JOURNAL ARTICLE REVIEW: OUTSOURCING
School of , Liberty University
Habib, A., & Bao, Y. (2019). Impact of knowledge management capability and green supply
chain management practices on firm performance. International Journal of Research in Business
and Social Science (2147- 4478), 8(6), 240–255. https://doi.org/10.20525/ijrbs.v8i5.548
Statement of author’s purpose
As an organizational firm, it is critical to understand how to maintain a competitive
advantage over the other relative organizations in the same market. Knowledge management is a
strategic method used by organizations to acquire skills, knowledge, anything that would give
them any opportunity or edge over the competition. These authors convey that there are rising
concerns from the consumers that force organizations to implement new management practices
to maintain these relationships. The purpose of this article is to determine the influence of
knowledge management capability on green supply chain management practices, adoption of the
manufacturing firm and subsequently the impact on firm performance. Further, the study
revealed that internal green supply chain practices have beneficial effects on both economic and
environmental performance while the external green supply chain practice has beneficial effects
on environmental performance but adversely affects the economic performance.
Background of the issue
In the realm of global business, as the world continues to grow and expand, firms must
tackle the challenges of frequently changing customer demands, technological advancements,
and heightened organizational competition. In order to maintain themselves within this
competitive environment, firms must have the proper understanding and knowledge of the
internal/external requirements, customer insights, all the while keeping up with technological
advances to ensure top performance. According to Habib and Bao (2019) a resource is a
valuable asset that is necessary for firms to successfully complete tasks or goals. Resources can
be either tangible or intangible and can create competitive advantages if they are properly
utilized. One of the known strategic resources used by most organizations is knowledge.
Knowledge is highly valuable and there is no substitute for the benefits it provides, meaning it
can’t be copied easily. A knowledge-based organization relies on collaboration and information
sharing in order to ensure superior business operation and productivity. External green supply
chain management is composed of “going green” in purchasing/investment strategies and
cooperation with customer requirements for sustainability. Knowledge management practices
help bridge the link between firms and their customers. Sustainability is highly important to
customers now, in every aspect of their purchase. An organization must be able to allocate their
resources in the most efficient manner to meet their customers’ requirements. Organizations are
investing in green practices to increase their profits, market share size, develop a distinct brand
image, and acquire a higher competitive advantage (Habib & Bao, 2019).
Application of Supply Chain Management theory
Outsourcing services is when an organization chooses to purchase a commodity they
previously manufactured internally. According to Liberty University (2021) there is no function
that is immune to outsourcing. An entire process or even certain aspects of the process can be
outsourced. When trying to determine whether a process should be outsourced or not, sometimes
we can break down that function in multiple steps. Decision makers, often managers, can then
determine which processes are most essential and which are the least essential. Focus on core
strengths, reducing overall inventory, and the advancement of logistical management technology
that provides the updated data for inventory. Many processes associated with logistics are
significantly outsourced. The activities that are the most outsourced are transactional,
operational, and repetitive (Liberty University, 2021).
Managerial Implications.
Knowing management is any valuable organizational resource that generates strategic
functions depending on the area of focus within the organization. KM tools are utilized for more
collaborative purposes rather than social. When employees within a knowledge based
organization are able to share their projects and network with one another in real-time. This
allows coworkers to learn and apply newly learned knowledge to current and future projects. In
the current global business era, technological advancements now allow us to work independently
via mobile apps on our cellphones, laptops, and tablets. In the research from Liebowitz and
Paliszkiewicz (2019) knowledge management has been heavily tied to increasing innovation.
The authors proposed that further studies in knowledge management should incorporate creative-
based disciplines. Pertaining to environmental practices, sustainability concerns and regulatory
pressures seem to be two most critical motivators.
Summary.
The research conducted in this article supports the premise that knowledge management
fosters green supply chain management practices, which in turn ensure superior organizational
performance. The adoption of eco-friendly practices, environmental management, and engaging
changing customer demands requires the acquisition of significant amounts of information.
Knowledge about every aspect in the supply chain must be acquired in order for the best
decisions to be made: details about competitor strategies, ways to optimize current supply chain
practices, implementation, etc. Without knowledge management there would be significantly
less innovation and improvements in any part of the global business structure, there is no flow of
information or resources to stimulate growth.
References
Habib, A., & Bao, Y. (2019). Impact of knowledge management capability and green
supply chain management practices on firm performance. International Journal of Research in
Business and Social Science (2147- 4478), 8(6), 240–255. https://doi.org/10.20525/ijrbs.v8i5.548
Liberty University. (2021). Supply chain management. McGraw-Hill Education.
Liebowitz, J., & Paliszkiewicz, J. (2019). The next generation of knowledge
management: Implications for LIS educators and professionals. Online Journal of Applied
Knowledge Management, 7(2), 16–28. https://doi.org/10.36965/ojakm.2019.7(2)16-28
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