Green supply chain management: Drivers and effect on company performance

• Main Authors: Alibuyog, Avis Alicia M., Carpio, Catherine N.
• Format: text
• Language: English
• Published: Animo Repository 2011
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/12146
• Institution: De La Salle University

Given the extant trend towards adoption of the green supply chain in various industries, this study focused on the drivers that led the two companies understudy—Chevron Philippines, Inc. and Pilipinas Shell Petroleum Corporation—to embed green initiatives throughout their supply chain, as well as the subsequent effects of GSCM on their environmental, economic, and operational performances. Both quantitative and qualitative measures were used to determine the influence of drivers on the decision to adopt GSCM and its effects on company performance. Chevron’s commitment to greening its supply chain is highlighted in its continued shift towards a greener Oil Movements and Technical in Batangas. The empirical evaluation of Chevron’s case led to the affirmation of the significance between external and internal drivers and the decision to adopt GSCM. Furthermore, collected data also establish the affirmative relationship between GSCM Practices and Chevron’s company performance, thereby abetting Chevron’s decision to further expand the operations of its Batangas Plant. Shell’s commitment to SD can be manifested in its efforts in greening the company’s supply chain. The empirical evaluation of Shell’s case led to the affirmation of the significance between the identified drivers in adopting GSCM practices, which also shows that Shell’s business partners and the company’s internal motives have high leverage on the company’s decision to green its supply chain. The link between GSCM practices and company performance is also affirmed, thereby encouraging other industry players to adopt the same to fully realize their company performance. Ultimately, the findings revealed that adoption of GSCM in the oil industry leads to affirmative environmental performance. While its impact on economic and operational performances differed between both companies, the affirmative results of the study bolster the argument for continued adoption of GSCM in both companies and other oil industry players as well. Extending the impact of the green supply chain to other businesses lies in Chevron and Shell’s positions as oligopolies in the market. Their ability to radiate the effects of the green supply chain, more so in their inbound and outbound logistics phases, would ultimately thrust business associated with these phases into adopting green measures.