Involving second-tier suppliers in Green supply chain management: drivers and heterogenous understandings by firms along supply chains

Abstract

Leading manufacturers have struggled to extend their green supply chain management (GSCM) efforts to low-tier (the second- and even lower-tier) suppliers, but how to motivate low-tier suppliers to be involved is still a big challenge. This paper develops a low-tier GSCM model for managing second-tier suppliers. Based on stakeholder theory and literature review, this paper develops 25 drivers for the ìnvolvement of second-tier suppliers in low-tier GSCM by a manufacturer. Using data collected from 29 second-tier suppliers of a leading automobile manufacturer, this study identified 17 critical drivers. The Grey-DEMATEL method was used to examine the cause-effect relationships to reveal prominent and elemental drivers. Based on the evaluation by managers from the manufacturer, one first-tier supplier, and six second-tier suppliers, comparative analysis of the DEMATEL results show that the manufacturer understands the prominent role of second-tier suppliers for its low-tier GSCM implementation while second-tier suppliers know little about the manufacturer’s requirements and the first-tier supplier ignores the importance of internal drivers by second-tier suppliers. In the long term, the manufacturer considers itself as the crucial firm for low-tier GSCM, but according to first- and second-tier suppliers, promoting policies by the government such as GSCM-related demonstration projects are also elemental. This study provides directions for multi-tier GSCM studies on the theoretical development about how to effectively involve second-tier suppliers by unveiling the difference in the understanding of drivers among firms along supply chains.

KEYWORDS:

• green supply chain management
• low-tier supplier
• second-tier supplier
• driver
• multi-tier supplier
• involvement

Acknowledgments

This work is supported by the key projects of the National Natural Science Foundation of China (71632007, 71690241, 72102036) and Shanghai Sailing Program (21YF1401000).

The authors confirm that the data supporting the findings of this study are available within the article [and/or] its supplementary materials.

Notes

1 News from Global Times, by Jun Xie and Daye Chu, website: https://www.globaltimes.cn/content/1067182.shtml

2 News from BBC News, by Katie Hunt, Greenpeace links big brands to Chinese river pollution, website: https://www.bbc.com/news/business-14134034

3 From http://www.ipe.org.cn/reports/report_19260.html

4 News from Sohu,com, The ‘green supply chain’ project of Linglong tire in 2018 was completed perfectly, website: https://www.sohu.com/a/317995773_659345.

Additional information

Notes on contributors

Junjun Liu

Junjun Liu is a lecturer in School of Business Administration, Southwestern University of Finance and Economics. His main research interest is green supply chain management. He published 9 papers, including 7 SCI/SSCI indexed papers in English journals. He serves as the reviewer of Production Planning & Control and other English journals.

Yunting Feng

Yunting Feng is a lecturer in Glorious Sun School of Business and Management at Donghua University. Her main research interest is sustainable supply chain management. She published 11 papers, including 8 SCI/SSCI indexed papers in English journals. She won the 2019 best paper award of the “Sustainable Operation and Management System Branch of the Chinese System Engineering Society” and the 2019 excellent paper award of the “International Symposium on Corporate Governance “. She serves as the guest editor for a special issue of Australian Journal of Management. She also serves as the reviewer of International Journal of Production Economics, Transportation Research Part E: Logistics and Transportation Review, and many other international academic journals.

Qinghua Zhu

Qinghua Zhu is a distinguished professor in Antai College of Economics & Management at Shanghai Jiao Tong University. Her main research interest is sustainable supply chain management. She published three books and over 220 papers, including 107 SCI/SSCI indexed papers in English journals, which were cited for over 12817 times (H-index is 51, Web of Science). She was awarded as one of Highly-Cited Researchers (Clarivate Analytics) in 2018 and 2019. She received the Journal of Operations Management 2004 Best Paper Finalist Award, and the 2009 Academy of Management Best Paper Award for emerging markets. She serves as an associate editor of International Journal of Operations Management, and is currently an editorial or advisory board member for ten English journals, including International Journal of Production Economics, Business Strategy and the Environment.