ENVIRONMENT sustainability AND GREEN SUPPLY CHAIN

Management: A case study - company level (INDIA).

1. Abstract: Now the days, every country is on the path of development and all country
has almost transformed its economy from agriculture to industrial as well as service
sector. If there is more development then there will more serious issues about
environmental sustainability. By increasing world trade between the countries, the
demand for consumption has been speeding up at a faster rate which further encourages
the entrepreneur to establish more units of companies that causes the environmental
deterioration because to produce more production and to fulfill the needs of consumer a
vast majority of the raw material has been taken from the environment. At the worldwide
level, huge numbers of businesses have been adopted eco-friendly strategies as a prime.
In Indian manufacturing, there is also escalating the demands of green products. As well
known that India is a developing country with a low level of per capita income and
people are not in a position to purchase green products as these products are costly as
compare to normal products. So, it became a thoughtful matter for policymakers and the
government to solve this problem. So, the government should provide the special
incentive to the entrepreneurs that can sustain the price of the commodities and inspire
them to adopt green supply chain management Moreover, the government should
organize special seminar/conferences and lectures on environment sustainability and
encourage the masses to “go green” to improve the environmental sustainability. The aim
of this study is to analyze the environmental sustainability through green supply chain
management.

2. Introduction:
India is developing as the hub of the manufacturing sector. It became the destination for new
foreign direct investment. The Modi government in 2014 has made the plan of ‘Make in India’
that emphasizes the growth of the manufacturing sector. By accelerating the manufacturing
sector, the department of ministry for the industrial program and the government has announced
the new policies that focus on the growth of manufacturing along with environmental
sustainability. With increasing population and congestion, environmental sustainability becomes
a serious issue. If there is more development, there will be more environmental deterioration.
People demanding more products, entrepreneurs producing more products which cause water
pollution, gas emission, land pollution that affect the health, the economy and the environment as
a whole also. In India, the metro cities with peak level production of the goods are also on high
alert, like Delhi, Mumbai, Pune, and Bangalore because of the environmental pollution
prevailing in these cities. Green supply chain management and environmental sustainability are
correlating with each other. The selection of the product, Product scheme, required raw material
for the product, manufacturing process and find the product in the hands of consumers all are
part of the supply chain. It depends upon the management to change the whole supply chain by
adopting green practices for environmental sustainability. For maintaining environmental
sustainability, environmental experts and policymakers are trying to curb this problem by
adopting environmental management in the supply chain system. Moreover, aware of and
encourage the consumer to demand more green products. If the consumer demanding more green
products than the entrepreneurs will have to change their production technology. In the present
day, the slogan of ‘go green” is very much popular in society to conscious the people about the
environment and encourage them to be part of this by reducing wastage and pollution.

3. Research question:
Are the entrepreneurs ready to accept the green supply chain management? Because it will
increase the cost of their products.

Are the consumers ready to purchase green products at a high price as compared to normal
products?

4. Research Hypothesis:
It shows the cause effects relationship between two or more variables. There are dependent and
independent variables. Independent variables are causes that affect the dependent variables. We
will find the statistically significant relationships between dependent and independent variables
by using various statistical and econometric tools like t-test, z-test, multiple regression,
correlation, and chi-square analysis, etc. For e.g. using more green technology causes higher
costs and more consumers are aware of green supply, more will be helpful for environmental
suitability.
 5. Research Objectives:
To study environmental sustainability through green supply chain management.

To analyze the company, adopting green practices.

To find the level of consumer consciousness of the green supply chain

6. Literature Review
A study made by Neemavat and Namdev (2012) has analyzed that to implement the green
supply management increase the cost, the further cost increases the price, hence demand start to
decline. Big investors can adopt this technique because they have more economies of scale. They
can bear the cost also. Bhattacharya et al. (2014) have found that supply chain management
should make huge investments in research and development for the invention of new machinery
that diminishes the wastage and pollution and develops green machinery. Moreover, efforts
should be made to develop energy-saving and fuel efficiency. Lakshmi and Visa Lakshmi
(2012) have examined that most Indian people are illiterate and have low income and they are
not in that position to taking green products due to its higher cost, these phenomena discourage
the entrepreneurs. But due to go green policy by government and by various eco-friendly
organizations, companies have to adopt green supply chain management. Gilbert (2001) has
made an attempt that Green supply is associated with environmental sustainability and green
supply chain management. Confederation of Indian industry (2011) has found that the
government of India and DIPP have the big target to accelerate the share of manufacturing in
GDP, and also make sure about the environmental sustainability by concentrating on eco-
friendly, energy-efficient technologies. Parasnis (2006) tried to explain that to maintain
environmental sustainability, the associated suppliers have the main responsibility to maintain it
because the only machines cannot produce “Green production”. Lamming & Hmapson (1996)
have observed that Indian automobile is facing the dilemma, if it chose the green practices then
cost will be more and automatically price will be higher and there will more deficiency in the
demand because people are not conscious and if it does not choose green practices than it will
affect the environment. Kumar, Chandrakar (2012) have found that most of the companies are
not actually using green practice but they are pretending for the advertisement in the market to
attract more demands. To curb this government should make strict policies to make environment
pollution free. (Chiou et al. 2011) have made an analysis in Taiwan that explores that there is a
decent relationship between green supply chain management and green technology in Taiwan
industrial sector. (Dubey 2014) have illustrated that the Indian rubber Industry is the most
harmful industry by polluting the environment at peak rate, government should take serious
attention to this sector. Meera and Chitramani (2014) have examined the manufacturing
industries in Tamil Naidu, India. They have found that the green supply chain management and
Ecological are unified with each other. Both the buyer and seller are conscious of the eco-
friendly environment through green supply chain management. It has also found that no one
wants to pay the extra price for the same quantity. Thakkar and Deshmukh (2012) have made
an analysis of the Chinese automobile explore that adopting high technology is creating market
pressure and burden on environment.
Nicole et.al (2006) have found that those business corporation who are interested in
environmental management system generally agreed with green supply chain management. Both
management are accompaniment. These corporation encourage the customer to purchase green
products and do the work outside their organization.

Businesses can position themselves anywhere along the spectrum of the green chain, from
complying with regulations and choosing equipment like bio-diesel engines or low-energy-
consuming light bulbs for their facilities.

Fiksel (1996) has analysed that production process and manufacturing are the main units to hit
the environment. These units are the perpetrators in disturbing the environment by wastage,
ecology distraction and highly uses the natural resources. Production process and manufacturing
produces the highly harmful gases and pollution that affect the environment. So there is a need to
develop such type of technique that reduce the environmental pollution.

Carter and Rogers (2008) have examined that in the past, business takes place just because the
entrepreneurs want to earn huge profit but with the passage of time ecological sustainability
become a serious issue because of the depletion of natural resources. Now the phenomena has
changed and most of the firms concentrate on environment sustainability with the efficient use of
natural resources by energy saving technique.
Sarkis (2012) has observed that Green Supply Chain Management is the extension of supply
chain management, in supply chain management, managers are not aware about environmental
sustainability and does not focus on the green products but with passage of time as consumer
become more aware of green practices and moreover from the pressure of the organisation and
from government sides, entrepreneurs have become more innovative by adopting GSCM that can
be contribute in the environmental sustainability.

Zhu et al., (2007) have studied that the firm with good investment generally makes huge profit
by increasing their excess capacity, reducing their all types of cost and using modern techniques
for increasing their efficiency. Apart from this, they reuse, recycle and reforming their products.
Moreover, if they use green supply chain management then it expands their reputation in the
markets among consumer that is also socially acceptable. These business also bear the cost of
production after adopting green practices because they have big market. The study has also
found that force and practices are correlate with each other’s and similar, practices and
environmental performance are associate with each other’s.

Formoso et al. (2002) have described that in manufacture and in construction units plenty of the
wastage that does not have added value and also is unnecessary that is not reused and have an
adversely effects on environment. Apart from this during excessive processing of the products, it
release many of the harmful gasses and also noise pollution that badly impact the society.

Huang et al. (2017) have found that in Taiwan, government have been focusing on the
environment sustainability and implemented many strict rule for the push up the firms to accept
GSCM practices. Moreover, at global level many of the firm have been focusing on green
practices that create the environment of competition for others firm to adopt the same
technology.
Dube and Gawande (2016) studies the barrier analysis in GSCM and found that the lack of top
management commitment and support, lack of training in GSCM, resistance to adoption of
advanced technology, and financial constraints, are some of the important barriers that hinder
successful implementation of GSCM.

Rao and Holt (2005) have found that green supply chain management generally focus on the
reverse logistics in which firms can modify their products by recycle and reuse. Moreover,
wastage material also use with good way and also take attention on green manipulative. Firms
also gives the information on their products regarding the use of green practices that would have
positive effect on the ecology.

Govindan et al. (2014) have recognized that Indian industries have many obstacle in its path for
implementing green supply chain management. These industry have been facing the financial
problem, lack of innovating technology, lack of affective policy, unskilled staff and illiterate
labour force. Moreover, consumer are also not conscious about the green practices. Cost of
production in India is already high and by adopting green products things become more costly
that does not attract the consumers.
Research Methodology:
The present study is based on the field survey and some data will be taken from the secondary
resources also.
7.1 Research design: Research design plays a vital role by providing information about the data
collection, from where data will be collected and what technique will be used for the data
collection. In our study, primary data will be collected through a well-structured questionnaire.
7.2 Primary survey: The primary survey is based on the field survey where the researcher
directly observer the situation and where the data is being collected. For the primary survey, the
data will be collected from the 100 manufacturing companies of the metro city north side by
personal visit.
8. Sampling: Sampling is the technique to exemplify the whole population as the whole
population cannot be taken. The sampling method discusses the instructions and techniques by
which some elements of the population are included in the sample.
8.1 Probability Sampling: In this method randomly you choose the person of the
population and collect the information. By this method every person gets an equal chance
to participate.
8.2 Non-probability Sampling: In this method, there are some constraints or conditions
for researcher to choose the person.
8.3 Sampling technique: As per our study, we have huge data simple random sampling
method is good for our study. We will choose company randomly included both large
scale as well as small scale units to analysis how many companies are using green
supply chain management for environmental sustainability.

Sampling Method or Sampling Techniques

 Probability or random
1. Simple random sampling
2. Systematic sampling
3. Stratified sampling
4. Cluster sampling
5. Area sampling
6. Multi-stage sampling
Non-Probability or non-random
1. Judgment sampling
2. Convenience sampling
3. Quota sampling
4. Panel sampling
5. Snowball sampling

9. Population: This study will take place on the north side of metro cities in India. There
are so many small and large scale units of manufacturing in these areas. We have been
selected some of the companies because it is not possible to take all.

10. Sample size: A sample generally represents the whole population. We have selected 100
companies from metro cities located on the north side of India. With a sample, we can
estimate the whole population. If the sample size will be large, then it will be more
accurate as compared to the small size sample. So, the size of the sample should be
maximum to represent the whole. As per the limited time and cost, this sample size is
enough to analysis the other companies.
11. Data analysis: For any research, the data analysis step has an important role. Through
data analysis, the collected data can be summarized systematically. Moreover, we can
remove unnecessary data, which the research is no needed more. Data analysis also
includes an explanation of the data through various statistical tools.
Data can be two types:

11.1 . Qualitative data analysis can be defined as non-numerical data. This type of
research defines the participant’s personal views and opinions about situations,
characteristics, concepts, categories, symbols, description of the things and themes.
11.2. Quantitative analysis is a technique, which can be used to show the accuracy of
the results of the study in mathematical terms. For this, various mathematical, as
well as the statistical and econometric model can be used.
The next step after data collection, all the data on the questionnaire will be transformed on excel,
SPSS or any other sheet for further quantitative and qualitative analysis.
12. Technical tools: There will be a need for some technical/statistical tools. The rough data
will be allocated on in excel sheet, on the SPSS sheet, etc. Some econometric or statistical
methods like rank or partial correlation, linear or stepwise multiple regression, arithmetic
mean/average, t-test, z test, one way or two-way ANOVA, chi-square test, etc will be
applied for the quantitative analysis. Significance level on 1 percent, 5 percent, and 10
percent level will be checked.
13. Secondary sources: There will be a need for some secondary sources. The secondary data
will be taken from the various published report, articles and also from authentic government
sites of industries.
Element –manufacturing companies, Extent – the metro city of the north side, Reference Time
-2019-2020.
14. Measurement of variability: A measure of variability frequently guides a measure of
central tendency as basic evocative numbers for a set of scores. Variability can be
measured with the variance, interquartile range, standard deviation, percentile, and decile.
• Through measuring, distance changeability can be determined
• The range is the total distance covered by the distribution, from the highest score to the
lowest score by using the upper and lower real limits of the range.
• Standard deviation measures the standard distance between a score and the mean.
• The calculation of standard deviation can be summarized as a four-step process:

15. Limitations: The area of our research is very limited. We have selected the companies
located in metro cities without considering the units establish in backward areas/rural areas.
But by increasing the sample size, it will be more expensive and time-consuming.
16. Accuracy: The collect data should be accurate, reliable and valid without any personal
edition. If the data will be accurate the result will be more near to the reality.

17. The significance of the study:

Now the days, as more and more small scale as well as large scale industries and companies have
been establishing. The craze of urbanization has also been increasing with the passage of time
that increases the level of consumption. In India “go green” slogan becomes very popular. The
present study is an empirical one based on the field survey of sampled companies that will be
exploring how many of the firms are contributing to environmental sustainability through green
supply chain management. Those who are not adopting green practices are the reasons behind
this that can be spelled out by the government. The study will also be very helpful for
policymakers and other eco-friendly organizations. Moreover, it will be helpful to know the cost
and efficiency of the product after adopting it.

18. Period of the study:

The time period to fulfill this research will be about 3 months. The mandatory questionnaire will
take time of 15 days. 30 days will be required for the field survey, After collecting the data on
hard copies, the data will be converted on excel, SPSS, strata. Then the process of analysis the
whole data will be started and some of statistical tools will be needed. So, the research will be
completed within 3 months.

19. Budget: As this case study is based on the primary visit to the sampled companies, so
the transport cost to visit every company will be very high as well as it will include
Photostats & printing costs, stationery materials, and cost of transcribers, software or
research assistants, etc. So, around 600 $ will be spent.

20. Ethical Consideration: Through the organized & well-planned questionnaire and
by primary visit to the selected companies, data will be taken. The whole questionnaire will
be filled by given information, there will be no edition personally. The results will be based
on actual data collected from the primary survey as well as from secondary sources.

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