Abstract
Sustainable supply chain emerges as a major business trend essential to long-term competitive advantage. Relevant corporate decisions concern a broad range of factors and require novel analytical models for critical control. This study conducts mathematical analyses to identify the factors that are vital yet receiving insufficient attention from researchers and practitioners. Valid survey observations were collected from 113 enterprises in China, the biggest emerging economy that faces the dilemma between development and sustainability. Grey relational analysis (GRA) and interpretative structural modeling (ISM) assess the importance levels of contextual and organizational factors and explore their joint effects. Validated with conventional expert interviews, the results prioritize the factors that play crucial roles in sustainable supply chains. In particular, enterprises should pay close attention to three factors: corporate collaboration, clean production and supplier selection, which provide useful clues on the best practices of formulating low-carbon decisions. With a better understanding of critical factors, enterprises may make supply chains more sustainable with limited resources. To enhance the generalizability of findings, future studies may collect more observations from multiple countries and validate the results in the settings of global supply chains.
Similar content being viewed by others
References
Ahmed, W., & Sarkar, B. (2018). Impact of carbon emissions in a sustainable supply chain management for a second generation biofuel. Journal of Cleaner Production, 186, 807–820. https://doi.org/10.1016/j.jclepro.2018.02.289.
Ali, S. M., Arafin, A., Moktadir, M. A., Rahman, T., & Zahan, N. (2018). Barriers to reverse logistics in the computer supply chain using interpretive structural model. Global Journal of Flexible Systems Management, 19(Suppl 1), 53–68.
Alves, M. W. F. M., Kannan, D., & Jabbour, C. J. C. (2017). Contingency theory, climate change, and low-carbon operations management. Supply Chain Management, 22(3), 223–236. https://doi.org/10.1108/SCM-09-2016-0311.
Ashby, A. (2018). Developing closed loop supply chains for environmental sustainability: Insights from a UK clothing case study. Journal of Manufacturing Technology Management, 29(4), 699–722. https://doi.org/10.1108/JMTM-12-2016-0175.
Azevedo, S. G., Carvalho, H., Ferreira, L. M., & Matias, J. C. O. (2017). A proposed framework to assess upstream supply chain sustainability. Environment Development and Sustainability, 19(6), 2253–2273. https://doi.org/10.1007/s10668-016-9853-0.
Beermann, M. (2011). Linking corporate climate adaptation strategies with resilience thinking. Journal of Cleaner Production, 19(8), 836–842. https://doi.org/10.1016/j.jclepro.2010.10.017.
Cao, K., Xu, X., Wu, Q., Zhang, Q., Cao, K., Xu, X., & Zhang, Q. (2017). Optimal production and carbon emission reduction level under cap-and-trade and low carbon subsidy policies. Journal of Cleaner Production, 167, 505–513. https://doi.org/10.1016/j.jclepro.2017.07.251.
Carter, C. R., & Rogers, D. S. (2008). A framework of sustainable supply chain management: Moving toward new theory. International Journal of Physical Distribution and Logistics Management, 38(5), 360–387.
Chen, C. M. (2017). Supply chain strategies and carbon intensity: The roles of process leanness, diversification strategy, and outsourcing. Journal of Business Ethics, 143(3), 603–620.
Chen, L., Xu, L., Xu, Q., & Yang, Z. (2016). Optimization of urban industrial structure under the low-carbon goal and the water constraints: A case in Dalian, China. Journal of Cleaner Production, 114, 323–333. https://doi.org/10.1016/j.jclepro.2015.09.056.
Chen, Z., & Andresen, S. (2014). A multiobjective optimization model of production-sourcing for sustainable supply chain with consideration of social, environmental, and economic factors. Mathematical Problems in Engineering, 2014, 1–11. https://doi.org/10.1155/2014/616107.
Choi, T. M. (2013). Optimal apparel supplier selection with forecast updates under carbon emission taxation scheme. Computers and Operations Research, 40(11), 2646–2655. https://doi.org/10.1016/j.cor.2013.04.017.
Danlami, A. H., Applanaidu, S. D., & Islam, R. (2018). Movement towards a low carbon emitted environment: A test of some factors in Malaysia. Environment, Development and Sustainability, 20(3), 1085–1102. https://doi.org/10.1007/s10668-017-9927-7.
Daryanto, Y., Wee, H. M., & Astanti, R. D. (2019). Three-echelon supply chain model considering carbon emission and item deterioration. Transportation Research Part E-logistics and Transportation Review, 122, 368–383. https://doi.org/10.1016/j.tre.2018.12.014.
Das, C., & Jharkharia, S. (2018). Low carbon supply chain: A state-of-the-art literature review. Journal of Manufacturing Technology Management, 29(2), 398–428. https://doi.org/10.1108/JMTM-09-2017-0188.
Ding, H., Zhao, Q., An, Z., & Tang, O. (2016). Collaborative mechanism of a sustainable supply chain with environmental constraints and carbon caps. International Journal of Production Economics, 181(A), 191–207. https://doi.org/10.1016/j.ijpe.2016.03.004.
Dou, X. (2013). Low carbon-economy development: China’s pattern and policy selection. Energy Policy, 63(C), 1013–1020. https://doi.org/10.1016/j.enpol.2013.08.089.
Dou, X., & Cui, H. (2017). Low-carbon society creation and socio-economic structural transition in China. Environment, Development and Sustainability, 19(5), 1577–1599. https://doi.org/10.1007/s10668-016-9834-3.
Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28(1), 58–71. https://doi.org/10.1016/j.jom.2009.06.001.
Ford, S., & Despeisse, M. (2016). Additive manufacturing and sustainability: An exploratory study of the advantages and challenges. Journal of Cleaner Production, 137, 1573–1587. https://doi.org/10.1016/j.jclepro.2016.04.150.
Garg, C. P., & Sharma, A. (2020). Sustainable outsourcing partner selection and evaluation using an integrated BWM–VIKOR framework. Environment, Development and Sustainability, 22(2), 1529–1557. https://doi.org/10.1007/s10668-018-0261-5.
Ghadimi, P., Wang, C., & Lim, M. (2019). Sustainable supply chain modeling and analysis: Past debate, present problems and future challenges. Resources Conservation and Recycling, 140, 72–84. https://doi.org/10.1016/j.resconrec.2018.09.005.
Grose, J., & Richardson, J. (2013). Managing a sustainable, low carbon supply chain in the English National Health Service: The views of senior managers. Journal of Health Services Research and Policy, 18(2), 83–89. https://doi.org/10.1177/1355819612473453.
Haq, A. N., & Kannan, G. (2007). A hybrid normalised multi criteria decision making for the vendor selection in a supply chain model. International Journal of Management and Decision Making, 8(5–6), 601–622. https://doi.org/10.1504/IJMDM.2007.013421.
He, B., Wang, J., Huang, S., & Wang, Y. (2015). Low-carbon product design for product life cycle. Journal of Engineering Design, 26(10–12), 321–339. https://doi.org/10.1080/09544828.2015.1053437.
Hoggett, R. (2014). Technology scale and supply chains in a secure, affordable and low carbon energy transition. Applied Energy, 123, 296–306. https://doi.org/10.1016/j.apenergy.2013.12.006.
Hukkalainen, M., Virtanen, M., Paiho, S., Airaksinen, M., Hukkalainen, M., Virtanen, M., & Airaksinen, M. (2017). Energy planning of low carbon urban areas—examples from Finland. Sustainable Cities and Society, 35(C), 715–728. https://doi.org/10.1016/j.scs.2017.09.018.
Jabbour, C. J. C., & NetoJrRibeiro, A. S. J. A. G. M. D. S. (2015). Eco-innovations in more sustainable supply chains for a low-carbon economy: A multiple case study of human critical success factors in Brazilian leading companies. International Journal of Production Economics, 164, 245–257. https://doi.org/10.1016/j.ijpe.2014.11.015.
Ji, J., Zhang, Z., & Yang, L. (2017). Carbon emission reduction decisions in the retail-/dual-channel supply chain with consumers’ preference. Journal of Cleaner Production, 141, 852–867. https://doi.org/10.1016/j.jclepro.2016.09.135.
Jin, M., Tang, R., Ji, Y., Liu, F., Gao, L., & Huisingh, D. (2017). Impact of advanced manufacturing on sustainability: An overview of the special volume on advanced manufacturing for sustainability and low fossil carbon emissions. Journal of Cleaner Production, 161, 69–74. https://doi.org/10.1016/j.jclepro.2017.05.101.
Kaur, A., & Sharma, P. C. (2018). Social sustainability in supply chain decisions: Indian manufacturers. Environment, Development and Sustainability, 20(4), 1707–1721. https://doi.org/10.1007/s10668-017-9961-5.
Kaur, H., & Singh, S. P. (2017). Modeling low carbon procurement and logistics in supply chain: A key towards sustainable production. Sustainable Production and Consumption, 11, 5–17. https://doi.org/10.1016/j.spc.2017.03.001.
Kesidou, S. L., & Sorrell, S. (2018). Low-carbon innovation in non-domestic buildings: The importance of supply chain integration. Energy research and social science, 45, 195–213. https://doi.org/10.1016/j.erss.2018.07.018.
Kolk, A., & Pinkse, J. (2004). Market strategies for climate change. European Management Journal, 22(3), 304–314. https://doi.org/10.1016/j.emj.2004.04.011.
Kondo, R., Kinoshita, Y., Yamada, T., Itsubo, N., & Inoue, M. (2019). Effects of carbon tax on low-carbon and economic supplier selection for Asian assembly product. In A. H. Hu, M. Matsumoto, T. C. Kuo, & S. Smith (Eds.), Technologies and Eco-innovation towards Sustainability II (pp. 301–313). Singapore: Springer. https://doi.org/10.1007/978-981-13-1196-3_24.
ShankarShaw, R. K., Yadav, S., & Thakur, L. (2013). Modeling a low-carbon garment supply chain. Production Planning and Control, 24(8–9), 851–865. https://doi.org/10.1080/09537287.2012.666878.
Lee, C. T., Hashim, H., Ho, C. S., Fan, Y. V., & Klemeš, J. J. (2017). Sustaining the low-carbon emission development in Asia and beyond: Sustainable energy, water, transportation and low-carbon emission technology. Journal of Cleaner Production, 146, 1–13. https://doi.org/10.1016/j.jclepro.2016.11.144.
Li, Q., Long, R., & Chen, H. (2017). Empirical study of the willingness of consumers to purchase low-carbon products by considering carbon labels: A case study. Journal of Cleaner Production, 161, 1237–1250. https://doi.org/10.1016/j.jclepro.2017.04.154.
Luthra, S., Mangla, S. K., Chan, F. T. S., & Venkatesh, V. G. (2018). Evaluating the drivers to information and communication technology for effective sustainability initiatives in supply chains. International Journal of Information Technology and Decision Making, 17(1), 311–338. https://doi.org/10.1142/S0219622017500419.
Pakdeechoho, N., & Sukhotu, V. (2018). Sustainable supply chain collaboration: Incentives in emerging economies. Journal of Manufacturing Technology Management, 29(2), 273–294. https://doi.org/10.1108/JMTM-05-2017-0081.
Podsakoff, P. M., Mackenzie, S. B., Lee, J., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903. https://doi.org/10.1037/0021-9010.88.5.879.
Rao, C., Goh, M., & Zheng, J. (2017). decision mechanism for supplier selection under sustainability. International Journal of Information Technology and Decision Making, 16(01), 87–115. https://doi.org/10.1142/S0219622016500450.
Renukappa, S., Akintoye, A., Egbu, C., & Goulding, J. (2013). Carbon emission reduction strategies in the UK industrial sectors: An empirical study. International Journal of Climate Change Strategies and Management, 5(3), 304–323. https://doi.org/10.1108/IJCCSM-02-2012-0010.
Rodríguez-Serrano, I., Caldés, N., Rúa, C. D. L., Lechón, Y., & Garrido, A. (2016). Using the framework for integrated sustainability assessment (FISA) to expand the multiregional input-output analysis to account for the three pillars of sustainability. Environment Development and Sustainability, 19(5), 1981–1997. https://doi.org/10.1007/s10668-016-9839-y.
Sarkar, B., Ahmed, W., & Kim, N. (2018). Joint effects of variable carbon emission cost and multi-delay-in-payments under single-setup-multiple-delivery policy in a global sustainable supply chain. Journal of Cleaner Production, 185, 421–445. https://doi.org/10.1016/j.jclepro.2018.02.215.
Shaw, K., Shankar, R., Yadav, S. S., & Thakur, L. S. (2012). Supplier selection using fuzzy AHP and fuzzy multi-objective linear programming for developing low carbon supply chain. Expert Systems with Applications, 39(9), 8182–8192. https://doi.org/10.1016/j.eswa.2012.01.149.
Shokri, A., Oglethorpe, D., & Nabhani, F. (2014). Evaluating sustainability in the UK fast food supply chain: Review of dimensions, awareness and practice. Journal of Manufacturing Technology Management, 25(8), 1224–1244. https://doi.org/10.1108/jmtm-04-2013-0031.
Sohrabpour, V., Oghazi, P., & Olsson, A. (2016). An improved supplier driven packaging design and development method for supply chain efficiency. Packaging Technology and Science, 29(3), 161–173. https://doi.org/10.1002/pts.2194.
Tang, S., Wang, W., Yan, H., & Hao, G. (2015). Low carbon logistics: Reducing shipment frequency to cut carbon emissions. International Journal of Production Economics, 164, 339–350. https://doi.org/10.1016/j.ijpe.2014.12.008.
Tong, W., Mu, D., Zhao, F., Mendis, G. P., & Sutherland, J. W. (2019). The impact of cap-and-trade mechanism and consumers’ environmental preferences on a retailer-led supply Chain. Resources Conservation and Recycling, 142, 88–100. https://doi.org/10.1016/j.resconrec.2018.11.005.
Tong, Y. (2017). Model for evaluating the green supply chain performance under low-carbon agricultural economy environment with 2-tuple linguistic information. Journal of Intelligent and Fuzzy Systems, 32(3), 2717–2723. https://doi.org/10.3233/JIFS-16802.
Torğul, B., & Paksoy, T. (2019). A new multi objective linear programming model for lean and green supplier selection with fuzzy TOPSIS. In T. Paksoy, G.-W. Weber, & S. Huber (Eds.), Lean and Green Supply Chain Management (pp. 101–141). Springer, Cham. https://doi.org/10.1007/978-3-319-97511-5_4.
Tseng, M. L., Ming, L., Wu, K. J., Zhou, L., & Bui, D. T. D. (2018). A novel approach for enhancing green supply chain management using converged interval-valued triangular fuzzy numbers-grey relation analysis. Resources Conservation and Recycling, 128, 122–133. https://doi.org/10.1016/j.resconrec.2017.01.007.
Tseng, S. C., & Hung, S. W. (2014). A strategic decision-making model considering the social costs of carbon dioxide emissions for sustainable supply chain management. Journal of Environmental Management, 133, 315–322. https://doi.org/10.1016/j.jenvman.2013.11.023.
Turk, J. K., Reay, D. S., & Haszeldine, R. S. (2018). UK grid electricity carbon intensity can be reduced by enhanced oil recovery with CO2 sequestration. Carbon Management, 9(2), 115–126. https://doi.org/10.1080/17583004.2018.1435959.
Yang, Z., Sun, J., Zhang, Y., & Wang, Y. (2020). Synergy between green supply chain management and green information systems on corporate sustainability: An informal alignment perspective. Environment, Development and Sustainability, 22, 1165–1186. https://doi.org/10.1007/s10668-018-0241-9.
Ying, Q. U., & Liu, Y. (2017). Evaluating the low-carbon development of urban China. Environment, Development and Sustainability, 19(3), 939–953. https://doi.org/10.1007/s10668-016-9777-8.
Zhu, W., & YuSun, Yu. P. (2018). Data envelopment analysis cross-like efficiency model for non-homogeneous decision-making units: The case of United States companies’ low-carbon investment to attain corporate sustainability. European Journal of Operational Research, 269(1), 99–110. https://doi.org/10.1016/j.ejor.2017.08.007.
Zu, Y., Chen, L., & Fan, Y. (2018). Research on low-carbon strategies in supply chain with environmental regulations based on differential game. Journal of Cleaner Production, 177, 527–546. https://doi.org/10.1016/j.jclepro.2017.12.220.
Acknowledgement
This work was supported by the Natural Science Foundation of Shaanxi Province, China (No. 2020JM-201).
Author information
Authors and Affiliations
Corresponding author
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Appendices
Appendix A: Questionnaire items
Part I: Questions on the decisions regarding the implementation of sustainable supply chain (1—strongly disagree; 2—disagree; 3—somewhat disagree; 4—uncertain; 5—somewhat agree; 6—agree; 7—strongly agree):
-
1.
(Low-carbon target) Based on the current situation of our company, the management specifies the corresponding low-carbon target.
-
2.
(Internal management) Our company has a working low-carbon policy for internal management.
-
3.
(Green product design) The design of our new products embodies the concept of environmental sustainability (e.g., using environment-friendly materials).
-
4.
(Partner cooperation) Our management maintains good cooperative relationships with upstream and downstream enterprises for sustainable supply chain.
-
5.
(Energy conservation) Our company uses energy wisely to reduce carbon footprint.
-
6.
(Low-carbon manufacturing) Our company reduces carbon emission during the manufacturing process.
-
7.
(Green procurement) Our company adopts the low-carbon procurement method to get environment-friendly materials from suppliers.
-
8.
(Green packaging) Our company incorporates the low-carbon concept in the product packaging.
-
9.
(Low-emission transportation) Our company cuts down carbon emission in the transportation process (e.g., with careful route planning).
-
10.
(Product recycling) Our company recycles used products to avoid resource wasting and environment pollution.
-
11.
(Green technology) Our company implements innovative technologies to reduce carbon emission.
-
12.
(Employee motivation) Our company motivates employees to participate in sustainable supply chain activities.
-
13.
(Green storage) Our company uses green materials for storage.
-
14.
(Inventory IT support) Our company manages inventory with information technology.
-
15.
(Customer demand) Our company values customer demand for low-carbon products.
-
16.
(Corporate investment) Our company makes low-carbon investments in all aspects.
Part II: Questions on the importance of the factors affecting low-carbon decisions (1—no influence at all; 2—little influence; 3—some influence; 4—noticeable influence; 5—significant influence; 6—strong influence; 7—overwhelming influence):
- F1. :
-
Manager support
- F2. :
-
Employee engagement
- F3. :
-
Supplier selection
- F4. :
-
Operational management
- F5. :
-
Climate change mitigation strategy
- F6. :
-
Procurement policy
- F7. :
-
Technology innovation
- F8. :
-
Clean production
- F9. :
-
Corporate collaboration
- F10. :
-
Transportation management
- F11. :
-
Inventory control
- F12. :
-
Consumer awareness
- F13. :
-
Government intervention
Appendix B: SSIM matrix of influencing factors from expert scoring
To verify the low-carbon decision model established in this study, an alternative SSIM matrix was derived from expert scoring:
Factor | Factor | |||||
---|---|---|---|---|---|---|
S1 | S2 | S3 | S4 | S5 | S6 | |
S1 Manager support | – | V | V | V | V | V |
S2 Procurement policy | – | V | V | A | X | |
S3 Clean production | – | A | A | A | ||
S4 Supplier selection | – | A | V | |||
S5 Technology innovation | – | V | ||||
S6 Corporate collaboration | – |
Rights and permissions
About this article
Cite this article
Yang, Z., Guo, X., Sun, J. et al. Contextual and organizational factors in sustainable supply chain decision making: grey relational analysis and interpretative structural modeling. Environ Dev Sustain 23, 12056–12076 (2021). https://doi.org/10.1007/s10668-020-01157-3
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10668-020-01157-3