports that DMR should be considered a key building block of manufacturers’ business analytics initiatives for supply chains. The value of data is transmitted to outcome values through increasing supply chain planning and performance capabilities. Additionally, the deployment of advanced IT-enabled planning resources occurs after acquisition of DMR. Manufacturers with sophisticated planning technologies are likely to take advantage of data-driven processes and quality control practices. DMR are found to be a stronger predictor of PMR than IT planning resources. All three sets of resources are related to supply chain planning satisfaction and operational performance. The paper concludes by reviewing research limitations and suggesting further SCA research issues.     

Supply chain integration patterns and operational performance: a plant-level survey-based analysis

Though most scholars recognise that supply chain integration (SCI) can contribute to improving operational performance, previous studies on the SCI-performance link showed mixed results and several questions on this issue remain still open. In line with a configurational perspective, this study investigates whether plants adopting multiple integration practices (i.e. full SCI adopters) perform better than plants implementing only some selected SCI practices (i.e. partial adopters) and plants which do not implement any SCI practice (i.e. non-adopters). In addition, it analyses whether partial adopters show a superior performance compared to non-adopters. Analyses based on a sample of 317 manufacturing plants reveal that full adopters perform better than non-adopters, in terms of quality, delivery, flexibility and efficiency. Among partial adopters, a particular SCI pattern, characterised by a high level of internal integration and supply chain planning, differs from non-adopters in terms of delivery, and shows results similar to full adopters in terms of quality and efficiency. More surprisingly, the other patterns of partial adopters do not significantly differ from non-adopters in any performance dimensions, and underperform full adopters in each performance. This suggests that in order to maximise SCI benefits companies should lever on multiple integration practices, and that in some cases focusing only on selected integration activities can be useless. A further interesting implication is that companies can cumulatively increase their operational performance towards a full exploitation of SCI benefits by following a certain sequence of SCI practices.     

Servitization of manufacturing in the new ICTs era: A survey on operations management

Servitization of manufacturing has become one of the main pathways for transition and upgrade in the manufacturing industry. New information and communication technologies (ICTs), such as the Internet of Things, Big Data, and Cloud Computing have enabled the servitization of manufacturing in terms of value creation, resource management, and supply chain management. This study presents a comprehensive review on the servitization in operations management in the era of new ICTs. A new value chain framework is proposed under the business model that revolves around servitization, which showcases the new activities and ways of implementation in the era of new ICTs. The virtualization, configuration, and evaluation of integrated manufacturing and service resources are analyzed. In particular, the methods used in new ICT-supported resource management platforms are surveyed. Problems in the supply chain management in manufacturing services (including the selection of partners, as well as the coordination, planning, and scheduling among members) are presented. This study concludes with a discussion on state-of-the-art servitization in operations management in the era of new ICTs.     

Lean practices implementation and their relationships with operational responsiveness and company performance: an Italian study

Although many firms report large benefits from lean implementation, a lot of scepticism still remains regarding attainable results and the possibility to apply Lean approach outside high-volume manufacturing and stable context. In this work, combining field interviews with literature review, theoretical connections have been developed among Lean manufacturing techniques, operational responsiveness and company growth performances. A conceptual model has been proposed for investigating the network of influences among lean practices (supplier management, human resource management, just-in-time and total quality management practices), operational responsiveness (Product mix variety, Product innovation and Time effectiveness) and company growth performances in Italian companies. Using structural equation modelling, a second-order confirmatory factor analysis has been used to test the hypothesised relationships in the structural models. This study highlights that the operational responsiveness is only partially connected to a Lean strategy of a company. Indeed, the lean practices implementations are negatively influenced by product mix variety and innovation, while positively influenced by time effectiveness variables. Moreover, product mix variety and time effectiveness are the main characteristics of the operational responsiveness that positively influences company growth performances. So time effectiveness could be considered as a mediator between Lean best practices and firm growth. Moreover, no direct relationship has been found between lean bundles and firm’s performances. Lack of resources and mainly poor communication and managers’ commitment and support seem to be the main obstacles of lean implementation and success.     

Integration of promotion and production decisions in sales and operations planning

This paper presents a new modelling framework for developing a sales and operations plan that integrates promotion and production planning decisions. We adopt a rich demand function that captures the dynamics and heterogeneity of consumer response to price promotions by simulating purchase incidence, consumer choice and quantity decisions, as well as household’s inventory level. Our numerical study reveals interesting findings on the benefits of developing an integrated sales and operations plan as well as the optimal timing and number of promotions, and more importantly, how these findings are influenced by the mutual dependence of marketing- and production-related factors.     

An impact of manufacturing flexibility and technological dimensions of manufacturing strategy on improving supply chain responsiveness: Business environment perspective

The main objective of this research is to investigate the impact of manufacturing flexibility and technological dimensions of manufacturing strategy on responsiveness in the supply chain. Based on the theoretical background of dynamic capability, this study also examines the role of the business environment on the relationship between manufacturing flexibility and supply chain responsiveness. 144 structured surveys were collected and the partial least squares of structural equation modelling approach were utilised for data analysis. The result establishes relationships among various dimensions of manufacturing flexibility. Although the technological dimensions in manufacturing strategy of such advanced manufacturing technology (AMT) and e-procurement do not have any direct impact on new product and market flexibility, they increase supply chain responsiveness, which helps to react quickly against supply chain disruptions. More importantly, the business environment has a moderating effect on the relationship between market flexibility and supply chain responsiveness.     

An adaptive framework for aligning (re)planning decisions on supply chain strategy,design, tactics,and operations

Over the last decade, a wealth of valuable approaches to supply chain strategic, tactical, and operational planning has been extensively developed. However, conventionally the planning decisions at each of these levels have been considered in isolation from the other levels. Moreover, decisions on supply chain strategy, design, tactics, and operations are interlinked and dispersed over different supply chain structures (functional, organisational, informational, financial, etc.). This study develops a framework to increase the efficiency, consistency, implacability, and sustainability of decisions on how to design, plan, and run supply chains. In this paper it is proposed that comprehensive planning as an adaptive process encapsulates the planning decisions to be interrelated at all the decision-making levels. A conceptual model is described interlinking the supply chain strategy, design, planning, and operations on adaptation principles. Subsequently, a mathematical modelling complex and its realisation in a software environment is presented. This study contributes to developing methodical basics and practical tools to transit from simple open time slots incremental planning to dynamic, feedback-based adaptive supply chain planning. The elaborated framework serves to increase the efficiency, consistency, implacability, and sustainability of decisions on supply chain strategy, design, tactics, and operations. Decisions alignment can help to increase the wealth of organisations by producing demand-corresponding products in the most cost-effective manner through increasing agility, responsiveness, reaction speed to market changes, and continuous comprehensive improvements/adaptation of supply chains.     

A survey of semiconductor supply chain models part III: master planning,production planning,and demand fulfilment

Part I of this three-part series described semiconductor supply chains from the decision-making and functional perspectives, using this as a framework to review the industrial engineering (IE) and operations research (OR) literature on the problems arising in these supply chains. Part I then reviewed the literature on Strategic Network Design, Supply Chain Coordination, Sustainability and Semiconductor Supply Chain Simulation, while Part II reviewed Demand Planning, Inventory Management, and Capacity Planning. This paper concludes the series, discussing Master Planning, Production Planning, Demand Fulfilment, and Available to Promise (ATP) in semiconductor supply chains.     

Green Supply Chain Management practices and impact on firm performance: The moderating effect of collaborative capability

The environmental effects of supply chain operations are under the significant influence of Green Supply Chain Management (GSCM), with a potential enhancement of organizational sustainability performance. Even though previous studies have pointed to the contribution of integration of various activities associated with GSCM, no investigations have been carried out for the possible interdependencies of these activities and their application effects. Consequently, this paper aims at investigating the associations of GSCM methods and performance of manufacturing firms using the Natural Resource-Based View (NRBV) as well as Institutional Theory. The collected data from manufacturing firms were analyzed using the partial least squares technique. Accordingly, mimetic, normative, and coercive pressures were found to affect GSCM positively and significantly. Moreover, the GSCM and the firms’ environmental, operational and economic performances were found to be positively and significantly associated. In addition, according to the moderation analysis, collaborative capabilities had significant moderating effects on the association of green chain management and environmental as well as economic performance. However, collaborative capabilities could not moderate the association of GSCM and operational performance. Managers, supply chain specialists and also policy makers would benefit from the findings of the present study along with the inspirations resulting from the contribution of specific drivers in implementing GSCM methods, while application of the mentioned methods could be effective in achieving the desired performance levels. Furthermore, industrial sectors are provided with managerial and theoretical insights by the results obtained in the present paper to concentrate on environmental awareness through the adoption of GSCM methods.     

The impact of lean methods and tools on the operational performance of manufacturing organisations

Evidence suggests that lean methods and tools have helped manufacturing organisations to improve their operations and processes. However, the real effect of these methods and tools on contemporary measures of operational performance, i.e. cost, speed, dependability, quality and flexibility, is still unclear. This paper investigates the impact of five essential lean methods, i.e. JIT, autonomation, kaizen, total productive maintenance (TPM) and value stream mapping (VSM), on these measures. A linear regression analysis modelled the correlation and impact of these lean practices on the operational performance of 140 manufacturing organisations around the world. In addition, structural equation modelling (SME) was used to cross verify the findings of the regression and correlation analyses. The results indicate that JIT and automation have the strongest significance on operational performance while kaizen, TPM and VSM seem to have a lesser, or even negative, effect on it. This paper provides further evidence regarding the effects that lean practices have on the performance of organisations and thus the research offers companies, and their managers, a better understanding of the relationship between the lean strategy and the performance of their operations.