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Drivers of GSCM

Internal Factors are consists of organizational factor which is the desire to decrease costs,
the desire to maintain the competitiveness of the firms, concern for the environment and
also the leaders commitment (Hajikhani, Abdul Wahat & Idris, 2012 ; Walker, Lucio &
McBain, 2008). On the other hand, regulatory pressures and external stakeholder
contribute to the external factors that motivate adoption of GSCM (Hajikhani et al., 2012;
Vanpoucke, 2014).
The major concern of internal motivation of GSCM implementation is to maintain the
competitiveness by developing cost-based competitive advantage (Chan, He & Wang,
2012). According to Testa & Iraldo (2010) and Walker et al. (2012), it can be the
reduction of waste resources by reducing the material usage or substitute the material of
the product or packaging of product with more user-friendly material (as cited in Carter
& Dresner, 2001).
According to Hajikhani et al. (2012) and Vanpoucke (2014), GSCM also drive by the
motivation to improve reputation and achieve legitimacy. By undertaking greener
activities such as green distribution and reverse logistics, the firm will be able to develop
a favorable corporate environmental image which can contribute to higher market share
(Diabat & Kannan, 2011; Testa & Iraldo, 2010). Walker et al. (2008) and Testa & Iraldo,
(2010) stated that GSCM can be viewed as the result of management innovative strategy.
Being the first who create the innovative products or processes related to GSCM assist
firm to become market leader as their products can produce in terms of lower costs per
unit and therefore outperform their competitors (Diabat & Kannan, 2011; Hajikhani et al.,
2012).
Environmentally Management System (EMS) also drives the firm to adopt the GSCM
practices. EMS is an effective process that enables the company to make ISO 14001 as its
own self-regulation method that can lead to attainment of environmental policies and
objectives (Hajikhani et al., 2012; Testa & Iraldo, 2010). According to Vanpoucke (2014)
and Walker et al. (2008), external stakeholders that might influence the GSCM practices
consist of customers, suppliers, regulatory and competitors. Customers put pressures on

organization to adopt the GSCM activities (as cited in Green, Morton & New, 1996). The
research studied by Hajikhani et al. (2012) presented that a company reputation of being
environmentally friendly affect the customer purchase behavior and customer are more
likely to purchase the green product, thus company engages in environmental
sustainability practices to attract more customer that lead to increase of market share. The
collaboration between a firm and its suppliers may further encourage GSCM practices.
Firm may exert pressures on its suppliers to go green while suppliers also may urge firms
to adopt greener activities to improve their image. Partnering with companies that
emphasize on environmental friendly may create another competitive advantage for the
companies involved (Hajikhani et al., 2012; Vanpoucke, 2014).
Government legislation is one of major drivers for organizations environmental
practices. Government place strict regulation about product performance and material
used to preserve the environment and this in turns motivate the company to become more
innovative and produce in lower cost (Walker et al., 2008).

Barriers to implementation of GSCM


The studies of Hajikhani et al. (2012), Walker et al. (2008) urged that the high costs
incurred, lack of legitimacy, regulation, poor supplier or employee commitment, lack of
skilled employees are obstacle of GSCM. GSCM may failed to implement due to lack of
IT implementation, poor top management commitment, lack of government support
system and low awareness of customers are obstacles to adoption of GSCM. (Luthra,
Kumar,Kumar & Haleem, 2011; Mathiyazhagan, Kannan, Noorulhaq & Yong, 2013)
There is high initial investment of GSCM in developing green design, green
manufacturing, IT adoption and training of workers may inhibit the practices of GSCM as
customers nowadays have strong desire for cheaper prices that make SMEs hard to earn
profits (Luthra et al., 2011; Walker et al., 2008).
Lack of supplier commitment towards GSCM implementation inhibits GSCM. Suppliers
are unwilling to share or exchange information with others in the same industry and may
lead to creation of unattractive end products. The suppliers reluctance to adopt GSCM
practices lead to the inability of the manufacturer to produce create green products,
therefore suppliers are main barriers of GSCM (Luthra et al., 2011; Mathiyazhagan et al.,
2013; Walker et al., 2008).
Customers are said to be one of the major barriers of GSCM due to low awareness
towards the environment. Customers continuously purchase products who offer cheaper
price instead of choose to buy green product which is more expensive. Customers are
unaware of the advantages to preserve a green environment and they are not exposed to
information about the consequences of polluted environment therefore green products
may not saleable and thus discourage the manufacturer or supplier to go green (Hajikhani
et al., 2012: Luthra et al., 2008).
According to Luthra et al. (2008) and Mathiyazhagan et al. (2013), lack of government
support in implementation of environmental friendly policies and practices and
troublesome legislative requirements and procedures act as a barrier for the firms to adopt
green practices and to create innovative green products as well. It may be more timeconsuming for a company to come out with a brand new innovative green products as the

company have to make sure the product produce in a way that compliance with
government legislation (Luthra et al., 2011; Walker et al., 2008).