Ranking of Green Practices using Interpretive Structural Modeling

Abstract

Green supply chain management (GSCM) is now a
proactive approach for organizations to enhance their environmental
performance and achieve competitive advantages. It is a sustainable
strategic development for organization, to achieve financial and
environmental benefits simultaneously, by reducing environmental
risk and impact .Increase in environmental awareness across the
world, there is heavy pressure on organizations to minimize the
environmental impact of entire supply chain. Green supply chain
management (GSCM) is a strategy for sustainable development and
is also called as sustainable supply chain management (SSCM).
This paper discus important green practices (GP) and analyzes the
significance of these practices to understand their mutual
relationship. GSCPs presented in the paper are selected from
literature and on consultations with experts from industry and
academician. Eleven GSCPs have been selected and contextual
relationship among these practices was found using interpretive
structural model (ISM). 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. MICMAC analysis was used to find driving and
dependence power of these GSCPs. 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 critical GSCPs, and the top
management could formulate strategy for implementing these
practices. ISM model indicates “Financial performance” as
dependent practice at top level and “Government rules regulations
and market pressure” as a dependent practice at bottom level.