Analysis of Green Supply Chain Practices using Interpretive Structural Model

Anil S. Dube, Rupesh R. Gawande

Abstract


Increase in environmental awareness across the world,
organizations is increasingly facing heavy pressure to reduce
the environmental impact of entire supply chain. Green supply
chain management (GSCM) is a strategy for sustainable
development in today’s competitive markets; it is also called
as sustainable supply chain management (SSCM). It aims to
simultaneously achieve financial benefits and reduce
environmental risks. This paper explores important green
practices (GP) and analyzes the significance of these practices
to understand their mutual relationship. GSCPs discuss in this
paper are selected from literature and on consultations with
experts from industry and academician. Eleven GSCPs have
been selected and interpretive structural model (ISM) was
developed to find the contextual relationship among these
practices. Experts from industries and academics were
consulted and ISM is used to develop the contextual
relationship among selected GSCPs for each dimension of
GSCM implementation. The driving and dependence power of
these GSCPs are found using MICMAC analysis. This paper
help’s to identify and classify the important GSCPs and reveal
the direct and indirect effects of each GSCP on the GSCM
implementation.
This study has strong practical implications, for practitioners
and academicians. The practitioners need to concentrate on
GSCPs, those are critical to implement in their organizations
and the top management could formulate strategy for
implementing these practices. ISM model indicates “Financial
performance” as dependent top level practice and
“Government rules regulations and market pressure” as a
bottom level practice to implement GSCM in industry.

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