Investigating the impact of green supply chain management on organization performance in the PVC granule industry

Dissertation for M.A.

Industrial Orientation

Abstract

In a situation where manufacturing companies are operating under intense competition, they produce diverse products and sometimes do not pay attention to the environmental effects of using different materials. This is while the implementation of environmental management practices such as green supply chain management (GSCM) [1] can help to prevent environmental pollution in addition to maintaining the competitive advantage of companies. The purpose of this research is to describe the results of GSCM implementation and its relationship with organizational performance in the PVC granule industry. In this study, a conceptual model related to GSCM and business performance has been used through three organizational variables of job satisfaction, operational productivity and relational productivity as mediators. Statistical analyzes have been made based on the data collected through the examination of 92 questionnaires in the PVC granule industry. The reliability and validity of the research model and questionnaire were tested and confirmed. In order to test the hypotheses, the partial least square technique (PLS) [2] has been used in the structural rates model.

Some of the previous findings of this study have indicated a direct relationship between the implementation of GSCM and business performance. But in this research, a direct relationship has not been confirmed. Meanwhile, we have reached significant indirect relationships between GSCM implementation and business performance through operational productivity and job satisfaction mediating variables. This result showed that business performance improves when GSCM increases job satisfaction and operational productivity. In general, the findings of this study are compatible with previous studies in other parts of the world. Also, a small number of studies in this field were conducted based on the theory of resource dependence.

Chapter 1

Overview of the research

1-1. Introduction

New news about the growth and development of manufacturing companies and enterprises is heard every day. Companies touch large markets and look for customers in different parts of the world, and they know well that they must provide the values ??needed by their customers and strive to maintain these values. They should respond appropriately to the needs of customers, suppliers, and employees and resolve their concerns. produce products and services with higher quality and diversity to emerge from the pit of successful competition. Therefore, to maintain durability and survival in such a competitive market, only the internal management of the organization is not enough, but the supply chain management, this global operational strategy can help gain a competitive advantage. On the other hand, with increasing concerns about the environment, in addition to the development of industries, the requirement has been created in the operational process of the supply chain to pay attention to environmental pollution, which compels everyone to ask their suppliers, manufacturers and distributors to comply with environmental requirements in their affairs and to follow their affairs in the form of green supply chain management in order to witness the publication of less pollution.

1-2. Statement of the problem

Global competition in an environment that is constantly changing has made organizations understand the importance of flexibility and show measured and timely reactions. Today, organizations need to be globalized and present in this big arena for their survival, even if they want to be present at the national or regional level, they must think globally. However, globalization and gaining a suitable position in the world and maintaining the acquired values ??require the use of modern science and correct management patterns such as supply chain. In recent years, a lot of attention has been paid to supply chain management. But it should be noted that, on the other hand, the success and health of an organization depends on the health of the organization's environment and the people interacting with the organization, and the health of people and the environment depends on having a healthy organization, but unfortunately today, with the neglect of environmental issues, we are witnessing pollution that leads to environmental pollution, causes disease and weakness of humans, and finally leads to a vicious circle that only transmits pollution. From the environment to the organization, from the organization to the environment, from the organization to the individual, from the organization to another organization and so on. and it is not clear what effects it will have on the performance of the organization itself, as well as what damages it will have on future generations.During the researches that have been carried out by adding a three-letter word to supply chain management, the capabilities of this correct model have been emphasized once again. "Green" is a suffix that has turned this concept into green supply chain management, in the sense that by implementing green policies along the supply chain, we can witness the transfer of cleanliness and health from the organization to the environment, individual, and other organizations, and have an environmental perspective on the supply chain. To explain this concept, the definition (Zou et al., 2008) [3] of green supply chain management is discussed, which is: "the adoption of environmentally friendly supply chain management practices, including: internal environmental management, green purchasing, cooperation with customers and design of environmentally friendly products in line with the development and operational strategies of the company for the sustainability of the company's environment". Of course, the evidence indicates that organizations have responded to the needs of customers as well as the pressures of international and governmental organizations supporting environmental issues for several years and have accepted the necessity of environmental management and implemented green supply chain management in order to compete with global markets (Lee et al., 2012)[4]. Many buying companies demand that their suppliers implement green supply chain management practices and even carry out additional environmental requirements (Jabour and Jabour, 2009[5] and Lee, 2009[6]) and the importance of this issue at the global level is so great that suppliers are hard pressed to find any business opportunity in a new space without green supply chain management practices and practices.(Nishitani, 2010 [7].  The environmental view of the supply chain is relevant in any country, in any industry, and at any level.

One of the industries whose green supply chain is essential to have a clean and green environment is the petrochemical industry and its complementary and downstream industries. Petrochemical industry is one of the parent and job-creating industries, which as a feeder to other sectors of the industry can play a fundamental role as the engine of the economy of developing countries.[8] And part of the petrochemical production is related to the downstream and complementary petrochemical industries that use petrochemical products or oil refinery products as raw materials, which should be emphasized on making their supply chain as green as possible. In this study, a conceptual model related to green supply chain management practices and business performance through three variables of employee job satisfaction, operational productivity and relational productivity has been used as a moderator. Therefore, in this research, an attempt has been made to answer the question through these three variables, whether the implementation of green supply chain management in the PVC granule industry has an effect on business performance?

1-3. The necessity and importance of conducting research

Economic activities, including industrial, agricultural and service activities, on the one hand use natural resources and depend on them, and on the other hand, the nature of their process is such that they potentially pollute the environment. Therefore, if the consequences and environmental issues of such activities are not paid attention to, huge costs must be spent to remove the damage and waste caused by not paying attention to this issue. (Huang, 2001)[9]. Because the adverse environmental effects occur in all stages of the product life cycle and the management of environmental programs and operations is not limited within the boundaries of the organization, the view of green supply chain management as a comprehensive view that includes all flows from suppliers to producers and finally to consumers has received much attention (Zu et al., 2008)[10]. It creates a win-win for organizations and helps them create a strong advantage in the global market (through cost reduction and improved competitiveness) (Hua, 2001)[11] Supply chain greening has benefits for companies at both the individual and national levels. At the individual level, green supply chain programs provide certain competitive advantages; such as lower costs, greener products and better integration with suppliers. At the national level, green supply chains can create markets for green products, as well as better adapt suppliers to environmental issues. Greening the supply chain can improve the company's competitive position by reducing costs. In addition to reducing costs, working closely with suppliers can lead to greener products.