Escolar Documentos
Profissional Documentos
Cultura Documentos
Internal Factors are consists of organizational factor which is the desire to decrease costs,
the desire to maintain the competitiveness of the firms, concern for the environment and
also the leaders commitment (Hajikhani, Abdul Wahat & Idris, 2012 ; Walker, Lucio &
McBain, 2008). On the other hand, regulatory pressures and external stakeholder
contribute to the external factors that motivate adoption of GSCM (Hajikhani et al., 2012;
Vanpoucke, 2014).
The major concern of internal motivation of GSCM implementation is to maintain the
competitiveness by developing cost-based competitive advantage (Chan, He & Wang,
2012). According to Testa & Iraldo (2010) and Walker et al. (2012), it can be the
reduction of waste resources by reducing the material usage or substitute the material of
the product or packaging of product with more user-friendly material (as cited in Carter
& Dresner, 2001).
According to Hajikhani et al. (2012) and Vanpoucke (2014), GSCM also drive by the
motivation to improve reputation and achieve legitimacy. By undertaking greener
activities such as green distribution and reverse logistics, the firm will be able to develop
a favorable corporate environmental image which can contribute to higher market share
(Diabat & Kannan, 2011; Testa & Iraldo, 2010). Walker et al. (2008) and Testa & Iraldo,
(2010) stated that GSCM can be viewed as the result of management innovative strategy.
Being the first who create the innovative products or processes related to GSCM assist
firm to become market leader as their products can produce in terms of lower costs per
unit and therefore outperform their competitors (Diabat & Kannan, 2011; Hajikhani et al.,
2012).
Environmentally Management System (EMS) also drives the firm to adopt the GSCM
practices. EMS is an effective process that enables the company to make ISO 14001 as its
own self-regulation method that can lead to attainment of environmental policies and
objectives (Hajikhani et al., 2012; Testa & Iraldo, 2010). According to Vanpoucke (2014)
and Walker et al. (2008), external stakeholders that might influence the GSCM practices
consist of customers, suppliers, regulatory and competitors. Customers put pressures on
organization to adopt the GSCM activities (as cited in Green, Morton & New, 1996). The
research studied by Hajikhani et al. (2012) presented that a company reputation of being
environmentally friendly affect the customer purchase behavior and customer are more
likely to purchase the green product, thus company engages in environmental
sustainability practices to attract more customer that lead to increase of market share. The
collaboration between a firm and its suppliers may further encourage GSCM practices.
Firm may exert pressures on its suppliers to go green while suppliers also may urge firms
to adopt greener activities to improve their image. Partnering with companies that
emphasize on environmental friendly may create another competitive advantage for the
companies involved (Hajikhani et al., 2012; Vanpoucke, 2014).
Government legislation is one of major drivers for organizations environmental
practices. Government place strict regulation about product performance and material
used to preserve the environment and this in turns motivate the company to become more
innovative and produce in lower cost (Walker et al., 2008).
company have to make sure the product produce in a way that compliance with
government legislation (Luthra et al., 2011; Walker et al., 2008).