This paper argues for the use of Interpretive Structural Modeling in building a theory of innovative green procurement practices. Earlier researchers have conducted vast studies related to the hard dimensions of green procurement practices. However, there is a dearth of studies focusing particularly on the soft dimensions of green procurement practices. To address the gap in existing literature, this study first systematically reviews the green procurement literature. Secondly, these dimensions were refined through expert interviews from the manufacturing sector. Thirdly, it illustrates the use of ISM method to find the contextual relationship of elements. The ISM model was finally validated using MICMAC analysis. The current study is unique from two perspectives. Firstly, Resource dependence theory was used as a theoretical lens to study the links between elements. Secondly, it integrated innovation and green procurement practices for the purpose of investigation. The findings show strong associations between 3C's (Collaboration, Coordination, and Cooperation) and innovative green procurement practices. The paper concludes with managerial implications and directions for future research.
Top1. Introduction
Resource Dependence Theory (RDT) suggests that member firms within the supply chain should coordinate and collaborate to achieve superior performance. Under RDT the most important assumption is that firms cannot be fully independent with regards to strategically critical resources for survival (Sarkis et al., 2011).
Under Green procurement practices, the eco-design of products and materials recovery is outstanding organizational resources requiring partnership with key suppliers to extract performance benefits (Zhu et al., 2005). From the RDT viewpoint, customer and supplier relationships are important links for firms to reduce the uncertainty surrounding their operating environment (Carter and Rogers, 2008).
While establishing theoretical foundations for three Cs’ and innovative green procurement practices, the following research question is proposed: Do Collaboration, Coordination, and Cooperation create value in improving innovative green procurement practices of the firm?
There are few brilliant studies available in the area of supplier relationship management, supplier integration, and collaboration and has been discussed further to understand the breadth and depth of study available in the area of sustainable procurement.
Bag (2016a) studied the interrelationship between green strategy, supplier relationship management and supply chain performance. Important variables such as supplier integration, ethics, trust, culture and flexibility have been considered in the study to develop supplier relationship model. Green purchasing positively influences flexible systems which in turn reduces operational cost. Bag (2016b) also argued that flexible procurement systems are key to supply chain sustainability. In that study, the important variables considered were supplier integration, supplier responsiveness, and strategic sourcing. The findings suggest that manufacturing organizations having a strong sourcing policy successfully integrate suppliers. This helps in a greater level of flexibility and develops more innovative products successfully. It was also suggested that trust and collaborative efforts between buyers and suppliers improve delivery and product quality, which enhance customer satisfaction and considered as a move towards sustainability.
In another recent study, where Bag and Anand (2016) examined the importance of innovation leadership in cultivating sustainable supply chain practices of an organization. One interesting finding from the study is that empowering junior managers and creating innovation culture among employees facilitate green practices.
The above studies are some of the recent exceptional work in the area of sustainable practices where different links have been examined. However, the missing link in all the past studies is the role of 3 Cs’ in influencing innovative green procurement practices.
Firms mostly emphasis on innovation for creating eco-friendly designs, reducing the level of wastage, and value addition. Firms apply different tools and techniques to measure the performance of green practices which generally differ from the conventional practices.
The gaps which emerged from the review of the literature has further motivated to pursue the current study. It will be interesting to understand the underlying mechanics and interrelationships of three Cs’ and innovative green procurement practices.
The manuscript has been organized as follows. First theoretical background and research framework are presented. Then research objective and methodology are discussed, and analysis and findings are explained. Finally, the manuscript concludes with a discussion of managerial implications, limitations and suggested future research.