Green Supply Chain, Circular Economy, and Technological Innovation: Challenges and Opportunities for Developing Countries

Green Supply Chain, Circular Economy, and Technological Innovation: Challenges and Opportunities for Developing Countries

Mallika Roy (CQ University, Australia & University of Chittagong, Bangladesh) and Anita Medhekar (CQ University, Australia)
Copyright: © 2024 |Pages: 23
DOI: 10.4018/979-8-3693-3486-7.ch006
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Abstract

This chapter explores the concept of a green supply chain with an emphasis on environmental sustainability by incorporating eco-friendly practices to minimise waste in various stages of product development, manufacturing, and distribution to enhance environmental performance in developing countries. However, populated developing countries are facing many challenges related to green supply chain to transform from a linear model to a sustainable local circular economy model that aligns with the socio-economic and cultural contexts and minimise environmental impact. Given the financial constraints faced by developing countries such as Bangladesh and India, this study aims to provide actionable recommendations for all stakeholders, policymakers, and business practices for enhancing the green supply chain's sustainability in developing countries.
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Introduction

This chapter explores the concept of a green supply chain (GSC) with an emphasis on environmental sustainability by incorporating eco-friendly practices to minimise waste in various stages of product development, manufacturing, and distribution to enhance environmental performance in developing countries. Green et al. (1996) coined the term Green Supply Chain Management (GSCM), in context of purchasing methods by the industries for environmental sustainability. Adopting GSCM practices to minimise waste, circular economy, and technological innovation is a critical global concern, and particularly for populated developing countries of Bangladesh and India. The concept of a GSC emphasizes environmental sustainability by incorporating eco-friendly practices into various stages of product development, manufacturing, and distribution. Studies by Li et al. (2020) and Rao, (2019) underscores the positive impact of adopting GSC practices in reducing waste, lowering carbon footprints, and enhancing overall environmental performance. Literature also recognizes the challenges faced by developing countries in implementing these practices due to resource limitations and infrastructural constraints (Goyal et al., 2018; Medhekar, 2024; Sarkis et al., 2019).

Circular economy principles focus on minimizing waste by promoting the continuous use of resources through recycling, reusing, and reducing. There is potential for circular economy practices in developing countries, where technological innovation plays a key role in processing waste and enhancing sustainability within the GSCM stages. However, developing countries face challenges in terms of equitable access to technology and overcoming the digital divide related to GSCM to transform from a linear model to a sustainable local circular economy model that aligns with the socio-economic and cultural contexts and minimises environmental impact (Geissdoerfer et al., 2017; Ghisellini & Ulgiati, 2020).

As the world grapples with environmental challenges, businesses are increasingly recognizing the need for sustainable practices (Brown, 2023). The GSCM, circular economy principles, and technological innovations present promising avenues for reducing waste and fostering sustainable development (Karmaker et al., 2023; Ogunmakinde et al., 2022; Tseng et al., 2019). Developing countries face unique challenges and opportunities in adopting and implementing technologically driven green practices (Gedam et al., 2021; Goyal et al., 2018; Medhekar, 2024; Rosyidah et al., 2022). Technological solutions, if appropriately adapted, can bridge the gap between resource constraints and sustainable development goals (Miao et al., 2019). In the context of developing countries, the integration of sustainable practices in the SCM is crucial for economic growth while minimizing environmental impact (Sánchez-Flores et al., 2020). For example, the impact of inefficient waste management practices is particularly pronounced in Bangladesh and India, experiencing increased per-capita income, consumption demand and waste generation (Joshi & Ahmed, 2016; Inayatullah & Singh, 2015; Sujauddin et al., 2008).

Key Terms in this Chapter

Waste Reduction: The practice of using less inputs or raw material and energy resources, efficiently in order to minimise waste generation socially, economically and environmentally. Individuals, firms, business organisational and governments need to collaborate and take cations to reduce waste at all levels. Nature of waste depends on whether it is at the manufacturing, wholesale, retail or the consumer level. The characteristics of type of waste is important based on raw material, toxic chemical materials, volume of waste of recyclable goods and packaging, food waste at farm, wholesale, retail, and at the consumer/household level.

Green Supply Chain Management: Green supply chain management can be defended as sustainable environmental processes and practices that are adopted by the conventional supply chains at various stages of production from manufacturing, wholesale, transportation, retail, operations to consumer end-of-life management, incorporating the principle of 4R &D (reduce, reuse, recycle, reclaim and degradable).

Technological Innovation: Technological innovation can be defined as creation of a new product innovation or application of a new production process innovation of making goods. This involves new technological knowledge, expertise, resources, to develop innovative solutions to solve problem, improve efficiency leading to economies process and deliver values in the production process and for the end-user/customers.

Developing Countries: Developing countries also known as emerging markets, whose Gross Domestic Product (GDP), Gross National Income (GNI) per capital income, literacy rate, level of technological development, industrialisation, infrastructure development and telecommunication connectivity besides other factors are lower than developed countries.

Sustainable Development: A development process can be defined as sustainable which fulfill the needs of the present current generation, without compromising the ability of future generations to meet their own basic needs; and ensuring the balance between economic growing, social wellbeing, and environmental health- that is achieving human development, social, economic, and environmental sustainability.

Circular Economy: As resources are scarce, a circular economy, is defined as a system where products and materials are recycled and not wasted through processes like repair, reuse, refurbishment, remanufacture, recycling, and composting. Adopting a circular economy model helps us to tackle global challenges like climate change, reduces waste, loss of biodiversity and pollution, due to economic activity and at the same time use the non-replenishable or finite resources in a sustainable manner.

Sustainable Production: Sustainable Production is about producing better quality and more with few available resources and creation of goods and services using processes and systems that are: Non-polluting. Conserving of energy and natural resources, which is economically viable, safe, and healthy for workers, consumers, society, environment, and the economy.

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