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80 - An Exploratory Survey of Green Supply Chain Management in Chinese Manufacturing Small and Medium-Sized Enterprises - 1
80 - An Exploratory Survey of Green Supply Chain Management in Chinese Manufacturing Small and Medium-Sized Enterprises - 1
80 - An Exploratory Survey of Green Supply Chain Management in Chinese Manufacturing Small and Medium-Sized Enterprises - 1
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JMTM
26,1
An exploratory survey of green
supply chain management in
Chinese manufacturing small
80 and medium-sized enterprises
Received 9 May 2012
Revised 25 December 2012 Pressures and drivers
14 March 2013
13 August 2013
6 November 2013
Xiangmeng Huang
Accepted 7 November 2013 Business School, Xi’an Jiaotong Liverpool University, Suzhou, China
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Abstract
Purpose – The purpose of this paper is to empirically investigate the pressures and drivers that have
been experienced by Chinese manufacturing small and medium enterprises (SMEs) in terms of green
supply chain management (GSCM).
Design/methodology/approach – The research framework and hypotheses are examined by
a questionnaire survey through e-mails conducted in China in 2011. The empirical analysis is based on
the data from 202 SME manufacturers in China. Validity and reliability of the items employed in the
research is assessed through Cronbach’s α test. Hypotheses for the identification of GSCM pressures
and drivers to SMEs as well as the differences that exist among different industrial sectors are tested
by adopting descriptive statistics analysis and analysis of variance test.
Findings – This study finds that Chinese manufacturing SMEs have been under pressures from
a variety of sources, including regulations, customers, suppliers and public awareness in terms of
GSCM. Besides, internal drivers are also an important encouragement for SMEs to consider GSCM.
Moreover, Chinese manufacturing SMEs from different industrial sectors show some differences in
experiencing pressures or being motivated by drivers.
Research limitations/implications – The main limitations to this paper are the relatively small
sample of SMEs and the potentially overlooked variables.
Practical implications – Chinese manufacturing SMEs and their larger customers, as well as
governments, are likely to obtain some implications from this study if they are willing to consider any
GSCM initiatives throughout the supply chain.
Originality/value – The paper clearly explores the GSCM pressures and drivers faced by the Chinese
manufacturing SMEs where the results may differ from the findings through the studies on large
enterprises or SMEs in other national context.
Keywords Supply chain management, Small- and medium-sized enterprises
Paper type Research paper
1. Introduction
The term “supply chain management” (SCM) is first introduced by Oliver and Webber
Journal of Manufacturing
Technology Management in the early 1980s (Delfmann and Albers, 2000) and it has traditionally been regarded as
Vol. 26 No. 1, 2015
pp. 80-103
a process of converting raw materials into final products which will then be transferred
© Emerald Group Publishing Limited
1741-038X
to the end users. Besides the tangible product flow, some also stressed the intangible
DOI 10.1108/JMTM-05-2012-0053 value of the SCM which includes putting emphasis on market needs exchange, trust
building, product development, supplier base reduction, strategic positioning leverage Green supply
and operating efficiency improvement (Berry et al., 1994; Bowersox et al., 2002). chain
Furthermore, Welford (2002) proposed that supply chain relationship has definitely
become more critical in today’s globalized world with the growing notion of
management
environmental responsibility from all over the world. Actually, it is significant to notice
that we are entering into an era where green issues and sustainability have become an
important element to business practices. 81
The larger businesses have been the pioneers in embracing the concept of GSCM
and the focus of numerous studies (Henriques and Sadorsky, 1996; Wycherley, 1999;
Zhu and Sarkis, 2004). Small and medium-sized enterprises (SMEs) have attracted the
attention of many researchers worldwide in terms of their GSCM development
(Greenan et al., 1997; Hemel and Cramer, 2002; Burke and Gaughran, 2006; Rao, 2007;
Coˆte ́ et al., 2008; Lee, 2008a, b). However, due to their various constraints, SMEs
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their ownership in the last decade of last century (Sun, 2000). Later on, the Chinese
government released the standardized definition of Chinese SMEs in the year of 2003 to
set up the official criteria and those standards have been applied till recently. On 4th
July 2011, the National Development and Reform Commission, the Ministry of Industry
and Information Technology, the Ministry of Finance and the State Statistics Bureau of
the Chinese government formally introduced “The Provision of Small and Medium
Sized Enterprises Standard” and the standard definition of Chinese SMEs as shown
in Table I.
Therefore, the sample selected for this research will be those enterprises which have
less than 2,000 employees with an annual sale less than 300 million RMB and a total
assets less than 400 million RMB from manufacturing SMEs in China.
Small Medium
Annual sales Total assets Annual sales Total assets
Type Employees (million RMB) (million RMB) Employees (million RMB) (million RMB)
The standard
sectors
definition of Chinese
Table I.
83
chain
JMTM of SCM policies, activities and relationships which are taken close consideration
26,1 with natural environment when an enterprise distribute its resources. In addition,
Srivastava (2007) addressed that the environmental awareness should be integrated
into SCM through the whole process, from the design and material selection stage of
the product up till delivery to the end user, or even to the end-of-life management of the
product. Recently, Testa and Iraldo (2010) also claimed that GSCM is an increasingly
84 expanded strategy to gain a better environmental performance. The term GSCM will be
used in this paper and is defined as the integration of environmental concerns into the
SCM activities of an enterprise with the purpose of achieving economic, environmental
and social improvements.
organizations; second, pressures from the customers in the supply chain, which are the
increasing requirements from the downstream industries nationally and
internationally, including the requisite to imports and exports; third pressures from
general public, which are from the growing consciousness of consumers and the rising
perception of society; and fourth pressures from suppliers, which are the push from the
integration and collaboration with the suppliers. The drivers are the internal factors
come from the internal recognitions, support, cooperation and initial achievements of
GSCM within the enterprise.
H1. Chinese manufacturing SMEs have been under the regulatory pressures from
government in terms of GSCM.
H2. Chinese manufacturing SMEs have been under the customer pressures from the
purchasers at home and abroad as well as the end users in terms of GSCM. 87
3.3 Pubic pressures
According to Min and Galle (1997), the past few decades have seen a significant
increase of consumer environmental consciousness due to rapid environmental
degradation. So the consumers’ awareness of environmental protection and energy
saving which can further improve the entire social perception of green issues has
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become one of the most influential pressures for businesses to initiate GSCM.
In response to this demand, enterprises should provide more environmentally friendly
products to those consumers who are more green conscious. For example, Chan and
Lau (2001) compared the green purchasing behaviours between American and Chinese
consumers. The differences were found in the translation of green purchasing intention
to the related behaviour between them and American consumers are more effective in
terms of green purchasing adoptions. However, Skrentny (1993) pointed out that the
purchasing behaviour are changing with the penetration of environmental perceptions
to wider society by conducting an empirical study. As a result, more Chinese
consumers with younger ones as the main force are becoming more environmentally
conscious and starting to favour greener products, with less packaging, less pollution
and less energy consumption (Greenan et al., 1997; Lo and Leung, 2000). Actually, the
increasing environmental awareness can be regarded as an opportunity for enterprises
to win new consumers, the “Greens”, by offering them more environmentally friendly
products or services (Walker et al., 2008). Rao (2007) also argued that environmental
considerations from the Southeast Asian enterprises are not only due to the
requirements from global criteria but also from the consumer pressures in the social
sense. Therefore, the study aimed to figure out whether the consumer pressures bear on
the GSCM among Chinese manufacturing SMEs; it is hereby proposed:
H3. Chinese manufacturing SMEs have been under the public pressures from the
consumers and the society in terms of GSCM.
H4. Chinese manufacturing SMEs have been under the supplier pressures from the
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has the highest marketing pressures, highly stronger than power plants and slightly
stronger than the electronic industry. However, Huang et al. (2012) obtained different
findings from Chinese manufacturing SMEs in the Food and Drink sector, Clothing,
Textile and Tannery sector, Electronics facility sector and Wood processing and
Furniture sector are not significantly different in facing GSCM pressures though they may
be different during production to meet environmental requirements. Following the
principles of the previous research, this study aims to figure out whether such differences
exist among our research samples. Therefore, the final hypothesis is suggested:
H6. Different sectors from Chinese manufacturing SMEs are different in terms of
experiencing pressures and drivers in adoptions of GSCM.
From all the reasoning and the subsequent hypotheses, a research framework can be
suggested for this study on the pressures and drivers for SMEs to adopt GSCM.
As seen in Figure 1, GSCM adoptions among Chinese manufacturing SMEs mainly
relies on the pressures and drivers, including regulatory pressures, customer pressures,
public pressures, supplier pressures and internal management drivers. In addition,
different sectors among those SMEs may differ in experiencing pressures and drivers
to adopt GSCM.
H1
Regulatory Pressures
External Factors
H2
Customer Pressures
H3
Public Pressures
SMEs GSCM
H6
H4
Supplier Pressures
Internal Factors
Figure 1.
H5 Pressures and drivers
Internal Drivers
for SMEs to adopt
GSCM
JMTM 4. Research methodology
26,1 4.1 Strategy
The quantitative questionnaire survey method is used in this study. Surveys are
a fairly popular research strategy within business and management research (Saunders
et al., 2009), and there are several possible reasons for this. First, survey is quite helpful
to obtain straightforward information from the respondents (McIntyre, 2005).
90 They enable the respondents to directly clarify their answers to the researchers.
Second, this method provides a cost-efficient way to the researchers to obtain data from
a large number of samples (Easterby-Smith et al., 2002). In addition, it is highly
economical to sample rather than to target on the whole population as the findings from
a survey sample can stand and examine the whole population (Saunders et al., 2009).
Another interesting point is that surveys are always regarded as authoritative, as they
are relatively easier to explain and to understand in comparison to other data collection
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techniques. For this study, an online questionnaire with 35 questions is used for
the survey and the measurements and data collection process will be introduced in the
following sections.
values equal to 0.88, 0.73, 0.88, 0.88 and 0.94, respectively. These are all well above 0.70,
which ensures the constructs’ internal consistency and validity (Nunnally, 1978).
Therefore, it can be concluded that all the items listed in the questionnaires for
the respondents contribute to the validity and relevance of all the questions of the
questionnaire and to the study.
92
26,1
JMTM
Table III.
the findings
Summary of
Sector 1 2 3 4 5 6 7 8 9 10 11 12
n 7 44 8 8 11 13 15 17 11 10 25 33
Items Mean Mean SD Mean SD Mean SD Mean SD Mean SD Mean SD Mean SD Mean SD Mean SD Mean SD Mean SD Mean SD ANOVA
Regulatory Pressures
(α ¼ 0.88) 3.34 3.77 0.973 3.23 1.117 3.7 1.067 2.68 1.207 2.84 1.050 3.51 1.017 3.69 1.039 3.25 1.045 3.47 0.858 3.26 0.944 3.38 1.046 3.28 0.949 0.140
National laws and
regulations on
environmental protection RP1 4 1 3.2 1.091 4.13 0.641 2.63 1.408 2.73 1.104 3.92 0.954 3.67 1.047 3.24 1.033 3.64 0.809 3.3 0.949 3.32 1.108 3.33 0.957 0.026
National laws and
regulations on resource
conservation RP2 3.29 0.951 3.25 1.164 4.13 0.991 2.38 0.916 2.82 0.982 3.38 0.768 3.6 0.986 3.41 1.064 3.73 0.905 2.9 1.101 3.32 1.03 3.21 0.857 0.051
Local laws and regulations
on environmental
protection RP3 3.71 1.113 3.14 1.173 3.38 0.744 2.5 0.926 2.82 0.874 3.38 1.044 3.8 1.014 3.06 1.144 3.45 1.128 3.2 0.919 3.4 1 3.06 1.059 0.217
Local laws and regulations
on resource conservation RP4 3.57 0.976 3.23 1.159 3.38 1.188 2.88 1.126 2.64 1.286 3.23 1.092 3.73 0.961 3.24 1.033 3.18 0.603 3.3 0.949 3.32 0.988 3.3 0.847 0.590
Environmental regulations
from the import countries RP5 4.29 0.756 3.34 1.033 3.5 1.512 3 1.69 3.18 1.079 3.62 1.193 3.67 1.291 3.29 1.047 3.36 0.809 3.6 0.843 3.56 1.158 3.52 1.004 0.694
Customer Pressures
(α ¼ 0.73) 3.49 3.81 0.981 3.57 0.934 3.92 1.018 2.71 1.160 3.18 1.130 3.41 0.818 3.82 1.093 3.49 1.027 3.39 0.933 3.67 0.802 3.59 1.054 3.27 0.977 0.062
Overseas enterprises
located in China and joint
venture purchasers CP1 3.57 1.272 3.7 0.93 3.75 1.035 2.63 1.408 3.09 1.136 3.54 0.66 3.6 1.121 3.53 0.943 3.55 0.82 3.5 0.707 3.8 1.041 3.52 1.004 0.345
Environmental protection
demands from domestic
customers CP2 4 0.816 3.57 0.873 3.75 1.282 2.75 1.035 3.09 1.044 3.46 0.776 3.8 1.082 3.41 1.121 3.36 0.924 3.9 0.876 3.44 1.003 3.09 0.947 0.090
Increasing environmental
awareness of the end
consumers CP3 3.86 0.9 3.43 0.998 4.25 0.707 2.75 1.165 3.36 1.286 3.23 1.013 4.07 1.1 3.53 1.068 3.27 1.104 3.6 0.843 3.52 1.122 3.21 0.96 0.091
Pubic Pressures (α ¼ 0.88) 3.55 4.29 0.561 3.47 1.059 4.08 0.830 3.04 1.232 3.15 1.149 3.62 0.990 3.96 0.928 3.16 1.084 3.24 1.119 3.67 0.959 3.68 0.903 3.29 0.918 0.022
Pressures of building green
brand PP1 4.14 0.69 3.52 1.067 4.13 0.991 2.88 1.126 3.18 1.328 3.38 0.961 3.93 1.033 3.12 1.219 3.18 1.079 3.7 1.16 3.56 0.961 3.45 0.905 0.152
Pressures of establishing
green corporate image PP2 4.29 0.488 3.48 1.089 4.13 0.835 3.13 1.356 3 1.095 3.54 1.198 3.8 0.941 3.06 0.966 3.36 1.206 3.7 0.949 3.68 0.852 3.15 0.906 0.043
(continued )
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Sector 1 2 3 4 5 6 7 8 9 10 11 12
n 7 44 8 8 11 13 15 17 11 10 25 33
Items Mean Mean SD Mean SD Mean SD Mean SD Mean SD Mean SD Mean SD Mean SD Mean SD Mean SD Mean SD Mean SD ANOVA
Increase of environmental
awareness from the society PP3 4.43 0.535 3.41 1.041 4 0.756 3.13 1.356 3.27 1.104 3.92 0.76 4.13 0.834 3.29 1.105 3.18 1.168 3.6 0.843 3.8 0.913 3.27 0.944 0.013
Supplier Pressures
(α ¼ 0.88) 3.39 3.62 0.987 3.38 0.967 3.33 0.930 2.83 1.173 3.27 0.921 3.44 0.877 3.79 0.906 3.25 1.057 3.35 0.936 3.58 0.869 3.54 0.931 3.27 0.898 0.319
Collaboration in
environment protection
with our suppliers SP1 3.57 0.976 3.41 0.897 3.25 0.886 2.88 1.356 3.18 1.079 3.62 0.768 3.93 0.704 3.18 1.131 3.36 1.027 3.5 0.707 3.4 0.957 3.36 0.859 0.504
Improvements in designing
green products with our
suppliers SP2 3.86 0.69 3.34 0.987 3.63 0.744 2.88 1.246 3.73 0.786 3.46 0.776 3.6 0.986 3.53 1.007 3.27 1.191 3.3 0.823 3.6 0.866 3.24 0.792 0.551
Improvements in products
green packaging with our
suppliers SP3 4.14 0.378 3.39 1.017 3.38 0.916 2.5 1.195 3.27 0.786 3.08 0.862 3.53 1.187 3.06 0.966 3.36 0.674 3.6 0.843 3.48 1.005 3.21 0.96 0.152
Pressures from green
strategy of identical goods
manufacturers SP4 3.71 1.254 3.41 0.972 3.25 0.886 2.63 0.916 3 1 3.38 1.121 3.87 0.64 3.29 1.105 3.18 0.874 3.8 1.229 3.64 0.952 3.33 1.021 0.205
Pressures from green
strategy of substitute
products manufacturers SP5 3.29 1.254 3.39 0.945 3.25 1.165 3.25 1.389 3.27 1.009 3.54 1.05 3.93 0.884 3.06 1.144 3.64 0.924 3.8 0.789 3.6 0.957 3.33 0.89 0.508
Requirements of green
development from the
industry association SP6 3.14 1.069 3.34 1.033 3.25 1.165 2.88 1.126 3.18 0.874 3.54 0.66 3.87 0.99 3.35 1.057 3.27 1.009 3.5 0.85 3.52 0.918 3.12 0.893 0.502
Internal Drivers (α ¼ 0.94) 3.53 3.83 0.942 3.80 0.835 3.54 1.025 2.63 1.267 3.21 0.981 3.56 0.992 3.76 0.893 3.48 0.959 3.73 0.763 3.68 0.676 3.74 0.933 3.35 1.001 0.004
Drivers from enterprise’s
environmental vision ID1 4.29 0.488 4 0.807 3.63 1.061 2.5 1.195 3.45 1.368 3.69 1.032 4 1 3.59 1.278 3.73 0.647 3.6 0.699 3.64 1.075 3.39 0.998 0.019
Support of the green
strategy from the top
management ID2 4.14 0.9 4.07 0.759 3.75 1.282 2.63 1.302 3.36 0.924 3.77 1.092 4.07 0.704 3.35 0.996 3.55 0.82 3.7 0.675 3.6 1 3.39 1.088 0.005
Support of the green
strategy from the middle
management ID3 3.57 1.272 3.75 0.781 3.75 1.282 2.25 0.886 3.36 0.924 3.38 1.121 3.73 0.961 3.29 1.105 3.64 0.924 3.6 0.843 3.72 0.98 3.52 1.064 0.061
Implementation of green
strategy from employees ID4 3.43 1.397 3.8 0.795 3.5 1.195 2.5 1.195 2.73 0.905 3.62 0.87 3.67 1.113 3.59 1.004 3.73 0.905 3.4 0.843 3.64 0.907 3.48 1.004 0.033
(continued )
management
Table III.
Green supply
93
chain
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94
26,1
JMTM
Table III.
Sector 1 2 3 4 5 6 7 8 9 10 11 12
n 7 44 8 8 11 13 15 17 11 10 25 33
Items Mean Mean SD Mean SD Mean SD Mean SD Mean SD Mean SD Mean SD Mean SD Mean SD Mean SD Mean SD Mean SD ANOVA
5.3 ANOVA
ANOVA results in Table III show that the public pressures from the consumers and the
society in terms of GSCM and the internal impulse for applying GSCM have significant
differences among Chinese manufacturing SMEs with the p-values (Sig.) of 0.022 and
0.004, respectively; while the other three p-values are more than 0.05, implying that
there is no significant difference among SMEs from different industrial sectors in terms
of feeling pressures to adopt GSCM. Therefore, the prime conclusion is that H6 is only
partly supported by our data; more specifically, different sectors from Chinese
manufacturing SMEs have differences with regard to public pressures and internal
drivers in adoptions of GSCM but no difference shown in regulatory pressures,
customer pressures and supplier pressures among them.
6. Discussion
With the data collected from the SME respondents, all the hypotheses proposed for our
study are partly proved and supported.
the shortage of resources. On the other hand, the increased in environmental concerns
leading to a desire among the public when making purchasing decisions, prefers
a business with higher reputation in terms of environmentally friendly or green
(Drumwright, 1994). Data from the study found that Chinese SME manufacturers from
the sectors of Food and Beverage and Wood Processing and Furniture are currently
experiencing heavy pressures from the increasing public awareness of GSCM.
However, drawing much attention from the public with regard to the environmentally
friendly policies from the enterprises might be tricky in some circumstances. According to
Greer and Bruno (1996), the green or environmental strategies of an enterprise can easily
be falsified as corporate “greenwash” because all the actions of a business are more likely
to be magnified to increase publicity.
terms of GSCM; in addition, the customer pressures from the purchasers at home and
abroad as well as the end users also put effect on the GSCM for those SMEs. The third
source of pressures is the public pressures from the consumers and the society. Fourth,
Chinese SMEs had been under the supplier pressures from the upper stream partners in
their GSCM. Finally, those SMEs had been encouraged by the internal drivers, such as
the commitments from top management and middle-level management, execution and
cooperation among employees, reserved cost and human resource, etc. in terms of
GSCM. Moreover, Chinese manufacturing SMEs from different industrial sectors
showed some differences in experiencing pressures or being motivated by drivers.
These differences may be explained by their different pollutional characteristics and
levels to the environment, different needs to compete in a global context, different
production process to cooperation with their suppliers and different desires to establish
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Corresponding author
Dr Xiangmeng Huang can be contacted at: xiangmeng.huang@hotmail.com
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