the impact of green procurement on consequences of green...

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*Corresponding author:EhsanKhaksar Master of Industrial Management. School of Management. Hormozgan University. Iran.

E-Mail: [email protected]

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International Journal of Operations and Logistics

Management Volume 4, Issue 1

Pages: 1-13

March, 2015

e-ISSN: 2309-8023

p-ISSN: 2310-4945

The Impact of Green Procurement on Consequences of Green Supply

Chain Management

Reza Ahmadi Kahanaali1, Ehsan Khaksar2*,and Laleh Abbaslu3

1. Assistant Professor of Department of Literature and Humanities. Hormozgan University. Iran. 2. Master of Industrial Management. School of Literature and Humanities. Hormozgan University. Iran. 3. 3 Graduate student technology management. School of Management. Sirjan Azad University. Iran.

Nowadays, sustainable development in the concept of green supply chain management in the field of production and operations management and the rules and principles of green throughout the supply chain, from upstream, internal and downstream should be considered equally. On the basis of this research has been focused on the upstream supply chain to determine the effectiveness of green procurement outcomes Green Supply Chain Management in the cement industry that is one of the major industries in Iran. The study of the branches of the cross correlation is based on structural equation modeling. The population of this study is to include all managers and experts cement factories of Fars province in Iran. Using a two-stage cluster sampling method and sample size of 103 was Morgan and finally 132 questionnaires were collected by means of questionnaire and LISREL software to test the hypothesis that a valid application of structural equation modeling is used. After examining assumptions, it was found that green procurement and significant positive impact on outcomes of green supply chain management that includes four of the consequences of operational, economic, environmental and intangible. Keywords: Green supply chain management, GSCM, green procurement, consequences

of green supply chain management

INTRODUCTION

According to the massive changes occurring in the field of environmental issues in recent years, such as social concern about the deterioration of the natural environment, control and monitoring of the performance of different companies increased and companies are under pressure to consider

environmental concerns in their activities (Chan et al., 2012). The growth and development of industry in the world on the one hand and increasing government regulations to protect the environment on the other hand, has forced organizations to the concept of green supply chain

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The impact of green procurement on consequences of green supply chain management Kahanali et al.

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management 4 further consideration. Are likely to increase in the future due to environmental pressures on organizations will further increase. Hence the green supply chain management, attention to environmental issues and green words into the field of Production and operations management (Mathiyazhagan et al., 2013).

Green Supply Chain Management (GSCM) is a strategy for sustainable development in today's competitive markets, which aims to simultaneously achieve financial benefits and reduce environmental risks have emerged (Hajikhani et al., 2012 ). According to several studies in the field of environmental issues in the supply chain (Lampikoski, 2012 ; Min & Kim, two thousand and twelve; Seman et al., 2012) but the results are not conclusive in all conditions and industrial environments ( Eltayeb et al., 2011 ). In recent years the development of a sustainable supply chain, the important issue is emphasized by many companies in different industries (Seuring, 2013). Today, organizations are seeking to revive the industrial activity on the one hand, market growth and competitive advantage, and the other with environmental issues such as lack of resources, protect the environment and reduce pollution and face. Hence, the need to seek innovative ways is to develop their economic activities (Alle, the 2,012th ). By adding the concept of "green", the concept of supply chain management, supply chain research topic directly related to environmental issues have been addressed (Saman et al., 2012). The concept of green supply chain management, combined with the quality of the supply chain in 1980 and in 1990 was born (Saman et al., 2012; Shukla et al., 2011). With the increased focus on implementing activities to suit the environment, many companies are implementing green supply chain management (GSCM) placed on its agenda (Saman et al., 2012; Pak, 2013), because today more concerns about the impact of the past, especially of industrial organization, the environment has increased (Walker et al., 2008).

To clarify the importance and benefits of implementing GSCM, the developing countries in recent years have turned to the use of GSCM. In developing countries many of companies and

organizations are green businesses and their supply chain, but the purpose of implementing the measures and procedures to reduce environmental pollution. However, it should be changed, and aim at implementing green practices in the industry, should be defined to prevent pollution and environmental issues. In other words, applying the precautionary approach to environmental issues must be considered (Ambuzi & Cananda, 2005). This also explains the essential point is that, in developing countries, especially in Asian countries, few studies have addressed the issue of GSCM. In South-East Asia, green supply chain management is a new concept and possibly a small number of organizations have adopted GSCM (Rove, 2002).

GREEN SUPPLY CHAIN MANAGEMENT

So far, the research scientists have different definitions for green supply chain management are considered (Altayeb et al., 2011) but not yet defined Kiev unit of GSCM not provided. In studies conducted in 2005 by Simpson et al and also check Handfold, GSCM as "taking into account environmental considerations in the decision-making process at every stage, from the management of the organization and the arrival of goods to transport the final consumer "is defined (Kumar and Chandkar, 2012). Zue et al., old model of green supply chain management for organizations to achieve two goals at the same time profit and loss of market share and enhance environmental risks and the environmental have described (Zue et al., 2005). Definition Huchman Davis and the GSCM are to coordinate the efforts of the entire company. Green supply chain management over the implementation of activities a simple list of environmentally friendly, but the concerted effort to improve the overall performance of the company management level to operational levels (Huchman Davis and, 2007). Tuk et al. GSCM the integrated system, including raw materials, building products, delivering the goods to the final customer and product disposal, to protect environmental degradation and improve the efficiency and profitability of their definition (Tuk et al., 2012).

Int. j. oper. logist. manag. p-ISSN: 2310-4945; e-ISSN: 2309-8023 Volume: 4, Issue: 1, Pages: 1-13

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The first study in this area GSCM, in 1994, was designed by web-Lee, and with an emphasis on green procurement (Hajikhani et al., 2012). Although initially expensive to buy green may be considered, but with a little care we know that it can reduce costs for companies and economic benefits, such as removing waste products and the reduction product is responsibility for the company, as well as the benefits non-economic, such as improving the use of resources and create a positive image in the minds of customers, another advantage is Khrodsabz (Min & Gul, 2001). Despite the many benefits of green purchasing as irreversible reduction of waste generation and reduction of environmental costs (Suplhaj & Paps, 2006), this variable as a marginal activity, and a small number of enterprises, such as environmental even certified have adopted the ISO1400 (Chen et al., 2004). According to Min & Gul (2001), according to the supplier's role in the production of green products and packaging are environmentally friendly, have to choose and buy from them appropriate strategies to be adopted.

Another aspect of interest in green supply chain management is compliance with the requirements of the environmental performance of suppliers, which if not managed properly to factor becomes costly for companies (Simpson & Power, 2,005). This case is under investigation as a supplier, the supplier of green that does not comply with environmental issues (Ninlaval et al., 2013); one of GSCM If you take into consideration that can lead to long-term results and strategic benefits for the organization (Chiu et al., 2011). Suppliers need emergence in recent years of such importance that many large companies to buy from local suppliers of green environmental standards have (ibid).

Given the importance of the two factors, i.e. supplier of green and green shopping, we decided to study the effect of these two factors in the outcome variable green procurement, green supply chain management pay for it. Since the survey, usually only buy environmentally friendly green procurement limit (Ninlavan et al., 2010; Savan, 2008) in this study, we have added a supplier of green procurement. Since the procurement activities before choosing a supplier and manufacturing operations in Kazkhaneh is

also one of the important factors affecting the operation of the production is (Ahmadi et al., 2014) and the other supplier that environmental issues respects the environment can also affect purchasing, supplier and buy green, green, green logistics variables were selected as follows. Each of the factors affecting the adoption of green supply chain management will have implications for companies. GSCM consequences benefits and consequences of the adoption and implementation of green supply chain management are by organizations that green supply chain management implications (Ahmadi et al., 2014) in surveys conducted in the field of green supply chain management, including the ability to check Zhu and Sarkis in 2004, Zue et al. In 2007 Altayeb et al in 2011, and so on, 3 green supply chains management is mainly a consequence of environmental impacts, economic impacts and operational implications are examined. Another consequence of green supply chain management has recently attracted the attention of researchers, the intangible effects of perceptual and conceptual implications of green supply chain management. Consequences that are difficult or impossible to quantify, such as: changing the image of customers about our products. The outcome of the review of four studies that have examined the GSCM, the impact of operational, economic, environmental and intangible, is given.

HISTORY

Green supply chain management and effective and important elements and variables that several studies have been conducted. In each of the studies, the aim of the study is based on different elements. In continuation of previous studies conducted in the fields related to GSCM are ahead is given.

Carter et al. (2000) in a study on green procurement and its relationship with the company, they came to the conclusion that buying green with net income and the cost of goods sold associated (Cartere et al., 2000). Zue et al. in 2007, the pressures (legal, market, suppliers, internal), action (buy green, green design, return on investment, internal environmental management,


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and working with the client) and the implications of green supply chain management (environmental, Economic positive, negative economic, operational) in China's auto industry. The results showed that China's auto industry affected by regulatory pressure and internal marketing is also an important stimulus for the adoption of measures of supply chain management, while the number driver of the green developed in outer of implementation GSCM, trace and a weak effect. The study also found that the use of green supply chain management, environmental performance and competitiveness has improved a little, but not much impact on economic performance. Chien and Shih in 2007, the implementation of green supply chain management in the power industry Electronics and studied. In this study, the relationship between measures of green supply chain management and financial and functional outcomes were examined. Factors studied in this research are: environmental law, foreign shareholders, GSCM, environmental performance and financial performance. Chen in 2008 examined the relationship between green innovation and green image in the minds of the customers. The new concept of the use of Green showed. Eltayeb and Zailani 1 In his review in 2009 to assess the adoption of green practices began. Three steps and important influence on the green supply chain management was considered in this study include: buy green, green design and reverse logistics. The results of this study showed that green design is highly regarded and accepted as reverse logistics companies under the companies are used in 2009 the role of the standard ENVIRONMENTAL ISO14000 The GSCM payment. In this study it was found that this standard has the potential to lead to three key operational tasks in organizations: the relationship with salespersons and motivate ability Zest the environment and to adjust to the providers to whether suppliers of environmental Alzarmat follow or not.. In the study by Zhang and colleagues in 2010 in Taiwan and in the electrical industry, (6) were introduced in the green supply chain management. The factors that were identified by factor analysis are: the production and packaging of green, eco-friendly standards, green marketing, green suppliers, being

green and environmentally friendly design. Zhou and colleagues in 2010 in a study with the aim of introducing environmental factors and green supply chain management in large manufacturing companies in Japan have concluded that large companies can create win-win relationships with our partners in the supply chain its green and sustainable growth in the supply chain. They also showed that the laws, regulations and government policies in addition to small businesses to large companies can also be forced to implement GSCM. The institutional review as triggers, actions and consequences of internal and external factors as economic, financial and operational examined. Large and Thomson in 2011 in his study in Germany 5 The main action in the context of the green supply chain management detected which include the ability of green supply chain management, strategic plans of purchase, the environmental obligations, the green supplier evaluation and cooperation with suppliers. Eltayeb and Zailani in 2011 in Taiwan and the companies that own review which were ISO14000 certified, to examine the relations between three and four outcome measures of Green Supply Chain Management. Eco-design of the study, reverse logistics and green procurement and outcome implications of economic, operational, environmental and intangible respectively. Chiu et al in 2011, in a study conducted in Taiwan, the relationship between the suppliers and the emergence of green innovations tested using structural equation modeling. They finally came to the conclusion that green suppliers through green innovations lead to better environmental performance and competitive advantage. Newlan et al, in 2011 in Thailand, the use of GSCM research to identify the most effective activities carried out in the green supply chain management. In interviews, green procurement, green production, green and reverse logistics distribution, were identified as important factors in the GSCM Zudue and colleagues, in a study conducted in 2011 in the automobile industry in Portugal, the relation between the of green supply chain (upstream, internal and downstream), dealt with the aftermath of GSCM. Factors considered in the upstream supply chain consisted of environmental cooperation with suppliers,


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purchasing environmentally friendly and working with suppliers to design better products. Factors in the domestic supply chain is minimizing waste, reducing the use of hazardous materials and the ISO14000 certification. Factors considered in the supply chain, reverse logistics, green packaging, environmental cooperation with customers and working with clients to change their tastes and consider environmental issues were products. Finally, in this study, a model was developed that relationship (positive or negative) between the green and showed the impact of supply chain management. The study also found, in collaboration with the client, ISO14000 certification and green purchasing any of the actions and consequences are related to green supply chain management. In a survey conducted in 2011 by the Loan, the relationship between management and the company's green initiatives were studied. In this study there was a significant positive correlation was found between the approval of the management of the green on three factors affect support for the implementation of internal management, the environment, and co-operation the supply chain partners. In a survey conducted by Chiu et al in 2011 in Taiwan, using structural equation model, the relationship between supplier of green, green innovation, environmental performance and competitive advantage criteria. In this study, which eventually led to a model for this work, it was found that green suppliers, the impact of green innovation and green innovation and competitive advantage will lead to environmental performance. However, the elements of green innovation, innovation management has relationship with the environment was rejected. It was also found between the elements of green innovation (product innovation, process innovation, innovation management) there is a significant relationship. Yang and colleagues in a study of transport companies in Taiwan conducted in 2013, the relationship between the inner, outer measures, green performance and competitiveness of the companies evaluated. Structural equation modeling was used in this study, it was found that the inner and outer green and have a positive impact on the performance of the Green function is to increase competition. Internal measures such as

green marketing, green transportation practices and policies are green. External measures such as: Green cooperation with customers, co-green with green supply chain partners and cooperation with suppliers. Reduce pollution and reduced green fees green initiatives show and competition variables increase productivity, increase profits and improve the quality of services. In a survey conducted by Zue et al in 2013, using structural equation modeling the impact of institutional (legal, normative, competitive), the inner (green design, green home environmental management) and external (client work, return on investment, buy green) and the implications of green supply chain management (environmental, operational, economic) were studied. In this study it was found that institutional measures to stimulate the inner and outer self, in turn, triggers for action. The study also found that green actions directly affect the economic performance of companies but it is indirectly improve corporate performance.

CONCEPTUAL MODEL AND HYPOTHESES

As identified in the literature is presented, the review proper classification of the green supply chain management is not provided and each team idol consideration a number of measures to evaluate their have done that. We decided to take a new classification of green as our distributor. In surveys conducted in the aftermath of GSCM four environmental, operational, economic and intangible greater visibilities and why these four outcomes for this study were selected. The hypothesis of the present study is as following;

• Green logistics is a significantly positive effect on the operational implications.

• Green Procurement significant positive impact on the economic consequences.

• Green logistics is a significantly positive effect on the environmental implications.

• Green logistics is a significantly positive effect on the intangible consequences.

FIGURE 1 HERE

METHODS


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Population, sample and sampling

Since the study was conducted in Fars Province cement industry, all cement companies (7 companies) were selected for this study. Since the model presented in this study will be presented regarding the current status of the companies, should constitute the statistical population that has enough information to answer research questions. Therefore, managers and experts constitute direct the research population. Since the inception of the people working in the industry, executives and experts to review and select from among the directors and technicians randomly selected number of them for data gathering, The method of sampling two-stage cluster is. According to the information obtained, there is a cement plant in the province and in every factory 7, according to information obtained, there are at least 18 direct expert and director, total sample size of 126 Morgan managers and experts are straight.

Data collection, reliability and validity

Given that research surveys are among the most important tools for collecting data in this survey questionnaire, so information collected in this study is a questionnaire. After extracting a question index of articles in the past and estimate their frequency and higher frequency indicators that are designed to separate and the validity of the opinion of the cement industry as and the two of boldness in Daneshgahi were confirmed daze. Also, the reliability of the questionnaire, 30 questionnaires distributed before collecting data using SPSS software using Cronbach's Alpha reliability was assessed according to the variables, and if values to the questionnaire are greater than 7, respectively, confirming the reliability of the questionnaire (Table 1).

TABLE 1 HERE

INFORMATION ANALYSIS

The validity and reliability of data collection the questionnaire was to collect data. Finally, 132 questionnaires were collected according to the number of variables that four of the 10 questionnaires should be collected for each

variable (Human, 2005) and samples, sufficient number of questionnaires. After Word data to SPSS, the correlation test was performed to ensure the relationship between the variables (Table 2). Based on the results of the analysis, the association between green procurement and green supply chain management implications confidence level of 99% was confirmed.

TABLE 2 HERE

KMO and Bartlett's test of sampling adequacy is one of the important conditions for structural equation modeling is ensured (Delavar et al., 2007). 05. As is clear from the amount obtained under the assumption sig confirmed the adequacy of sampling (Table 3).

It is also one of the preconditions for normal distribution of data on the variable structural equation modeling (Kabiri, 2009) was studied using the KS test (Table 4) and normal distribution of data with respect to the greater of the amount sig. Calculated from 0.05 Confirmed. Finally, using LISREL software one of the leading software providers of structural equation modeling, the proposed conceptual model was tested (Fig. 2, 3 and 4).

TABLE 3 &4 HERE

FIGURE 2, 3 & 4 HERE

According to the model, as can be seen in the values of the standard regression model to estimate the relationship between variables is now given. In this model, we can say that green logistics affect the operational and economic implications and has minimal impact on the environmental implications and intangible. Finally, to check the hypotheses of the model T values in Figure 3 are used. As can be seen, the values obtained in the model T is greater than 1.98 and none of the hypotheses cannot is rejected. In other words, green procurement and significant positive impact on the operational implications, economic, environmental and green supply chain management is intangible. It is a fitness model parameters are given in Table 5.

TABLE 5 HERE


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DISCUSSION AND CONCLUSION

In the present study we examined the effects of green procurement of green supply chain management implications discussed. Green procurement green purchasing green supplier of two variables is the two variables were applied in GSCM research. Intended outcomes for this study include: the impact of operational, economic, environmental and intangibles were identified through the study of literature. Finally, after analyzing the data and hypotheses on the impact of green logistics operations revealed a significant positive impact (T = 5.8, B = 0.7). The second hypothesis of the study is also significant and positive impact on the economic consequences of the Green Procurement Confirmed (T = 5.75, B = 0.7). The third hypothesis is that research on the impact of environmental implications raised by the Green Distribution (T = 6.93, B = 0.67) was confirmed. Last hypothesis about the distribution of the green on intangible outcomes such as customer loyalty, which was approved and it was found that a significant positive impact on green distribution (T = 6.85, B = 0.67) and intangible outcomes. The results obtained in this study with review of Chiu et al. 2011 and Zue et al. 2013 matches.

Since cement is widely used in the industry and in most provinces there is a cement factory and the other in the industry is run by the private sector and the private sector are on target to increase their income and profitability of the emphasis, paying attention to the industry and to monitor compliance with environmental issues in the industry has increased. One of the things can help to reduce the pollution caused by the industry, greening the supply chain of the industry. Therefore, in this study we aimed to examine the implications of the adoption of green supply chain management. As is clear from the results indicate that due to the distributed environment is one of the components of the supply chain upstream and non-economic could be some positive effects ranging from companies are looking for. The executives in the industry can make use of environmentally friendly the economic benefits it will have a negative impact on the contrary, in addition to a positive impact on the economic

consequences of various other benefits and consequences for have more time and money devoted to the use and application of environmental issues.

In this study, only one aspect of green supply chain upstream of the distribution were examined, researchers can examine the following factors in other aspects of green supply chain as review of the Green their attention, and. It's also been done in the cement industry, whereas there are other industries that should be considered to be the next review of the Green Supply Chain other industries have. On the other factors considered in this study were related to green supply chain, while others, such as institutional or social responsibility in implementing GSCM was influence the future can this survey.

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APPENDIX

Table 1: Cronbach's Alpha test results

Table 1: Cronbach's Alpha test results

Row Questions Alpha Approval / rejection

1 Green Procurement 0.896 Confirmation

2 Operating result 0.793 Confirmation

3 Economic consequences 0.762 Confirmation

4 Environmental impact 0.810 Confirmation

5 Intangible outcomes 0.875 Confirmation

6 Inventory 0.934 Confirmation

Table 2: Results of Pearson correlation test

Row Variable Green

Procurement Consequences

Economic consequences

Environmental impact

Intangible outcomes

1 Green

Procurement 1 - - - -

2 Operating result 505 1 - - -

3 Economic

consequences 482 669 1 - -

4 Environmental

impact 498 989 691 1 -

5 Intangible outcomes

583 552 574 557 1

- 99% confidence level

Table 3: Test results of KMO - Bartlett

Kaizen index -

Meyer .830

Chi 363.955

Degrees of

freedom 36

Significance level 0.000


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Table 4: Results of the KS test

Row Variable Sig. Normality

1 Green

Procurement 0.588 Confirmation

2 Operating

result 0.121 Confirmation

3 Economic

consequences 0.312 Confirmation

4 Environmental

impact 0.057 Confirmation

5 Intangible

outcomes 0.115 Confirmation

Table 5: Indicators fitness model

Goodness-of-fit

Indices

Desirable

range

Measurement

model

0.88 ≥ .80 GFI

0.82 ≥ .80 AGFI

0.91 ≥ 0.80 NFI

0.91 ≥ 0. 90 CFI

0.93 ≥ .90 IFI

0.04 ≤ .08 RMSEA

Figure 1: Conceptual model

Green

procurement

Operating consequence

Economic consequence

Environmental

consequence

Intangible consequence

GSCMConsequences


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Figure 2: Conceptual model software

Figure 3: Standard value model


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Figure 4: T-value Models

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