Abstract—Manufacturers attention now focuses on green supply chain (GSCM) due to pressure from the government and environmental consciousness among customers. However, implementation of GSCM is not easy, so it is necessary to study about the key to success from the successful companies. In this research, electronics industry is depicted. The electronics industry plays a significant role in Thailand due to high exporting to international market. This industry also generates harmful wastes to the environment and makes social environmental problems. Therefore, this study aimed to identify factors that are critical for the implementation of the GSCM strategy of the electronic industry in Thailand in order to help the newcomer in electronic industry who wants to implement GSCM successfully. This study can be used as a guide for other industrial sectors. Data are collected through a questionnaire-based survey, and analyzed using analytic hierarchy process (AHP). Then, the main drivers those affect GSCM on the electronics industry in Thailand are ranked. We have found that regulatory is one of the most critical factors. Moreover, supporting for top management, market/consumer and organization strategy are also important drivers for implementing GSCM. Index Terms—Electronics industry, green supply chain management, green industry. I. INTRODUCTION Green supply chain management (GSCM) is one of the corporate environmental management that has been adopted by among manufacturing firms. It intends to reduce or minimize negative environmental impacts. The concept of GSCM is the integration of environmental thinking and supply chain management, such as development and product design, supplier selection and procurement, manufacturing process of clean technology, distribution of finished products to the customers as well as end-of-life recycling [1]. The electronics industry plays an important role in Thailand. There are more than 2,055 electronics companies. Revenues from exporting electronics parts to the international market are 8,143.97 million USD [2]. The major export markets are the United States, European Union (EU), Japan and China, etc. While the international trades are increasing, the environmental problems are also expanding. Manuscript received June 30, 2014; revised October 25, 2014. This work was supported in part by Rangsit University, Patumtani, Thailand. F. A. Kamolkitiwong is with the Logistics Management Department, Faculty of Business Administration, Rangsit University, Rangsit Campus, Patumtani, Thailand (e-mail: [email protected]). S. B. Phruksaphanrat is with the Industrial Engineering Department, Faculty of Engineeering, Thammasat University, Rangsit Campus, Patumtani, Thailand (e-mail: [email protected]). So, many organizations have been forced to implement GSCM [3]. The impact of environmental problems has affected government to enact the law for protecting the environment. Especially, The EU has regulations such as WEEE (Waste Electrical and Electronics Equipment) and RoHS (Restriction of Hazardous Substances in Electrical and Electronics Equipment) [4]. For this reason, it is necessary for business to adopt GSCM, in order to respond to the current environmental concern and create an enduring competitive advantage. The Ministry of Industry is the primary agency in Thailand who has set strategies for industrial development. In promoting the growth and development of industries, the Ministry of Industry has launched a Green Industry Project. Companies who enroll in this project will be certified and evaluated about green considerations in their organizations. As a result, these industries will have a good image of credibility and public trust. Moreover, the creation of a green economy will result in higher gross domestic product (Green GDP) [5]. The green industry levels are divided into five levels. Firstly, “Green Commitment” is for the company who commits to reduce their environmental impact, and communicates about green concern within their organizations. Secondly, “Green Activity” is for the company who implements some methods to reduce the impact on the environment and fulfills the commitment set. Thirdly, “Green System” is for the company who has a system of environmental management. Fourthly, this level is for the company who has assessed and reviewed for continuous improvement. Moreover, it should have the environmental award-winning and environmental standards. Fourthly, “Green Culture” is the company that everyone in the organization cooperates in environmental concern. The company has an environmental friendly in all aspects of the operation. Green becomes part of the corporate culture. Finally, “Green Network” is the expansion of green to the network of supply chain, by encouraging partners to process and certify by Green Industry Project [5]. However, the major factors that affecting to the implementation of GSCM in the electronics industries in Thailand has not been investigated. So, it is difficult for the newcomers who want to initiate implementation of GSCM to their factories. Knowing the main drivers for successful implementation of GSCM will help the organization to start the operation. Therefore, this study aimed to identify factors that are critical to the implementation of the GSCM strategy of the electronics industry in Thailand. An Analysis of Drivers Affecting Green Supply Chain Management Implementation in Electronics Industry in Thailand A. Kamolkittiwong and B. Phruksaphanrat Journal of Economics, Business and Management, Vol. 3, No. 9, September 2015 864 DOI: 10.7763/JOEBM.2015.V3.299
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Abstract—Manufacturers attention now focuses on green
supply chain (GSCM) due to pressure from the government and
environmental consciousness among customers. However,
implementation of GSCM is not easy, so it is necessary to study
about the key to success from the successful companies. In this
research, electronics industry is depicted. The electronics
industry plays a significant role in Thailand due to high
exporting to international market. This industry also generates
harmful wastes to the environment and makes social
environmental problems. Therefore, this study aimed to
identify factors that are critical for the implementation of the
GSCM strategy of the electronic industry in Thailand in order
to help the newcomer in electronic industry who wants to
implement GSCM successfully. This study can be used as a
guide for other industrial sectors. Data are collected through a
questionnaire-based survey, and analyzed using analytic
hierarchy process (AHP). Then, the main drivers those affect
GSCM on the electronics industry in Thailand are ranked. We
have found that regulatory is one of the most critical factors.
Moreover, supporting for top management, market/consumer
and organization strategy are also important drivers for
implementing GSCM.
Index Terms—Electronics industry, green supply chain
management, green industry.
I. INTRODUCTION
Green supply chain management (GSCM) is one of the
corporate environmental management that has been adopted
by among manufacturing firms. It intends to reduce or
minimize negative environmental impacts. The concept of
GSCM is the integration of environmental thinking and
supply chain management, such as development and product
design, supplier selection and procurement, manufacturing
process of clean technology, distribution of finished products
to the customers as well as end-of-life recycling [1].
The electronics industry plays an important role in
Thailand. There are more than 2,055 electronics companies.
Revenues from exporting electronics parts to the
international market are 8,143.97 million USD [2]. The
major export markets are the United States, European Union
(EU), Japan and China, etc. While the international trades are
increasing, the environmental problems are also expanding.
Manuscript received June 30, 2014; revised October 25, 2014. This work
was supported in part by Rangsit University, Patumtani, Thailand.
F. A. Kamolkitiwong is with the Logistics Management Department,
Faculty of Business Administration, Rangsit University, Rangsit Campus,
So, many organizations have been forced to implement
GSCM [3].
The impact of environmental problems has affected
government to enact the law for protecting the environment.
Especially, The EU has regulations such as WEEE (Waste
Electrical and Electronics Equipment) and RoHS (Restriction
of Hazardous Substances in Electrical and Electronics
Equipment) [4]. For this reason, it is necessary for business to
adopt GSCM, in order to respond to the current
environmental concern and create an enduring competitive
advantage.
The Ministry of Industry is the primary agency in Thailand
who has set strategies for industrial development. In
promoting the growth and development of industries, the
Ministry of Industry has launched a Green Industry Project.
Companies who enroll in this project will be certified and
evaluated about green considerations in their organizations.
As a result, these industries will have a good image of
credibility and public trust. Moreover, the creation of a green
economy will result in higher gross domestic product (Green
GDP) [5]. The green industry levels are divided into five
levels. Firstly, “Green Commitment” is for the company who
commits to reduce their environmental impact, and
communicates about green concern within their
organizations. Secondly, “Green Activity” is for the
company who implements some methods to reduce the
impact on the environment and fulfills the commitment set.
Thirdly, “Green System” is for the company who has a
system of environmental management. Fourthly, this level is
for the company who has assessed and reviewed for
continuous improvement. Moreover, it should have the
environmental award-winning and environmental standards.
Fourthly, “Green Culture” is the company that everyone in
the organization cooperates in environmental concern. The
company has an environmental friendly in all aspects of the
operation. Green becomes part of the corporate culture.
Finally, “Green Network” is the expansion of green to the
network of supply chain, by encouraging partners to process
and certify by Green Industry Project [5].
However, the major factors that affecting to the
implementation of GSCM in the electronics industries in
Thailand has not been investigated. So, it is difficult for the
newcomers who want to initiate implementation of GSCM to
their factories. Knowing the main drivers for successful
implementation of GSCM will help the organization to start
the operation. Therefore, this study aimed to identify factors
that are critical to the implementation of the GSCM strategy
of the electronics industry in Thailand.
An Analysis of Drivers Affecting Green Supply Chain
Management Implementation in Electronics Industry in
Thailand
A. Kamolkittiwong and B. Phruksaphanrat
Journal of Economics, Business and Management, Vol. 3, No. 9, September 2015
864DOI: 10.7763/JOEBM.2015.V3.299
The scope of this paper is to study the main drivers of
implementation GSCM from 6 experts of the certified
electronics factories who obtain a green culture and green
network levels in the green industry project.
II. GREEN SUPPLY CHAIN MANAGEMENT
A. Green Supply Chain Management
Green supply chain management (GSCM) definition can
vary depending on the research objectives and related issues
[4]. GSCM comprises of the manufacturing process that
minimize waste and pollution [6]. It also integrates
environmental thinking in supply chain management, from
conceptual product to design to the delivery of the final
product to the consumers, and also involves end-of-life
management. GSCM emphasizes the concerns for the
environment along the whole supply chain and requires
long-term and strategic collaborations between the supply
chain members [7]. It encompasses environmental initiatives
in inbound logistics, production, outbound logistics, and
reverses logistics [8]. Moreover, it consists of green
procurement, green manufacturing or material handling,
green distribution or marketing, and reverse logistics
activities [9]. These concepts are applied to the methodology
of this research.
B. The Drivers Affecting the Implementation of Green
Supply Chain Management
TABLE I: EXTERNAL DRIVERS AFFECTING THE GSCM A
References Sup Reg Mkt Com Soc
Diabat and Govindan (2011), [10] Zhu et al. (2004), [11] Khiewnavawongsa, (2011) [12] Walker et al. (2008), [13] Liu et al. (2012), [14] Abdul Rehman and Shrivastava
(2011), [3]
Sari and Hasnelly (2012), [15] Lin (2013), [16]
Routroy (2009), [17] Lee (2008), [18] Vachon (2008), [19]
Note: Shows the drivers that the corresponding study found to be
significant.
TABLE II: INTERNAL DRIVERS AFFECTING THE GSCM ADAPTATION
References Top Org Cos Eco Rev
Diabat and Govindan (2011), [10]
Zhu et al. (2004), [11] Khiewnavawongsa (2011), [12] Walker et al. (2008), [13] Liu et al. (2012), [14] Abdul Rehman and Shrivastava
(2011), [3]
Sari and Hasnelly (2012), [15] Lin (2013), [16] Routroy (2009), [17]
Lee (2008), [18] Vachon (2008), [19]
Note: Shows the drivers that the corresponding study found to be
significant.
The various important drivers for the implementation of
GSM practices can be divided into two categories, which are
external and internal drivers. External drivers include