Green Supply Chain Management: Implications for SMEs

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Author(s): Ki-Hoon Lee (Griffith Business School, Griffith University, Australia)
Copyright: 2013
Pages: 17
Source title: Enterprise Development in SMEs and Entrepreneurial Firms: Dynamic Processes
Source Author(s)/Editor(s): Nelson Oly Ndubisi (Griffith University, Australia)and Sonny Nwankwo (University of East London, UK)
DOI: 10.4018/978-1-4666-2952-3.ch010

Keywords: Business & Management / Business Science Reference / Enterprise Information Systems / Small and Medium Enterprises

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Abstract

The strategic importance of supply chain management has been increasing during the past two decades. Companies utilise the supply chain in order to become more competitive as a whole. Recently, it has been observed that environmental and social pressures and standards have a direct and indirect impact on supply chain management and the competitiveness of corporations. Integrating environmental criteria into supply chain management has become an important strategic issue for many companies. This study explores the subject area of the greening of supply chain management. In particular, the supply chain environmental management (SCEM) programme is explored in the Korean context. The SCEM programme is based upon the relationship between buyers and suppliers. By utilising this relationship, general improvement in the environmental performance of suppliers can be achieved. A case study of Hyundai Motors Co. (HMC) empirically supports this. Green supply chain management led to new ways of collaboration with suppliers, in terms of developing environmental solutions and capacity buildings with key suppliers. The key implication for suppliers, in particular SMEs, is to develop suppliers’ capabilities and increasing supplier criticality in order to achieve win-win outcomes in environmental and financial performance.

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