Implementing green supply chain practices: an empirical investigation in the shipbuilding industry

ABSTRACT

Environmental concerns have become important in the shipbuilding industry. Governmental expectations about environmental and social performance are much higher than in the past. Public authorities penalize companies that do not comply with the rules. Shipbuilding companies face these challenges by introducing new technologies into their business processes. They do not only start initiatives to green their own business processes but also those of their supply chain partners. This form of environmental management is called Green Supply Chain Management (GrSCM) and its importance is increasingly recognized. Although GrSCM is growing, companies are experiencing difficulties engaging suppliers in environmental activities.

This empirical study analyses drivers for supply chain participation of suppliers in the shipbuilding industry. We explain the participations of suppliers in GrSCM practice by investigating influencing factors including governmental involvement in greening the supply chain, customer requirements towards green issues, feeling of social responsibility, competitive advantage by going green, and GrSCM readiness. Hypotheses are tested with partial least squares, using survey data of 93 suppliers of two leading shipbuilding companies. We found GrSCM readiness, competitive advantage, and social responsibility to be significant drivers in supplier participation. No significant support was found for governmental involvement and customer requirements.