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ISSN : 2278-8387

Vol 1 (1), 2012

IMPLEMENTATION OF THE GREEN SUPPLY CHAIN

MANAGEMENT IN MANUFATURING INDUSTRY IN INDIA USING

INTERPRETIVE STRUCTURAL MODELING TECHNIQUE

Sunil Luthra1, Dixit Garg2, Sanjay Kumar3,Abid Haleem 4

1Research Scholar, Department of Mechanical Engineering, National Institute of Technology,

Kurukshetra, Haryana (India)

Email: sunilluthra1977@gmail.com

2 Professor, Department of Mechanical Engineering, National Institute of Technology,

Kurukshetra, Haryana (India)

Email: dixitgarg@yahoo.co.in

2Professor, Department of Mechanical Engineering, Bhagwan Parshuram College of

Engineering Gohana, Haryana (India)

Email: skbhardwaj19711971@gmail.com

3 Professor,Department of Mechanical Engineering faculty of Engineering and Technology, Jamia Millia Islamia, Delhi (India)

Email: haleem.abid@gmail.com

Abstract - Green Supply Chain Management (GSCM) has been identified as an important research area in recent years. Green environmental issues have drawn an attention of researchers and Supply Chain (SC) practitioners at micro and macro level. Various factors important to implement Green Supply Chain Management relevant to Indian manufacturing industry have been identified. Contextual relationships among these factors have been indentified to further partition the levels. Structural model of these factors has been formed using Interpretive Structural Modeling technique. This paper may play vital role to understand contextual relationships among the factors to implement Green Supply Chain Management in Indian manufacturing industry.

Keywords: Factors Important to Implement GSCM, Green Supply Chain Management (GSCM), Interpretive Structural Modeling(ISM), Supply Chain Management (SCM)

1. INTRODUCTION

In past few years, the significant economic growth has been seen in India based on the rapid development of new technologies and broad international trade opportunities. Unfortunately, this economic growth may give rise to serious environmental problems. New economy has encouraged companies to be more environmentally sustainable and eco-efficient. The sustainable development of products is based on the social, environmental and economic impacts of these goods and services along the supply chain.

Supply chain is defined as an integrated manufacturing process wherein raw materials are manufactured into final products, then delivered to customers (Beamon, 1999; Beamon, 2005). Green Supply Chain Management (GSCM) has emerged as an important research

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area. Various definitions have been suggested by different researchers. Some of them are given as-

“Green Supply Chain Management is integrating environmental thinking into Supply Chain Management (Gilbert, 2000).”

“Green Supply Chain Management is adding ‘green’ component to Supply Chain Management (Srivastva, 2007).”

“Green Supply Chain Management covers all phases of product’s life cycle from design, production and distribution phases to the use of products by the end users and its disposal at the end of product’s life cycle (Zhu and Sarkis, 2007).”

“Green Supply Chain Management is an approach for improving performance of the processes and products according to the requirements of the environmental regulations (Hsu and Hu, 2008).”

1.1 Organization of the paper

Literature review has been presented in Section 2. Factors important to implement GSCM in Indian manufacturing industry have been identified and described in section 3. Step wise elaborated methodology to find levels of these factors have been discussed in section 4. ISM based model formation of these factors follows in section 5. MICMAC analysis of the developed model is presented in Section 6. Conclusions drawn and future research work have been discussed in next section. Limitations of the study have been discussed in the last section.

2. LITERATURE REVIEW

Many researchers worked on green supply chain management and various issues related to GSCM. The brief framework of the research done by various researchers is given as:

The knowledge about environmental problem related to transportation, recycling and waste disposal was given. He described that how a transport affects the environment (Penman, 1994). The supply chain refers to all those activities associated with transformation and flow of goods and services, including their attendant information flows, from the sources of materials to end user. Management refers to integration of all these activities, both internal and external to the firm (Lamming and Hamapson, 1996). An attention was given to develop an extended Environmental Management (EM) strategy for SCM. An extended supply chain model was designed and this was an effort towards GSCM (Beamon, 1999). A tool to evaluate the environmental performance of suppliers based on life-cycle analysis was given. He provided two approaches; one is absolute supplier’s performance in an environment

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perspective and the other is relative supplier’s performance in business perspective (Nagel, 2000). Interpretive Structural Modeling(ISM) methodology was utilized to understand the mutual influences among the barriers so that those driving barriers, which can aggravate few more barriers and those independent barriers, which are mostly influenced by driving barriers were identified (Ravi and Shankar, 2005). GSCM practices adopted by the electrical and electronic industries in Taiwan were investigated, which was dominated by original equipment manufacturing and original designing and manufacturing. The data was analyzed by using statistical package and the structural equation modeling (Chien and Shih, 2007a, b). Sustainable development remarkable progress in establishing environmental and social sustainability towards operations management and the supply chain manufactures were investigated. The key themes that came out of literature were green operations, green design, green manufacturing, reverse logistics and waste management (Srivastva, 2007). An attention to pollution prevention and minimization rather than end of pipe pollution control was given. It was believed that there was an optimized breakeven point where more goods and services were created with fewer resources, less waste and less pollution. This point was termed eco- efficiency. In this model, the major challenges of managing eco-efficiency in the context of a supply chain were described. The disadvantages of applying traditional supply chain models in managing overall optimization of eco-efficiency were analyzed and a closed –loop supply chain model was proposed (Solvang et. al., 2007). Supply Chain Operations Reference (SCOR) model for business applications, advancement and practice was presented (Irfain et. al., 2008).

A proactive GSCM approach for improving environmental performance of processes and products in accordance with the requirements of environment regulations was suggested. The study examined the consistency approaches factor analysis that determines the adoption and implementation of green supply chain management (Hsu and Hu, 2008). They examined six factors that would influence the intention to adopt green innovations for logistics service providers. The data of logistics companies in Taiwan was collected and analyzed (Yu, 2007; Yu and Hui, 2008). An increased attention for developing environmental management (EM) strategies for the supply chain was given. This study analyzed the interaction of criteria which were used to select the green suppliers based upon the environmental performance using ISM and Analytic Hierarchy Process (Kannan et. al., 2008). EMS to enhance an organizational environmental performance was suggested; critics argued that improvements were likely to occur within the organizations operational boundaries rather than being extended throughout the supply chain (Darnall et. al., 2008). They provided comparison

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between traditional and green supply chains. They gave opportunities in green supply chain management in manufacturing, bio-waste, construction, and packaging (Ho et. al., 2009). Boundaries and flows framework to understand the direction and relationships among various interdisciplinary fields with respect to GSCM were indentified. This model described the relationship between the green supply chain and other environmental philosophies and practices (Sarkis, 2009). ISM based model for greening the supply chain in Indian manufacturing industries was presented (Mudgal et. al., 2009).

Cost of Qualify (CCQ) and Life Cycle Assessment (LCA) in GSCM were discussed. An Eco Efficiency Indicator (EEI) was also proposed (Cheng Chu et. al., 2010). Ecological issues arising from manufacturing operations were described. They focused on environmental sustainability in manufacturing (Olugu et. al., 2010). ISM based model for modeling the barriers of green supply chain Practices in Indian manufacturing industries was put forward. They suggested green businesses practices are not easy to adopt and implement due to the presence of many barriers (Mudgal et. al., 2010). Importance of GSCM and factors important to implement GSCM in Indian manufacturing industry were identified and described (Luthra et. al., 2010a). Various issues related to GSCM were discussed. Models for implementation of GSCM registered in the literature, various approaches of GSCM and three main factors affecting GSCM were described (Luthra et. al., 2010b). They provided a state of the art survey of published work. They classified four new areas for future research named as- environmentally conscious product design, reverse and closed-loop supply chains, remanufacturing, and disassembly (Ilgin and Gupta, 2010). Green supplier development using rough set theory had been suggested. A formal model using rough set theory to investigate the relationships between organizational attributes, supplier development program involvement attributes, and performance outcomes was described (Sarkis and Bai, 2010).

3. FACTORS IMPORTANT TO IMPLEMENT GSCM IN INDIAN

MANUFACTURING INDUSTRY INDENTIFICATION

India’s economy has grown rapidly in the last few decades. Manufacturing industry in India is one of the key sectors of the Indian economy. Business managers in manufacturing organizations need to be equipped to identify, analyze and manage their ‘supply chain processes’ integrating environmental concerns in them from a more diverse range of sources and contexts. This involves identification and understanding of various elements of green supply chains (Mudgal et. al., 2009).

We have identified various factors important to implement GSCM in Indian manufacturing

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industry from the literature review and expert opinions. Literature was reviewed to identify various factors important to implement GSCM in Indian manufacturing industry. We conducted a workshop, in which different experts’ from academia and industry were invited. Three were from industry and four were from academia. Brainstorming session was conducted and ten factors relevant to Indian manufacturing industry were identified. Factors identified for implementation of GSCM in Indian manufacturing industry are: IT enablement; Technology advancement and Organization adoption; Organization encouragement; Quality of human resources; Government support system; Innovative green practices; Top management commitment; International environmental agreements; Supplier motivation and Awareness level of customers.

Above said factors important to implement GSCM in Indian manufacturing industry has been summarized in Table 1.

Table 1: Factors Important to Implement GSCM in Indian Manufacturing Industry as reported in Literature

S. Factor Important Description

Researchers

N.to Implement GSCM

1

IT Implementation

An efficient

information

technological

Alemayehu, 2008; Mclaren et. al.,

 

 

 

 

system is necessary for effective

2004; Ravi and Shankar, 2005; Rogers

 

 

 

 

communication

and

supporting

the

and R.S, 1998; Sarkis et. al., 2007; Yu,

 

 

 

 

GSCM.

 

 

 

 

 

 

 

2007; Yu and Hui, 2008

 

 

 

 

 

 

 

 

 

2

Technology

 

Technology

 

advancement

 

and

AlKhidir and Zailani, 2009; Digalwar

 

Advancement

and

organization adoption is advancements in

and Metri, 2004; Gant, 1996; Mudgal

 

Organization

 

machinery and equipments to improve the

et. al., 2009; Yu, 2007; Yu and Hui,

 

Adoption

 

products and services to increase the

2008

 

 

 

 

environmental

performance to

achieve

 

 

 

 

 

GSCM.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

Organization

 

Organization

 

Encouragement

is

to

Ilgin and Gupta, 2010; Ravi and

 

Encouragement

motivate the employees to achieve

Shankar, 2005; Sarkis et. al., 2007;

 

 

 

 

efficient GSCM.

 

 

 

 

 

Singh and Kant, 2008; Yu, 2007; Yu

 

 

 

 

 

 

 

 

 

 

 

 

and Hui, 2008

 

 

 

 

 

 

4

Quality

of

Human

Quality of human resources means well

Yu, 2007; Yu and Hui, 2008

 

Resources

 

qualified and professionals to implement

 

 

 

 

 

effective green practices.

 

 

 

 

 

 

 

 

 

 

 

 

 

5

Government Support

Government

sets

the

 

environmental

Scupola, 2003; Yu, 2007; Yu and Hui,

 

systems

 

 

regulations

for

industry.

Government

2008

 

 

 

 

support system means industry friendly

 

 

 

 

 

policies to promote GSCM.

 

 

 

 

 

 

 

 

 

 

 

 

6

Innovative

Green

Innovative

Green

Practices

involves

Chien and Shih, 2007a, b; Cooper,

 

Practices

 

hazardous solid waste disposal, energy

1994; Hsu and Hu, 2008; Mudgal et.

 

 

 

 

conservation,

reusing

and

recycling

al., 2009; Yu, 2007; Yu and Hui, 2008

 

 

 

 

materials.

 

 

 

 

 

 

 

 

 

 

 

 

 

7

Top

Management

Top management commitment is a

Digalwar and Metri, 2004; Hamel and

 

Commitment

 

dedication to empower people to change,

Prahalad, 1989; Mudgal et. al., 2009;

 

 

 

 

the progress to ensure core manufacturing

Mudgal et. al., 2010; Ravi and Shankar,

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Vol 1 (1), 2012

 

 

 

 

 

 

strategies and business strategies.

2005; Sarkis, 2009; Singh and Kant,

 

 

 

2008; Yu and Hui, 2008; Zhu et. al.,

 

 

 

2007

 

 

 

 

8

International

An international environment agreement

Chien and Shih, 2007a, b; Yu, 2007;

 

Environment

means green practices should be promoted

Yu and Hui, 2008

 

Agreements

at international platforms.

 

 

 

 

 

9

Supplier Motivation

Involvement of the suppliers in design

Cho and Soh, 2010; Digalwar and

 

 

process and technology affects overall

Metri, 2004; Hsu and Hu, 2008;

 

 

performance of whole chain.

Kannan et. al. (2008); Ravi and

 

 

 

Shankar, 2005; Sarkar and Mohapatra,

 

 

 

2006; Sarkis et. al., 2007; Solvang et.

 

 

 

al., 2007

 

 

 

 

4. METHODOLOGY TO FIND LEVELS OF FACTORS IMPORTANT FOR

IMPLEMENTATION OF GSCM IN INDIAN MANUFACTURING INDUSTRY

Interpretive Structural Modeling was first proposed by J. Warfield in 1974 to analyze the complex socioeconomic systems. ISM is a computer-assisted learning process that enables individuals or groups to develop a map of the complex relationships between many elements involved in a complex situation. Its basic idea is to use experts’ practical experience and knowledge to decompose a complicated system into several sub-systems and construct a multilevel structural model. Interpretive Structural Modeling (ISM) is a methodology used for indentifying contextual relationships among specific items, which define a problem or issue and first developed in the 1970’s. The ISM is interpretive as the judgment of the selected group for the study decides whether and how the factors are interrelated. ISM generally has the following steps (Ravi and Shankar, 2005; Sage, 1977; Sarkis et. al., 2007; Warfield, 1974):

Step 1: Variable affecting the system is listed: In our research work factors important to implement GSCM in Indian manufacturing industry have been identified as variables.

Step 2: From the variables identified in step 1, contextual relationships among the variables are found.”

Step 3: A Structural Self-Interaction Matrix (SSIM) is developed for variables, which indicated pair wise relationships among variables of the system.

Step 4: A reachability matrix is developed from the SSIM and the matrix is checked for transitivity. The transitivity of the contextual relation is a basic assumption made in ISM. It states that if a variable A is related to variable B and variable B is related to variable C, then variable A is necessarily related to variable C.

Step 5: The reachability matrix obtained in Step 4 is partitioned into different levels.

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Step 6: Based on the contextual relationships given above in the reachability matrix, a directed graph is drawn and the transitive links are removed.

Step 7: The resultant diagraph is converted into an ISM, by replacing variable nodes with

statements.

4.1 Data Collection and Structural Self-Interaction Matrix (SSIM) Formation

As discussed in section 2, experts from industry and the academia were consulted during the workshop conducted to identify the nature of contextual relationships among the factors important to implement GSCM in manufacturing industry for analyzing the factor in developing SSIM for the following four symbol have been use to denote the direction of relationship between two factors (i and j).

V- Factor i will help to achieve factor j;

A- Factor j will help to achieve factor i;

X- Factor i and j will help achieve each other;

O- Factor i and j are unrelated

Factor 1 helps to achieve factor 2 so symbol ‘V’ has been given in the cell (1,2); Factor 7 helps to achieve factor 3 so symbol ‘A’ has been given in the cell (3, 7); Factor 6 and 10 helps to achieve each other so symbol ‘X’ has been given in the cell (6,10); Factor 4 and 5 do not help to achieve each other so symbol ‘O’ has been given in the cell (4,5) and so on. Based on the contextual relationships the SSIM is developed (Table 2). The number of pair wise comparison question addressed for developing the SSIM are ((N) (N-1)/2), where N is the number of factors (Sage, 1977; Sarkis et. al., 2007).

Table 2: Structured Self Intersection Matrix (SSIM) for factors important to implement GSCM in Indian manufacturing industry

S. Factor Important to Implement GSCM in Indian Factor Number

N.Manufacturing Industry

 

 

10

9

8

7

6

5

4

3

2

 

 

 

 

 

 

 

 

 

 

 

1

IT Enablement

O

O

O

A

V

O

V

O

V

 

 

 

 

 

 

 

 

 

 

 

2

Technology Advancement and organization adoption

X

V

A

A

V

A

X

V

X

 

 

 

 

 

 

 

 

 

 

 

3

Organization encouragement

O

V

A

A

V

A

V

X

 

 

 

 

 

 

 

 

 

 

 

 

4

Quality of human resources

O

V

A

A

V

O

X

 

 

 

 

 

 

 

 

 

 

 

 

 

5

Government Support Policies

V

V

A

V

V

X

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

Innovative Green Practice

X

A

A

V

X

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7

Top Management Commitment

O

V

A

X

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Vol 1 (1), 2012

8

International Environmental Agreements

V

V

X

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

Supplier Motivation

O

X

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

Awareness Level of customers

X

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4.2 Reachability Matrix Formation and Level Partitioning

Now the SSIM will be converted in to a binary matrix, named Initial Matrix by substituting V, A, X, O by 1 or 0 by the following rules-

If (i, j) value in the SSIM is V, (i, j) value in the reachability matrix will be 1 and (j, i) value will be 0; for V(1,2) in SSIM, ‘1’ has been given in cell(1,2) and ‘0’ in cell(2,1) in initial reachability matrix.

If (i, j) value in the SSIM is A, (i, j) value in the reachability matrix will be 0 and (j, i) value will be 1; for A(3,7) in SSIM, ‘0’ has been given in cell(3,7) and ‘1’ in cell(7,3) in initial reachability matrix.

If (i, j) value in the SSIM is X, (i, j) value in the reachability matrix will be 1 and (j, i) value will be 1; for X(6,10) in SSIM, ‘1’ has been given in cell(6,10) and ‘1’ in cell(10,6) also in initial reachability matrix.

If (i, j) value in the SSIM is O, (i, j) value in the reachability matrix will be 0 and (j, i) value will be 0; for O(4,5) in SSIM, ‘0’ has been given in cell(4,5) and ‘0’ in cell(5,4) also in initial reachability matrix.

By applying these rules, an initial reachability matrix for the factors important to GSCM can be obtained. The initial reachability matrix is shown in Table 3. The final reachabilty matrix can be obtained by adding transitivity as explained in Step 4.The final reachability matrix is shown in Table 4.The driving power and the dependence power of each factor are also shown in the Table 4 (Sage, 1977; Sarkis et. al., 2007; Warfield, 1974). Driving power of a factor is totaling number of factors including it that influences. Dependence power is the total number of factors including it that helps in influencing its development.

Table 3: Initial Reachability Matrix (SSIM) for factors important to implement GSCM in Indian

Manufacturing Industry

S.

Factor Important to Implement GSCM in Indian Factor Number

N.Manufacturing Industry

 

1

2

3

4

5

6

7

8

9

10

 

 

 

 

 

 

 

 

 

 

 

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1

IT Enablement

1

1

0

1

0

1

0

0

0

0

 

 

 

 

 

 

 

 

 

 

 

 

2

Technology Advancement and organization adoption

0

1

1

1

0

1

0

0

1

0

 

 

 

 

 

 

 

 

 

 

 

 

3

Organization encouragement

0

0

1

1

0

1

0

0

1

0

 

 

 

 

 

 

 

 

 

 

 

 

4

Quality of human resources

0

1

0

1

0

1

0

0

1

0

 

 

 

 

 

 

 

 

 

 

 

 

5

Government Support Policies

0

1

1

0

1

1

1

0

1

1

 

 

 

 

 

 

 

 

 

 

 

 

6

Innovative Green Practice

0

0

0

0

0

1

0

0

0

1

 

 

 

 

 

 

 

 

 

 

 

 

7

Top Management Commitment

1

1

1

1

0

1

1

0

1

0

 

 

 

 

 

 

 

 

 

 

 

 

8

International Environmental Agreements

0

1

1

1

1

1

1

1

1

1

 

 

 

 

 

 

 

 

 

 

 

 

9

Supplier Motivation

0

0

0

0

0

1

0

0

1

0

 

 

 

 

 

 

 

 

 

 

 

 

10

Awareness Level of customers

0

0

0

0

0

1

0

0

0

1

 

 

 

 

 

 

 

 

 

 

 

 

Table 4: Final Reachablility Matrix for Factors Important to Implement GSCM in Indian Manufacturing industry

S.

Factor

Important

to Implement

Factor Number

 

 

 

 

 

 

 

Driving

N.

GSCM

in

Indian

Manufacturing

 

 

 

 

 

 

 

 

 

 

 

power

Industry

 

 

 

 

1

2

3

4

5

 

6

7

8

9

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

IT Enablement

 

 

1

1

1*

1

0

 

1

0

0

1*

1*

07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

Technology

Advancement

and

0

1

1

1

0

 

1

0

0

1

1*

06

 

organization adoption

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

Organization encouragement

 

0

1*

1*

1

0

 

1

0

0

1

1*

06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

Quality of human resources

 

0

1

1

1*

0

 

1

0

0

1

1*

06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

Government Support Policies

 

1*

1

1

1

1

 

1

1

0

1

1

09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

Innovative Green Practice

 

0

0

0

0

0

 

1

0

0

0

1

02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7

Top Management Commitment

 

1

1

1

1

0

 

1

1

0

1

1*

08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8

International

 

Environmental

1*

1

1

1

1

 

1

1

1

1

1

10

 

Agreements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

Supplier Motivation

 

 

0

0

0

0

0

 

1

0

0

1

1*

03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

Awareness Level of customers

 

0

0

0

0

0

 

1

0

0

0

1

02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dependence Power

 

 

 

04

07

07

07

02

 

10

03

01

08

10

59/59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*means value

after

applying transitivity

 

 

 

 

 

 

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The reachability and antecedent set for each factor is determined from the final reachability matrix (Warfield, 1974). The reachability set for a factor consists of the factor itself and the other factors, which it influences. The antecedent set consists of the factor itself and other factors, which may influence it. Reachability and Antecedent set and Intersection sets are found for the all factors. Factor having same reachability set and the intersection set is assigned as top level factor in the ISM hierarchy or Level 1 is shown in Table 5. After finding of Level 1 , it is then discarded for finding further Levels. The iterative procedure is continued until Level of the each factor is found.

Table 5: Addition of Reachability Matrix for Factors Important to Implement GSCM in Indian Manufacturing industry-First Iteration

S.

Factor Important to Implement Reachability Set

Antecedent Set

Intersection Level

N.GSCM in Indian Manufacturing Industry

1

IT Enablement

 

 

1,2,3,4,6,9,10

1,5,7,8

1

 

 

 

 

 

 

 

 

 

2

Technology

Advancement

and

2,3,4,6,9,10

1,2,3,4,5,7,8

2,3,4

 

 

organization adoption

 

 

 

 

 

 

 

 

 

 

 

 

3

Organization encouragement

 

2,3,4,6,9,10

1.2.3.4.5.7.8

2,3,4

 

 

 

 

 

 

 

 

4

Quality of human resources

 

2,3,4,6,9,10

1,2,3,4,5,7,8

2,3,4

 

 

 

 

 

 

 

 

5

Government Support Policies

 

1,2,3,4,5,6,7,9,10

5,8

5

 

 

 

 

 

 

 

 

6

Innovative Green Practice

 

6,10

1,2,3,4,5,6,7,8,9,10

6,10

1st

 

 

 

 

 

 

 

7

Top Management Commitment

 

1,2,3,4,6,7,9,10

5,7,8

7

 

 

 

 

 

 

 

 

8

International

environmental

1,2,3,4,5,6,7,8,9,10

8

8

 

 

agreements

 

 

 

 

 

 

 

 

 

 

 

 

 

9

Supplier Motivation

 

6,9,10

1,2,3,4,5,7,8,9

9

 

 

 

 

 

 

 

 

10

Awareness Level of customers

 

6,10

1,2,3,4,5,6,7,8,9,10

6,10

1st

5. ISM BASED MODEL FORMATION FOR FACTORS IMPORTANT TO

IMPLEMENT GSCM IN INDIAN MANUFACTURING INDUSTRY

Once all levels are found, these Levels are summarized in the Table 6. From the final reachability matrix (Table 4), the structural model is generated after removing the

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transitivity’s links. This ISM model is as shown in Figure 1. Innovative green practices and Awareness level of Customers are found dependent top level factors and International environmental agreements is found independent bottom level factor.

Table 6: Various Levels of Factors Important to Implement GSCM in Indian Manufacturing industry

S.

Level

Factor Important to Implement GSCM in Indian Manufacturing Industry

N.

Number

 

 

 

 

 

 

1

1st

•

Innovative Green Practices

 

 

• Awareness Level of Customers

 

 

 

 

2

2nd

•

Supplier Motivation

3

3rd

•

Technology Advancement and Organization Adoption

 

 

•

Organization Encouragement

 

 

• Quality of Human Resources

 

 

 

 

4

4th

•

IT Enablement

5

5th

•

Top Management Commitment

6

6th

•

Government Support Policies

 

 

 

 

7

7th

•

International Environmental Agreements

 

 

 

 

Innovative Green

 

Awareness Level of

Practices

 

Customers

 

 

 

Supplier Motivation

Technology

Organization

Quality of Human

Advancement and

Encouragement

Resources

Organization Adoption

IT Enablement

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Top Management

Commitment

Government Support Policies

International Environmental

Agreements

Figure 1: ISM Model for Factors Important to Implement GSCM in Indian Manufacturing Industry

6. CLASSIFICATION OF FACTORS: MICMAC ANALYSIS

The factors are classified in to four clusters (Mandal and Deshmukh, 1994) named autonomous factors, dependent factors, linkage factors and independent factors. Autonomous factors (first cluster) have weak driving power and dependence. These factors can be disconnected from the system. In our study, no factor is lying in this range. The second clusters named dependent factors have weak driving power and strong dependence power. In our study, three factors (6, 9 and 10) lying in this range. The third cluster named linkage factors having strong driving power and strong dependence power. In our study, factors (2, 3 and 4) lying in this range. The fourth cluster named independent factors has strong driving power and weak dependence power. In our study, four factors (1, 5, 7 and 8) lying in this range. Awareness level of customers and Supplier motivation are dependent variables. International environmental agreements, Government support system, Top management commitment and IT enablement are the driver variables. Technology advancement and organization adoption, Organization encouragement and Quality of human resources are the linkage variables. No factor is autonomous variable. The graph between dependence power and driving power for the factors important to implement GSCM in manufacturing industry is shown in Figure 2.

MICMAC ANALYSIS

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1 0

8

9

5

8

7

7

1

6

2,3,4

5

4

3

9

2

6,10

1

1 2 3 4 5 6 7 8 9 10

Figure 2: Cluster of Factors Important to Implement GSCM in Indian Manufacturing Industry

The objective of the study to analyze the driver powers and the dependency powers of factors. Higher dependence values for a factor means a large number of factors to be addressed before its removal and high driving value of a factor means a large number of factors that could be removed by its removal (Jharkharia and Shankar, 2005).

7. CONCLUSIONS AND FUTURE RESEARCH WORK

In managing supply chains, green concept has been identified very important from

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environmental point of view. Various factors have been considered important to implement GSCM in Indian manufacturing industry. Ten factors have been identified from the literature review and the experts’ opinion. Experts were from Academia and Industry. ISM methodology has been used for finding relationships among these interrelated factors. MICMAC Analysis has been carried out. “Innovative Green Practices”, “Awareness Level of Customers” and “Supplier Motivation” have been identified as dependent factors. “International Environmental Agreements”, “Government Support Systems”, “Top Management Commitment” and “IT Enablement” have been identified as driver factors. “Technology Advancement and Organization Adoption”, “Organization Encouragement” and “Quality of Human Resources” have been identified as linkage factors. No factor has been identified as autonomous factor. A Model has been developed from ISM methodology. “Innovative Green Practices”; “Awareness Level of Customers” have been identified as top level dependent factors and “International Environmental Agreements” has been identified as most important bottom level independent factor. This model suggests how these factors are interrelated. An organization may be benefited in analyzing which factors they have to improve upon to implement GSCM in Indian manufacturing industry.

The suggested model has been developed for Indian manufacturing industry. More factors may be included to develop another model using ISM methodology for other industry in India or other country. Further, Analytical hierarchy process (AHP) and Analytical network process (ANP) techniques may also be used to determine strength of relationships among the factors considered in our study. Interactive Management (IM) and Structural equation modeling (SEM) may be used to test the validity of the hypothetical suggested model.

8. LIMITATIONS OF THE STUDY

We have developed a hypothetical model of factors important to implement GSCM in Indian manufacturing industry based upon literature review and experts’ opinions. Opinions of experts’ may be biased. The results of the model may vary in real world setting. The model can be tested in real world setting to check that the factors are complete and their relationship exists as in the literature and experts’ opinions.

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10

Awareness

 

Customer’s awareness means if customer

Lamming and Hamapson, 1996; Mudgal et.

 

Level

of

wants green products; the company has to

al., 2009; Mudgal et. al., 2010; Ravi and

 

customers

 

change technology for innovative Green

Shankar, 2005; Yu, 2007; Yu and Hui, 2008;

 

 

 

Products.

Zhu et. al., 2007

 

 

 

 

 

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