Green supply chain management in leading manufacturers

TLDR

The study introduces GSCM experiences of large Japanese manufacturers and seeks to identify mechanisms for diffusing GSCM innovation from leading firms. The authors investigate nine large Japanese manufacturers to examine GSCM implementation, performance improvement, and drivers. Japanese manufacturers implement internal environmental management more actively than Chinese counterparts, achieve similar levels of other GSCM practices, and improve environmental and financial performance early on, while win‑win relationships and supportive regulations facilitate diffusion of GSCM to smaller firms. The findings can be disseminated to smaller Japanese firms and developing‑country companies such as China.

Abstract

Purpose This paper aims to introduce environmental, green supply chain management (GSCM), experiences of large Japanese manufacturers. Design/methodology/approach Using an investigation of nine large Japanese manufacturers, this paper examines GSCM implementation as well as their performance improvement and drivers among these manufacturers. Findings A comparative analysis shows that Japanese large manufacturers implement one key GSCM practice, internal environmental management, much more actively and effectively than Chinese manufacturers. The sample of Japanese manufacturers implement four other GSCM practices – green purchasing, customer cooperation with environmental considerations, eco‐design and investment recovery – at similar levels when compared to Chinese manufacturers. Even at the initial stage of GSCM implementation, large Japanese companies have made significant improvements for environmental and financial performance but not for operational performance. Research limitations/implications Experiences in GSCM practices among those large manufacturers can be disseminated to smaller companies in Japan as well as companies in developing countries such as China. To establish mechanisms to diffuse GSCM innovation from leading companies requires further research. Originality/value This paper indicates that large companies can green their supply chain by establishing win‐win relationships with their smaller suppliers and customers, and thus realize sustainable development for the whole supply chains. It also indicates that appropriate regulations and policies set by governments can help GSCM diffusion from larger leading companies to smaller companies.