Impact of Green Supply Chain Management on Financial Performance

This proposal discusses the evaluation of the impact of green supply chain management (GSCM) on the financial growth of organizations. It provides an overview of the research topic, literature review, research methodology, and business implications. The aim is to understand the importance of GSCM in today's business era and its relation to financial performance, and to recommend best practices for boosting financial growth through GSCM.

IMPACT OF GREEN SUPPLY CHAIN MANAGEMENT
PRACTICES ON FINANCIAL PERFORMANCE OF A FIRM
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Abstract
This proposal is about evaluation of effect of green supply chain management (GSCM) on the
financial growth of organizations. This entire discussion is providing outline of a future
research based on the selected topic. Introduction part of this proposal has introduced the
topic in a clear way. Moreover, this part provided clear overview of research method along
with literature to be reviewed. In the literature review part, different variables of this research
paper have been discussed and researcher has mentioned relevant theories related to the
research topic. Methodology section has mentioned that this research project will fo9llw
inductive approach and descriptive research design, mixed method will be followed to collect
both primary qualitative and quantitative data. This proposal further discusses business and
managerial implication of this research. Limitation and basic ethical consideration of this
research have been mentioned properly. At the end of this proposal, conclusion has been
drawn from the overall discussion and expected outcome have been mentioned with clear
words. A timeline has been provided for this research project.
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Table of Contents
1. Introduction............................................................................................................................4
2. Aim and objectives.................................................................................................................4
3. Literature review....................................................................................................................5
4. Research methodology...........................................................................................................7
5. Business implications of research........................................................................................10
6. Limitation.............................................................................................................................10
7. Ethical consideration and issues...........................................................................................11
8. Conclusion............................................................................................................................11
9. Time table.............................................................................................................................12
Reference list............................................................................................................................13
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1. Introduction
Green supply chain management (GSCM) refers to delivery of services along with products
from manufacturers and suppliers to customers by considering environmental context. People
of this generation are concerned about environment and they prefer companies that consider
GSCM. It is important to conduct research on this topic in order to understand positive side
of GSCM. This project will focus on assessing impact of green marketing on financial
performance of company. Relevant literature based on green supply chain management and
its impact will be reviewed. Evaluation of relevant theories will help to understand all
perspectives of research topic. Analysis of literature will provide clear insight into the
different point of views of different stakeholders of business.
This research paper will search for authentic sources of information and will analyze
collected data for gaining a trustworthy research outcome. Appropriate methodology will be
selected and applied for conducting and completing this research paper. Collection of primary
qualitative and quantitative data will help to obtain effective outcome of this research project.
This paper will be able to provide clear concept of green supply chain and its effect on
business. On another hand, potential issues relevant to chosen research topic will be
identified throughout the research. This discussion will help to figure out possible solutions to
mitigate GSCM issues by organizations.
2. Aim and objectives
Aim of this research is to assess effect of GSCM on financial performance of business and
identification of all issues related to incorporation of green marketing.
Objectives are developed for meeting them through the process of research by researcher.
Objectives of this research project are mentioned below,
 To develop an understanding of GSCM and evaluation of its importance in today’s
business era.
 To critically evaluate factors that needs to be considered while implementing GSCM
within a firm.
 To examine relation of GSCM and financial performance of firms.
 To recommend best practices that must be considered in order to ensure GSCM for
boosting financial growth of organization.
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3. Literature review
Concept of GSCM
If environmental logic can be integrated with supply chain management, then it can be said as
green supply chain management. As opined by Fahimnia et al. (2015), green supply chain
management (GSCM) helps an organization to earn money and take care of environment. As
consumers have become aware of green issues like pollution and global warming, hence, it is
essential for manufacturing companies to implement GSCM. Moreover, Jabbour and de
Sousa Jabbour (2016) argued that GSCM is about delivering products from suppliers and
manufacturers to customers in context of environment. It is different from traditional supply
chain management because it only concentrates on quality of products and cost earned. Less
or no focus has been given on environment in traditional supply chain management. As
discussed by Rostamzadeh et al. (2015), GSCM is done through various processes like
selection of green products. In addition, other processes like development of products,
logistics, packaging and partner selection need to be done in a proper way that supports
environment. For example: selecting partners who are aware of lean manufacturing and eco-
friendly products.
Explanation of different green supply chain management practices
Product development with less waste production: Products of an organization need to be
designed and manufactured by aligning objectives of GSCM. As stated by Teixeira et al.
(2016), manufacturing of products must be done by reducing impact on environment. For
example: reducing harmful waste products that cause water, air and land pollution.
Green logistic design: This Practice is an essential part of GSCM and can be achieved by
reducing fuel consumption. As said by Geng et al. (2017), those supplies can be chosen who
is located near to the manufacturer. This helps reduce transportation and less fuel
consumption and carbon emission occur.
Critical evaluation of financial performance of an organization
Financial Performance can be referred to as ways a company utilizes all assets and resources
to generate revenue (Mathiyazhagan et al. 2015). This term is used for describing general
health of a firm. Financial performance of a firm can increase if all planned strategies like
GSCM are implemented in a proper way. In present competitive market, sustainability of
operations helps a company to generate more financial benefits. Manufacturing products in a
sustainable way and providing focus on environment helps to increase financial performance.
As stated by Yan et al. (2016), different metrics are used to measure financial performance
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that includes return on investment, operational cash flow and total units of sales. These
metrics and other financial statements are analyzed in order to measure financial performance
of a firm.
Relation of green supply chain management (GSCM) and financial performance of an
organization
GSCM has a direct impact upon financial performance of a firm. As mentioned by Choi and
Hwang (2015), GSCM helps to reduce cost of operations and helps to acquire greater
financial benefits. Reduction of transportation costs and adopting eco-friendly way of product
development helps to reduce operational costs. Moreover, Younis et al. (2016) argued that
adopting GSCM helps an organization to increase brand recognition that impacts on sales
rate. Increase in sales units helps to gain more financial benefits. However, application of
GSCM is different in developed and developing countries. In developed countries, GSCM is
applied throughout the process of organizational operations, which reduces various sources of
waste production. This creates a better image among customers and more revenue can be
earned. On another hand, in developing countries, GSCM is applied only to reduce negative
impacts on environment (Miroshnychenko et al. 2017). Financial performance can be
increased if sustainability is maintained throughout the process of product designing and
development and marketing. Yan et al. (2016) contradicted that application of GSCM helps
to manage financial risk as competitive advantage can be gained. Different stakeholders’ get
satisfied by this strategy of supply chain management and long term financial benefits can be
acquired.
Theories
Different theories are relevant to this study that is described in this part of literature review.
Lean manufacturing theory: this theory was incorporated in Japanese automobile industry
and named as Toyota production system. As opined by Teixeira et al. (2016), main objective
of lean manufacturing theory is to eliminate and reduce waste production. This can help a
firm to provide optimum quality of products to consumers and at the same time protect
quality of environment. Implementation of lean manufacturing business model can help to
achieve improvement in quality of products and revenue. On another hand, significant
benefits can be provided to environment by reducing pollution (Yan et al. 2016). This, in
turn, can help to improve customer satisfaction level. Some other benefits of lean
manufacturing theory include empowerment of employees. However, this theory helps to
provide green products to consumers by consuming less time of production.
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Theory of reverse logistics: This is a new concept that helps to conduct business in a
sustainable way. As opined by Mathiyazhagan et al. (2015), reverse logistics theory can be
applied to reuse and refurbish products. This process involves moving different used goods
from last user to manufacturers. This theory enables producers to refurbish products for reuse
that can help to generate profit. In addition, Fahimnia et al. (2015) stated that parts from these
reversed products can be used to make new products. Hence, sustainability can be maintained
and less impact on nature can be delivered.
4. Research methodology
Selection of research methodology is an essential aspect of research as it is potent to decide
the fate of research projects. It can be stated that selection, as well as application of
appropriate methodology, helps researchers to generate trustworthy research outcome-free
from all kinds of biases. Following aspects are defining chosen methodology for this
research. Consideration of following methodology may help to understand effect of GSCM of
on the financial growth of organization.
Research approach
Deductive and inductive are two different categories of research approaches and these
approaches differ from each other by their aspects. Inductive research approach allows
explaining gathered data and ensures broader generalization of existing theories. Kumar
(2019) have mentioned that deductive approach is completely different from inductive
approach and it focuses on hypothesis testing. In this research, inductive research approach
will be followed in order to evaluate effect of GSCM on financial growth of organizations.
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Figure 1: Kinds of approaches
(Source: Influenced by Kumar, 2019)
Selection of inductive approach will allow researcher to review literatures of previous
researches based on same topic and i8t will be possible to gather primary data based on
selected research topic. In addition, it will possible to analyze collected data and generate
proper conclusion at the end of this research.
Research strategy and design
Identification of appropriate research strategy is difficult and it is considered as an essential
part of research project. According to Silverman (2016), consideration of effective research
strategy helps to complete research within minimum time and helps in generation of
trustworthy outcome. In case of this project, mixed method will be considered to complete
this research project. Both primary quantitative and primary qualitative data will be collected
based on real experiences of respondents. Selection of this research strategy will help in
collection of authentic as well as valid data. As opined by Cuervo‐Cazurra et al.(2017),
reliable data collected by considering mixed method helps to overview all aspects related to
project topic. Researcher will be able to understand all perspectives in impact of GSCM on
revenue generation.
Selection and application of appropriate research design help in developing a proper
framework for analysis of findings. Three kinds of designs are exploratory, descriptive, and
explanatory. In this research, descriptive design of research will be followed for collecting
detail information related to topic. Schoonenboom and Johnson (2017) have suggested that
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consideration of descriptive research design helps to collect data from authentic resources and
helps in development on clear understanding of relationship between variables of research
project. Collection of relevant as well as detail information will help to develop clear
understanding on concept of GSCM and its impact on the productivity of firms.
Figure 2: Kinds of designs
(Source: Influenced by Schoonenboom and Johnson, 2017)
Data collection and findings analysis
Collection of data is an important part of research and this part must be performed with
efficiency to collect authentic as well as relevant information. According to Krosnick (2018),
primary data collection is helpful as respondents provide answers to questions based on their
practical experience and knowledge. In this case, both primary qualitative and quantitative
data will be collected. Survey of 65 employees of a specific industry will be conducted to
understand their perspective towards GSCM and its effect on business. On another hand,
interview of 3 managers of same industry will take place. Survey questionnaire and interview
questions will be developed on the basis of current topic of the research.
As stated by Kumar (2019), sampling is an essential part of the process of data collection and
its appropriateness helps in gathering authentic data. In this case, researcher will consider
probability sampling technique for choosing survey population and this approach will help in
avoiding all kinds of biases. However, non-probability technique of sampling will be
considered to identify managers as respondents of interviews. Consideration of non-
probability sampling method will help to select appropriate persons, who have proper
knowledge and experience to provide answer to research question.
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Interview data will be arranged in transcripts and analysis of statement of managers will be
done with efficiency. On another hand, survey data will be represented through graphs and
tables in order to analyze collected primary qualitative data.
5. Business implications of research
This research will evaluate perspectives of both employees and managers of a particular
industry towards green supply chain management. Collection of primary data will be
considered as authentic and researcher will avoid all kinds of biases while collecting data. As
a result, researcher will be able to generate a reliable research outcome. Different
stakeholders of organizations will be able to rely on the findings of this paper to enrich their
knowledge regarding green supply chain management. On another hand, business owners
will be able to figure out possible solutions to issues they have been facing regarding their
supply chain management. In addition, outcome of this research will be potent enough to help
managers to understand importance of GSCM for ensuring business growth. Managers will
be able to develop strategies to implement GSCM after reviewing conclusion drawn at the
end of this research project. Hence, it can be stated that this research is worth to be conducted
and it will have significant effect on financial performance management of businesses.
6. Limitation
Adequate effort will be given to achieve desired objectives of this study. However, different
limitations can occur, which can create barrier in the research process. Inadequacy of time is
a great barrier that can impact on different processes of this research study. Inadequate time
can impact on data collection process. Improper allocation of time in this process can result in
error in result. This can create false results, which can impact on final results. Error or biases
in research data causes failure in research. On another hand, resource or budget is another
limitation that can create an impact on this research. Adequate budget needs to be allocated in
order to carry forward different planned activities like collection of data and literatures.
Researchers need proper budget allocation to subscribe relevant source of literature and
conduct data collection process. Inadequacy in budget will result in failure of this study.
7. Ethical consideration and issues
Different ethical issues can arise regarding respondents if proper code of ethics is not
maintained. Breach of data can occur, which can create risk on privacy of respondents. In
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addition, if proper consent is not collected before data collection by providing all details of
research then this can create an issue of ethics.
Hence, in order to deal with these ethical problems all data will be collected according to data
protection act, 2018. This can help to secure protection of data and privacy of respondents
can be maintained. Moreover, only researchers and supervisors will be given authority to
handle those data. Consent letter will be collected from respondents and brief regarding the
research will be given to them.
8. Conclusion
Main objective of research will be impact of GSCM on financial performance of a firm.
Concept of GSCM is new and application is inappropriate in many countries. This creates
failure in objective of creating sustainable products and satisfaction of customers cannot be
achieved. Literature review regarding this subject area needs to be done in order to gain
proper idea about this topic. Financial Performance of a firm can be increased if sustainable
way of product design and delivery can be adopted, different theories like lean manufacturing
theory can be adapted to implement GSCM. Both primary quantitative and qualitative
research will be done in this research that can help to conduct in-depth research regarding the
subject area. Maintaining of ethical guideline is an important aspect and it needs to be
followed throughout the process of data collection. Conducting an interview and survey will
help to collect data from a wider area about GSCM and its impact on financial growth of a
company.
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9. Time table
Table 1: Time schedule
(Source: Created by Author)
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Reference list
Choi, D. and Hwang, T., 2015. The impact of green supply chain management practices on
firm performance: the role of collaborative capability. Operations Management
Research, 8(3-4), pp.69-83.
Cuervo‐Cazurra, A., Mudambi, R., Pedersen, T. and Piscitello, L., 2017. Research
methodology in global strategy research. Global Strategy Journal, 7(3), pp.233-240.
Fahimnia, B., Sarkis, J. and Davarzani, H., 2015. Green supply chain management: A review
and bibliometric analysis. International Journal of Production Economics, 162, pp.101-114.
Geng, R., Mansouri, S.A. and Aktas, E., 2017. The relationship between green supply chain
management and performance: A meta-analysis of empirical evidences in Asian emerging
economies. International Journal of Production Economics, 183, pp.245-258.[Online]
available at: https://www.sciencedirect.com/science/article/pii/S0925527316302870
[accessed on 5th may 2019]
Jabbour, C.J.C. and de Sousa Jabbour, A.B.L., 2016. Green human resource management and
green supply chain management: Linking two emerging agendas. Journal of Cleaner
Production, 112, pp.1824-1833.
Krosnick, J.A., 2018. Questionnaire design. In The Palgrave Handbook of Survey
Research (pp. 439-455). Palgrave Macmillan, Cham.
Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. UK: Sage
Publications Limited.
Mathiyazhagan, K., Diabat, A., Al-Refaie, A. and Xu, L., 2015. Application of analytical
hierarchy process to evaluate pressures to implement green supply chain
management. Journal of Cleaner Production, 107, pp.229-236.
Miroshnychenko, I., Barontini, R. and Testa, F., 2017. Green practices and financial
performance: A global outlook. Journal of Cleaner Production, 147, pp.340-351.
Rostamzadeh, R., Govindan, K., Esmaeili, A. and Sabaghi, M., 2015. Application of fuzzy
VIKOR for evaluation of green supply chain management practices. Ecological
Indicators, 49, pp.188-203.
Schoonenboom, J. and Johnson, R.B., 2017. How to construct a mixed methods research
design. KZfSS Kölner Zeitschrift für Soziologie und Sozialpsychologie, 69(2), pp.107-131.
Silverman, D. ed., 2016. Qualitative research. UK: Sage.
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Teixeira, A.A., Jabbour, C.J.C., de Sousa Jabbour, A.B.L., Latan, H. and De Oliveira, J.H.C.,
2016. Green training and green supply chain management: evidence from Brazilian
firms. Journal of Cleaner Production, 116, pp.170-176.
Yan, M.R., Chien, K.M. and Yang, T.N., 2016. Green component procurement collaboration
for improving supply chain management in the high technology industries: A case study from
the systems perspective. Sustainability, 8(2), p.105.
Younis, H., Sundarakani, B. and Vel, P., 2016. The impact of implementing green supply
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pp.216-245.
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