RPA in supply chain management
Understanding the barriers to implementing GSCM practices in organisations operating in developing countries
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Abstract
In recent years, organisations are considered responsible for causing environmental problems
(The Corporation, 2005 & Tsireme, 2012). These problems are larger and less controllable when
inevitably different and more companies interrelate themselves such as manufacturers,
warehouses, shipping companies, service suppliers and other participants in a given supply chain
(Sarkis, Zhu and Lai, 2010). Nowadays this is a worldwide problem affecting every country
regardless its particular level of economic growth (Bollino and Polinri, 2011). In fact, developed
countries produced about 60 percent of the world's greenhouse gases in 1990, however now are
responsible for less than 50 percent (Reilly, 2011). What is more, it is projected that greenhouse
gas emissions from the developing world exceed those from the developed world by 2015 (SGM
Energy Modelling Forum, 2010). Therefore, the justification for reaction is imperative.
In recent years, there has been research about Green Supply Chain Management (GSCM) due to
its potential to deliver differential performance, while organisations have been tackling
challenges to implementing practices thereon. This barriers to its implementation are present and
it is worth acknowledging them thoroughly (Gore, 2006) to further be able to create solution
strategies in search of competitiveness (Barreto Ramos et al, 2004) while caring about
environment. Hurdles can be classified and pondered, however it is too ambitious to assume this
analysis would be homogeneous around the world due to countless contexts.
A review of the literature shows the absence of a framework that identifies and explores barriers to implementing GSCM practices (GSCMP) in organisations operating in developing economies.
Currently, attention is paid to considerations when implementing GSCMP, steps to
implementation, and even barriers to topics like Supply Chain Management, Supply Chain
Collaboration, Performance Measurement of Supply Chain Management (SCM), Green
Procurement, Purchasing Green Transport Services and some others. What is more, propositions
are based on research carried out mainly in developed countries. Therefore, the objective of this dissertation is to understand the barriers to implementing GSCMP in organisations operating in
developing countries.
The research questions that this piece of work aims to answer to help fill this gap are: What are the barriers to implementing GSCMP in organisations operating in developing countries?, What
is the most significant barrier? and How are these barriers similar or different to those operating
in developed countries? To answer these questions a multiple case study was best to be executed
Understanding the barriers to implementing GSCM practices in organisations operating in developing countries
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to recognise and explore linkages about barriers to implementing GSCMP within three
organisations and the context throughout their respective supply chain. The main organisations
involved are AREURMOT, MVM and ILM.
These are three case studies from which information was collected guided by the Walker et al
(2008) framework, which classifies the barriers in internal and external to the organisation.
Support was found for the proposed barriers of this model, plus four other more. Findings yield three internal barriers: “Cost”, “Lack of legitimacy” and “Insufficient top management
commitment”;; three external barriers: “Regulations”, “Poor supplier commitment” and “No
Application of law Sanctions” and lastly, two more barriers which can be both internal and
external: “Insufficient know how about GSCMP implementation” and “Environmental
Unconsciousness”. It can be seen that whereas barriers in developed countries can be internal or
external, two barriers in developing countries can be internal and external at the same time; this is
the remarkable difference. As a similarity, it was found that cost is indeed the most significant
barrier in developing nations. Only one barrier of the model could not be proved “Industry
Specific Barriers”, potentially because only three supply chains were investigated. Nevertheless,
it would be overreaching to interpret it as non valid barrier since there are a lot more industries
that were not studied.
It is concluded that using the Walker et al (2008) framework over organisations operating in developing countries is possible but insufficient, since four more barriers apply. Besides, there is
modification to the “Lack of Legitimacy” barrier concept since in developed countries it relates
more to the diffusion of practices that are not implemented in reality, whereas in this multiple
case-study attention is placed on the phenomenon of employees not following GSCMP, which
causes a lack of legitimacy of the organisation as a whole. Similarly, there is an adaptation of the
barrier of Regulations (environmental regulations), given that conversely to developed countries,
developing nations tend to have weak ones.
Also, it can be concluded that although cost is the most significant barrier in organisations operating in both developed and developing organisations, there is intensive stress on the fact that
Environmental Unconsciousness must not be ignored as part of a culture belonging to developing
nations’ people. It is urged to focus attention in these two major barriers in order to bridge them
and counteract the threatening projections of developing countries to surpass environmental
damage levels by 2015.
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Content 1. Introduction ......................................................................................................................................... 6
1.1 Background ............................................................................................................................. 6
1.2 Research Objective ................................................................................................................. 7
1.3 Research Questions ................................................................................................................. 8
1.4 Dissertation Structure .............................................................................................................. 8
2. Literature Review .......................................................................................................................... 10
2.1 Supply Chain Management ................................................................................................... 10
2.2 Green Supply Chain Management ........................................................................................ 13
2.2.1 Background .......................................................................................................................... 13
2.2.2 Definition and Practices ....................................................................................................... 14
2.3 Barriers to GSCM practices ........................................................................................................ 22
2.4 The model choice .................................................................................................................. 32
2.5 Linking the barriers to the Accountability in Developing countries ..................................... 34
2.6 Conclusions of the Literature Review ................................................................................... 37
3. Methodology ................................................................................................................................. 38
3.1 Introduction ................................................................................................................................. 38
3.2 Research approach ...................................................................................................................... 39
3.3 Research Philosophy or Paradigm identification ........................................................................ 40
3.4 Methodologies available ............................................................................................................. 42
3.4.1. Nature of the research ......................................................................................................... 43
3.5 Methodology chosen ................................................................................................................... 44
3.6 Data collection Methods Used .................................................................................................... 45
3.6.1 Justifying the country of research ........................................................................................ 46
3.6.2 Justifying of the participating organisations’ size ................................................................ 49
3.6.3. Interview Guide Design ...................................................................................................... 50
3.7 Data Analysis .............................................................................................................................. 52
3.8 Assurance .................................................................................................................................... 53
3.9 Research Design .......................................................................................................................... 53
3.10 Conclusions of the Methodology .............................................................................................. 55
4. Findings......................................................................................................................................... 56
4.1 Asesoría en Reembobinado Urgente y Venta de Motores y Controles Eléctricos S.A. de C.V. (AREURMOT) ................................................................................................................................. 56
4.2 Mosaicos Venecianos de México (MVM) .................................................................................. 58
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4.3 Industrias Lavín de México S.A. de C.V. (ILM) ........................................................................ 59
4.4 Barriers in case organisations ............................................................................................... 61
4.4.1 Internal Barriers ............................................................................................................ 61
4.4.2 External Barriers ........................................................................................................... 62
4.5 Conclusions of Findings ............................................................................................................. 66
5. Analysis and Discussion ............................................................................................................... 67
5.1 What are the barriers to implementing GSCM practices in organisations operating in developing countries? .......................................................................................................................................... 67
5.1.1 Internal Barriers ................................................................................................................... 67
5.1.2 External Barriers .................................................................................................................. 68
5.2 What is the most significant barrier to implementing green supply chain management practices in organisations operating in developing countries? .......................................................... 69
5.3 How are these barriers similar or different to those operating in developed countries? ....... 70
5.4 Limitations .................................................................................................................................. 70
5.5 Recommendations for Future Research ...................................................................................... 71
5.6 Conclusions of Analysis and Discussion .................................................................................... 71
6. General Conclusions ......................................................................................................................... 72
5 References ..................................................................................................................................... 73
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List of Tables
Table 1: SCM definitions 2 ................................................................................................................... 12 Table 2: SCM resume 1 ........................................................................................................................ 13 Table 3: Examples of GSCM practices 1 .............................................................................................. 16 Table 4: GSCM & practices resume 1 .................................................................................................. 21 Table 5: Barriers in current literature, shoing the gap 1 ....................................................................... 23 Table 6: Comparison of the two main models 1 ................................................................................... 33 Table 7:Research philosophies comparison 1 ....................................................................................... 41 Table 8: PEST Mexico - Political factors 1 .......................................................................................... 47 Table 9: PEST Mexico - Economic factors 1 ....................................................................................... 47 Table 10: PEST MX Sociological/Demographical factors 1 ................................................................ 48 Table 11: Mexico - Technological factors 1 ......................................................................................... 48 Table12:Overall information case studies 1 .......................................................................................... 49 Table 13: Interview Guide Design 1 ..................................................................................................... 51 Table 14: Summary of GSCM practices 1 ............................................................................................ 60 Table15: Encountered barriers to implementing GSCM practices 1 .................................................... 65 List of Figures Figure 1: Steps to implementing GSCM 1 ............................................................................................ 18 Figure 2: Barriers (internal/external) to implementing GSCM practices 1 ........................................... 27 Figure 3: Barriers to implementing GSCM (in automobile industry) 1 ............................................... 30 Figure 4: Encountered barriers diagram (internal/external/both) to implementing GSCM practices1 66
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Understanding the Barriers to Implementing Green Supply Chain Management Practices in Organisations Operating in Developing Countries
1. Introduction
In recent years, there has been research about Green Supply Chain Management (GSCM) due
to its potential to deliver differential performance, while organisations have been tackling
challenges to implementing practices thereon (Sarkis, 2003). The barriers to its
implementation are present and it is worth acknowledging them thoroughly (Gore, 2006) to
further be able to create solution strategies in search of competitiveness (Barreto Ramos et al,
2004) while caring about environment. Hurdles can be classified and pondered, however it is
too ambitious to assume this analysis would be homogeneous around the world due to
countless contexts. From a theoretical standpoint, this topic has been approached in general
terms using data resources from developed countries. Thus the need of bringing the attention
to organisations in developing countries which literature seems to underestimate.
1.1 Background
An unequal economic growth of advanced and developing countries is related to uneven
contributions to world pollution. Notwithstanding the discrepancy, climate change and
deterioration of the ozone layer are among the reasons why it is important to introduce new
regulations and policies in favour of the natural environment worldwide (Sarkis, 2001).
Organisations in developed countries have been implementing environmental concern
practices in their supply chains, which have yielded satisfactory results slowing the damage
to environment worldwide (Borenstein, 2011 and Tsirene et al, 2012); presumably, the
progress in this matter implies outweigh of barriers. As regards implementation of GSCM
practices (GSCMP) in developing countries, apparently barriers are still to be offset so
pollution is tackled. According to Hill and Hill (2012), perceptions of “ethical” business
practice varies significantly between countries, which may explain different behaviour
towards GSCMP in organisations operating in developed and developing countries.
Hill and Hill (2012:5) accentuate that it is complex to adopt best practice from other
organisations, so managers have to find their own way to manage environmental impact and
report it. In order to do so, managers should support implementation of GSCMP; however
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this can be hampered if barriers exist and persist (Q. Zhu et al, 2008). Therefore, the latter
authors highlight the need for future research of identifying the reasons that prevent
organisations from implementing GSCMP. By understanding the barriers, it is possible to
identify and explore on precise weaknesses, threats and opportunities for change. Managers
could design solution strategies to counter the defined internal and external
barriers effectively, aiming to improve the competiveness of organisations (Barreto Ramos et
al, 2004 and Zhu et al, 2008). Additionally, it can help governments to establish suitable
regulations to promote environmental practices in industries (Zhu et al, 2008). This would
involve the benefits of GSCM such as cost reduction. As a result, organisations are likely to
improve their environmental performance and gain economic benefits (Zhu et al, 2008).
For the purpose of this paper, environmental supply chain management, green supply chain
management and environmentally friendly supply chain management are treated as
synonymous.
1.2 Research Objective Before spelling out the research questions, it is important to state the aim of this dissertation.
This is, to research the barriers to implementing green supply chain management practices
(GSCMP) in organisations operating in developing countries. In doing so, this study will
stress on accountability of developing countries organisations towards greening their Supply
Chain (SC) and what is more important, this paper will explore hindrances pointed out by
theoretical and empirical studies. To this effect it will be shown that the current academic
research highlights studies surrounding GSCM, interestingly carried out in advanced
countries. It approaches themes such as Supply Chain Management (SCM) and Green Supply
Chain Management (GSCM), along with their respective barriers to implementation. From
the different discussed frameworks, it was felt that the model of Walker et al (2008) was the
appropriate to guide this study. Therefore, internal factors such as costs and lack of
legitimacy and external factors like regulation, poor supplier commitment and industry
specific barriers will be the focus of this research. This model is of help to understand the
barriers to implementing GSCM in organisations operating in developing countries.
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Furthermore, this research is conducted through a multiple case study in manufacturing
organisations in Mexico in a descriptive and explanatory manner. Consequently, barriers are
grasped using semi-structured interviews, documentation and archival data sources so as to
endeavour founded conclusions.
1.3 Research Questions
After having presented the research objective, the research questions which orient the study
are:
What are the barriers to implementing green supply chain management practices in
organisations operating in developing countries?
What is the most significant barrier to implementing green supply chain management
practices in organisations operating in developing countries?
How are these barriers similar or different to those in organisations operating in
developed countries?
1.4 Dissertation Structure This dissertation is structured as follows:
An introduction that comprehends the background of the topic including developing countries
relevance in GSCM and the importance of identifying and understanding the barriers in
question, the research objective and questions.
The second chapter shows the literature review presenting concepts such as Supply Chain
Management (SCM) and Green Supply Chain Management (GSCM). Within the latter issue,
special attention is brought to the GSCM practices (GSCMP) and their implementation, so it
is deeply developed. Then, in the interest of showing the current research gap in the field,
barriers to related issues are approached. This includes hinders to SC, GSCM, supply chain
collaboration, performance measurement for GSCM, global supply chain management, green
procurement and purchasing green transportation services. There is also further approach to
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accountability of developing countries as to link the gap shown upon the developing nation’s
context.
Moving into the third chapter, the methodology to answer the research questions will be
supported and likewise the methods to collect and analyse data, which is primary. Also, the
research design and its justification are exposed.
The fourth chapter includes the findings over the multiple-case study, organised to be
analysed and discussed in the fifth chapter, which considers the selected model that guided
the research from the current literature. The sixth chapter bring to a close by spelling out the
propositions yielded from the analysis and overall contrast to the literature review. Finally,
the next chapters are References and Appendix for further reference.
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2. Literature Review
In order to clearly state the gap within the current academic literature, this chapter explores
theoretical and empirical studies related to SCM, GSCM and their respective barriers.
Moreover, it will enable a better understanding of hinders to related issues so as to show what
has been researched around the field. Two of the existent frameworks are found to be the
closest to the research aim; therefore these are examined more carefully. Ultimately, one of
these two frameworks is chosen to guide this study; this is the empirical model “Drivers and
Barriers to environmental supply chain management practices” (2008). It is chosen because
clearly states what the barriers in question are and highlights the most significant one (this is
explained more later on), although data was collected only in the UK.
Overall, barriers are analysed in related spheres to the objective of the research, exposing a
limited number of models that examine barriers to GSCMP specifically. What is more, any of
them base their propositions on data collected merely from organisations operating in
developing countries. Thus, these are important weaknesses of the current literature that is
basis on which this paper has been developed. Summarising, there is absence of a
framework that identifies and explores barriers for the implementation of GSCMP in organisations operating in developing economies, which represent the gap upon this research is conducted. It is intended fill this gap by answering the previous mentioned
research questions.
2.1 Supply Chain Management
Background Supply Chain Management (SCM) is an extant ideology since the times when African
pyramids were built to the World Wars (Christopher, 2011), or during the industrial
revolution triggered by Adam Smith’s policies of specialisation of labour and corporations,
when the need of specific suppliers and distribution channels was developed (Sarkis, J., Zhu,
Q. & Lai, 2010). Nonetheless and surprisingly, the concept has been explored with emphasis
in the early to mid-1990s according to Murphy (2008). Furthermore, this author refers to
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logistics management1 as ground of SCM; the former concept having been studied within
companies throughout the 1980s and beginning of the 1990s, and the latter created as
consequence when realising the great value of coordinating among organisations too. Once
special attention was paid to SCM, the concept increased its relevance considerably in recent
times (Mentzer, 2004 and Murphy, 2008). For instance, Mentzer (2004) states that in 1995
13.5% of the concurrent session titles contained the concept “supply chain” at the Annual
Conference of the Council of Logistics Management, whereas in 1997 this percentage almost
doubled in a 22.4%. Overall, authors agree that SCM is a recent intensive study area in
organisations, although it has been implemented even in the times before Christ.
Definition
Although there are a number of different definitions of SCM (See table 1), each of them refer
to a connection among participants in the supply chain (SC); however, some authors stress in
the characteristics of this linkage differently. For instance, Christopher (2011) refers to a
“management of upstream (supplier end of the SC) and downstream (customer end of the SC)
relationships with suppliers and customers”, whereas Mentzer (2004) describes this
connection as a “systemic and strategic coordination”. The main discrepancy between the
different definitions of SCM according to the authors studied lies in the contrasting purposes.
While Christopher (2011) states that the objective is to deliver superior customer value at less
cost to the SC as a whole, Aitken (1998) affirms that the aim is to control, manage and
improve the flow of materials and information from suppliers to end users. Similarly,
Mentzer (2004) declares that the intention is to improve the long-term performance of the
individual companies and the SC as a whole. Even though these approaches are based in the
same essence, they are different presumably due to the SCM philosophy’s evolution through
the time, which incorporates new concepts and priorities.
Among the definitions explored, that from the Council of Supply Chain Management
Professionals is found to be the most comprehensive, explicit and inclusive of most of the
definitions referred. Not only spells out some participants in the SC and activities involved,
but it also tackles a concept that the other definitions do not approach: demand management
1 Logistics Management: “that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverses flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements.” (Council of Supply Chain Management Professionals, 2011).
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in the chain, with the exception of Christopher’s (2011) suggestion who brings customer
value to topic. This approach is supported by Hill (2011:369) who specifies that “Integrated
and synchronised supply chains allow companies to better respond to market opportunities
and competitive pressures by operating as a demand chain rather than a supply chain by using
customer requirements as the basis on which to provide services or make products.”
Table 1: SCM definitions1
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Table 2: SCM resume1
2.2 Green Supply Chain Management
2.2.1 Background After defining the conventional SC, it is worth mentioning that lately there is a substantial
tendency towards “green” issues with the purpose of looking after future generation’s needs
(Mangan et al, 2012). When implementing SCM, environmental care is one of those issues to
attend (Rhodes, Warren & Carter, 2006). Hill and Hill (2012) affirm that organisations affect
the environment considerably through the design and management of their SC; therefore,
some practices in this respect should be implemented with the purpose of avoiding damage as
much as possible. This accountability must be considered as part of their overall
responsibility within each company (Hill and Hill, 2012 and Abbott, J. & Achbar, M., 2005).
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Having said that SCM is a philosophy that started to be studied with stress in the early to mid
1990s, it is explicable that Green Supply Chain Management (GSCM) is a nascent topic on
research and in course of early implementation in industry (Sarkis, J., Zhu, Q. & Lai, 2010).
In fact, it is more likely to find theory as regards this topic in selected or confidential journal
articles rather than in books (even in the most recent editions). Thus, it is relevant to help
further develop this primitive field based on emergent theory.
It can be said that GSCM is an interdisciplinary stream because its creation find its grounds in
myriad disciplines that have anchored on environmental concern such as Logistics,
Procurement, Reverse Logistics, Market and so forth (Sarkis, J., Zhu, Q. & Lai, 2010). It is
difficult to state the specific meaning of GSCM and it does not have a standard measurement
(Mangan et al, 2012), however from 1990 some formal empirical frameworks appeared, from
which a definition can be drawn (Sarkis, J., Zhu, Q. & Lai, 2010).
2.2.2 Definition and Practices
Green Supply Chain Management (GSCM) is “an important pro-environmental managerial
practice that involves integrating environmental concerns into product flows and beyond
organisational boundaries” (Chan et al, 2012). In the same line, Sarkis, J., Zhu, Q. & Lai
(2010) define it as “integrating environmental concerns into the inter-organisational practices
of SCM including reverse logistics”. These definitions are pretty similar, basically by
suggesting the incorporation of environmental care in the SCM activities.
Green practices have been explored by analysts and businesses in an interdisciplinary context
and as a result, there are a number of classifications for environmentally friendly practices
(Sarkis, 2002). According to Chan et al (2012), there are three essential practices bounded in
this philosophy, which are green purchase, customer cooperation and investment recovery.
The first ones are related to the cooperation between the firm and its suppliers to diminish the
negative impact of its inbound logistical activities on the environment; similarly, the second
ones comprehend the same type of efforts surrounding the outbound logistical activities and
offers. Finally, invest recovery consists of recycling, reuse and reselling to make the most of
its materials and products (CHAN. et al, 2012 and Harrison & Van Hoek, 2011). In this
respect, Bowersox et al (2010) state that recycling/recovery activities are re-emerging more
vividly due to the fact that governments are encouraging the return of products and packaging
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from costumers to firms. In doing so, these authors cite examples occurring in the U.S.A. and
the European Union where governments are imposing regulations to this effect. For instance,
electronic waste (e-waste) is handled so companies retrieve this type of components at the
end-of-life phase. Other developed countries are considering this kind of compulsory
measures in accordance to this author and Sarkis (2001), who states that about fourty
industrialised countries are implementing environmental legislation in different industries.
Likewise, Hill and Hill (2012) enclose the green practices in three categories too. The first
one encompasses the reduction of the level of energy and non-renewable resources that an
enterprise consumes, the second one the minimisation of the wastes it produces (in
accordance to Harrison and Van Hoek, 2011) and thirdly the environmental impact
diminution of the services and products it provides. While Chan et al (2012) categorise the
practices according to the stages in the SC, Hill and Hill (2012) do it in a more involving way
bringing the attention to the production stage. By confronting both points of view, it can be
seen that their first categories are related because both are associated with consumption of
resources, which are bought from providers/suppliers. On the other hand, Chan et al (2012)
do not mention expressly the minimisation of wastes produced by the organisation like Hill
and Hill (2012) do, whereas the latter author does not consider precisely the costumer
cooperation like Chan et al (2012) do. The last observation when comparing both authors is
that the third category mentioned by Hill and Hill (2012) pointing at the environmental
impact minimisation of the products and services generated, could involve the second and
third category of Chan et al (2012), as means. Again, at the end of the day both authors aim
in the same line essentially, supporting that green initiatives are resources that firms can
develop to increase their competitiveness (Lassar et al, 2009).
Notwithstanding the categories of GSCMP, the following table presents various examples
reported by a number of authors:
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Table 3: Examples of GSCMP1
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2.2.2.1 Implementation decision of GSCMP
The decisions about natural environment are essentially strategic and therefore complex to
implement; in fact, they are made by multifunctional groups within organisations and
external stakeholders (Sarkis, 2002). Keeping in mind that GSCM is a tool responding to the
environmental sphere within the triple bottom line framework 2 , the steps towards
implementing GSCMP proposed by Hill and Hill (2012) are:
1. Gain senior management commitment to trigger green initiatives.
2. Identify the power and influence of key stakeholders to determine who they are, what
their expectations are, what power or influence within the organisation they have and
what conflicts there are between them.
3. Determine the ethical posture that the business wishes to take considering short and/or
long-term interests and/or whether to meet a part of all their stakeholder’s interests.
4. Develop an environmental policy identifying which aspects to focus on.
5. Set objectives and targets in each level of the environmental policy
6. Establish a programme to implement the green activities based on straightforward
resources and accountability.
7. Train employees to raise awareness and develop required skills to implement the
green initiatives successfully.
8. Implement the changes conforming to the programme.
9. Monitor and measure the performance impact on the stakeholders affected by the
green programme
On the other hand, the U.S. Environmental Protection Agency (EPA) states specific four
basic steps to implementing GSCMP. The EPA (2000) declares that this framework is based
upon the best practices of several companies that have successfully initiated and implemented
GSCMP:
2 Triple bottom line framework is used by organisations to report their social, economic and environmental performance (Hill, 2012)
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Source: EPA (2000) Decision-Making framework
1. Identify environmental costs: A systematic review of the facility or process is
conducted to determine if and where representative meaningful environmental costs
occur. The importance of this analysis is that it allows determining the functional area
with more possibilities of great improvements.
2. Determine opportunities: Once the functional areas are identified, it is needed to
detect which changes will likely yield significant cost savings and reduce
environmental impacts. The criteria to be used can include the magnitude of potential
cost improvement, the type of environmental issue to be tackled and the barriers to
change. So, this step represents a set of possible alternatives for improving costs and
reducing environmental impacts.
3. Calculate benefits: It consists of analysing the costs and benefits in a quantitative and
sometimes in a qualitative manner, of certain project(s). Some of the tools that could
be used are activity-based costing approaches such as Net Present Value (NPV) and
risk evaluations. This step shows the benefits of the current process or green
alternative practice.
4. Decide, implement and monitor: Depending on the outcome of the last step, the
decision is about do nothing or react. As a consequence, financial and/or
environmental benefits occur and the organisation starts to incorporate the new
practices in its whole system. Afterwards continuous reviews allow to measure
progress and seek further improvements.
Figure 1: Steps to implementing GSCM 1
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It can be observed that Hill and Hill’s approach (2012) comprehends not only the last part of
the implementation and monitor, but also the pre-phases to achieve them. Thus, both
approaches are complementary. Also, there is an inclination of the EPA to underpin the
implementation decision merely in financial convenience.
2.2.2.2 Considerations to decide implementing GSCMP
GSC decisions are one of the most recent issues that managers face, inevitably related with
internal and external stakeholders (Sarkis, 2002 and Waters, 2010). In relation to this, Hill
and Hill (2012) declare the next considerations:
- Understand the requirements of your key stakeholders by clarifying the power and influence they have within the organisation and be aware of the conflicts of
interests between them.
- Determine the ethical strategy, in which the organisation states to what extend the green practices will grasp:
o Short-term shareholder interests such as market share, sales revenue and profit.
o Long-term shareholder interests such as future market share, sales revenue and profit, while recognising that these business benefits are likely to be achieved
in the future and less intensively in the present.
o Other stakeholders’ requirements, different from the shareholder interests: employees, suppliers, customers and the societies and environments where the
organisation operates.
o Shaping and changing society, as a wider approach questioning how much the organisation can transform a society through design and production of the
services and products.
- Develop business case for GSCM, where management releases budget intended for environmental initiatives. To pinpoint the financial benefits is crucial such as:
o Increase sales revenue via winning ethical customers or increasing market access by involving a local community.
o Reduce materials costs by using less energy, minimising waste and reducing materials and packaging
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o Reduce labour costs by having more committed employees that are easy to gain and retain
- Understand the stakeholder definitions of “ethical”, a definition that has to be
agreed between customers, employees and suppliers in current and future times.
- Adapt the approach for each market (customers), facility (employees) and SC (suppliers) perceptions.
- Focus on areas of maximum impact, where cost and money expected to invest in each green initiative is little or less than the financial and non financial benefits (Hill
and Hill, 2012 and EPA, 2000).
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Table 4: GSCM & practices resume 1
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So far the background, definition and practices of GSCM have been assimilated. Yet, the
steps and considerations to its implementation do not differentiate between types of countries
in terms of economic growth. In this respect, only Kaplinsky (2010) draws attention to
unbalanced growth as regards SC innovation between advanced and developing countries.
Apart from that, potential barriers to consider when planning and implementing GSCMP
have not been spelt out either in this respect.
2.3 Barriers to GSCMP
After grasping the conventional SCM and then GSCM along with its practices and
implementation processes, the flow of this dissertation leads to barriers to the implementation
attempt. So, in order to show the gap in the current literature, the barriers to implementation
of these topics in the field are highlighted: Supply Chain Management (SCM), Supply Chain
Collaboration (SCC), Performance Measurement in SCM (SCM/PM), Green Procurement
(GP), Purchasing Green Transport Services (PGTS) and GSCMP. The table also specifies
where the data was collected to propose given barriers.
Understanding the barriers to implementing GSCM practices in organisations operating in developing countries
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Table 5: Barriers in current literature, showing the gap1
Understanding the barriers to implementing GSCM practices in organisations operating in developing countries
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Understanding the barriers to implementing GSCM practices in organisations operating in developing countries
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Understanding the barriers to implementing GSCM practices in organisations operating in developing countries
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Apart from these spelt out obstacles, Mollenkopf et al (2009) identify barriers to both
compound subjects, Green & Global Supply Chain and Green & Lean Supply Chain. The
first one recognises Resistant suppliers, Newness of the concept of GSCM, Data and metrics
not available and Risk of losing Suppliers and the second one sees barriers as Unawareness of
environmental risks, Common belief that green practices do not pay and limit
competitiveness and Cost (practices are expensive to set up). The impediments’ grounds are
global.
Given the diversity of the current literature, two frameworks have been chosen to further
discussion. It can be seen that in the current literature, the models Walker et al (2008) and
Luthra et al (2011) are the closest to the research aim because are more focused to the topic.
The first one is an empirical model providing general propositions whereas the second one,
although in only one industry, is a theoretical model that considers a myriad of organisations,
which is seen as potentially promising. Both are to ease understanding of the barriers to
implementing GSCMP in organisations.
Understanding the barriers to implementing GSCM practices in organisations operating in developing countries
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2.3.1 Empirical Model of Walker et al (2008)
Figure 2: Barriers (Internal and External) to implementing GSCMP1
Source: Walker et al (2008)
This model is based on a multiple case study, from which five barriers to implementing
GSCMP have been identified. As a result of the interviews and analysis, the barriers are
categorised into two internal and three external to the organisation, whereas the first ones
comprehend cost and lack of legitimacy and the latter are regulation, poor supplier
commitment and industry specific barriers.
The seven participant organisations are large, corresponding to the private and the public
sectors operating in the UK. The methodology used is based on an explorative study which
was conducted through semi-structured interviews to explore drivers and barriers to GSCMP.
The interviews were approached through consultation with two experts in environmental
SCM, who facilitated the access to information to these companies by having existing
connections. Company names were anonymised to secure open responses. Participants were
Regulations
Industry specific barriers
Lack of Legitimacy
Costs
Poor supplier
commitment
Understanding the barriers to implementing GSCM practices in organisations operating in developing countries
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given the meaning of GSCM and examples of practices related before the questionnaires took
place.
Apart from barriers, it is noteworthy that this model refers to drivers to implement GSCMP
too; however this dissertation will consider only the part regarding barriers, which are pointed
out as follows:
Internal barriers Costs: Walker et al (2008) claim that costs is the most serious impediment in organisations to implement environmentally friendly SCM practices, specifically in the purchase process.
Lack of legitimacy: As regards lack of legitimacy, it is about a much unimpassioned view about environmental issues from managers creating a green facade while practices are not
firmly implemented. Organisations overcoming this barrier have had to increase stakeholder
commitment (Walker et al, 2008).
External barriers Regulations: Concerning external barriers, the European law was founded as almost a threatening regulation because it prescribes that contracts above a certain level be advertised
in the Official Journal of the European Union. This discussion shows only European
regulation because participant organisations belong to this continent.
Poor supplier commitment: It was found also that the existent barrier of poor supplier commitment is raised by the lack of information, confidentiality concerns or fear of poor
environmental performance exposure factors. In accordance to this statement, Liu Y. et al
(2012) affirm that parts in the SC need to collaborate to a large degree so as to leverage each
other’s capabilities and resources for achieving mutual goals. Doing so will be of help to
reduce the uncertainty that arises from implementing the GSCM activities and guide the
functioning of the system (Sarkis, J., Zhu, Q. & Lai (2010).
Industry specific barriers: The last inhibitor states that barriers to GSCM can be delimited to a specific industry; for instance in the case of the health care sector, doctors’ preferred
choice of products for treating patients, with environmental issues being of lower
Understanding the barriers to implementing GSCM practices in organisations operating in developing countries
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importance. Other factors influence to certain sectors like oligopoly and a vast number of
small suppliers, which hinders effective communication.
While contrasting whether more internal or external barriers are experienced by
organisations, the final conclusions mention that there is merger between both categories; this
rules out disproportion. Conclusions mention from a positive point of view, that the existence
of internal barriers suggests that solutions to overcome them are in control of organisations
themselves.
Also, it is further mentioned that findings of the model are not relevant for Small and
Medium organisations. Among other limitations are from one hand, that organisations which
are not seeking to implement any GSCM practice were not polled, therefore barriers
encountered do not correspond to them effectively. From the other hand, Public Relations
(PR) pressure might have affected the honesty from respondents.
Uniformly to the ample majority of research studies in the field of GSCM, the empirical
model used in this dissertation is based in large organisations as mentioned earlier (Walker et
al, 2008). Therefore, it suggests that further work should be conducted to understand the role
that small and medium enterprises (SMEs) play in this terrain. Moreover, note that this model
draws conclusions from organisations operating in a developed country, a fact that invites to
further research in non-developed countries.
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2.3.2 Theoretical Model of Luthra et al (2011) Figure 3: Barriers to implementing GSCMP (in automobile industry).1
Source: Luthra et al (2011)
This model developed by Luthra et al (2011) lies in the automobile industry particularly in
India, where motor organisations are settling up manufacturing plants while GSCM
requirement increases. Eleven obstacles to implementing GSCM are identified (Figure 3), as
well as the contextual relationship among them. Thereon, five of them have been classified as
dependent (D), three of them as driver (I) and three as linkage variables (L), as shown in the
• Lack of IT implementation
1
• Resistance to Technology
Advancement Adoption
2
• Lack of Organisation
Encouragement
3
• Poor Quality of Human
Resources
4
• Market Competition and
Uncertainty
5
• Lack of Government
Support systems
6
• Lack of Implementing
Green Practices
7
• Lack of Top Management Commitment
8
• Cost implications
9
• Supplier Reluctance to
change towards GSCM
10
• Unawareness of customers
11
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Figure 3. From one hand, barriers are identified from literature and expert’s opinions,
whereas relationship type analysis -based on dependence and driving power, was carried out
with the help of MICMAC analysis and Interpretative Structural Modeling (ISM) technique.
These are short descriptions of each barrier in the Indian automobile industry, according to
Luthra et al (2011):
1. Lack of IT implementation: Information and Technology systems are important to support environmental friendly product design, recovery and usage, etc. E.g. tracking
and tracing return of products, linking with previous sales. Overall, not implementing
IT systems can hinder GSCMP application.
2. Lack of top Management Commitment: Absence of top management commitment equals to unsuccessful implementation of GSCMP because managers have the ability
to influence and support actual the formation and execution in the strategic and
operational level.
3. Lack of Government Support systems: Government regulation can discourage environmental Supply chain (SC) practices through time-consuming regulatory
requirements, fees and levies. In general, limited support is given for new ideas to
implement GSCMP.
4. Poor Quality of Human Resources: This is a barrier because in this scenario new ideas cannot be given, new technologies cannot be learnt or used to solve a problem
and knowledge cannot be shared effectively. 5. Resistance to Technology Advancement Adoption: In the case where there is this
barrier, which means resistance to change, GSCM has no place since this is a nascent
tool.
6. Lack of Organisation Encouragement: Managers may fail to encourage employees to learn and adopt green practices through recognition or rewards for instance.
7. Lack of Implementing Green Practices: Organisations which do not implement GSCMP are not likely to employ efficient GSCMP at all in the Indian automobile
industry.
8. Market Competition and Uncertainty: This impediment is relevant due to global competitiveness and customer requirements instability and change.
9. Cost implications: The initial investment to implement GSCMP is too high in the Indian automobile industry because it may involve IT enablement, technology
Understanding the barriers to implementing GSCM practices in organisations operating in developing countries
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advancement adoption, hiring good quality of employees and motivating and training
of employees towards GSCM.
10. Supplier Reluctance to change towards GSCM: Manufacturers cannot produce green products unless they work together with suppliers, which need to meet
requirements of buyers to maintain business relationship.
11. Unawareness of customers: This is an important impediment because normally customer demands of green products represent the most crucial external pressure. This
is not the case of India, since costumers do not appreciate the benefits of greenness;
therefore, automobile producers are not concerned.
Interestingly, the following are determined as the most relevant barriers:
Cost implications
Unawareness of customers
Market competition and Uncertainty
Lack of Implementing Green Practices
Thus, the model concludes that removal of the above barriers would help in implementing
GSCMP in Indian automobile industry.
As said earlier, this model is based on literature and expert’s opinions, which brings to the
most eminent weakness, this framework is hypothetical. Therefore, it is pending to be tested
in real organisations, a task suggested by the authors. The outcome might be different in
terms of what the barriers and their relationship are. Moreover, Luthra et al (2011) suggest
that the technique used to test the model could be Structural Equation Modeling (SEM). Also,
it is said that future research should be done in the light of another country and industry.
2.4 The model choice
Although the two above discussed models have the potential to guide this research, both
present downsides. With respect to the empirical model, it is inferred that the respectable
conclusions are likely to fit or valid to organisations operating in developed countries such as
the USA and the UK, given that its theoretical review and empirical research are based on
those counties. Because of this, it is felt that propositions are too general to fit the particular
case of developing nations. In other words, the model might not be applicable in
organisations operating in developing countries, which presumably present different
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conditions. With regard to the theoretical model, although conclusions are drawn based in a
developing country, there are no grounds that they can be extended to developing countries.
What is more, conclusions are too specific to a certain industry.
After mentioning the weaknesses of these models, the advantages come into consideration in
order to select the proper one. It was concluded that the Walter et al (2011) model excels
because it has more and most significant advantages, which are mentioned in the following
resume table.
Table 6: Comparison of the two main models1
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2.5 Linking the barriers to the Accountability in Developing countries
Once mentioned the model to follow through the barriers exploration and before concluding
the literature review, deep awareness of focusing on developing countries is necessary.
Economic growth disparity
Most authors measure the well-being of the world based on the Gross Domestic Product
index (Bollino and Pollinori, 2011). By considering only this index nowadays, it could be
said that overall the well-being has been increasing since the late 90’s with the exception of
2008 and 2009 which represented a dramatic fall (IMF, 2012) in the trend. Nevertheless,
there is currently a debate that involves the inequity of this economic growth along with its
resulting carbon emissions across advanced and developing economies. It consists on the
accountability as regards tackling the climate change (Bollino and Polinori, 2011). The
phenomenon is that companies are producing services and products in a great volume and
speed, damaging the environment as a result (The Corporation, 2005 & Tsireme, 2012). The
problem is larger and less controllable when inevitably different companies interrelate
themselves such as manufacturers, warehouses, shipping companies, service suppliers and
other participants in the SC of a given service or product (Sarkis, Zhu and Lai, 2010).
Nowadays this is a worldwide problem affecting every country regardless its particular level
of economic growth (Bollino and Polinri, 2011).
Having mentioned the inequity as regards economic growth, an example is illustrated below.
The chart shows the disparity between the USA advanced economy and the Mexican
developing economy. It can be observed that the latter yields roughly almost one third of the
GDP of the first one. See appendix 1 to grasp the world GDP disparity in annual percentage
change from 1994 to date and projections.
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Source: International Monetary Fund, IMF (2012)
To further understand the inequality, this other chart is a bit more comprehensive example
because it involves other two extremely different rates of economy’s growth. According to
the IMF (2012), Ethiopia economic growth is approximately 2% of the British growth,
whereas it is the 1.5% of the USA economy. It is noteworthy that each of these four countries
presents similar curve shapes. This demonstrates the economic dependency among countries
regardless the level of economy.
Source: International Monetary Fund, IMF (2012)
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Relating Economic growth and Environmental Damage
It is interesting to contrast the above economic growth data with the Greenhouse Gas
Emissions, which is one of the most important indexes for the United Nations to measure the
environmental damage (2011). In line with the last example graph and according to the data
corresponding to the latest year available from the United Nations Statistics Division, United
States produces 22.22, UK 10.32, Mexico 5.42 and Ethiopia 0.84 of GHGE per capita. The
interpretation is that the four countries can be ranged in the same order when considering
both Indexes. Thus, it can be concluded that the more economic growth, the more harm is
made to the environment. In other words, economic growth and environmental damage are
directly related.
Even though the charts above show overall a rapid increasing economy growth since 1980,
the current forecasts of the IMF (2012) to 2015 indicate that the gradual economic recovery is
being weak but will likely resume in the major advanced economies. According to Blanchard
(2012), persistent increasing trend will remain relatively solid in most emerging and
developing countries.
Summarising Despite advanced and developing countries pollute the world in different rates individually, it
is a fact that all of them contribute to the environmental damage. Individually, every
developing country pollutes a lot less than the developed countries; however, the large
number of the first ones (around 150 according to the WTO or two thirds of this organisation)
makes that altogether imperil the environment seriously (EPA, 2012). It is relevant to
mention that John Reilly, co-director of MIT's Joint Program on the Science and Policy of
Global Change, said during an interview in November 2011 that developed countries
produced about 60 percent of the world's greenhouse gases in 1990 and now are responsible
for less than 50 percent. In this line, the SGM Energy Modelling Forum EFM-21 provides a
projection of future greenhouse gas emissions from the developing world are expected to
exceed those from the developed world by 2015. Therefore, the justification for reaction is
imperative. "We really need to get the developing world because if we don't, the problem is
going to be running away from us” “...And the problem is pretty close from running away
from us.", claims Andrew Weaver, scientist of the University of Victoria climate. The latter
Understanding the barriers to implementing GSCM practices in organisations operating in developing countries
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statements urge to answer the research questions as to be able to react in developing countries
strategically in respect to the SC field. A good start is by exploring the barriers in
organisations operating in these types of nations.
2.6 Conclusions of the Literature Review
The discussion in this literature is based on whether the notion of the barriers to
implementing GSCM in organisations operating in developing countries can be a fixed
description or whether it is an ongoing and intricate concept that cannot be firmly defined and
understood. The assumption being made is that the existing universal understanding of the
barriers to GSCMP is not applicable worldwide equally i.e. between developed and
developing countries. Specifically, the current academic research fails to identify and
discuss the barriers that hinder the implementation of environmental SCM in organisations operating in the developing nations. The Walker et al (2008) model has been chosen to guide this study in seeking to answer the research questions. The context to
evaluate it is in organisations operating in developing nations, which accountability has been
grounded.
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3. Methodology
This chapter aims to explore the methodologies available and justify the methodology chosen
to answer the research questions. Since the research involves an empirical investigation of a
contemporary topic using multiple roots of information, it was felt that the most appropriate
method was a multiple case study design. In this line, the data collection method used was
semi-structured interviews, documentation and archival research throughout the supply
chains.
3.1 Introduction
In order to understand the barriers to implementing GSCMP in organisations operating in
developing countries, the research aims to discuss and analyse the framework early addressed
in a different context. The framework chosen identifies the barriers to GSCM, classifies them
in internal or external and moreover, states which of these is the most severe. The focus is on
answering the already stated research questions:
• What are the barriers to implementing green supply chain management
practices in organisations operating in developing countries?
• What is the most significant barrier to implementing green supply chain
management practices in organisations operating in developing countries?
• How these barriers are similar or different to those operating in developed
countries?
Consequently, this chapter comprehends the following sections:
Research Approach
Research Philosophy or Paradigm Identification
Methodologies Available
Methodology chosen
Data Collection Methods
Research Design
Data Analysis
Limitations of the Research Design
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3.2 Research approach
Deciding what approach to take is the first step within the Methodology, playing an important
role when designing the research project. Normally there are two types of approaches,
deductive and inductive (Saunders et al, 2012):
Deductive research is an approach in which a conceptual and theoretical structure is developed and then tested by empirical observation; thus, particular instances are
deducted from general inferences” (Collis and Hussey, 2009:8). That is, there is an
existent theory to test and evaluate from general to particular in a very punctual
manner through a series of premises (Horn, 2009, Collis and Hussey, 2009 and
Saunders et al, 2012).
Inductive research in contrast, generates general conclusions from particular occurrences. Therefore, theory is developed from observation of empirical actuality
(Collis and Hussey, 2009). Also, it enables a cause-effect linkage between particular
variables involving interpretation of the human being about their social world
(Saunders et al, 2012). Thus, it can be seen that its methodology would not be as rigid
as in a deductive research.
To grasp better, when the research aim is to understand why something is happening it is
more suitable to approach inductively; oppositely, when the aim is to understand what is
happening it is more appropriate the deductive position (Saunders et al, 2012).
Having mentioned the latter philosophical positions, it is relevant to bring attention to an
alternative approach called abduction. According to Saunders et al (2012), this is an advantageous combination of the two main approaches to which many management
researchers are inclined nowadays. As a matter of fact, this author points out that the third
procedure may be biased primarily to either of the two main approaches, depending on the
nature of the research topic and the pretention of the research.
Given the nature of the present research topic, it was taken advantage of the benefits of
abduction. The present research was undertaken from an abducted point of view, essentially
inclined to deductive research due to the fact that there is a stated general theory that lends
Understanding the barriers to implementing GSCM practices in organisations operating in developing countries
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itself to define a theoretical framework and premises. For this research, an inductive approach
is not appropriate because too much debate is not necessary, as well as it is detached from
human being interpretations. Besides that, abduction yields to a more flexible evaluation of
theory than in a pure deductive approach. Moreover, it was felt to bring up the existent
model identified in the literature review to a specific context, one which occurs in organisations operating in developing countries; therefore, modification of existing theory was possible. It is recognisable the risk of taking the abduction approach, since there was the
possibility that no useful data patterns and theory could have come forth (Saunders et al,
2012).
3.3 Research Philosophy or Paradigm identification
According to Collis and Hussey (2009), a research paradigm is a philosophical framework
that instructs the manner in which a scientific research may to be conducted. First of all, it is
relevant to acknowledge the three types of a researcher’s view, and therefore the four
research philosophies in business and management research according to Saunders et al
(2012). To this effect, the table 5 is presented:
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Table 7: Research philosophies comparison1
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Basically, Saunders et al (2012) refer to Pragmatism as the ideology where one position might be more appropriate than another for answering a particular question or testing a
hypothesis. That is, there are a number of ways of interpreting the actuality especially when
the research question is ambiguous. In regards to the positivism position (a branch of epistemology), it observes reality with the interest of searching regularities and causal
relationships and therefore, to create scientific statements. This coincides with Collis and
Hussey’s (2009) view, highlighting that the aim is to discover theories based on empirical
research. “Under positivism, theories provide basis of explanation, permit the anticipation of
phenomena, predict their occurrence and therefore allow them to be controlled” (Collis and
Hussey, 2009:56). Realism disconnects human beliefs and objects (Sanders et al, 2012), but unlike the latter philosophy, it is inclusive of values (Fisher, 2007). Lastly, Interpretivism gives importance to the difference between humans as social actors, based on the varied
interpretations of their own roles (Saunders et al, 2012).
Given the particularity of the propositions, the most appropriate paradigm in this dissertation
is the positivism because the present research is concerned with facts rather than feelings or
intuitions; this means that the philosophy is not underpinned by values. However, it is
recognisable that during the interview the “feelings” researcher affects the questions to ask
and interpreting the respondents’ comments. Moreover, the focus is on causality and
regularities, reducing phenomena to simplest factors or barriers (Saunders et al, 2012). In
other words, the research is supported by the belief that there are difficulties when applying
GSCMP in organisations operating in developing countries (the phenomenon). As a
consequence, uncertain causes to this observed fact were determined.
3.4 Methodologies available
In order to make an informed decision of strategy or strategies to be used, it is needed to be
aware of the spectrum of manners which lead in answering the research questions (Saunders
et al, 2012). These authors also point out 8 methodologies or strategies:
Experiment, a strategy based on the natural science mostly and often inclusive of psychological and social sciences (Saunders et al, 2012), is used to investigate the
Understanding the barriers to implementing GSCM practices in organisations operating in developing countries
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relationship between both, independent and dependent variables, manipulating the
former one (Collis and Hussey, 2009).
Survey is a methodology with the objective of gathering data both primary and/or secondary data from a sample with the interest of counting and describing a
population (Collis & Hussey and Sapsford, 2007). Additionally, these data can be
used to suggest causality between variables and therefore create models (Saunders
et al, 2012).
Ethnography is actually a term that comes from cultural anthropology, which describes a culture and understand the way of life from the point of view of its
members (Punch, 2006). Overall, it is devoted to precisely understand human
activity (Collis and Hussey, 2009).
Action Research is basically a rich methodology with the purpose of solving current organisational problems collectively by using different kinds of
knowledge (Saunders et al, 2012). In other words, it associates doing and
researching altogether (Punch, 2009).
Grounded Theory can be understood as both, a way for research while a form of analyzing data (Punch, 2009). This can be done by simultaneously collecting and
analysing data in categories through development of analytical codes (Saunders et
al, 2012).
Narrative Inquiry is the methodology focused on obtaining information from people’s entire chronicles rather than collecting selected information narrowed by
interviews and plus, fragmented during data analysis (Saunders et al, 2012).
Archival Research has the purpose of answering research questions which focus on the past and changes over time (Saunders et al, 2012).
Case Study is a concept used to recognise and explore linkages among issues within an organisation in its context or within several real contexts (Cameron and
Price, 2009 and Saunders et al, 2012).
3.4.1. Nature of the research
Complementing the above subtitle, it is relevant to note that the research questions lead to an
exploratory, descriptive or explanatory nature of research. Before unveiling the appropriate
one, these are brief descriptions of each:
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- Exploratory: It involves asking open questions with the purpose of grasping a deep understanding of a problem including its nature (Saunders et al, 2012). It applies
when the problem is poorly understood (Ghauri and Grønhaug, 2010).
- Descriptive: It comprehends description of the phenomenon on which it is intended to collect data, with the interest of obtaining accurate outline of events, people or
situations (Saunders et al, 2012). According to these authors, it is normally a
complement of an exploratory or explanatory research. Collis and Hussey (2009) state
that this type or research occurs where the objective is restricted to describe current
practice. Also, it applies when the problem is structured and well understood (Ghauri
and Grønhaug, 2010).
- Explanatory or causal: It comprises the study of a situation aiming to explain the causal relationship between variables (Saunders et al, 2012). It is employed where
existent theory is used to understand and explain what is happening (Collis and
Hussey, 2009) and when the problem in question is structured. This research
endeavours to identify the causes and define whether and to what extent they yield
effect (Ghauri and Grønhaug, 2010).
As to a potential combination between these approaches, it is significant to mention that a
research could be descripto-explanatory, bearing with the rationale in which Description should not be thought as final statement but as means to it (Saunders et al, 2012).
3.5 Methodology chosen
Having reviewed the methodologies available and the nature of the research objective, it is
determined that Case Study methodology along with a descripto-explanatory approach are the
correct means to challenge the existent framework and also lead to new research questions.
These are the reasons:
GSCM is a fairly new orientation in the SC field, which makes its barriers exploration
a fresh area to look into. Case study is greatly complementary to incremental
theory building, which is commonly useful in initial phase of research on a topic
(Eisenhardt, 1989) in (Ghauri and Grønhaug, 2010).
Understanding the barriers to implementing GSCM practices in organisations operating in developing countries
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Particularly, the phenomenon is explained by the barriers hindering implementation of
GSCMP and the context surrounds organisations operating in developing countries.
“A case study explores a research topic or phenomenon within its context”
(Saunders et al, 2012:179).
Understanding the barriers in the new context is not easy, whereas they are hard to
measure. “The phenomenon under investigation is difficult to study outside its
natural setting and also the concepts and variables under study are difficult to
quantify” (Ghauri and Grønhaug, 2010:109).
It is intended to gain a rich understanding of the context of the research and current
processes (Saunders et al, 2012).
Again, the topic refers to what the barriers to GSCMP are in a specific context.
“The case study has also considerable ability to answer to research questions “why?”,
as well as “what?” and “how” questions” (Saunders et al, 2012:179).
This study seeks to obtain a precise description of a management situation; however it
is not limited to that task. Complementary to define and describe barriers, the second
and third questions force to establish a relationship between them in the interest of
stating which one is the most significant and a mere comparison. From another point
of view, the research questions refer to the barriers as reasons of the phenomenon (the
barriers as an explanation to difficulty when implementing GSCMP).
It is possible to study a number of organisations following the theory grounded in a set of
identified variables (Ghauri and Grønhaug, 2010). Therefore, it was felt that multiple case
study is appropriate, expecting that findings could be replicated throughout cases. Also
because the researcher intends to find a theoretical replication3 given that a contextual factor
is deliberately different (Saunders et al, 2012). This dissertation addresses the attention to
three Mexican organisations, from which data was collected guided by the model in question.
3.6 Data collection Methods Used
Collecting data means determining how, when and where to gather qualitative (e.g. words)
and/or quantitative (e.g. numbers) evidence (Collis & Hussey, 2009). These authors highlight
documentary analysis, interviews and observations as methods in case studies and
3 Theoretical replication: “Finding contrasting results for anticipatable reasons” (Yin, 2009:54).
Understanding the barriers to implementing GSCM practices in organisations operating in developing countries
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additionally Yin (2009) mentions a wider range of common “sources of evidence”:
Documentation, Archival records, Interviews, Direct observations, Participant-observation
and Physical artefacts. So, this descripto-explanatory study embracing qualitative data
(Saunders et al, 2012) embraces interviews, documentation and archival research where appropriate, as the chosen methods that helped to answer the research questions
appropriately. These sources of evidence are coherent with the nature of the study because
their strength is to perceive causal inferences and explanations, as well as to focus directly on
case study topics (Yin, 2009).
Interviews is a main source of case study information that although it is a guided
conversation, it is not rigorous (Yin, 2009), taking different degrees of formality and structure
(Saunders et al, 2012). The latter author defines it as a “purposeful conversation between two
or more people, requiring the interviewer to establish rapport, to ask concise and
unambiguous questions, to which the interviewee is willing to respond and to listen
attentively”. On the other hand, documentation is relevant to every case study topic (Yin,
2009), and in this research was used to evidence answers from interviewees in the selected
country of research.
3.6.1 Justifying the country of research
As stated briefly earlier, Mexico was selected as the country where the research was carried
out. This is because it is a developed nation from which findings and conclusions drawn are
likely to fit organisations within other developing countries (See the developing country list
in the Appendix 2). In the same tone, in order to compare and contrast the Mexican features
to other low-income or middle-income economies, Mexico is described by using the PEST
analysis. This is a tool that provides reference points for considering the opportunities and
threats of a market (Weilkiens, 2011). Below is the brief analysis taken from a Business
Forecast Report.
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Table 8: PEST Mexico - Political factors1
Table 9: PEST Mexico - Economic factors1
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Table 10: PEST MX Sociological/Demographic factors1
Table 11: Mexico - Technological factors1
The information above provides a notion of the country situation in which conclusions of this
research may apply.
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3.6.2 Justifying of the participating organisations’ size
In the interest of generating maximally useful data, the Mexican case-studies are centred on
small and medium-sized enterprises due to two relevant reasons. The first one is that the
model in question refers to large organisations, showing a clear omission in respect to smaller
entities. The second one is because it can be said that approximately 90% of the Mexican
organisations are of this size (INEGI, 2009), which makes it relevant to this developing
country. The following are the overall characteristics of the chosen cases to analyse to answer
the research questions:
Table12: Overall information about case organisations1
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According to the U.S. EPA (2000), companies of all sizes are considering the environmental
impact of their decisions and actions. Nonetheless, Sarkis, J., Zhu, Q. & Lai (2010) argue that
the difficulty of implementing GSCMP implies broad organisational complexities such as
relationships and size. Based on this statement and bearing with the rationale in which the SC
of large corporations is typically greater than that from SME which operate in a more limited
area, it can be inferred that large corporations and SME present different levels of
complexities when implementing GSCM. To reinforce the inference, these authors also state
that those barriers or complexities will be greater if environmental, economic, regulatory,
social and political factors are taken in account with a large number of parties interacting
with each other.
3.6.3. Interview Guide Design
This is actually a semi-structured “guided conversation” outline that was pre-structured to
enhance comparability. It was developed based on the Walker et al (2008) model, covering
several themes as follows:
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Table 13: Interview Guide Design1
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This guided conversation provided the information underpinning the analysis.
Complementary, documents and archival information served as support of verbal statements.
For instance, as regards the exploration of the five barriers proposed by the model, relevant
sources of data were retrieved. These include for Cost, financial statements resumes as well
as documents showing purchases of green technology and green fuels (e.g. invoices) within
the AREURMOT and MVM case studies. Also, ILM confidentially showed financial
resumes showing cost, energy, water and CO2 emissions savings in the last years. For Lack of
Legitimacy, AREURMOT and ILM case studies presented GSCM policies documentation,
from which unfortunately, some are not respected by employees. For Regulations, ILM was
the best case study; it referred to suppliers of glass, who in turn take advantage of the
legislation gap for profit. For poor supplier commitment, ILM was the only case that could
tell, by referencing exactly names of participant suppliers of one of its GSCM projects.
Lastly, for industry specific barriers, any case study could give evidence due to irrelevance.
Some other different collected data were presented to support GSCM initiatives and
additional barriers mentioned later in this paper.
3.7 Data Analysis
“Data analysis consists of examining, categorising, tabulating, testing or otherwise,
recombining evidence to draw empirically based conclusions” (Yin, 2009: 126). So as to
answer the research questions established in this study, it is vital to set a procedure to
synthesise and organise the collected raw data, by establishing themes and patterns against
existing theories (Collis and Hussey, 2009). The analytical strategy used was the most
important one in accordance to Yin (2009): Relying on theoretical prepositions. This study
analysis procedure is used to follow the theoretical positions from the framework in question,
which research questions produced the research questions for the present research. Again, the
model utilised units of analysis (implemented GSCM initiatives), in which interviewees
based their responses and also helped to organise data. Specifically, the framework’s unit of
analysis is the GSCM project or initiative carried out by each of the large participant British
organisations. Similarly, units of analysis oriented the manipulation of data collected from the
organisations operating in Mexico.
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Matrices were developed to summarise the findings to enable comparison across the data and
reflect light on possible patterns that could emerge from the findings. The analysis was
conducted iteratively through the course of data collection (Walker et al, 2008).
3.8 Assurance
The criteria for judging the quality of the research design is:
Reliability: It is one of the two aspects in credibility of Findings and it is considerably important in positive researches like this one. It focuses on the
consistency of observations and interpretations if the study was done using the same
procedures more than one time by different researchers (Yin, 2009 and Collis &
Hussey, 2009). To honour this authenticity, evidence such as documents were
gathered as much as permitted by interviewees, as suggested by Yin (2009).
Validity: This is the second aspect of findings credibility, involving accuracy of the phenomenon under study (Collis and Hussey, 2009). External validity is suitable in the research to generalise beyond the particular multiple case study. Actually, this is
might be the most important limitation (Yin, 2009). Considering this type of research,
a sample of three organisations may be more powerful than a single case study. Being
aware of this, the PEST analysis has been carried out to Mexico with the interest of
giving means to compare and contrast with other developing countries. Nonetheless,
in accordance to Yin (2009), this theory may be tested by replicating the findings in
more developing countries, where the theory has specified that the same results would
occur.
3.9 Research Design
For each of the three organisations, there were interviewed from 2 to 4 managers whose
position is relevant to the SC control, plus from 2 to 5 suppliers and from 1 to 3 clients within
their SC, making a total of 24 respondents. Additionally, interviews were supported by
documentation and record files as evidence; however a number of them could not be provided
due to confidentiality reasons. It is noteworthy that 30 interviews were requested by the
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researcher, but unfortunately six of them were not attended. Moreover, it was found more and
expedite availability and openness from managers in the smallest case study and less
availability in the largest one. Thankfully, the interviewed executives eased the grasp of their
context and the barriers that they experience or experienced to implementing GSCM
practices. The case study interviews were semi-structured to achieve flexibility and richness
of collected data. The latter means that the interview consisted of both, open questions and a
set of key questions carried out by internet conference and in a one-to-one basis (Yin, 2009
and Saunders et al, 2012). In this way, the aim was to foster genuine responses from
interviewees, while bearing in mind the major purpose of confirming or refuting the barriers
stated in the model. The order of the questions varied according to the flow of the
conversations. Apart from that, it is worth mentioning that respondents within the 3
organisations were asked the full interview, whereas the rest of the participants in their SC
where asked only essential questions aimed to understand their faced barriers.
Interviews were carried out in Spanish but translated and transcribed to English afterwards.
Having grounds provided by the literature facilitated the capability of the researcher to
prepare the interview guide and perform during the interview critically. At the beginning of
every interview it was explained the nature of the research; secondly simple questions were
posed to gather background information and to familiarise with the interview procedure.
Thirdly, open core-questions were posed in order to avoid response bias, and then specific
questions were made endeavoured to finish corroborating the model. At the end of the
interview, it was exposed the possibility for the interviewee to express any information that
was not shared during the interview. The interviews endurance was no more than 1 hour with
the purpose of being punctual in the quality of the questions and answers and avoiding
tediousness. In terms of ethics, it was explained in anticipation that anonymity means were
available to ensure trust from the interviewed participants.
Strategically, the research is related to companies that have shown some environmental
concern in their operations. The latter made the research more accurate and punctual as of the
identification and understanding of the barriers in question. Presumably, managers were more
related to the topic than others belonging to organisations that have not implemented green
practices in their SC at all.
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3.10 Conclusions of the Methodology
This chapter justified the methodology chosen by referring to philosophies, methodologies
available and data collection methods. Based on the research questions, the research adopted
a multiple case study, gathering evidence through semi-structured interviews subdivided in
themes. This chapter also justified Mexico as a good example of a developing country,
exposing grounds that let themselves to comparability to similar nations. It also explained the
reason of having chosen SME sized participant enterprises in the research. Additionally, it
was mentioned the way data was to be analysed in the next chapter, just as the model orients.
That is, based on units of analysis (implemented GSCM initiatives) boosted by the three
Mexican organisations.
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4. Findings
This chapter presents the results obtained throughout the collection of primary data in the
application of the research methodology chosen in the previous chapter. The focus is on three
organisations which basic information is presented in Table 12 including their size,
environmental policies and activities. From there, findings are organised in accordance to the
procedure of Walker et al (2008)’s framework including the units of analysis synthesised in
Table 14 (GSCM ongoing initiatives or projects) and the current and/or overcome barriers.
Overall, data is summarised in tables and diagrams displayed to visualise with clarity. The
following is the overview of each organisation and their initiatives or projects description:
4.1 Asesoría en Reembobinado Urgente y Venta de Motores y Controles Eléctricos S.A. de C.V. (AREURMOT)
AREURMOT is a Small Enterprise that repairs, sells and make maintenance of electrical
motors for regional manufacturers. With only 10 employees and annual sales of £330,000, it
is a one owner organisation that has been showing efforts towards implementing GSCMP,
given that these are seen as a moral account. Even though the purpose of implementing
GSCMP is to improve the environmental performance, there is not a formal Environmental
Management System (EMS) and therefore, no measurements followed by anyone in
particular. Along the SC, the environmental practices carried out do not involve most of the
around 60 suppliers listed in active records, but the operations within the organisation borders
and customer relationship. The GSCM initiatives, which are barely published within a
catalogue implicitly every few years and as worth of mouth, imply reparation, distribution
and maintenance of electrical motors:
Usage of energy-efficient light bulbs in the motor repair shop and offices.
Acquisition of the first ecological washing machine which separates water, grease and
solid objects. It also reutilise water reducing considerably its waste and fosters correct
treatment of grease and solids’ waste (subsoil care).
Handling of cooper waste and its sale. This material is what the motor coils are made
of.
Recycling of paper, cardboard and pallets.
Recycling of end-life motors and their parts.
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Acquisition, construction and sale of Ecological ovens, which eliminate toxic vapours
and fumes when heating the motors during the reparation process.
Timely maintenance of the organisation vehicles which transport motors. This
minimise the environmental impact.
Distribution of energy and cost-efficient electrical motors. This type of motor
diminish the energy waste in form of bearing friction, frame heating, wind opposition
caused by the ventilator etc. that normally is present when the electrical motors are
working in the customer’s facilities. By using these motors customers amortise the
motor cost rapidly and save money and Kilowats (kWh) per year; additionally they
can measure tonnes of CO2 emissions per year (See Appendix 3). Electrical motor
suppliers are multi-national companies like BALDOR, SIEMENS and WEG.
Overall, these initiatives have been implemented thanks to the organisation’s owner initiative
in the last decade, years that in turn represent an economical boom. The owner refers to this
as a positive correlation; the more income the more and most significant GSCMP can be
implemented. In fact, there are two other initiatives to be implemented; this means, there are
still barriers to override. Firstly, there is the installation of solar panels along the shop and
secondly, the implementation of a previously failed plastic objects collection policy. Overall,
there is environmental concern across the SC related to reducing the levels of energy that the
organisation consumes, minimising waste and diminishing environmental impact of the
reparation services and motors sale processes. The latter is the goal as mentioned earlier, by
improving the efficiency of electrical motors by the time they are running. This energy
efficiency has been scientifically proven by a software package called Motor Master+
International (Appendix 3), which demonstrates approximate CO2 reduction and cost savings
from previous repaired electrical motors. With regards to the interviewed suppliers and
clients within the same SC, only one out of four implements GSCM activities. It is about a
large company, being the others SME. Its 2030 goals initiatives are formally measured and
published only through business visits and two on-line videos demonstrated during the
interview research and they are carried out majorly thanks to a private trust.
Further to the green contribution of these GSCMP, there are benefits such as diminution of
repairing time, increment of the service level, decrease of accidents-risk, number of
employees needed and so forth.
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4.2 Mosaicos Venecianos de México (MVM) MVM is a Medium-Enterprise with 250 employers, devoted to the production of high quality
and colourful art mosaics, which are featured by continuous innovation and supported by
advanced technology and artisans. The organisation is positioned as leader in America, with
national and international customers, possessing 60 suppliers and annual sales of £7.7million.
MVM considers itself as very engaged in GSCMP especially in the last dozen years, although
it does not have any EMS certification or any one specifically responsible of environmental
issues who measures environmental performance; however various managers are involved
throughout the organisation in these practices implementation. For MVM, the best design
implies environmental concern (MVM, 2012). Thus, there is an ecological product line which
is published in one important client’s website and the own, as well as other initiatives
involving reducing, reusing and recycling activities made public in the MVM website and
pamphlets occasionally. These are:
Reducing:
Throughout the production, there are ecological ovens which diminish the production
of polluting waste.
Reduction of gas and electricity consumption as complement of environmental
friendly fuels usage.
Reusing:
Water is 100% reused in the manufacturing process
Wood, cardboard and paper of pallets is re-used
Recycling:
Purchase of products from suppliers that recycle considerably in their operations.
Technology has been generated supported on recycled parts.
The majority of the packaging plastic is recycled.
More than 40 coloured mosaics are made of recycled glass:
o Pre-consumption: Mosaics that are disapproved by the Quality and Control Department due to cracks and imperfections are reincorporated to the
production.
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o Post-consumption: Glass from bottles, containers and windows collected/bought from other organisations are recycled as materials in the
mosaic production.
There are two main drivers for these practices; from one hand there is cost reduction and
from the other hand there are commercial requirements since one if the main supplier, which
is a large organisation operating in Mexico and USA, is environmentally certified and thus
request similar practices from its suppliers.
4.3 Industrias Lavín de México S.A. de C.V. (ILM) It is a medium-sized company that manufactures health and beauty products, employing 210
people with an annual budget of £11million. With “respect for nature” as one of the
organisation’ principles (ILM, 2012), this organisation is engaged in diminishing the
environmental impact throughout its processes by implementing, publishing and thoroughly
measuring performance of these GSCM projects in charge of one manager:
Formal EMS boosted by the top management, guided and certified by the
Environmental Ministry of Mexico. They improve the efficiency of its processes,
environmental performance and competitiveness at different levels (SEMARNAT,
2012):
o “Industria Limpia” (Clean Industry) in 2003. o “Auditoría Empresarial” (Corporate audit) in 2011. o “Liderazgo Empresarial para la Competitividad” (Entrepreneurial Leadership
for Competitiveness) in 2011.
The first two certifications govern the organisation itself; however the third one goes beyond
throughout the SC with the perspective of supporting a demand chain (ILM, 2012) like Hill
(2011) suggests. 12 out of 70 suppliers participated in this successful programme, consisting
on seminars and experimental training, yielding specific impressive results in terms of what
they consume, produce and waste (Appendix 4). Apart from that, there is a project to be
concluded; it us the installation of 210 solar panels to preheat the processed water, reduce gas
consumption and CO2 emissions. As evidence, some archival information was collected
regarding the achievements after implementing GSCMP.
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Table 14: Summary of GSCMP1
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4.4 Barriers in case organisations For organisation purposes and as suggested by the Walker et al (2008) model, these are
divided into internal and external as follows:
4.4.1 Internal Barriers
4.4.1.1 Cost Based on the units of analysis, undoubtedly cost is the most common barrier throughout the 3
case studies according to the owner/general directors, general managers, suppliers and
clients’ opinion. Particularly AREURMOT, the smallest organisation, resents this barrier the
most. It has been overcoming it gradually after more than three decades of the organisation
creation; indeed, GSCM initiatives started to occur during its highest economic growth
thanks to continuous reinvestment. Some suppliers points out two critical features of this
obstacle; it are normally high and not easily released or available promptly. Interestingly, in
the two largest case studies, two suppliers said to believe that cost is not a barrier whatsoever;
however it is a minority opinion.
Overall, the keys to handle this ongoing barrier are found to be continuous reinvestment,
trusts, private sector investment, and trying to find alternative ways of operating which is felt
to be hard and time-consuming. Lastly, cost is a barrier that has been overcome to a certain
extent, but it is clearly an ongoing barrier to be considered in every implementation decision
significantly.
4.4.1.2 Lack of Legitimacy Although the research finds that top management is one of the main GSCMP booster,
organisations overall admit that a considerable number of employees are not impassioned at
all. This lets itself to incomplete engagement of the organisation as a whole, being more
critical in the medium-sized organisations which disclose more their environmental
commitment. For instance, it was found that glass recycling policy failed completely in
AREURMOT, whereas partially in MVM due to employees’ refusal. Nevertheless, top
management legitimacy is genuine despite this threatening imbalance which has not been
overcome yet. In this respect Carter and Dresner (2001) in Walker et al (2008) suggest that
one way to bridge it is to make people sympathetic to the initiative.
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4.4.1.3 Other internal barrier An overcome barrier is “Insufficient top Management Commitment”. One case mentioned the
breaking point happened after a formal demand from neighbours, a social pressure that
detonated serious commitment from top management. Archival evidence of this issue was
denied due to confidential reasons.
4.4.2 External Barriers
4.4.2.1 Regulation It is found that it could be a barrier or a driver in different cases. For the electrical motors
shop, regulation has been a barrier more than a driver to implementing GSCM initiatives. The
rationale is that Government environmental regulations commonly play to support this kind
of initiatives for instance, by lending money to organisations to buy green technology.
Nonetheless, the annual interests to be paid afterwards are too high (25 to 30%), which
represent a high cost at the end of the initiative. In contrast, it is recognisable that in the case
of ecological equipment acquisition, government allows a total amortisation within one first
fiscal year after purchase. With respect to MVM’s opinion, a proper and punitive regulation
seems absent. This is, given that raw material is mostly recycled glass and there are not
recycling regulations in Mexico, it is hard to collect it. To date, this collection is made by
MVM through rummage across other organisation which glass represents waste and through
a private organisation which collects it as its own business. For two other investigated
environmental conscious suppliers, environmental legislation has been a driver, although not
very significant. Lastly, for ILM regulation is not a barrier or a driver because the projects
that it has been implementing are entirely voluntary. To better explain, the government gives
the option to organisations to participate in this programme along with suppliers, however is
not regulatory.
4.4.2.2 Poor supplier commitment Even though this impediment is included in the guide model, the research finds that
perceptions are very different. In the case of AREURMOT, only 3 out of 60 suppliers
(BALDOR, SIEMENS and WEG) maintain a green relationship with the organisation due to
the product features they handle, energy efficient electrical motors. In the case the case of
MVM, in words of an interviewed manager: “There is no restriction or even mention of the
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environmental concern issue to suppliers”. Lastly in the case of ILM, poor supplier
commitment is a barrier that was overcome supported by the Environmental Ministry of
Mexico programme “Entrepreneurial Leadership to Competitiveness”.
4.4.2.3 Industry Specific Barriers This hurdle was not particularly referred by organisations. However, it can be said that the
above mentioned Regulation barrier affects especially MVM because production is recycling-
glass based and there is not a formal waste separation regulation.
4.4.2.4 Other external barriers ‘No application of law sanctions’ is a frequent finding. In general, several interviewed
suppliers affirm that government inspectors commonly receive money from other companies
that incur in serious environmental impact when operating; in exchange, they grant silence
and impunity. Unfortunately, this research does not present any documents or archives as
proof, other than these assertions.
Differently to developed countries, findings show additional barriers that can be internal and
external at the same time. These are:
Insufficient know how about GSCMP Insufficient know how about GSCMP is another barrier overcome by ILM mostly. After
seminars and experimental training from the governmental programme it was demonstrated
that involving suppliers into GSCMP is more beneficial than they could ever imagine (ILM,
2012). This was beneficial to the organisation itself and the participant suppliers. It is
explained that these days, the organisation is endeavouring to extend the practices further to
other suppliers and clients who have not taken part yet. As for the MVM and AREURMOT
cases, there has been learning about good practices through a lot of effort over the time,
falling into mistakes and retrying.
Environmental Unconsciousness Almost or equally significant as cost, all in all organisations were very keen in emphasising
the cultural aspect or ideologies of employees towards green initiatives/projects. They
highlighted the fact that an important number of employees within each organisation in the
supply chains do not have enough environmental awareness (from low to medium levels),
Understanding the barriers to implementing GSCM practices in organisations operating in developing countries
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which makes some GSCMP hard to implement. Although it was specified that addressed
barriers had to be underpinned by their implemented GSCMP, inevitably in all the interviews
general society was raised as environmental unconscious. This leads to an actual cultural
problem in Mexico as a root problem.
Apart from employee vulnerability within the organisation, environmental unconsciousness is
definitely found to be an ongoing critical barrier by suppliers and clients. For instance, the
manager in AREURMOT gave the example of a supplier from the same tier within the SC it
is part of, as reluctant to abide environmental rules when visiting certain facilities. “This is a
country where people’s ideology is not used to follow regulations and do the right thing”, she
explained. MVM gave another example in which it was proved that households and business
hide used glass materials within their rubbish so this prohibited waste was discrete. What is
more, some people do segregate glass but collecting-buses mix it with the rest when
collecting it. In fact, there was one supplier who clearly stated that environmental
unconsciousness can be seen as the mother barrier, and then the rest of difficulties are just
minor requirements. The case of ILM is specifically relevant here because consciousness of
12 suppliers was raised and therefore full commitment, which is impressive (ILM, 2012). The
programme involved suppliers having minimum 25 employees.
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Table15: Encountered barriers to implementing GSCMP1
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Figure 4: Encountered barriers Diagram (Internal/External/both) to implementing GSCMP1
4.5 Conclusions of Findings
This chapter has presented the results gathered through the interviews by themes including
the units of analysis (GSCM initiatives) and barriers encountered. Findings are summarised
in matrices, tables and diagrams displayed to visualise with clarity. It was found cost, lack of
legitimacy and insufficient top management commitment as internal barriers to the
organisation; regulations, poor supplier commitment and no application of law sanctions as
external barriers to organisations and lastly, insufficient know how about GSCMP
implementation as both internal and external barriers. Interviewed managers commonly
report Cost as the most common barrier throughout the 3 case studies seconded by
Environmental Unconsciousness. Overall, it was found that GSCMP are mostly implemented
within the borders of the smallest organisations, noticing a trend of expanded and formal
green practices along the SC as organisations grow throughout the time and the larger they
are in comparison to others. Thus, the larger medium-sized organisation actively and formally
involves the most other SC participants within its SC in green practices.
Regulations Industry Specific Barriers
Insufficient Know How
Environmental Unconsciousness
Insufficient Top Manag
Commitment
No applic Law Sanctions
Lack of Legitimacy
Costs
Poor supplier commitment
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5. Analysis and Discussion
This chapter contrasts the barriers proposed by the Walker et al (2008) model and the ones
found in this present research throughout the SC of Mexican organisations; basically, what is
summarised in the Figures 2 and 4. It also seeks to answer the research questions.
5.1 What are the barriers to implementing GSCMP in organisations operating in developing countries?
The barriers encountered in the project are discussed in this section. There is a mix of internal
and external barriers in the Walker et al (2008) model and in the present research too, while
in this report cost and environmental unconsciousness are the most common impediments to
implementing GSCMP.
5.1.1 Internal Barriers
5.1.1.1 Cost Just like in the guide model, cost is the major barrier and it is to overcome continuously.
Apparently the AREURMOT general manager was thinking straight when mentioning that
the more income, the more significant GSCMP can be implemented, bearing with the
rationale that when more income, costs are more likely be covered. In this respect, it is
noteworthy that the more the annual sales of the three organisations (Table 12), the larger and
stronger is the environmental care throughout their SC. Furthermore, SME are more
vulnerable than large organisations because generally have less resources available, explained
Walker et al (2012) when referring to organisations in their research linked with small
suppliers and the fact that they struggle the most.
5.1.1.2 Lack of legitimacy This is referred as a consequence of a root problem, lack of appropriate culture in favour of
the environment in general. Regardless the fact that top management in this research
publicise real green facts having genuine commitment at present, it is found inconsistency as
a whole company provided that an important number of employees across the SC are not
following. The model refers to lack of legitimacy caused by manufacturers; however this
research points out employees ideologies as critical to be changed.
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5.1.1.2 Insufficient top management commitment The model does not mention this barrier itself, but in this research it was mentioned that
although existent before, management commitment became stronger in recent years as
publishing of their practices grew too. This is a breakpoint barrier overcome already in this
study.
5.1.2 External Barriers
5.1.2.1 Regulation Although most cases prove regulations as barrier, there are encountered opinions according to
particular contexts, idea that agrees with Walker et al (2008) propositions. In this study some
participants found support in regulation while others did not. In fact, environmental
legislation is very weak in Mexico, and when existent, corruption regularly takes place.
Nonetheless, government itself offer free guidance to GSCM to organisations with 25
employees minimum, a fact that counteracts the weak environmental legislation in terms of
the opportunity of improving environmental performance.
5.1.2.2 Poor Supplier Commitment In the AREURMOT and MVM cases, there is low attention to suppliers’ commitment,
potentially because the implemented GSCM initiatives (units of analysis) do not involve
them. Conversely in ILM, poor supplier commitment has been bridged deliberately and
targeted thanks to the governmental experience training. Particularly, the model underpins
this barrier in the fact that some suppliers do not want to share information, but overall as
found in this study, thinking of suppliers as green participants is rare. Therefore the problem
is stressed in a step backwards.
5.1.2.3 Industry Specific Barriers Walker et al (2008) found specific barriers depending on the industry, but this study did not
draw conclusions herein since interviewees did not mentioned particular barriers within the 3
different industries. It would be overreaching to interpret these findings as strong to refute
this barrier.
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5.1.2.4 Other barriers ‘No application of sanctions’ is a barrier not referred in the guide model but found to be
important in the implementation of GSCMP. It was treated separately from regulations
because it was clearly spelt out as a strong barrier by interviewees. The rationale is that
although weak, regulations do exist, however they are not respected because there is not
penalty or reward for obedience. It seems the Mexican system is corrupted by individual
interests, over the respect for nature.
Differently to the model, the two other barriers classified as both internal and external, were
found to be important. From one hand, Environmental unconsciousness is considered as an internal and external barrier to the organisation because some employees and other
participants along the SC do not seem to demonstrate environmental care. According to
respondents, this barrier is of general population and therefore a regular ideology/cultural
problem of people participating in any SC. Moreover, this barrier could be related to Lack of
Legitimacy originated by employees because the general national problem affects them.
Actually, few of the interviewees refer to final consumers as drivers, presumably due to low
environmental consciousness of citizens as the managers highlight.
From the other hand, insufficient know how about GSCMP is a barrier not mentioned either in the model but considerably important by interviewees. Even though will is present in top
management, it is believed that more knowledge should be diffused as to how to implement
GSCMP.
1.2 What is the most significant barrier to implementing GSCMP in organisations operating in developing countries?
Regardless the size of an organisation, cost is the most important barrier in developed and
developing countries contexts. This is, out of the 24 respondents in this study, only two
suppliers said to believe that cost is not a barrier whatsoever; cost is a sweeping barrier.
Particularly, Cost has been resented the most by the smallest organisation, but overall this
hurdle is normally seen as high and not easily released or available promptly.
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1.3 How are these barriers similar or different to those operating in developed countries?
Barriers in developing countries are more than in developed countries, adding “Insufficient
top management commitment”, “No Application of law Sanctions”, “Insufficient know how
about GSCMP implementation” and “Environmental Unconsciousness” to the list. Barriers
also are classified different. From one side, the notable difference is that while barriers in
developed countries can be internal or external, there are two barriers in developing countries
that can be internal and external at the same time (“Insufficient know how about GSCMP
implementation” and “Environmental Unconsciousness”). From the other side, the similarity
is that cost is indeed the most significant barrier in developing nations. Only one barrier of
the model could not be proved “Industry Specific Barriers”, potentially because only three
supply chains were investigated. Nevertheless, it would be overreaching to interpret it as non
valid barrier since there are a lot more industries that were not studied. Differently to the
barriers in developed nations, there is especial concern on “Environmental Unconsciousness”
in the developing ones, because it is extremely difficult to achieve a change in habits and
culture from people, a common believe found in this research.
5.4 Limitations
There are limitations in this respect. Firstly, only three organisations might have been a too
small sample in only one developing country, which represents a risk of transmitting
conclusions to organisations in other developing countries. However, to counteract this
possibility, the research was as done exhaustively in the involved supply chains. Secondly,
Managers interpretations might be influenced by feelings to certain extend, which cannot be
seen or controlled by the researcher. Thirdly, the research does not include public
organisations but private. Therefore, conclusions are stranded in the latter omitting the ability
of this research of ensuring extending conclusions in public organisations.
Another limitation is that GSCMP of AREURMOT and MVM cases do not involve suppliers
as actively as ILM, which makes weaker the capability of analysing the Poor supplier
commitment barrier proposed by the guiding model. Furthermore, only three industries were
Understanding the barriers to implementing GSCM practices in organisations operating in developing countries
71
investigated in which any specific barrier was not found. Potentially having taking in account
more industries probabilities to find this barrier could have increased.
5.5 Recommendations for Future Research For further research in developing countries, special attention is urged to pay to units of
analysis that consider more direct relationship with consumers. Given that polled
organisations are manufacturers, cited GSCM initiatives are B2B based, not B2C. In this
way, more analysis could be yielded in this respect. Also, it is suggested to research more on
the relationship between barriers, e.g. which of them are independent, dependent, linkage,
etc., like in the Lutha et al (2011) model does with the barriers to GSCMP in the automobile
industry. Lastly, environmental unconsciousness should be more investigated due to the
importance that this barrier has, dragging back GSCMP implementation.
5.6 Conclusions of Analysis and Discussion
In summary, there has been comparison and contrasting between the present research and the
Walker et al (2008) model with the aim of discussing and answering the research questions in
sets of internal and external barriers. Despite that the context of the framework has been
changed deliberately, theoretical replication has been found. Thus, this report research agrees
with the model overall, but complements it with four more barriers making a total of nine:
Cost (being the most significant in both developed and developing countries, regardless the
size of the organisation), Lack of Legitimacy, Regulations, Poor supplier commitment,
Industry Specific Barriers, Insufficient Top Management Commitment, Insufficient Know
How about GSCMP, Environmental Unconsciousness and No application of sanctions.
There are more barriers to implementing GSCMP in organisations operating in developing
countries that in developed ones and also they are classified differently, having two factors
that can be internal and external at the same time. There is almost equal concern to
Environmental Unconsciousness barrier than to Cost. As a result, recommendations for
further research include B2B markets, relationship between barriers analysis and
environmental unconsciousness themes.
Understanding the barriers to implementing GSCM practices in organisations operating in developing countries
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6. General Conclusions
The purpose of this dissertation was to understand the barriers to implementing GSCMP in
organisations operating in developing countries. Therefore, these research questions were
developed in order to prove Walker et al (2008) model: What are the barriers to
implementing GSCM practices in the mentioned organisations?, What is the most significant
barrier? and How are these barriers similar or different to those operating in developed
countries? These were answered according to managers of organisations, suppliers and
respective clients.
This study found support for the barriers suggested by the Walker et al (2008) model,
complementing it with four more barriers. Thus, barriers are: Cost, Lack of Legitimacy,
Regulations, Poor supplier commitment and Industry Specific Barriers, as well as Insufficient
Top Management Commitment, Insufficient Know How about GSCM practices,
Environmental Unconsciousness and No application of sanctions.
In the same way, it is determined that cost is the most significant barrier along the case
studies, seconded by Environmental Unconsciousness. Only one barrier of the model could
not be proved “Industry Specific Barriers”, potentially because only 3 supply chains were
investigated. Nevertheless, this fact is not sufficient to take off since this research does not
cover a significant number of industries.
Barriers in developing countries present different classification than those in developed ones.
That is, barriers in developed countries can be internal or external, whereas there are two
barriers in developing countries that can be both internal and external. One of these is
Environmental Unconsciousness, which rises almost equal concern to cost. As a result,
recommendations for further research in developing countries include B2C markets,
relationship between barriers analysis and environmental unconsciousness themes in
developing countries. This would help to organisations endeavouring to be more competitive
by greening their supply chain.
Understanding the barriers to implementing GSCM practices in organisations operating in developing countries
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Appendix 1
GDP since 1994 from IMF http://www.imf.org/external/pubs/ft/weo/2012/01/pdf/text.pdf (p. 179)
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Appendix 2: Developing countries according to the World Bank, 2012
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Appendix 3: Evidence extracted from the Motor Master+ International software package
US Department of Energy (2012), Sample of MotorMaster programme window. Available at: http://www1.eere.energy.gov/manufacturing/tech_deployment/software_motormaster.html (Accessed 4th November, 2012)
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Appendix 4: Project results (ILM)
PARTICIPANT SUPPLIERS: Procesos Plásticos de Morelos S.A de C.V, Tecnología en Plásticos Meuri S.A de CV, La etiqueta Fina S. A de C.V, Industria Cosmética CORS.A de CV, Corporativo Burbupac S.A de C.V, Cartones y Corrugados Industriales S.A de CV, Plasilusa, SA. De C.V., Aceites y Especialidades del Bajío, S.A DE C.V., La procuraduría Federal de Protección Ambiental (Delegación Morelos), Universidad Politécnica del estado de Mórelos, ECCACIV S.A. de C.V.
Extract from Archive provided by María Cordero Quality Assurance
Industrias Lavín de México S.A. de C.V.
Participación de 12 empresas e
Instituciones
Ahorros totales por más de 2.76 millones de pesos al año
17 empleos permanentes ROI de 3.5 meses
Ahorro de 734 m3 de agua anuales Equivalente a abastecer a una familia por todo un año
Ahorro de energía por 823,276 kWh por año Equivalente a abastecer 284 hogares
Emisiones evitadas de 620 ton CO2 Equivalente a dejar de circular 121 autos compactos por todo un año
Residuos evitados de 21.58 ton Es lo que generan de residuos sólidos 59 habitantes cada año
Distinguidos Visitantes, 26 Octubre 2011
Como siempre, para nuestro equipo de trabajo en Mosaicos Venecianos de México, S.A. de C.V., ha sido muy grato el haberlos podido encontrar durante su grata visita a la Expocihac 2011 que se llevó a cabo durante los días del 18 al 22 de octubre pasado en el Centro Banamex Ciudad de México, visitando nuestro Stand, donde como cada año, ofrecemos nuestros productos y mostramos las innovaciones más recientes que hemos realizado.
En nuestro constante esfuerzo por prestarles el mejor servicio posible y ofrecerles los mejores recubrimientos vítreos producidos en el país y de fama internacional, requerimos de su amable colaboración para obtener sus comentarios derivados de su visita para poder mejorar día a día. Su retroalimentación es relevante para nosotros y pueden estar seguros que apreciaremos enormemente su colaboración.
Compartimos con ustedes la enorme satisfacción de haber sido galardonados con el premio “Materiales y Recursos Sustentables” que resulta de nuestro Sistema Ekol® donde nos hemos ocupado en el reciclaje de vidrio y cuidado del medio ambiente, que venimos desempeñando desde hace varios años.
Les expresamos nuestro más sincero y genuino agradecimiento por el apoyo que siempre nos han brindado, al seleccionar nuestros productos vítreos como parte de sus operaciones en el Ramo de los Recubrimientos dentro de la Industria de la Construcción.
Aprovechamos la oportunidad para enviarles también un cordial saludo.
MOSAICOS VENECIANOS DE MEXICO SA DE CV
¹ Basado en los estándares del programa LEED® 2.2 (Liderazgo en Energía y Diseño Ambiental) desarrollado por el US GREEN BUILDING COUNCIL (USGBC) respecto al proceso productivo de reciclaje post y pre- consumo.
Una decoración con corazón verde PRESENTACIÓN:
+ Con más de 60 años de experiencia, el portafolio de marcas de MVM-Mosaicos Venecianos de México® cubre de manera global todas las aplicaciones arquitectónicas con productos y servicios especializados para el ámbito del paisajismo, el interiorismo y el arte público a través de Kolorines®, Mosai&CO y el Taller de la Familia Perdomo® refrendando que el trabajo en vidrio es sin duda, el sello de la casa.
+ Kolorines® es una referencia internacional indiscutible en el ámbito de la decoración en piscinas y spa, y bajo ésta premisa, presenta un nuevo sistema de revestimiento vítreo: Ekol®, una solución constructiva, respetuosa con el medio ambiente, rentable y eficiente concebida para las grandes obras y las características específicas de este tipo de demanda.
+ Sistema Ekol® es la nueva generación de revestimiento vítreo diseñada a base de dos componentes: piedras sílicas + mortero que desarrollan alta resistencia mecánica y química para garantizar un acabado de calidad superior.
El lado ecológico del vidrio + El vidrio por naturaleza, es amigable con el medio ambiente, hasta podríamos decir que tiene un alma verde ya que como la energía, el vidrio no se destruye, sólo se transforma. Bajo este principio y orientados a ofrecer productos de calidad con valor agregado, MVM implementó el programa de compromiso con el desarrollo sustentable llamado: Piensa verde que promueve una filosofía basada en anteponer que la más profunda emoción estética se produce cuando la armonía entre la obra del hombre y la obra de la naturaleza es completa. Por eso y a través de mejoras en su sistema productivo reduce, reutiliza y recicla los materiales utilizados en la fabricación de Ekol® ya que tiene el beneficio de estar compuesto por un alto porcentaje de vidrio reciclado (80% o más)¹.
Diseño con estilo propio UNA NUEVA SENSACIÓN DE CONTACTO NATURAL, DENTRO Y FUERA DEL AGUA. SISTEMA EKOL® = piedras sílicas + mortero Piedras sílicas - Componente A. EKol® es un sistema formado por pequeñas piedras sílicas boleadas y decantadas que brindan al contacto con la piel una sensación similar a la arena y a sus ojos la belleza y durabilidad de un acabado original con valor excepcional. + La línea Ekol® está compuesta por pequeñas piedras sílicas que poseen un brillo y variedad tonal único generando un juego de pequeños reflejos dentro y fuera del agua. Son más de 30 colores a elegir, todos ellos dotados de una pureza de color extrema y con un carácter muy diferenciado. + Presumiendo de versatilidad y polivalencia natural, Ekol® ofrece también mezclas seleccionadas en dos colecciones: Biósfera (aplicaciones exteriores) y Acuática (piscinas y áreas húmedas) aportando acabados esmalte, translúcidos y opalizados dentro de la misma gama.
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+ Con la semejanza de la piedra boleada pero con las ventajas del material vítreo: No absorbe líquidos ni grasas. - Resistente a cambios de temperatura sin quebrarse. - No se decolora con la luz ni con el paso del tiempo. - Resistente a la acción de sustancias químicas. - Actúa contra el desarrollo de hongos y bacterias. - No se maltrata cuando se modifica la alcalinidad del agua. - Amplia gama de colores. Beneficios. - Sistema antiderrapante. - Ahorro significativo en mantenimiento. - Flexibilidad de diseños que se adaptan a cualquier ambiente. - Rapidez de colocación. - Fácil de texturizar.- La temperatura del revestimiento no aumenta bajo incidencia solar directa para colores claros. Mortero- Componente B. Mortero EKol® es un mortero de anclaje a base de cemento y otros componentes que le imparten cualidades sobresalientes de fluidez, adherencia y gran resistencia evitando fisuras o desprendimientos al momento de instalarse. - No requiere de ningún agregado. - De fácil preparación, aplicación y manipulación. - Color integrado que garantiza un color homogéneo. - Ahorro de material y mano de obra contra métodos convencionales. - Óptimo rendimiento y extraordinaria resistencia. - Actúa contra el desarrollo de hongos y bacterias. + La durabilidad del sistema es tan importante como su estética es por eso que la dupla de componentes está diseñada para resistir las condiciones en áreas húmedas tales como: piscinas, jacuzzis, canales de nado, spas, regaderas, fuentes y espejos de agua; así también, es altamente recomendable para aplicaciones en áreas secas como: andadores, muros, fachadas, escalones, y banquetas. Colores disponibles. Blanco, Trigo, Champange (blanco-amarillo), Petra (gris), Azul Claro, Azul Intenso. Mortero elaborado con la calidad internacional de Laticrete®.
+ que revestimiento una verdadera experiencia sensorial Basándose en que el mejor diseño incluye la consideración del medio ambiente, Ekol®: no depreda ni saquea los ambientes naturales como son los ríos, costas, riveras, playas o lagunas para obtener el producto y no hace uso de residuos animales como conchas marinas para agregar brillo a las piedras, su brillo se obtiene de procesos minerales que excluyen el uso de trituración de la concha marina, debido a que está compuesto por un alto porcentaje de vidrio reciclado. Con esto, queda de manifiesto el compromiso Ekol® de llevar el diseño a un nuevo nivel de recubrimiento Ekológicamente sustentable.
Instalación Para obtener un óptimo resultado en la colocación del Sistema Ekol® es necesario contar con personal capacitado de instalación que provean el uso de las mejores alternativas en productos para la colocación de nuestro revestimiento siendo características indispensables para asegurar: una belleza perdurable, un desempeño óptimo y un grado mínimo de mantenimiento. Consulte al Servicio de Área Técnica Ekol® para más información: [email protected]
Contacto Para más información, visite: www.ekol.mx Cuernavaca, Mor.| (52) 777+ 3 29 66 40 Lada sin costo nacional: 01 800 000 EKOL (3565) Cabo Sn. Lucas, BCS. | (52) 624 + 1234 666 [email protected] Radio. 52*17444*47