The Development of a Strategic Prioritisation Method for Green Supply Chain Initiatives

Area of Science:

• Operations Research
• Environmental Management
• Supply Chain Management

Background:

• Companies increasingly integrate proactive environmental strategies into business strategies for competitiveness.
• A gap exists in methods for strategically prioritizing green initiatives across supply chains.
• The shift is from reactive, compliance-based environmental management to proactive, strategic approaches.

Purpose of the Study:

• To present a decision-making method for prioritizing green supply chain initiatives.
• To align green initiatives with preferred green strategy alternatives for manufacturing companies.
• To bridge the literature gap concerning strategic prioritization of green supply chain initiatives.

Main Methods:

• Developed a decision-making method using the Analytic Network Process (ANP).
• Incorporated external pressures and internal competitive drivers/resources as decision factors.
• Validated causal relationships using Structural Equation Modelling (SEM) on ISO 14001-certified Malaysian manufacturers.
• Used SEM results to calculate a portion of ANP weights.

Main Results:

• The study presents a validated ANP-based decision-making method.
• SEM confirmed causal relationships among decision variables.
• A case study demonstrates the method's practical applicability.
• The method provides a basis for strategic prioritization of green initiatives.

Conclusions:

• The developed method effectively supports strategic prioritization of green supply chain initiatives.
• It balances external pressures and internal capabilities for effective environmental strategy integration.
• The research offers a practical tool for manufacturing companies to enhance their green supply chain management.