Why not now? : Reasons for small firm unable to adopt and transform through Green Supply Chain Management.

University essay from Jönköping University/IHH, Företagsekonomi; Jönköping University/IHH, Företagsekonomi; Jönköping University/IHH, Företagsekonomi

Abstract: Introduction: It is undeniable that green effort returns more than just a better image for firms. GSCM initiative has resulted in many successful companies transition to a more sustainable organization and supply network. However, the evidence for smaller entities are not abundantly available and one can assume that GSCM is not currently adopted among this size of enterprises. With this premise, the study focuses on why these firms are reluctant to adopt GSCM initiative. The study focuses on a single case study of one successful business not adopting GSCM.   Purpose: To help SMEs prepare for what they might expect when taking green initiative, this study seeksto find barriersfor why GSCM is not adopted among smaller firms. Method: A single holistic explorative study have been conducted. With qualitative approach, the interviews are analyzed and deliver enriched data to unveil reason for thefirms in this study supply network.  Findings: Every respondent admitted to having financial constraint. Therefore, they are not investing in the GSCM initiative because of unknown ROI.This indicate that the firm do not know enough about the initiative and left out one important activity following the initiative, the value chain. These firms also recognize external barriers, this again turnsback to knowledge of value chain and lacking in communication.  Conclusion: The barriers appear in internal and external form, meaning that some barriers are over the firm’s owncontrol. However, smaller firms somehow unconsciously create own barriers by not having a good communication and neglecting shared environmental value within their own supply network.

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