Dehi Business Review X Vo. 14, No. 1 (January - June 2013) GREEN SUPPLY CHAIN AND ECO-DESIGN IN ELECTRONIC INDUSTRY Puja Singha* P URPOSE GREEN Suppy Chain Management (GSCM) is, today, gaining much importance in eectronic industry due to pressure from the government and environmenta consciousness among the customers, to gain competitive advantage. The purpose of this study is to investigate the determinants of adoption of eco-design. The reationship between the determinants and adoption of eco-design has been hypothesized. Based on the extant iterature design for reduction, design for reuse, design for recycing, design for remanufacturing are identified as main determinant and studied. Design/Methodoogy/Approach: Eectronic Companies of Noida were samped for the empirica study. A survey was carried out with a sampe of 150 companies in eectronics industry.the survey instrument was shown to be both reiabe and vaid. The empirica mode was tested using regression anaysis, to verify the hypothetica reationships of the study. Findings: The resuts indicate that Eco design is positivey reated with three factors incuding environmenta, market, and company pressure and it is positivey reated with organisationa performance. Research Limitations/Impications: The accuracy of the anaysis is dependent upon the accuracy of the data reported by seected companies. Practica Impications: The resut of this study woud enabe understanding of the academic community as we as the practitioners who are trying to incorporate green suppy chain or environmentay sustainabe/responsibe suppy chains. Originaity/Vaue: This study is perhaps the first to systematicay determine the determinant of eco-design in the eectronic sector in Noida. It offers a beneficia source of information to eectronic organisations, which are in the process of adopting best practices of GSCM. Key Words: Green suppy chain, Environmenta performance, and Eco-Design. Introduction As the word has aready reached post-kyoto environment where cimate change wi be causing peope, organizations, and institutions to ater their ife styes with the focus of sustainabiity issues which wi remain in the ong-term psyche of managers, engineers, poiticians, and community eaders. The concern over sustainabiity has been increasing.with increase in environmenta concerns during the past decade, a decision is being framed that a the environmenta poution issues accompanying * Assistant Professor, Amity University, Noida, India. 57
Puja Singha industria deveopment shoud be addressed jointy with suppy chain management, thereby contributing to green suppy chain management (GSCM) (Sheu et a., 2005). Since the Waste Eectrica and Eectronic Equipment (WEEE), Restriction of Hazardous Substances (RoHS) and Eco design for Energy using Products (EuP) directives were passed by the European Union (EU), GSCM has been adopted as a proactive strategy by various eading eectronic industry companies, incuding De, HP, IBM, Motoroa, Sony, Panasonic, NEC, Fujitsu, and Toshiba (Zhu and Sarkis, 2006).Thus, GSCM practice can be denoted as the major strategy capabe of compying with the needs of egisations and maintaining the competitive gain. Having a gimpse over more systematic and integrated strategy, GSCM has emerged as a vita new innovation that heps organizations to deveop win-win strategies that wi ead them to achieve profit and market share objectives by owering the risk of environment and there effects by raising the ecoogica efficiency.green suppy Chain Management (GSCM) is an advent to improve conduct of the process and various products according to the requisites of environmenta reguations (Hsu & Hu, 2008). GSCM has appeared in the ast few years and covers a phases of product s ife cyce from design, production and distribution phases to the end use of products by its users as we as its disposa at the termination of product s ife cyce (Borade & Bansod, 2007). GSCM is fusing environmenta thinking (Gibert, 2000) into Suppy Chain Management (SCM). Even in India understanding eve of customers of Green practices opted by organizations has aso seen as increment. So organizations need to focus on the utiization of energy and resources for making environmentay sound suppy chain. The Green suppy chain management has directy infuenced environmenta management onto the suppy chain eve. Thus the essentia issue is the eco-oriented design of inter-organizationa processes. The green suppy chain management concept enarges the hitherto inner-oriented horizon of ecoogica efforts by reationships of mutipe companies because isoated soutions can ony ead to sma improvements. Accordingy, suppiers, manufacturers, customers, and disposa companies must be combined in enforcing green suppy chain management. Accordingy, Hoek (1999) cas for assessment of the ecoogica footprint of a company so that it may ower the environmenta damage of business. Hick (2000) even caims that the concept of green businesses enforces the re-assessment of the essentia intent of a company s existence. The green eement being added to suppy chain management associates the impact of suppy chain management on the natura environment. The environment conscious peope have motivated it and thus it can aso stem from a competitive motive within organizations (Hervani, Hems, and Sarkis 2005). This paper address the issue of Eco-design as promising area of study in eectronics companies of Noida (U.P.) region that have the potentia to provide significant benefits to the firm and the society. The study tries to identify key factors which can affect the adoption of eco-design and its impact on organisationa performance. This paper has used factor anaysis and regression anaysis to find the factors impacting the enterprise eco-design. The next section presents a review of the iterature that focuses on the green practices incuding eco-design. This iterature eads to the study s hypotheses, and then it is foowed by data anaysis. Lasty, the paper portrays the significance of the study and its contributions. Eco-design Concepts Eco-design is the ogica consideration of the design performances with respect to environmenta, heath and safety objectives over the fu product and process ife cyce (Fiske and Wapman 1994). It is actuay possibe to focus on a specific stage of the ife cyce such that the environmenta impact is minimized at that stage as we as emphasizing the entire ife of the product. There are various other names of eco-design such as green design, design for environment, sustainabe design, environmentay conscious design, and ife cyce design. It takes pace eary in the product s design or upgrade phase, to ensure that the environmenta consequences of the product s ife cyce are understood before manufacturing decisions are committed. 58
Dehi Business Review X Vo. 14, No. 1 (January - June 2013) Whie designing sustainabe products, other constraints incuding economics, technoogica possibiities, and imitations aong with the benefits to the customer have to be considered (Luttropp 1999). The environmenta demand, economic reaity, and technica possibiities must be optimized when designing for a sustainabe society (Luttropp and Züst 1998). So, eco-design is one of the green suppy chain initiatives because it combines environmenta aspects into product design process, taking into consideration entire fow of the product in its suppy chain. This consideration is very important because the majority of environmenta impacts arising from production, consumption, and disposa of the product are direct consequences of decisions made at the design stage (Handfied, Menyk, Caantone, & Curkovic, 2001). Different stages of product s ife cyce are anaysed by researchers and they deveoped methodoogies to improve the design of the product from an environmenta perspective. As a resut, eco-design was broken down into many stages incuding product s manufacturing, use and end-of-ife (EOL). According to Horvath (Horvath and Hendrickson, 1995), to achieve eco-design, three main goas must be pursued: minimize the use of non-renewabe resources effectivey manage renewabe resources minimize toxic reeases to the environment. Aims may be transformed into specific eco-design strategies. For exampe, to reduce the energy used and minimization of the wastes during the production design objectives may incude design for energy conservation. In order to essen the energy consumption during the use phase, strategies ike Design for Energy Savings were deveoped. During the ast decade the EOL phase has received an increased attention. The particuar eco-design actions or activities vary between companies and products. The most popuar of the strategies are Design for reduction/eimination, Design for Reuse, Design for Recycabiity (Recovery), Design for Remanufacturing, and Design for resource efficiency. 1. Design for reduction or eimination of environmentay-hazardous materias, such as, ead, mercury, chromium and cadmium (Zsidisin and Siferd, 2001). 2. Design for reuse, is a design that faciitates reuse of a product or part of it with no or minima treatment of the used product (Sarkis, 1998). 3. Design for recycing, is a design that faciitates disassemby of the waste product, separation of parts according to materia, and reprocessing of the materia (Lin, Jones, and Hsieh, 2001). 4. Design for remanufacturing, is a design that faciitates repair, rework, and refurbishment activities aiming at returning the product to the new or better than new condition (Beamon, 1999). 5. Design for resource efficiency, incuding reduction of materias and energy consumption of a product during use, in addition to promoting the use of renewabe resources and energy. The function of eco-design is to hep design so that the environmenta impact is reduced during the whoe ife cyce. The foowing quaitative anaysis positions the eco-design in the context of gobaized markets. Materias One of the centra issues addressed by eco-design for the energy using products is the reduction in materia use and it is the priority for products not using energy. Whether they are manufactured near to the customer or not doesn t make any difference in terms of amount of materia needed. The difference comes from the ecoogica burden created by the extraction of raw materias. Gobaization may change the raw materia extraction to the manufacturing region (China, Mexico, India, etc.), which in most of the cases occurs in countries with oder and more energy intensive technoogies, where the egisation is ess restrictive in terms of discharges, waste, human heath, and safety. 59
Puja Singha Manufacturing Eco-design affects the efficiency of the manufacturing process as we. From the point of view of ecodesign, decisions on the seection of the manufacturing processes are trade-offs between economic and environmenta criteria. Outsourcing permits ess contro over the manufacturing processes, and there may be a great discrepancy between the design intention (and thus the estimated environmenta performance of the processes) and reaity at the suppier (different manufacturing processes, waste management, etc.). In most of the cases this is injurious to environment and the eco-design may become a simpe game of chance. Packaging Packaging has numerous roes: protect, hande, information on the product, and promotion of the brand. Shipping to and from abroad dramaticay raises the number of manipuations, and thus the risk of faiure due to shock exposure. From a design point of view it indicates that either the product shoud be ess sensitive to shocks or the package shoud be designed to better protect it. Simiary, a doube packaging may take pace (buk packaging and ater individua at the distribution centers). Either way, it acts against the eco-design ethics to decrease the quantity of packaging. Transport and Distribution The vast increase in the distance a product traves before attainment of the customer, as opposed to ocay produced goods, is probaby the main adverse effect on environment. Athough these are the consequences of prevaiing economic decisions, optimizing the weight and/or the voume of the product and its package pays an important roe in reducing both environmenta impact and cost due to transportation. Use From an ecoogica point of view the use phase pays the most to the environmenta infuence for two broad categories: energy using products and products making use of consumabe. Eco-design targets at decreasing the energy consumption (usefu and standby where appicabe) and the amount of consumabes during the ife time (e.g. paper bags for a vacuum ceaner, paper fiters for a coffee machine). There is a positive correation between the energy consumption, cost of ownership, and negative impact on environment. This state of the facts induced no incentive for producers to focaize efforts towards this direction. The consciousness of the consumers on the environmenta issues has put pressure on companies to reduce the energy consumption, combined with eco-abeing and smart marketing strategies. Aso, the environmenta oad is different for the same quantity of energy consumed in different regions, depending on the its production origin End-of-ife End-of-ife has been by far the attention of the eco-design, athough this stage counts in average for ess than 10% of the ife cyce environmenta oad (as opposed to use 50% or materias 25%).Generay, eco-designed products are aimed considering the foowing end-of-ife aspects: onger usefu ife (reusabiity) remanufacturabiity great recycabiity potentia for energy recovery. This direction is not aways desirabe, ike it is the case of a product embedding new technoogies which aow reducing the ife cyce impact (e.g., it woud be worse extending the ifetime of an od generation fridge with a high energy consumption than recycing and repacing it with a new ow energy consumption and CFC free this may be true from an economic point of view too). Recycabiity is in most of the cases the utmost needed characteristic of the products reaching the 60
Dehi Business Review X Vo. 14, No. 1 (January - June 2013) fina disposa phase (end of ast ife). Beginning with the 1970s recycing was performed for business, due to the arge proportions of metas and precious metas. In the 1990s the owner used to pay the recycer (recycing for environment), whie since 2000 the producers have paid recycers to treat the EOL products, which meanwhie became more recycing friendy. Technoogica, economic, geographica, and egisative uncertainties make the task of optimizing for EOL very chaenging. Eco-design encouraged optimizing products for disassemby, mainy due to the wide spread idea that disassemby pays an important roe in there cycing strategy, academic research finding a reach ground for subjects, often pushed to the highest degree of worthessness and unreaism. Reaity, in the deveoped countries, shows that mechanica treatment (shredding, sorting) and smeting processes are dominating, given the high abour rates of manua disassemby and heterogeneity of the income fow of products to be recyced. Under these situations, eco-design can hep in panning products that are stronger with respect to the EOL treatment. In other words, regardess of the EOL treatments empoyed and geographica ocation, a high recycabiity rate, economic efficiency, and minima impact on environment is the utimate goa. Advances in the deveopment of separation and sorting technoogies favour the design for non-disassemby approach (Ram et a. 1998) combined with the design for easy remova of the hazardous parts and substances before mechanica treatments. Eectronics Industry India is one of the fastest deveoping markets of eectronics in the word. Eectronics Industry reported at USD 1.75 Triion is the eading and fastest growing manufacturing industry in the word. It is expected to reach USD 2.4 Triion by 2020. The demand in the Indian market was USD 45 Biion in 2008-09 and is expected to reach USD 400 Biion by 2020. Today eectronics manufacturers face some hurdes such as instabiity in manufacturing costs, ski abour need, technoogy change, exchange rate, impacts of high competitiveness, environmenta egisation, and directives as we. Reverse views of eectronics suppy chain aso chaenge with incrementa wastes of end-of-ife (EOL) products such as computers and home appiances. In addition ow quaity of eectronics products is imported with higher rate which has increased waste from short ifetime. There are various obstaces for waste management ike sma number of effective recycing and disposition system, incompete coection infrastructure, ack in incentives to separate recyced or hazardous substances, ineffective aw enforcement, and technoogy imitation in community eve. In order to overcome these probems it is imperative to determine short and ong-term strategies for eectronics manufacturing and eectronics waste management and forced to impement seriousy for better effective forward suppy chains and reverse ogistics. Literature Review It is important to integrate environmenta management practices into the whoe suppy chain management in order to achieve a greener suppy chain and maintain competitive advantage and aso increase business profit and market share objectives. Various definition of GSCM exists in the iterature. Accordingy, Zhu and Sarkis defines GSCM as has ranged from green purchasing to integrated suppy chains starting from suppier, to manufacturer, to customer and reverse ogistics, which is cosing the oop. According to Srivastava, GSCM can be defined as integrating environmenta thinking into suppy chain management, incuding product design, materia sourcing and seection, manufacturing process, deivery of the fina product to the consumers as we as end-of-ife management of the product after its usefu ife. Green suppy-chain management (GSCM) is gaining increasing interest among researchers and practitioners of operations and suppy chain management. The past iterature aso shows that most researchers have studied the GSCM adoption and impementation on deveoped countries such as Japan, Germany, Portuguese, UK, and Taiwan and so on. Lippmann (1999) proposed various critica eements for the successfu impementation of suppy chain 61
Puja Singha environmenta management. Those components incude the production of written GSCM poicies, suppier meetings, training, coaborative R&D, top-eve eadership, cross-functiona integration, effective communication within companies and with suppiers, effective processes for targeting, evauating, seecting and working with suppiers and restructuring reationships with suppiers and customers. US-AEP (1999) improved understanding of industry approaches to suppy chain environmenta management (SCEM) by focusing on seven major eectronics firms. Some of the common SCEM toos empoyed by these firms are summarized as foows: Prequaification of suppiers Environmenta requirements during the purchasing phase Suppy base environmenta performance management Buiding environmenta considerations into product design Cooperating with suppiers to dea with end-of-pipe consumer environmenta issues Reverse ogistics Infuencing egisation to faciitate better SCEM poicies Working with industry peers to standardize requirements (for suppiers and purchasing items) Informing suppiers of corporate environmenta concerns Promoting the exchange of information and ideas. Green suppy chain management (GSCM) invoves traditiona suppy chain management practices integrating environmenta criteria or concerns into organizationa purchasing decision and ong term reationships with suppiers (Gibert, 2000). Bowen et a. (2001) conducted an exporatory anaysis of impementing patterns and inductivey derived three main types of green suppy. The first type, i.e., greening the suppy process, represents adaptations to suppier management activities, incuding coaboration with suppiers to eiminate packaging and recycing initiatives. The second type, i.e., product-based green suppy, attempts to manage the byproducts of suppied inputs such as packing. The third type, i.e., advanced green suppy, incudes more proactive approaches such as the use of environmenta criteria in risk-sharing, evauation of buyer performance, and joint cean technoogy programs with suppiers. Rao (2002) argues that GSCM practices shoud incude working coaborativey with suppiers on green product designs, hoding awareness seminars, heping suppiers estabish their own environmenta programs and so on. To green the suppy chain, from the perspective of practitioners, companies have to integrate the ideas of green purchasing tota quaity management in terms of empoyee empowerment, customer focus, continuous improvement, zero waste, ife cyce anaysis, and environmenta marketing. Green purchasing comprises a number of environment-based initiatives, incuding a suppier environmenta questionnaire, suppier environmenta audit and assessments, environmenta criteria for designating approved suppiers, requiring suppiers to undertake independent environmenta certification, jointy deveoping ceaner technoogy/ processes with suppiers, engaging suppiers in eco design and product/ process innovation. Rao (2002) pointed out that the green suppy chain management activities incude the organization itsef the green activities and parts suppiers. Zhu and Sarkis (2004) is the study of China s manufacturing sector mentioned in the green suppy chain management, incuding interna environment management, externa Green Suppy Chain Management, investment and eco-design. Green Suppy Chain Management into the externa environment management, and interna environmenta management (Rao, 2002). 62
Dehi Business Review X Vo. 14, No. 1 (January - June 2013) Zhu et a. (2005) described a number of GSCM practices impemented by Chinese enterprises to improve their performance. Interna environmenta management is a key to improving enterprise performance in terms of senior manager commitment and cross-functiona cooperation. Commitment of senior managers is extremey conducive to the impementation and adoption stages for GSCM, because without such upper management commitment most programs are bound to fai. A GSCM practices are integrative and require cross-functiona cooperation rather than simpy being oriented to a singe function or department. They suggested that green purchasing and eco-design are two emerging approaches and companies shoud focus on the inbound or eary portions of the product suppy chain. To attain improved environmenta performance, arge customers have exerted pressure on their suppiers, resuting in greater motivation for suppiers to cooperate with customers for environmenta goas. The impementation of green suppy chain management practices and the organization s environmenta performance and economic performance have the positive reations (Zhu and Sarkis, 2004). Green suppy chain management practices are rather wide range, from interna and externa. Green suppy chain management practices incude interna environmenta management, externa green suppy chain management, investment and restore the ecoogica design or environment practica design (Zhu and Sarkis, 2004) Chung-Hsiao (2008) studied the Green suppy chain management in the eectronic industry in which they mentioned that there are various approaches for impementing green suppy chain management practices that have been proposed and recognized in previous iteratures according to the author, but there is yet no investigation that identified the reiabiity and vaidity of such approaches particuary in eectronic industry. GSCM is the summing up of green purchasing, green manufacturing, green packing, green distribution, and marketing. GSCM is to eiminate or minimize waste in the form of energy, emission, hazardous, chemica and soid waste (Ougu, Wong, and Shaharoun, 2010). Meanwhie, Tabe 1 aso presents the previous studies of GSCM among manufacturing industry. These researchers had focused to specific industry in order to get depth understanding of GSCM practices without comparing with different industries. Research Mode This study identified factors of eco_design on the basis of previous iterature review. Figure 1 shows the conceptua framework of this study. The drives or pressures upon companies to impement GSCM incude reguations, marketing, suppiers, competitors and interna factors (Zhu and Sarkis, 2006). The pressure of environmenta protection does not come soey from the demands of reguations; consumers and cients aso exert pressure on companies (Ha, 2000). Standards, reguations and competition have together prompted organizations to become more aware of any consequences for the environment (Sarkis, 1998). On the other hand, the reguatory, organizationa, community and media stakehoders have prompted companies to conduct environmenta management (Henriques and Sadorsky, 1996). Environmenta reguations and externa stakehoders are considered the major factors affecting GSCM practices according to Zhu and Sarkis (2006), Ha (2000), Sarkis (1998) and other experts. Environmenta Poicy Environmenta reguation pays a critica roe in the process of impementing the environmenta management within the companies and it act, as one of the main drivers for product-based ecoinnovation activities appears to be companies efforts to compy with existing and future ega and normative requirements. Environmenta poicy is a key factor infuencing innovation activities. At the same time, however, companies tend to anticipate that such innovative activities if undertaken 63
Puja Singha 64 Tabe 1: Previous Studies of GSCM Year Tite/Author Variabes Country/ Industry 2011 The Impementation of - GSCM Practices Thaiand; Green Suppy Chain - GSCM Performance Eectronic Management Practices in - GSCM Pressure (Computer Eectronics Industry Ninawan et a. (Market, Reguatory, Competition) Part) sector 2011 An Anaysis of the Drivers Drivers of GSCM (11 types of India; Affecting the Impementation of Drivers invoved in this study, Auminium Green Suppy Chain Management coected through severa previous sector Diabat and Govindan studies) 2011 Research on the Performance Eco-design eve; Green purchasing China Measurement of Green Suppy eve; Green manufacturing capacity; Chain Management in Green marketing and consumption; ChinaYan Li Recycing products processing abiity; Leve of information technoogy; Comprehensive eve 2011 The impact of green suppy chain Green Suppy Chain Practices (GSCP) Itay practices on company performance: - 3PLs performance the case of 3PLs Cagno et a. 2010 A Taxonomy of Green Suppy Chain Green Manufacturing and Packaging Taiwan; Management Capabiity among Environmenta Participation Eectronic Eectronics-reated Manufacturing Green Marketing Industry Firms in Taiwan. Shang et a. Green Suppiers Green Stock Green Eco-design 2010 Green Suppy Chain Management GSCM Drivers (Normative Pressure, Japan in Leading Manufacturers Case Coercive Pressure, Mimetic Pressure) Studies in Japanese GSCM Practices (Interna & externa Large Companies Zhu et a. dimensions) GSCM Performance (Economic, Financia, Operationa) 2009 An Empirica Study of Green Suppy Externa drivers UK Chain Management Practices (Legisation, Competitive, Suppy Amongst UK Manufacturers Chain, Societa) Hot, D. and Ghobadian, A. Interna drivers 2008 Green Suppy Chain Management Approach for impementing Taiwan; in the Eectronic Industry GSCM: Suppier management, product Eectronic Hsu, C.W. and Hu, A.H. recycing, organizationa invovement, Industry ife cyce management 2008 The Driver of Green Innovation Green core competence Taiwan; and Green Image Green Core Green innovation: Green product Eectronics Competence innovation performance, Green industry Yu-Shan Chen process innovation performance, and Green images information 2007 Greening the Automotive Suppy Customer environmenta Austraia; Chain: A reationship perspective performance requirements Automotive Simpson et a. Suppier environmenta commitment industry
Dehi Business Review X Vo. 14, No. 1 (January - June 2013) Figure 1: Conceptua Framework Factors affecting adoption of Eco-design Organizationa performance Environmenta Poicy H1 H4 Competitive Advantage GSCM Practice Company Features H2 Eco- Design H5 Environmenta Impact H3 H6 Market Pressure Economic Advantage Figure 1: Research framework for investigation of reationships between factors affecting adoption of Eco-Design and its impact on Organisation Performance. at an eary enough stage wi generate ower costs in the medium and ong term. Further cataysts for product-specific environmenta innovations are: Eary identification and anaysis of potentia improvements regarding the disposa, treatment, and use of recycabe waste incuding eary and appropriate protective measures. Securing ong-term markets by preparing for future market and customer needs. This suggests that, in the ong term, reguatory instruments generate an innovation dynamic which impes companies to engage in innovation activities which by far surpass the ega and normative requirements. Comparative studies on the innovation incentive effects of individua environmenta instruments revea that economic instruments (taxes and permissions) are preferabe to reguatory instruments as they represent a permanent inducement to companies to ook for broader, cost-efficient means of easing the environmenta burden. On the other hand, reguatory instruments which are anticipated to come into effect in the future aso have an incentive effect by initiay aerting firms to the existence of specific probems. Goba products face a greater chaenge due to the heterogenic environmenta egisation wordwide. Moreover, ife cyce compiance with reguations is adding compexity to the product design, requiring the shift from the crade to grave approach to the crade to crade (egisation wi pay a major roe in making this a requirement and not an option). Some of the EU reguations that producers have to compy with when designing and producing new products or retiring existing ones are End of Life of Vehices (ELV 2000), Waste of Eectrica and Eectronic Equipment (WEEE 2003), Restriction Of The Use Of Certain Hazardous Substances In Eectrica And Eectronic Equipment (RoHS 2003), Energy Using Products (EuP 2005). Registration, Evauation, Authorisation and Restriction of Chemicas (REACH 2007). Environmenta reguations is considered to incude domestic environmenta reguations, government environmenta poicies and internationa environmenta agreements according to Zhu and Sarkis (2006) and other experts. 65
Puja Singha Domestic Environmenta Reguations Domestic environmenta reguations prompt companies to adopt reevant strategies and practices to enhance their environmenta performance. Domestic reguations and corporations environmenta missions are the two main sources of pressure (Zhu and Sakis,2006). Furthermore, the major drive for corporation environmenta awareness is increasing the roe of Government reguations (Handfied, et a., 1997). Government Environmenta Poicy The pubic s increasing environmenta conscience, the statutory requirements due to government poiciesand reguations, and pressure from organized groups are traditionay considered to be the factors that sway companies towards adopting a green manufacturing or environmenta management system poicy (Hui, et a., 2001). Environmenta poicy targeted directy at emissions wi sti typicay provide the most important singe eement of a cost-effective environmenta poicy strategy (Jaffe et a., 2005). Internationa Environmenta Agreements Athough domestic environmenta reguations seem to have a greater and more immediate effect on eco-design than the type of economic poicy incentive currenty associated with WEEE (Gottberg, et a., 2006), many companies and the government are aso being infuenced by internationa environmenta agreements, such as the Kyoto agreement, the Cimate Change Treaty and the Montrea Protoco (EIC, 2005).The EU WEEE directive attempts to tacke the growing quantity of WEEE by making producers responsibe for the costs of the coection and recycing of their products at the end of usabe ife (Gottberg, et a., 2006). Based on the above arguments, a hypothesis can be made as foows. Hypothesis 1: There is positive reationship between Environmenta reguations and adoption of Eco-design. Company Specific Features Finay, company size aso appears to be an important factor infuencing a company s product reated innovation effort. Whie big firms tend to engage in the mass production of environment friendy products, smaer firms are more ikey to attempt to penetrate sma market niches by producing speciaised eco-products. A further impetus to eco-innovation is the persona invovement and commitment of individua empoyees particuary those in the company s R&D department who often ensure that project innovations are impemented despite the uncertainty and risk attached to such activities. Other important company-specific factors are corporate cuture and attitudes towards environment- reated topics. The study reveaed that, on the whoe, a the firms surveyed emphasise the importance of the company s endeavours in the fied of environmenta protection. Companies are either certified to the EMAS scheme or the ISO 14001 standard. Environmenta protection is now aso an integra eement of the guideines used by a the companies surveyed, which suggests that environmenta protection objectives aongside and at the same eve as corporate business and socia objectives are pursued throughout entire companies. The importance of these objectives is aso highighted by: High production and manufacturing standards High innovation efforts in ecoogica areas Strong commitment to socia responsibiity These companies expain their commitment to environmenta protection in terms of the direct business advantages which accrue from reductions in energy costs and waste, attracting attention, conveying a positive corporate image to the media and socia institutions as we as motivating 66
Dehi Business Review X Vo. 14, No. 1 (January - June 2013) empoyees. Last but not east, the earier a company begins to perform environmenta reated activities, such as energy-saving-programs, the more expertise it is abe to acquire in this fied. As a resut, these companies are abe to fa back on a reativey broad base of knowedge which can ead to the generation of further environmentay-friendy eco-innovations. Hypothesis 2: Company s features have a positive reationship with adoption of Eco-design. Market Pressure The high potentia inherent in environmentay-conscious product use means that customer s utiisation behaviour is just as important as their spending behaviour. These behaviour patterns not ony infuence the utiisation-reated environmenta impact of products, they aso determine market demand and, as a resut, the innovation activities of companies. The intensity of market factors appears to vary according to sector and consumer group, however. In the eectrica industry, in particuar, origina equipment manufacturers (OEM) and major customers demand that ecoogica criteria are met. The typica end-customer of eectronics products, by contrast, is more concerned with the baance of technica features and price. Consumers of persona and heath goods, such as foodstuffs, texties or home- improvement materias, on the other hand, demand that environmenta aspects are taken into account by manufacturers. So customer demands have now become the most important type of externa pressure (Doonan, et a., 2005). To obtain more sustainabe soutions, the environmenta properties of products and services must meet customer requirements (Zhu and Sarkis, 2006). In the U.S.A., an estimated 75% of consumers caim that their purchasing decisions are infuenced by a company s environmenta reputation, and 80% woud be wiing to pay more for environmentay friendy goods (Lamming and Hampson, 1996). Consequenty, the infuence of the natura environment organizationa decisions not ony affects the organization that makes the decision, but aso its customers and suppiers (Sarkis, 2003). Suppiers contribute to the overa performance of a suppy chain, and poor suppier performance affects the performance of the whoe chain (Sarkar and Mohapatra, 2006). Suppier manufacturer reationships are considered important in deveoping a sustainabe competitive advantage for the manufacturer (Sheth and Sharma, 1997; Cannon and Homburg, 2001). Screening of suppiers for environmenta performance has now become a key deciding factor in many organizations (Cark, 1999). Hypothesis 3: Market pressure has a positive reationship with adoption of Eco design. Organizationa Performance Performance is a measure for assessing the degree of a corporation s objective attainment (Daft, 1995). Corporations adopting GSCM practices may generate environmenta and business performances (Waton, et a., 1998; Zhu and Cote, 2004). A green suppy chain, for exampe, can improve environmenta performance (reducing waste and emissions as we as increasing environmenta commitment) and competitiveness (improving product quaity, increasing efficiency, enhancing productivity and cutting cost), thereby further affecting economic performance (new marketing opportunities and increasing product price, profit margin, market share, and sae voume; Purba, 2002). According to Waton, et a. (1998), Zhu and Cote (2004) and Purba (2002), as we as other experts, organizationa performance is considered to incude environmenta and financia performance. Competitive Advantage When one examines the impacts of environmenta initiatives at the firm eve, the arguments and evidence point to two conficting views. At one end of the spectrum, Waey and Whitehead (1994) have argued that the higher costs of environmenta management initiatives mosty yied a negative financia return to sharehoders. At the other, Kassen and McLaughin (1996) demonstrate that strong environmenta performance positivey affects firms financia performance and market evauation and that the reverse is equay true. Doubts can, therefore, be raised that financia markets encourage short-terms, profit ony mentaity that ignores much environmenta reaity. 67
Puja Singha Anecdota evidence from eading firms iustrates that the business reasons for greening go beyond ethica issues to gain competitive advantages. For instance, the we-known 3M program, Poution Prevention Pay, demonstrates the potentia of cutting costs with environmenta initiatives. DuPont aso buids profit from waste and poution reductions. But, more than cutting costs, environmenta initiatives are inked to ean production practices for Honda of American Manufacturing. Environmentay responsive firms aso find new ways to better satisfy market demands and increase their saes. Consider Wa Mart with its green abeing program which generated a 25 percent yeary increase in saes. Are these competitive advantages sustainabe? Firms that move ahead are better positioned in the future to meet tighter standards and create market barriers to entry. Corporate environmenta initiatives trigger innovation with the introduction of more environmenta friendy products or processes and often require the adoption of state-of-the-art environmenta technoogies. Athough environmenta eadership is considered as a technoogy driver, it aso promotes manageria innovations. Furthermore, environmenta concerns cannot be propery addressed by pursuing separate isoated activities but must be tacked in a comprehensive and systemic manner, requiring inter functiona integration within the firm but aso upstream and downstream integration with suppiers/subcontractors and customers. Integrating environmenta issues into corporate strategy is a catayst for radica innovation for firms and for a actors aong the suppy chain. A fourth proposition is, therefore, outined beow: Hypothesis 4: Eco-design has a positive reationship with competitive advantage. Environmenta Performance Environmenta performance is defined as the environmenta impact that the corporation s activity has on the natura miieu (Sharma and Vredenburg, 1998). Environmenta performance indicators consists of OPI (operative performance indicators) and MPI (management performance indicators): OPI are reated mainy to materias consumption, energy management, waste and emission production, and evauation of rea environmenta aspects of organizations, whereas MPI mainy concerns the administration s efforts, measures, and contribution to the overa organization s environmenta management (Papadopouos and Giama, 2007). GSCM stresses more than just improving environmenta performance; the impementation of green suppy chain management can ensure that the corporation itsef and its suppiers conform to environmenta reguations. Effective management of suppiers can reduce transaction costs and promote recycing and reuse of raw materias. Aso, the production of waste and hazardous substances can be cut, preventing corporations from being fined as a resut of vioating environmenta reguations. Consequenty, the reevant handing and operationa cost invoved can be further reduced and, in the meantime, the efficiency of using resources can be enhanced (Sarkis, 2003). Furthermore, adopting a sustainabe approach can produce ess waste and use more recyced materia, thereby using energy, water, and by-products in a more efficient way (Tsoufas and Pappis, 2006). Foowing the above discussions, the present study considers environmenta performance to incude two dimensions: management performance (environmenta poicies and measures, the approva rate of the management system, and the improvement in community reations and corporation image) and operationa performance (the performance in using energy/resources, the reduction of emission, and waste disposa). After the above anayses, the researcher makes the foowing hypothesis: Hypothesis 5: Eco-design has a positive reationship with environmenta performance. Economic Performance Environmenta protection activities can have a positive effect on a corporation s financia performance. GSCM can cut the cost of materias purchasing and energy consumption, reduce the cost of waste treatment and discharge, and avoid a fine in the case of environmenta accidents (Zhu and Sarkis, 2004). A sustainabe approach can ead to interna cost saving, open new markets and find beneficia uses for waste (Tsoufas and Pappis, 2006). Environmenta munificence has a positive effect on financia performance (for exampe, growth in profits, saes, and market share) (Fuentes-Fuentes, 68
Dehi Business Review X Vo. 14, No. 1 (January - June 2013) et a., 2004). Financia performance is defined here as cost reduction, market share growth, and profit increase. To anayse the research done by Zhu and Sarkis, et a. (2005), the researcher issues a hypothesis: Hypothesis 6: Eco-design has a positive reationship with financia performance. Research Methodoogy The research is intended to cover an empirica anaysis investigating key drivers of adopting Ecodesign and its impact on organizationa performance by eading edge companies to enhance their own environmenta performance. This study conducted a survey to obtain quantitative data for statistica testing of the hypotheses.the survey was conducted using mai questionnaire. Mai questionnaire method was empoyed in this study because of its advantage of covering wide geographica area with ess time and cost (Sekaran, 2003). A tota of 150 questionnaires were sent out, and 91 vaid responses were returned, a vaid response rate of 60% was achieved.the unit of anaysis of the study is the individua firm. Choice of Industries Primary data is coected from eectronics industry of Noida. The eectronic products industry is R&D-intensive with high vaue-added intermediate corporate products or consumer goods. The existing and potentia environmenta impacts of the products manufactured in that particuar industry are substantia: for instance, the use of arsenic and ead in computer circuits, the amount of eectrica energy necessary to operate refrigerators, or the waste probems created by the disposa of PCs (more than 10 miion per year in the US ony) The sampe incudes companies that export to overseas markets and/or provide raw materias or parts to manufacturing companies. Data Anaysis and Resut The respondents were asked to indicate their agreement or disagreement with survey instrument using a five-point Likert scae. The returned questionnaires were statisticay anaysed by a statistica software. First, the research instrument was assessed for its reiabiity and vaidity. Second, Descriptive statistics are appied to anayse the respondents demographic data. Finay, the hypotheses were tested by mutipe regression method. Reiabiity and Vaidity Assessment Goodness of measures was gauged in this study using vaidity and reiabiity tests. Exporatory factor anaysis is used for testing the vaidity of measures of a the variabes under study. The reiabiity or interna consistency of measures was tested using Cronbach s apha test. The foowing subsections iustrate the resuts of factor and reiabiity tests. Factor anaysis was performed in two parts one to identify the factors which are affecting adoption of Eco_design and other to identify the factors of organisationa performance. The anaysis starts with evauating the appropriateness of the data or correation matrix for factor anaysis. The KMO measure shoud be at east 0.6 and Bartett s test of spherecity shoud be significant (p<.05) (Hair et a., 1998). Factor Anaysis Factors Affecting Eco-design Practice In this research, 9 items on a five-point scae (1 = Strongy disagree, 5 =Strongy agree) was used for measuring Factors affecting Eco-design practice incuding Environmenta Poicy, company features, market pressure. The items are shown in Tabe 2. The scae items are based on existing iterature on GSCM (Zhu and Cote, 2002; Zhu and Sarkis, 2004; Zsidisin and Hendrick, 1998). To measure overa factors PCA was used. The items for factor anaysis are shown in Tabe 2. A factor anaysis was conducted to further confirm grouping of factors affecting Eco-design from the survey data. Factors were extracted using the maximum ikeihood method, foowed by a varimax rotation. 69
Puja Singha Tabe 2 Item Environmenta Poicy Company Features Market Pressure Domestic environmenta reguations Government environmenta Poicy Internationa environmenta agreements Company size Commitment of individua empoyees (R and D) Companies are either certified to the EMAS scheme or the ISO 14001 standard Corporate Socia Responsibiity Customer pressure Suppier reationship By inspecting the vaues in Tabe 3, the KMO measure of samping adequacy is 0.718 and the Bartett s test of spherecity is significant (p<.01) which indicates that the matrix meets the assumption of factor anaysis and can be factorized. KMO and Bartett s Test 70 Tabe 3 Kaiser-Meyer-Okin Measure of Samping Adequacy. 0.718 Bartett s Test of Sphericity Approx. Chi-Square 571.442 df 36 Sig. 0.000 Tabe 4 indicates that factors affecting Eco-design practice items oad into three factors with eigen vaues exceeding 1. The three extracted factors matched the three conceptuaized factors namey Environmenta Poicy, Company features, Market Pressure. Further anaysis confirms the reiabiity of these three factors which is shown in Tabe 8 Organizationa Performance In this research, 12 items on a five-point scae (1 = strongy disagree, 5 =strongy agree) was used for measuring Organizationa performance incuding Competitive advantage, Environmenta performance, Economic Performance. The items are shown in tabe 5. By inspecting the vaues in Tabe 6, the KMO measure of samping adequacy is 0.692 and the Bartett s test of spherecity is significant (p<.01) which indicates that the matrix meets the assumption of factor anaysis and can be factorized Tabe 7 indicates that Organizationa performance items oad into three factors with eigen vaues exceeding 1. The three extracted factors matched the three conceptuaized factors namey Competitive Advantage, Environmenta performance, Economic Performance Further anaysis confirms the reiabiity of these three factors which is shown in Tabe 8 Reiabiity Anaysis Reiabiity anaysis is conducted in this study to ensure that the measures of variabes have interna consistency across time and across the various items that measure the same concept or variabe
Dehi Business Review X Vo. 14, No. 1 (January - June 2013) Tabe 4: Rotated Component Matrix a Domestic environmenta reguations 0.751 Government environmenta Poicy 0.798 Internationa environmenta agreements 0.842 Component 1 2 3 Company size 0.628 Commitment of individua empoyees (R and D) 0.876 Companies are either certified to the EMAS scheme 0.901 or the ISO 14000 standard Corporate Socia Responsibiity 0.926 Customer pressure 0.794 Suppier reationship 0.695 Extraction Method: Principa Component Anaysis. Rotation Method: Varimax with Kaiser Normaization. a. Rotation converged in 7 iterations. The gap on tabe represents oadings that are ess than 0.6, this makes reading the tabe easier. A oadings ess than 0.6 have been suppressed. Item Tabe 5 Competitive advantage Environmenta performance Economic Performance Improving product quaity Increasing efficiency Enhancing productivity Management Performance Operationa performance Improvement in community reations and corporation image Performance in using energy/resources Reduction of emission Waste disposa Cost reduction Market share growth Profit Increase Tabe 6 KMO and Bartett s Test Kaiser-Meyer-Okin Measure of Samping Adequacy. 0.692 Bartett s Test of Sphericity Approx. Chi-Square 752.576 df 66 Sig. 0.000 71
Puja Singha Tabe 7: Rotated Component Matrix a 72 Component 1 2 3 Improving product quaity 0.775 Increasing efficiency 0.855 Enhancing productivity 0.876 Management Performance 0.610 Operationa performance 0.842 Improvement in community reations and corporation image 0.827 Performance in using energy/resources 0.874 Reduction of emission 0.601 Waste disposa 0.709 Cost reduction 0.701 Market share growth 0.912 Profit increase 0.765 Extraction Method: Principa Component Anaysis. Rotation Method: Varimax with Kaiser Normaization. a. Rotation converged in 7 iterations. The gap on tabe represents oadings that are ess than 0.6, this makes reading the tabe easier. A oadings ess than 0.6 have been suppressed. Tabe 8: Reiabiity Assessment Factor No. of items Cronbrach s apha Environmenta Poicy 3 0.703 Company Features 4 0.735 Market Pressure 2 0.887 Green Design 8 0.747 Competitive Advantage 3 0.726 Environment Performance 6 0.716 Economic Performance 3 0.753 (Sekaran, 2003). Reiabiity is measured in this study using Cronbach s apha coefficients. The measures are considered to have sufficient eve of reiabiity when Cronbach s apha vaues equa to or greater than 0.70 (Nunay, 1978). Tabe 8 provides the vaues of Cronbach s apha for the variabes. It appears from the tabe that the vaues of Cronbach s apha ranges between 0.703 and 0.887. These vaues we exceed the minimum vaue of 0.70. Thus, it can be concuded that the measures have acceptabe eve of reiabiity. Descriptive Statistic Tabe 9 shows the profie of respondents who answered the questionnaire. The tabe reveas that 60.4% of the respondents hod a position of manager (Operations Head) in their firms and are attached to the operations or production department (60.4%). Regarding the experience of respondents
Dehi Business Review X Vo. 14, No. 1 (January - June 2013) Tabe 9: Profie of Respondents and Firms Frequency Percent Designation Suppy Chain Manager 27 29 Assistant Manager 9 9.9 Operations Head 55 60.4 Department R & D 9 9.9 Operations 55 60.4 Quaity Contro 27 29.7 No. of Years 6-10 9 9.9 11-15 54 59.3 > 15 28 30.8 Quaification PG 18 19.8 UG 64 70.3 Dipoma 9 9.9 Gender Mae 73 80.2 Femae 18 19.8 Age 20-30 14 15.4 31-40 42 46.2 41-50 29 31.9 51 and above 6 6.5 No. of Empoyees 200 9 9 201-400 18 19.8 401-600 45 49.5 > 600 19 20.9 No. of Suppiers 10 suppiers 18 19.8 > 10 suppiers 73 80.2 Suppier Reationship Length 1-5 years 9 9.9 More than 5 years 82 90.1 Customer Reationship Length 1-5 Years 9 9.9 More than 5 years 82 90.1 Green Association Yes 62 68.1 No 29 31.8 73
Puja Singha in their firms, the data reveas that about 59.3% have more than fifteen years of work in their firm, which indicates that the respondents were seected from the most experienced persons in their firms. Simiary, the tabe shows that 70.3% of the respondents hod graduate degrees. The data shows aso that 80.2% of the respondents are mae and 19.8% are femae. Lasty, the tabe reveas that most respondents are in the midde range age (30-50 years) (46.2%). The tabe aso shows that most firms are considered arge firms (more than 400 empoyees) (about 50%). Finay, more than haf of the firms (68.1%) participate in industry trade or professiona associations that have interest in green issues. Anaysis Resuts of Regression of Eco-Design on factors affecting Eco-design Mutipe Regression Anaysis Mutipe regression anaysis was used to test the research hypotheses. Muticoinearity probem was evauated by variance infation factor (VIF). Theoreticay, if the VIF vaue is ower than 10 it means that there is no reationship between the variabes. To test hypothesis 1, hypothesis 2, and hypothesis 3, the author regressed Eco-Design parameter on factors affecting its adoption incuding Environment poicy, Company features, Market Pressure. Tabe 10 Coefficients a Unstandardized Standardized Coinearity Statistics Coefficients Coefficients Mode B Std. Error Beta t Sig. Toerance VIF 1 (Constant) 1.346 0.271 4.965 0.000 Environment poicy 0.287 0.071 0.314 4.034 0.000 0.667 1.499 Company features 0.178 0.067 0.233 2.657 0.009 0.524 1.908 Market_Pressure 0.153 0.028 0.433 5.525 0.000 0.655 1.527 a. Dependent Variabe: Eco_Design * P < 0.05 R = 0.806 R2 = 0.650 F = 53.74 Sig. = 0.000* The resuts of the questionnaire survey are presented in Tabe 10. Hypothesis 1: From Tabe 10, Environment poicy is found to have the positive âeta of 0.314 at p = 0.000*. It can be seen that Environment poicy has significant positive reationship with Eco- Design. Therefore, hypothesis 1 is accepted. Hypothesis 2: From Tabe 10, Company features is found to have the positive âeta of 0.233 at p = 0.000*. It can be seen that Company features has significant positive reationship with Eco-Design. Therefore, hypothesis 2 is accepted. Hypothesis 3: From Tabe 10, Market Pressure is found to have the positive âeta of 0.433 at p = 0.000*. It can be seen that Market Pressure has significant positive reationship with Eco-Design. Therefore, hypothesis 3 is accepted. Resuts of Regression of Competitive advantage on Eco-design Hypothesis 4: From Tabe 11, Eco_design is found to have the positive âeta of 0.609 at p = 0.000*. It can be seen that Eco_design has significant positive reationship with competitive advantage. Therefore, hypothesis 4 is accepted. 74
Dehi Business Review X Vo. 14, No. 1 (January - June 2013) Tabe 11 Coefficients a Unstandardized Standardized Coinearity Statistics Coefficients Coefficients Mode B Std. Error Beta t Sig. Toerance VIF 1 (Constant) 0.020 0.567 0.035 0.972 Eco_Design 1.050 0.145 0.609 7.237 0.000 1.000 1.000 a. Dependent Variabe: Competitive advantage * P < 0.05 R = 0.609 R2= 0,.370 F = 52.379Sig. = 0.000* Resuts of Regression of Environment Performance on Eco-design Hypothesis 5: From Tabe 12, Eco_design is found to have the positive âeta of 0.794 at p = 0.000*. It can be seen that Eco_design has significant positive reationship with Environment Performance. Therefore, hypothesis 5 is accepted. Tabe 12 Coefficients a Unstandardized Standardized Coinearity Statistics Coefficients Coefficients Mode B Std. Error Beta t Sig. Toerance VIF 1 (Constant) 1.166 0.228 5.120 0.000 Eco_Design 0.719 0.058 0.794 12.337 0.000 1.000 1.000 a. Dependent Variabe: Environment Performance * P < 0.05 R = 0.794 a R2 = 0..631 F = 152.197Sig. = 0.000* Resuts of Regression of Economic Performance on Eco-design Hypothesis 6: From Tabe 13, Eco_design is found to have the positive âeta of 0.604 at p = 0.000*. It can be seen that Eco_design has significant positive reationship with Economic_Performance. Therefore hypothesis 6 is accepted. Tabe 13 Coefficients a Unstandardized Standardized Coinearity Statistics Coefficients Coefficients Mode B Std. Error Beta t Sig. Toerance VIF 1 (Constant) 1.035 0.466 2.219 0.029 Eco_Design 0.852 0.119 0.604 7.141 0.000 1.000 1.000 a. Dependent Variabe: Economic_Performance * P < 0.05 R = 0..604 a R2 = 0..364 F = 50.996Sig. = 0.000* Concusion The purpose of this study was to identify the reationship between eco-design and its factors incuding environmenta, market and company pressure and further to identify the reationship between eco- 75
Puja Singha design and organisationa performance incuding competitive advantage, economic performance, and environmenta performance. To test hypotheses, PCA and mutipe regression method were conducted. Existing body of iterature indicates that Eco design is positivey reated with above mentioned three factors and it is positivey reated with organisationa performance. The resut was evidenced aso by the resut that firms with arge number of suppiers adopt more Eco design than firms with ower number of suppiers. Large number of suppiers indicates that a firm is arge is size. This resut impies that arge firms adopt more green suppy chain initiatives than smaer firms. Large firms are generay having more resources and capabiities than smaer firms which enabe them to attempt costy and/or risky environmenta investments (Bowen, 2002). Larger firms are aso more visibe in society that induces them to adhere to environmenta standards so as not to ose stakehoder support (Bowen, 2002). The study aso found that firms participate in green associations adopted higher green suppy chain initiatives than firms that do not participate. From these associations firms earn principes and standards of green initiatives as we as benefits and vaue of such initiatives. This increases the eve of awareness of green issues among organizations and, subsequenty, eve of adoption. DiMaggio and Powe (1983) mentioned professiona and trade associations as important vehice for the definition and promugation of normative rues about organizationa and professiona behaviour. However, this research is not without imitation. One cear imitation is the sma sampe size which causes imitation on generaisabiity. Future research shoud coect data from a more diverse sampe. References Beamon, B. (1999), Measuring Suppy Chain Performance, Internationa Journa of Operations and Production Management, Vo. 19, No. 3/4, pp.275-292. Bowen, F.E., Cousine, P.D., Lamming, R.C., and Faruk, A.C. (2001), Expaining the Gap between the Theory and Practiceof Green Suppy, Greener Manage, Int., Vo. 35, pp.41-59. Bowen, F.E. (2002), Organizationa Sack and Corporate Greening: Broadening the Debate, British Journa of Management, Vo. 13, pp.305-316. Borade, A.B. and Bansod, S.V. (2007), Domain of Suppy Chain Management A State of Art, Journa of Technoogy Management and Innovation, Vo. 2, No. 4, pp.109-121, ISSN: 0718-2724. Cagno, E., Guido, M.J.L., Perotti, S., and Zorzini, M. (2011), The Impact of Green Suppy Chain Practices on Company Performance: The Case of 3PLs, Lancaster University Management Schoo Working Paper, pp.1-31. Cannon, J.P. and Homburg C. (2001), Buyers-Suppier Reationships and Customer Firm Costs, J. Marketing, Vo. 65, No. 1, pp.29-43. Cark, D. (1999), What Drives Companies to Seek ISO 14000 Certification? Pout. Eng., pp.14-15. Daft, R.L. (1995), Organization Theory and Design (5th. Ed.), New York: West Pubishing Company. Diabat, A. and Govindan, K. (2011), An Anaysis of the Drivers Affecting the Impementation of Green Suppy Chain Management, Resources, Conservation and Recycing, Vo. 55, pp.659-667. DiMaggio, P.L. and Powe, W.W. (1983), The Iron Cage Revisited: Institutiona Isomorphism and Coective Rationaity in Organizationa Fieds, American Socioogica Review, Vo. 48, pp.147-160. Doonan, J., Lanoie, P., and Lapante, B. (2005), Anaysis Determinants of Environmenta Performance in the Canadian Pup and Paper Industry: An Assessment from Inside the Industry, Eco. Econ., Vo. 55, pp.73-84. Fiske, J. and Wapman, K. (1994), How to Design for Environment and Minimize Life Cyce Cost, IEEE Internationa Symposium on Eectronics and the Environment, San Francisco, CA. Fuentes-Fuentes, M.M., Abacete-Saez, C.A., and Lorens-Montes, F.J. (2004), The Impact of Environmenta Characteristics on TQM Principes and Organizationa Performance, Int. J. Manage. Sci., Vo. 32, pp.425-442. Gottberg, A., Morris, J., Poard, S., Mark-Herbert C., and Cook, M. (2006), Producer Responsibiity, Waste Minimization and the WEEE Directive: Case Studies in Eco-Design from the Europen Lighting Sector, Sci. Tota Environ., Vo. 359, pp.38-56. 76