Identifying critical failure factors of green supply chain management in China’s SMEs with a hierarchical cause–effect model

• Published in: Environment, development and sustainability development and sustainability, 2022-04, Vol.24 (4), p.5641-5666
• Main Authors: Gao, Shuo, Lim, Ming Kim, Qiao, Renlu, Shen, Chensi, Li, Chentao, Xia, Li
• Format: Article
• Language: English
• Subjects: Component and supplier management; Decision makers; Decision making; Earth and Environmental Science; Ecology; Economic Geology; Economic Growth; Environment; Environmental Economics; Environmental impact; Environmental Management; Failure; Fuzzy sets; Policy making; Product differentiation; Robustness; Sensitivity analysis; Small & medium sized enterprises-SME; Small business; Success factors; Suppliers; Supply; Supply chain management; Supply chain sustainability; Supply chains; Sustainable Development; Technology; Top management
• ISSN: 1387-585X; 1573-2975
• DOI: 10.1007/s10668-021-01675-8

Compared to large companies, the small and medium enterprises (SMEs) in China are more likely to fail in developing green supply chain management (GSCM). Capturing its failure factors could be useful for managers and policymakers to decide how green supply chains can be successfully designed and developed. Meanwhile, these factors can include complex interrelationships. Properly dealing with them can help identify the critical factors which can assist decision-makers to efficiently manage green supply chains. This study thus proposes a comprehensive framework to explore and understand failure factors of GSCM in China’s SMEs to improve the opportunities of GSCM in China. The fuzzy synthetic evaluation (FSE) and decision-making trial and evaluation laboratory (DEMATEL) are combined and applied to identify critical failure factors through translating interrelationships in a hierarchical cause–effect model. The results indicate that collaboration and support are the most critical perspectives for GSCM, and these two perspectives also interrelated with each other and affect the perspectives of knowledge, technology and economy to varying degrees. Moreover, the critical failure factors include lack of top management support, poor guidance from authorities, difficulty in supplier selection and inadequate supplier commitment. Sensitivity analysis is conducted to check the robustness. Conceptual and managerial implications are discussed.