The Critical Impact of Sustainability Innovations on Green Supply Chains

The Critical Impact of Sustainability Innovations on Green Supply Chains

DOI: 10.4018/978-1-6684-8969-7.ch005
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Abstract

The prevailing business methods have a strong focus on environmental sustainability. To that aim, the rising concern about environmental issues in the supply chain has sparked the growth of green supply chains. Organizations are also highly interested in planning and implementing green strategies. In that case, the innovative approach is labeled as the primary driver of change from traditional to green in the supply chain. Therefore, environmental sustainability innovations are examined in this chapter as the forces behind the green supply chain in organizations. 172 waste management and recycling companies are the samples of the study, where path analysis with partial least squares-based structural equation modeling was conducted to test the hypotheses. The findings demonstrate a strong connection between green supply chains and improvements in resource conservation, energy reduction, managing environmental communication, and pollution.
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Literature Review

Although there are several, the broadest definition of sustainability considers the resilience and long-term viability of our ecosystems, society, and economy (Chang et al., 2017; Sharma, 2014). Environmental sustainability refers to human behavior in its relationships with the environment (Keong, 2020). According to environmental sustainability, the environment may still be able to sustain human existence, all current ecosystems, and life in general despite resource depletion brought on by human activities (Brinkmann, 2020a). Thus, maintaining the ecological integrity of the natural system while maximizing its economic usage might be considered environmental sustainability in the current context (Choy, 2015).

Utilizing ecologically friendly goods and services is considered going green. Utilizing goods or services sustainably implies staying within the resources of future generations (Yanarella et al., 2009). From an organizational perspective, the key characteristics of business sustainability may include economic factors, environmental issues, social demographics, stakeholder concerns, resilience, and strategy (Ahi & Searcy, 2013). Given the nature of the term “green supply chain,” which unmistakably highlights this aspect of sustainability, the emphasis on environmental issues was to be expected.

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