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International Journal of Innovation and Technology Management

Vol. 8, No. 2 (2011) 315336
c World Scientific Publishing Company

DOI: 10.1142/S0219877011002453
Int. J. Innovation Technol. Management 2011.08:315-336. Downloaded from www.worldscientific.com

by Mrs. sheetal soda on 10/16/14. For personal use only.
TECHNICAL NOTE
AN INNOVATIVE APPROACH TO EVALUATE GREEN
SUPPLY CHAIN MANAGEMENT (GSCM) DRIVERS
BY USING INTERPRETIVE STRUCTURAL
MODELING (ISM)
MINHAJ AHEMAD ABDUL REHMAN

Department of Mechanical Engineering
St.Vincent Pallotti College of Engineering & Technology
Gavsi Manapur, Nagpur, India
minhaj ahemad@redimail.com
RAKESH L. SHRIVASTAVA
Department of Mechanical Engineering
Yeshwantrao Chavan College of Engineering
Hingna, Nagpur, India
rlshrivastava@yahoomail.com
Received 16 August 2010
Revised 7 December 2010
Accepted 22 December 2010
Green supply chain management (GSCM) comprises of the Manufacturing process that
minimizes waste and pollution. It also integrates environmental thinking into supply
chain management; from conceptual product design to the delivery of final product to
the consumers, and also involves end-of-life management. Many business organizations
have implemented GSCM and many more are in the process to put into practice. Its
implementation is supported by few factors which are known as GSCM drivers. These
drivers could assist in adoption of Green supply chain management. The aim of this paper
is to develop a relationship amongst the identified GSC drivers; including management
commitments, regulatory pressure etc. This paper is also helpful in understanding mutual
influences of drivers, it helps in identifying those drivers which support other drivers
as well as those drivers which are most influenced by other drivers (dependent) using
interpretive structural modeling (ISM) and it classifies these drivers depending upon
their driving and dependency on power.
Keywords: Green supply chain management; green manufacturing; green purchasing;
drivers; interpretive structural modeling.
1. Introduction
According to Borade and Bansod [2007] a supply chain is a network of facilities and
distribution channels that encompasses the procurement of materials, production,
Corresponding
author.
315
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Minhaj A. A. Rehman & R. L. Shrivastava
assembly and delivery of product or service to the customer. Industrial organizations

are becoming more conscious about environment. Hence, greening the supply chain
has emerged as an important issue in the process of industrial development. The
GSCM encompasses a broad range of practices from green purchasing to green disposal which integrates green design, manufacturing etc. Now a days supply chain
sectors has become more aware of the importance of environmental issues with
respect to all the levels of their operations. Manufacturing rms, if not controlled
or regulated can become a permanent source of waste generator and resource consumer. Various factors which drive the GSC are consumer pressure and government
regulations which have often been cited as important. In supply chain journey, product travels from one point to the other, aecting the environment in each phase of
its journey. Srivastava [2007] dened GSCM as integrating environment thinking
into supply chain management, including product design, material sourcing and
selection, manufacturing processes, delivery of the nal product to the consumers,
and end-of-life management of the product after its useful life. GSCM helps lower
environmental load, associated costs and reduces consumption of resources for society. GSCM helps to motivate stakeholders from environment point of view, creating
better image for suppliers and producers as well as creating a feel good factor and
better quality of life for customer, according to Rao and Holt [2005] environmental
management encompasses diverse initiatives to reduce or minimize the adverse environmental impacts of an organizations operations. These eorts aims to improve
environmental performance, reduce costs, enhance corporate image, reduce risks of
non-compliance and improve marketing advantage. Chien and Shih [2007] studied
the relationship between GSCM practices and environment along with nancial
performance. In their study they concluded that industries have adopted green
procurement and manufacturing practices in response to the current wave of international green issues, and have generated favorable environmental and nancial
performances for the respective companies. Similarly, Holt and Ghobadian [2009]
in their study of GSCM practices amongst UK manufacturers found out that legislation and internal drivers are the major factor which drives GSC.
Su-Yol Lee [2008] explored the drivers of participation in GSC initiatives by
considering small and medium-sized suppliers and their most important stakeholders, including buyers, supplier and the government. Subsequently Zhu et al. [2007]
recognized market pressure, regulatory pressure, and suppliers as the main drivers
of GSCM in Chinese industries. Likewise Ninlawan et al. [2010] focuses on green
procurement, logistics, manufacturing and distribution aspect of SC and consider
these as driving force for GSC in Thai electronic industries.
The aim of this paper is to develop the relationships amongst the identied
GSC drivers. According to Sage [1977] ISM is a well established methodology for
identifying relationships amongst specic items which dene a problem or an issue.
The opinions from group of experts are used in developing the relationship matrix,
which was later used in the development of the ISM model. These drivers are derived
theoretically from various literature sources and expert discussions, some drivers
are extracted from the work of those who have explored GSCM in general or have
addressed a particular driver in detail.
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2. Review of GSCM Drivers

GSCM is not only limited to reducing emission or environmental waste, but it
also integrates environmental thinking into supply chain management from product
design to the delivery. The GSCM principle can be applied to all departments in
an organization. According to Chieh and Lin [2007], it is generally perceived that
GSC practices help in enhancing environmental performance, minimizing waste and
achieving cost savings, it consequently promotes eciency and synergy amongst
business partners and their lead corporations. This synergy is expected to enhance
the corporate image, marketing exposure and the competitive advantage. Business
houses are not only aected by government and consumers but by a plethora of
stakeholders including shareholders, employees, market competition etc. Each of
these pressure groups presents a rm with a frightening array of potential environmental risks urges Henriques and sadorsky [1996]. According to a study carried out
by BearingPoint [2008], Environmental matters are being considered, motivated by
regulatory requirements and corporate image; it is also motivated by the desire to
portray themselves as green. For this study six expert representatives from four
companies expressed their interest, and were willing to be interviewed. Based on
the literature review and the interviews with the practitioners, a proposed set of
thirteen drivers were developed. Though we can identify a large group of possible
drivers for GSCM, we chose provide a summary with some discussion of major
drivers based on the observations and literature surveys. These GSCM drivers are
explained and analyze in the following sub-sections from a general perspective.
2.1. Regulatory pressure

To remain in business, companies need to follow regional, national as well as international regulations while satisfying customers requirements. Regulatory pressure
is one of the major driving factors of GSCM; it not only enhances the GSC but also
helps the manufacturing unit to stand in todays competitive market. Now a days
manufacturers or designers globally are forced to adopt regional environmental legislation, which directly or indirectly boosts the GSCM processes. Organizations had to
face increasing concern over the environment in the past ten years and globalization
has forced companies to improve their environmental performance which has been
expressed by Zhu and Sarkis [2006]. According to a report by BearingPoint, environmental regulations and policies are driving the organizations to become environment
conscious. According to Henriques and Sadorsky [1996], regulations are still the most
prevalent drivers for GSCM throughout the globe. Desrochers [2008] suggest that
properly designed environmental regulations can improve a rms competitiveness
while simultaneously contributing to a cleaner environment through the development of so-called win-win innovations. Manufacturing rms have to constantly
strive in order to meet current and upcoming stricter environmental regulations;
advocates Lele [2009], similarly Roy and Richardson [2009] as well as Lilly [2008]
urges that International standards and protocols and increased compliance requirements mean that manufacturers will be required to measure, report on and improve
their environmental performance. Likewise Kulwiec [2002] believes that there are
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currently hundreds of laws and regulations within individual states, as well as the
federal government, hence regulatory pressure is thus the most important driver
among all. But according to Copeland and Clue [1999]. In addition to international
policy instruments and legislation, standardized approaches to environmental management can improve environmental performance and reduce the escalating levels
of pollution that are being experienced worldwide.

2.2. Management commitment

Management commitment is an important driver of GSCM, because it is not possible to undertake such an important responsibility of greening the entire supply chain
process without the concern and assurance of management. Singh and Kant [2008]
found that top management is responsible for each and every activity at all the levels in an organization. It is instrumental in development of organizational structure,
technological infrastructure and various decisions making processes which are essential for eective implementation of GSCM. Top management have signicant ability
to inuence, support, and champion the actual formulation and deployment of environmental initiatives across the organization. For any strategic program, much of the
support necessary for its success needs to be derived from management advocates,
Zhu and Sarkis [2007]. Let us take a view of prominent management experts who
drive the green movement in their organization. Ramakrishna [2006] found out that
Philips focuses on reducing energy and water consumption, hazardous substances,
waste and emission reduction, similarly according to Allen et al. [2002]. Toyota
management put insist that energy consumption of production equipment should
be measured at dierent stages of production. Toyota management also developed
environmental purchasing guideline for 450 suppliers and is encouraging suppliers to
meet ISO 14000 standard states Environment and Community Report 2006 (source:http://www.toyota.com.au/toyota/events/Content/), 4906, 3535 1372, 00.html).
Similarly Mercedes Benz Recycle 97% (material plus thermal) of these production
wastes resulting in only 21 kg of landll waste per vehicle. Environmental protection is high on the agenda of corporate objectives at Mercedes-Benz. The resulting
actions include the use of recyclable materials, easily dismantled constructions, use
of recycled materials and attention to the segregating potential of separable substances, as stated by Mercedes-Benz environmental protection UK [2009] (source:http:/www 2.mercede s-benz.co.uk//environment recycling).
2.3. Customer pressure
Various studies and experimentation has shown that customer pressure not only
helps to improve the quality of product but also enhance the prot margins of
the manufacturing unit. Now a day the increasing concern of customers for environment is really a matter of consideration for the decision makers. William and
Beckmann [1998] focused predominantly on the characterization of the green
consumer. Wee and Quazi [2005] advocates involvement of customer by giving
Empowerment to them so as to achieve the corporate environmental vision.
Whereas, Richards [1994] emphasizes on importance of customer for environmental benign thinking. MacKillop [2009] believes that if given a choice between two
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Table 1. GSCM drivers.

Drivers
References
1. Environmental regulation
Zhu and Sarkis [2006]; Henriques and Sadorsky [1996];

Desrochers [2008]; Lele [2009]; Roy and Richardson [2009];
Lilly [2008]; Kulwiec [2002]; Rao Purba [2002].
2. Management commitment
Singh and Kant [2008]; Zhu and Sarkis [2007]; Ramakrishna [2006]; Allen et al. [2002].
3. Customer pressure
Wee and Quazi [2005]; Richards [1994]; MacKillop [2009];

Sarkis [1999]; Berry and Rondinelli [1998].
4. Market competitive pressure
Lele [2009]; Lilly [2008]; Gotowasky et al. [2001]; Marilyn

[2009].
5. Suppliers pressure
Chien and Shih [2007]; Su-Lee[2008]; Dan Wang et al.

[2005].
6. Stakeholders pressure
Chien and Shih [2007]; Henriques and Sadorsky [1996]; Ray

and Richardson [2009]; Chieh and Ho [2008]; Julius et al
[2010].
7. Green innovation
BearingPoint [2008]; Urban and Richard [2009].
8. Economic benefits
Urban and Richard [2009]; Stevels [2002]; Zhu and Sarkis

[2004]; Rao and Holt [2005]; Rao Purba [2002].
9. Cost reduction
Stevels [2002]; BearingPoint [2008]; Fresner [1998]; Zhu

and Sarkis [2006]; Bylinsky [1999]; Cortellini [2001];
Kulwiec [2002].
10. New market opportunities
Johnny et al. [2009]; Lele [2009]; Chieh-Yu Lin [2007];

William and Beckmann [1998].
11. Green corporate image
Lele [2009]; MacKillop [2009]; Yu-Shan Chen [2008];

Jonathan Katz [2007].
12. Green design
Gutowski [2004]; BearingPoint [2008].
13. Green purchasing
Sarkis [2003]; Min and Galle [2001].
products, perceived to be otherwise equal, green consumers will choose the one that
seems to be more inclined toward their environmentally aware self-image. According to Sarkis [1999], customer relationships are greatly inuenced by green marketing policies. Some studies have found that ultimate individual consumer interest
in the environment and environmentally sound products is quite substantial. In
many countries, the public has become more vocal in demanding responsible environmental performance as incomes rises and education spreads claims Berry and
Rondinelli [1998]. According to the survey made by EFT [2008], 64% of executives
expect green initiatives to further their overall corporate sustainability strategy and
vision, 62% see green initiatives as a good response to customer interest in environmentally friendly products and services, and 51% feel they are improving their
public reputation.
2.4. Market competitive pressure
Globally organizations are facing very high competitive pressure. To attract the
customer, rms need to keep themselves ahead of others. Being green is one way
of dierentiating them from the competitors. Zhu and Sarkis [2007] states that
presence of competitive pressure signicantly improved the economic benets from
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adoption of a number of GSCM practices with no deleterious inuences on environmental performance in Chinese industry.
Bacallan [2000] suggests that some of these organizations are enhancing their
competitiveness through improvements in their environmental performance to
comply with mounting environmental regulations, to address the environmental
concerns of their customers, and to mitigate the environmental impact of their production and service activities. Furthermore, when competitors had already adopted
GSCM, the company gets a pressure instead. Therefore, it is a good idea to implement GSCM no matter if the competitors have adopted it or not. According to
EFT [2008] report, market competition is getting accelerated because of reduced
cost of GSC. According to Lele [2009] competitiveness is the natural desire of manufacturing rms to improve its processes and capabilities for competitive advantage. Lilly [2008] suggests that competition in the market will drive new inventions,
innovation and technologies by which they can win market share and earn prot.
According to Rao and Holt [2005] environmental issues are becoming a source of
competitiveness. Anecdotally, it is apparent that many of the leading companies in
the South East Asia region are realizing a competitive dimension to having a green
supply chain. Chien and Shih [2007] concluded that industries have adopted green
procurement and green manufacturing practices in response to the current wave of
international green issues and have generated favorable environmental and nancial
performances for the respective companies.
2.5. Supplier pressure
Suppliers are the main stakeholders of the green supply chain according to Dan
Wang et al. [2005] to remain competitive on a global scale, manufacturing companies greatly increased the scope of their outsourcing activities. Thus, supplier
selection has become a highly prioritized activity with major signicance to companies. If any of the suppliers in the entire chain is not environmental conscious,
GSCM will fails. It is suppliers involvement and pressure for greening which ensures
GSCM. According to Chien and Shih [2007] suppliers contribute to the overall performance of a supply chain, and poor supplier performance aects the performance
of the whole chain. Suppliermanufacturer relationships are considered important in
developing a sustainable competitive advantage for the manufacturer. Su-Lee [2008]
nds that buyer environmental requirements and support were positively linked to
their suppliers willingness to participate in green supply chain initiatives. The
government can play an important role in motivating these suppliers which usually lack the information, resources, or expertise to deal with environmental issues.
Industrial growth in South east Asian leads to substantial environmental burden,
to address this problem manufacturers encourage their supplier to be green states
Rao [2002].
2.6. External stakeholder pressure
Stakeholder is anyone who is directly or indirectly interested or aected by the
process. It may be any group or individual capable of prompting organizations
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to be conscious of the environment, including suppliers, customers and community stakeholders. For positive enhancement of GSCM, pressure from all the corner
of society is favorable. Chien and Shih [2007] identies suppliers, customers and
community stakeholders where as Henriques and Sadorsky [1996], identied four
critical environmental stakeholder groups: regulatory stakeholders, who set regulations; organizational stakeholders who are directly related to an organization and
who can have a direct nancial impact on the company; community groups, environmental organizations who can mobilize public opinion in favor of or against a rms
environmental policies; and the media, which has the ability to inuence societys
perception of a rm. This may be internal or external pressure. The pressures that
are exerted over a company arise as a result of discontent with environmental nes
which lower prots, disappointment with progress toward environmental goals, and
diculties in raising new capital or attracting new investors. The public-community
can also exert signicant pressure via their inuence on the legislative process and
through their buying patterns, shutdown of future development, third party and citizen suits. According to Ray and Richardson [2009] the corporate drivers for green
manufacturing include public opinion, shareholder value, cost reductions, joining
industry leaders and complying with environmental management regulations.
2.7. Green innovation
Green innovation is an important constituent to drive SC. There are numbers of
reason to introduce innovative ideas in SC so as to reduce the adverse eect on
environment, energy and virgin material. Green innovation can help reduce cost
while producing a better product regardless of energy and commodities prices. Productivity is enhanced through the use of cleaner technologies, process innovation,
and waste reduction Chieh and Ho [2008] divided the factors aecting adoption
of green innovations into technological, organizational, and environmental factors.
According to them these factors have positive inuences on the willingness to adopt
green practices. Explicitness and accumulation of environmental practices, organizational encouragement, and quality of human resources, environmental uncertainty and governmental support exhibit signicant inuences on the willingness to
adopt green innovations for logistics service providers. A report by Bearing Point
together with Supply Chain Magazine [2008] states that the dierent green Supply Chain approaches (logistics, sourcing, manufacturing, design, reverse logistics)
together provide new sources of innovation. According to Urban and Richard [2009]
green innovation results in a product or process that has environmentally neutral
attributes or reduced resource needs. Green innovation expands the innovation box
to include the product or processes environmental footprint. It also fullls the fundamental goal of better, cheaper and faster. Environmental innovations are a special class of advanced manufacturing and SC practices, like GSCM, which include
source reduction, recycling, pollution prevention, and green product design. Logistics companies can also increase their progress in green innovations by encouraging
or supporting their employees to environmental activities and by training and educating their employees to become environment-friendly workers as suggest by Chieh
and Ho [2008]. Julius et al. [2010] developed a research innovation approach which
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provide eective innovation intelligence and scouting through the use of technology and innovation radars. A rating mechanism helps companies to decide when to
adopt an innovation and to develop new products and services.

2.8. Economic benefits

Going green is not just a trend; it is a smart decision that both consumers and businesses get benet from. Many of the environmentally benecial solutions are also
economically benecial. By reducing wastes, companies decrease handling expenses,
nes, and even costly inputs urges Urban, Richard [2009]. Suppliers savings may
be passed along to buyer companies and ultimately the entire supply chain proves
to be more benecial. Number of companies has shown that there is a proof of the
link between improved environmental performance and nancial gains. Companies
have looked to their supply chain and seen areas where improvements in the way
they operate can produce prots. Thus the economic benet obtained directly or
indirectly drives the GSCM. The benets of this are not only limited to less toxic
consuming or less waste, it is much more than that. The eects of GSCM expands
to all area, both tangibly and intangibly. Stevels [2002] demonstrated the benets
of GSCM to dierent roles of supply chain including environment and society in
terms of dierent categories: material, immaterial, and emotion. According to Zhu
and Sarkis [2004]. Competitive pressure existence strongly improved the economic
benets for a number of GSCM practices with no harmful inuences on environmental practices. According to Rao and Holt [2005] the nancial performance of
rms is aected by environmental performance in a variety of ways. When waste
is minimized as part of environmental management, it results in better utilization
of natural resources, improved eciency, higher productivity and reduces operating
costs. Again, when the environmental performance of the rm improves, it ushers
in tremendous marketing advantage, and this leds to improved revenue, increased
market share, and new market opportunities. According to Johnny et al. [2009]
some operations have discovered the cost saving benets after adopting more environmentally friendly practices.
2.9. Cost reduction
The ultimate aim of any business is to make prot. Cost reduction in any manners
leds to prot generation. It comes by utilizing various eorts like resource reduction,
waste and scrap reduction etc. which leads to GSCM. This saves the overall manufacturing cost and ultimately boosts the prot. By re-evaluating the companys
supply chain, from purchasing, planning, and managing the use of materials to
shipping and distributing nal products, savings are often identied as a benet of
implementing green policies. Numerous studies support that adopting GSCM can
reduce the cost urges Stevels [2002]. According to a report by BearingPoint [2008]
Cost-cutting, reducing the volume of purchases and consumption, process optimization, improves the eciency of the organization. Fresner [1998], suggest that GSCM
has the potential to save 0.51.5% of the total costs of producing companies. Zhu
and Sarkis [2006] believe that ecodesign has direct positive eects on environmental performance, savings such as decrease of cost for energy consumption and fees
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for waste treatment and discharge. In the United States, BMW landll project has
saved the car manufacturer about $US5 million in energy costs annually (source:http://www.onlineopinion.com.au/view.asp?article=9066). According to the EPA,
the Green Suppliers Network, in its relative infancy, has generated over $7 million in
environmental savings, More than 70,000 kilowatts of energy savings, (source:- US
Environmental protection agency [EPA] Annual plan Report [2005]). As Stated by
Bylinsky [1999], cars are rst stripped of valuable parts such as engines, generators,
alternators, and other components that can be refurbished and sold by some 12,000
auto parts recyclers, lowering the recycling costs dramatically and reduce environmental hazards some companies are nding recycling and remanufacturing to be
good business that represents additional sources of revenue believes Kulwiec [2002]
and Cortellini [2001].
2.10. New market opportunities
According to William and Beckmann [1998] most recently, the macro issues
of sustainable marketing and its relationship to the dominant social paradigm
have been introduced into the literature. In this competitive scenario the
upcoming market forced industries to green there production and supply chain.
These increasing numbers of new markets drive the GSC. A study shows
that forty percent of technology executives claim the green movement creates signicant market opportunities for their companies, as evident from
a noticeable increase in customer demand for green products and services
(source:-http://www.environmental leader.com/2008/02/13/market-opportunitiesare-driving-green-technology/?graph=full&id=2). Eorts to develop GSC by focusing on the recycling SC can contribute to the development of markets for recycled
materials in a way that would be benecial for all parties involved. Environmental consciousness throughout the globe leads to raise the curtain for new market opportunities recommend Johnny et al. [2009]. A report of EFT claims that
71% of manufacturing executives believe the cost of greening manufacturing is getting lower, and the potential prots higher. Because of this type of similar reasons
market competition for Green manufacturing is getting acceleration. According to
Lele [2009] there is a natural desire of manufacturing rms to improve its processes
and capabilities for competitive advantage. Chieh-Yu Lin [2007] urges that companies can also increase their adoption of GSCP by encouraging their employees to
environmental activities and by training and educating their employees to become
environment-friendly.
2.11. Green corporate image
Consumers are becoming more aware of environmental standards; they now prefer
companies by their environmental consciousness. Being environmental friendly will
enhance its image and, ultimately its market share. There is growing pressure on
manufacturing rms to become more responsible to the social and environmental
impact it creates. Companies would like to brand themselves with a green image
urges Lele [2009]. If your startup is making environmentally sound decisions, going
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green should be an integral part of your marketing plan advocates MacKillop [2009].
According to Green TECHpulse 08,. nearly two thirds (64%) of business technology decision makers think that being perceived as green is good for business and
their image. In addition, most companies that have purchased green in the past
18 months say they have experienced cost saving benets in terms of reduced energy
usage (source:-http://www.hansagcr.com/press room/Xerox news.asp). According
to Yu-Shan Chen [2008] investment in the development of green core competence
was helpful to businesses for the enhancement of their green innovation and green
images. Katz [2007] claims that manufacturers who dont jump on the green bandwagon may be left behind. Recent studies have estimated that 30% of US adults
qualify as green consumers. This trend is particularly evident in the rapid growth of
startups focusing specically on green consumers. These consumers are looking to
reduce their own environmental footprint through easy choices purchasing organic
foods, making small changes anything that enhances their self-acknowledged
concern for the environment. Given the choice between two similar options, a large
portion of consumers will choose the company that is at least attempting to go
green, believes MacKillop [2009].
2.12. Green design
According to a report by BearingPoint [2008] 80% of the environmental impacts
of a product are determined during the design phase. Thus Green design is an
essential component which drives Green Supply Chain. Researchers have analyzed
dierent stages of a products life and developed techniques and logistics to improve
the design of the product from an environmental perspective. These techniques, all
together, are referred as green design. Products aects the environment at many
points in their lifecycles. Once a product moves from the drawing board into the
production line, its environmental attributes are largely xed. Clean design and
manufacturing is more than using environmentally friendly resources advocates
Gutowski [2004]. The environmental dimension is incorporated in the product from
its inception, i.e. as soon as the products technical and functional characteristics
are determined. Therefore, green design is still a means of anticipating and reducing
the products impact on the environment throughout its life cycle.
2.13. Green purchasing
The purchaser dominates the market, if the purchaser procure only the green products then this will denitely enhance the green procurement and which ultimately
boost the GSC process. The Green Purchasing is the practice of procuring products
and services that are less harmful and would have a minimal impact on the environment. According to Asia-Pacic Environmental Innovation Strategies (APEIS)
green procurement is a widely used instrument that can increase the demand for
environmentally sound products and recycled products. In practice, green purchasing has been operated among many environmentally progressive private sectors.
Encouraging the private sectors purchasing power through green purchasing policy would create greater potential in market demand for recycled products urges
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Min and Galle [2001]. Governments can encourage various voluntary measures for
private sectors to adopt green procurement of recycled products. For instance, the
Philippines Environmental partnership program was established in order to promote environmentally sound business. The procurement or purchasing decisions
will have an impact on the green supply chain through the purchase of materials
that are either recyclable or reusable recommend Sarkis [2003].

3. ISM Methodology and Model Development

Interpretive Structural Modeling was rst proposed by Wareld in 1973 to analyze
the complex socioeconomic systems. ISM is a computer-assisted learning process
that enables individuals or groups to develop a map of the complex relationships
between the many elements involved in a complex situation. Its basic idea is to use
experts practical experience and knowledge to decompose a complicated system
into several sub-systems (elements) and construct a multilevel structural model.
According to Sage [1977] the methodology of ISM can act as a tool for imposing
order and direction on the complexity of relationships among elements of a system.
Saxena et al. [1992] applied the ISM methodology to the case of energy conservation
in Indian cement industry and identied the key variables using direct as well as
indirect interrelationships amongst the variables. Sharma et al. [1995] have employed
ISM methodology to develop a hierarchy of actions required to achieve the future
objective of waste management in India. Mandal and Deshmukh [1994] used the
ISM methodology to analyze some of the important vendor selection criteria and
have shown the inter-relationships of criteria and their levels. These criteria have
also been categorized depending on their driver power and dependence. Singh and
Kant [2008] used it for assessing barriers of KM. Whereas Joseph Sarkis et al. [2009]
utilize it for evaluating environmentally conscious manufacturing barriers. Ravi and
Shankar [2005] use it for analysis of interactions among the barriers of reverse
logistics Salimifard et al. [2010] employed the ISM tool for analyzing and identifying
relationship between nine critical success factors in banking process re-engineering
in Iran. Whereas Jitesh et al. [2008] investigated the issue of IT adoption and
understood their relative impact on the implementation of IT in SMEs so as to
enhance the capabilities of their supply chain by developing an ISM model.
According to Sage [1977] ISM methodology helps to impose order and direction
on the complexity of relationships among elements of a system it is interpretive as
the judgment of the group decides whether and how the variables are related. It is
structural as on the basis of relationship, an overall structure is extracted from the
complex set of variables. It is a modeling technique as the specic relationships and
overall structure are portrayed in a graphical model. The various steps involved in
the ISM technique inspired by the study of Singh and Kant [2008] are as follows:
(1) Identifying drivers which are relevant to the GSCM issues-this could be done
by survey, experts opinion;
(2) Establishing a contextual relationship between drivers with respect to which
pairs of drivers would be examined;
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(3) Developing a structural self-interaction matrix (SSIM) of drivers which indicates

pairwise relationship between drivers of the system;
(4) Developing a reachability matrix from the SSIM, and checking the matrix for
transitivity. Transitivity of the contextual relation is a basic assumption in ISM
which states that if element A is related to B and B is related to C, then A is
related to C;
(5) Partitioning of the reachability matrix into dierent levels;
(6) Based on the relationships given above in the reachability matrix, drawing a
directed graph (digraph), and removing the transitive links;
(7) Converting the resultant digraph into an ISM-based model by replacing element
nodes with the statements;
(8) Reviewing the model to check for conceptual inconsistency and making the
necessary modications. The various steps, which lead to the development of
ISM model, are illustrated below.
3.1. Structural self-interaction matrix (SSIM)
ISM methodology suggests the use of the expert opinions based on various management techniques such as brain storming, nominal grouping technique and anity
diagramming in developing the contextual relationship among the variables urges
Ravi and Shankar [2005]. For this study six expert representatives from four companies expressed their interest and were willing to be interviewed. Based on the
literature review and the interviews with the practitioners, a proposed set of thirteen drivers are developed. Group of experts, from industries were consulted in
identifying the nature of contextual relationships among the drivers (see Table 2).
For analyzing the drivers in developing SSIM, the following four symbols have been
used to denote the direction of relationship between drivers (i and j) as suggested
by Singh and Kant [2008].
V Drivers i will help to achieve drivers j; A Drivers j will help to achieve
drivers i;
X Drivers i and j will help to achieve each other; and O Drivers i and j
are unrelated.
Table 2. Structural self-interaction matrix (SSIM).
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Drivers
13
12
11
10
Environmental regulation
Management commitment
Customer pressure
Market competitive pressure
Suppliers pressure
Stakeholders pressure
Green innovation
Economic benefits
Cost reduction
New market opportunities
Green corporate image
Green design
Green purchasing
V
V
V
V
V
V
X
X
X
X
A
V
X
V
V
O
V
V
V
X
X
X
X
A
V
A
V
V
V
V
A
A
A
A
V
X
O
A
A
A
V
X
X
O
V
V
O
O
O
V
A
O
X
X
O
A
A
V
A
V
V
V
V
V
X
X
A
O
X
V
X
A
A
V
X
A
A
X
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3.2. Reachability matrix

The SSIM has been converted into a binary matrix, called the initial reachability
matrix suggested by Singh and Kant [2008] (see Tables 3 and 4) by substituting V,
A, X and O by 1 and 0 as per given case. The substitution of 1s and 0s are as per
the following rules:
If the (i, j) entry in the SSIM is V, the (i, j) entry in the reachability matrix
becomes 1 and the (j, i) entry becomes 0;
If the (i, j) entry in the SSIM is A, the (i, j) entry in the reachability matrix
becomes 0 and the (j, i) entry becomes 1;
If the (i, j) entry in the SSIM is X, the (i, j) entry in the reachability matrix
becomes 1 and the (j, i) entry also becomes 1; and
If the (i, j) entry in the SSIM is O, the (i, j) entry in the reachability matrix
becomes 0 and the (j, i) entry also becomes 0.
Since, there is no transitivity in this case; hence initial reachability matrix
(see Table 3) will be used for further calculations. The nal reachability matrix
is obtained by incorporating the transitivities as enumerated in Step 4 of the ISM
Table 3. Initial reachability matrix.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Drivers
10
11
12
13
Customer pressure
Suppliers pressure
Green innovation
Economic benefits
Cost reduction
Green design
Green purchasing
1
0
1
0
0
1
1
0
0
0
0
0
0
1
1
1
1
1
1
0
1
0
1
1
0
0
0
1
1
1
1
0
1
0
0
0
0
0
1
1
1
0
1
0
0
0
0
0
1
0
0
0
1
1
0
0
1
1
0
1
0
1
1
1
1
1
1
1
0
1
1
0
1
0
1
0
0
0
0
1
1
1
1
1
1
0
0
0
1
1
1
0
1
1
0
0
0
1
1
1
1
1
1
1
0
1
0
0
0
0
1
0
1
1
1
1
1
1
1
1
0
0
0
1
1
1
1
1
1
1
1
0
1
1
1
1
0
0
0
0
1
1
1
1
1
0
1
1
1
1
1
1
1
0
1
0
1
1
1
1
1
1
1
1
1
1
0
1
1
Table 4. Final reachability matrix.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Drivers
3 4
6 7
9 10
11
12
13
Driver power
Customer pressure
Suppliers pressure
Green innovation
Economic benefits
Cost reduction
Green design
Green purchasing
1
0
1
0
0
1
1
0
0
0
0
0
0
1
1
1
1
1
1
0
1
0
1
1
0
0
0
1
1
1
1
0
1
0
0
0
0
0
1
1
1
0
1
0
0
0
0
0
1
0
0
0
1
1
0
0
1
1
0
1
0
1
1
1
1
1
1
1
0
1
1
0
1
0
1
0
0
0
0
1
1
1
1
1
1
0
0
0
1
1
1
0
1
1
0
0
0
1
1
1
1
1
1
1
0
1
0
0
0
0
1
0
1
1
1
1
1
1
1
1
0
0
0
1
1
1
1
1
1
1
1
0
1
1
1
1
0
0
0
0
1
1
1
1
1
0
1
1
1
1
1
1
1
0
1
0
1
1
1
1
1
1
1
1
1
1
0
1
1
9
11
9
7
8
8
8
7
5
9
7
8
8
Dependence power
6 4
7 9
7 10
10
12
104/104
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methodology. The nal reachability matrix with transitivities incorporated is shown

in Table 4. In this table, the driving power and dependence of each driver are also
shown. The driving power for each drivers is the total number of drivers (including itself), which it may help achieve. Dependence is the total number of drivers
(including itself), which may help achieve it.

3.3. Level partitions

According to Singh and Kant [2008] and Wareld [1974] from the nal reachability
matrix, the reachability and antecedent set for each driver is found. The reachability
set consists of the element itself and the other elements which it may help achieve,
whereas the antecedent set consists of the element itself and the other elements
which may help in achieving it. Thereafter, the intersection of these sets is derived
for all the drivers. The drivers for which the reachability and the intersection sets
are the same occupy the top level in the ISM hierarchy. The top-level element
in the hierarchy would not help achieve any other element above its own level. Once
the top-level element is identied (see Tables 5(a)5(g)), it is separated out from
the other elements. Then, the same process is repeated to nd out the elements
in the next level. This process is continued until the level of each element is found
(see Table 6). These levels help in building the diagraph and the nal model.
Table 5. Initial reachability, antecedent and intersection sets.
Drivers
Reachability set
Antecedent set
Intersection set
Level
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
1,2,4,5,6,10,11,12,13
2,3,4,5,6,7,8,9,10,12,13
1,2,3,6,7,8,10,11,13
2,3,4,7,11,12,13
2,3,5,6,7,11,12,13
1,2,5,6,7,11,12,13
1,3,7,8,9,10,12,13
2,5,6,8,10,12,13
8,9,10,12,13
2,4,5,6,8,9,10,12,13
2,5,7,8,9,10,11
5,7,8,9,10,11,12,13
3,5,7,8,9,10,11,13
(a) Iteration 1
1,3,6,7
1,2,3,4,5,6,8,10,11
2,3,4,5,7,13
1,2,4,10
1,2,5,6,8,10,11,12,13
1,2,3,5,6,8,10
2,3,4,5,6,7,11,12,13
2,3,7,8,9,10,11,12,13
2,7,9,10,11,12,13
1,2,3,7,8,9,10,11,12,13
1,3,4,5,6,11,12,13
1,2,4,5,6,7,8,9,10,12
1,2,3,4,5,6,7,8,9,10,12,13
1,6
2,3,4,5,6,8,10
2,3,7,13
2,4
2,5,6,11,12,13
1,2,5,6
3,7,12,13
2,8,10,12,13
9,10,12,13
2,8,9,10,12,13
5,11
5,7,8,9,10,12
3,5,7,8,9,10,13
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
1,2,4,5,6,10,11,12,13
2,3,4,5,6,7,8,9,10,12,13
1,2,3,6,7,8,10,11,13
2,3,4,7,11,12,13
2,3,5,6,7,11,12,13
1,2,5,6,7 ,11,12,13
1,3,7,8,9,10,12,13
2,5,6,8,10,12,13
8,9,10,12,13
2,4,5,6,8,9,10,12,13
2,5,7,8,9,10,11
5,7,8,9,10,11,12,13
(b) Iteration 2
1,3,6,7
1,2,3,4,5,6,8,10,11
2,3,4,5,7,13
1,2,4,10
1,2,5,6,8,10,11,12,13
1,2,3,5,6,8,10
2,3,4,5,6,7,11,12,13
2,3,7,8,9,10,11,12,13
2,7,9,10,11,12,13
1,2,3,7,8,9,10,11,12,13
1,3,4,5,6,11,12,13
1,2,4,5,6,7,8,9,10,12
1,6
2,3,4,5,6,8,10
2,3,7,13
2,4
2,5,6,11,12,13
1,2,5,6
3,7,12,13
2,8,10,12,13
9,10,12,13
2,8,9,10,12,13
5,11
5,7,8,9,10,12
II
II
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329
Table 5. (Continued)

Drivers
Reachability set
Antecedent set
Intersection set
Level
1.
2.
3.
4.
5.
6.
7.
8.
9.
11.
1,2,4,5,6,10,11,12,13
2,3,4,5,6,7,8,9,10,12,13
1,2,3,6,7,8,10,11,13
2,3,4,7,11,12,13
2,3,5,6,7,11,12,13
1,2,5,6,7,11,12,13
1,3,7,8,9,10,12,13
2,5,6,8,10,12,13
8,9,10,12,13
2,5,7,8,9,10,11
(c) Iteration 3
1,3,6,7
1,2,3,4,5,6,8,10,11
2,3,4,5,7,13
1,2,4,10
1,2,5,6,8,10,11,12,13
1,2,3,5,6,8,10
2,3,4,5,6,7,11,12,13
2,3,7,8,9,10,11,12,13
2,7,9,10,11,12,13
1,3,4,5,6,11,12,13
1,6
2,3,4,5,6,8,10
2,3,7,13
2,4
2,5,6,11,12,13
1,2,5,6
3,7,12,13
2,8,10,12,13
9,10,12,13
5,11
1.
3.
4.
6.
9.
11.
1,2,4,5,6,10,11,12,13
1,2,3,6,7,8,10,11,13
2,3,4,7,11,12,13
1,2,5,6,7,11,12,13
8,9,10,12,13
2,5,7,8,9,10,11
(d) Iteration 4
1,3,6,7
2,3,4,5,7,13
1,2,4,10
1,2,3,5,6,8,10
2,7,9,10,11,12,13
1,3,4,5,6,11,12,13
1,6
2,3,7,13
2,4
1,2,5,6
9,10,12,13
5,11
IV
1.
3.
4.
6.
9.
1,2,4,5,6,10,11,12,13
1,2,3,6,7,8,10,11,13
2,3,4,7,11,12,13
1,2,5,6,7,11,12,13
8,9,10,12,13
(e) Iteration 5
1,3,6,7
2,3,4,5,7,13
1,2,4,10
1,2,3,5,6,8,10
2,7,9,10,11,12,13
1,6
2,3,7,13
2,4
1,2,5,6
9,10,12,13
V
V
1.
3.
4.
1,2,4,5,6,10,11,12,13
1,2,3,6,7,8,10,11,13
2,3,4,7,11,12,13
(f) Iteration 6
1,3,6,7
2,3,4,5,7,13
1,2,4,10
1,6
2,3,7,13
2,4
VI
1.
4.
1,2,4,5,6,10,11,12,13
2,3,4,7,11,12,13
(g) Iteration 7
1,3,6,7
1,2,4,10
1,6
2,4
VII
VII
III
III
III
III
Table 6. Levels of drivers.

Drivers
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Reachability set
Antecedent set
Intersection set
Level
1,6
2,3,4,5,6,8,10
2,3,7,13
2,4
2,5,6,11,12,13
1,2,5,6
3,7,12,13
2,8,10,12,13
9,10,12,13
2,8,9,10,12,13
5,11
5,7,8,9,10,12
3,5,7,8,9,10,13
1,3,6,7
1,2,3,4,5,6,8,10,11
2,3,4,5,7,13
1,2,4,10
1,2,5,6,8,10,11,12,13
1,2,3,5,6,8,10
2,3,4,5,6,7,11,12,13
2,3,7,8,9,10,11,12,13
2,7,9,10,11,12,13
1,2,3,7,8,9,10,11,12,13
1,3,4,5,6,11,12,13
1,2,4,5,6,7,8,9,10,12
1,2,3,4,5,6,7,8,9,10,12,13
1,6
2,3,4,5,6,8,10
2,3,7,13
2,4
2,5,6,11,12,13
1,2,5,6
3,7,12,13
2,8,10,12,13
9,10,12,13
2,8,9,10,12,13
5,11
5,7,8,9,10,12
3,5,7,8,9,10,13
VII
III
VI
VII
III
V
III
III
V
II
IV
II
I
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All drivers have been classied, based on their driving power and dependence power,
into four categories as autonomous barriers, dependent drivers, linkage drivers, and
independent drivers as suggested by Singh and Kant [2008]. The rst cluster consists
of the autonomous drivers that have weak driver power and weak dependence. These
drivers are relatively disconnected from the system, with which they have only
few links, which may be strong. Second cluster consists of the dependent drivers
that have weak driver power but strong dependence. Third cluster has the linkage
drivers that have strong driving power and also strong dependence. These drivers
are unstable in the fact that any action on these drivers will have an eect on others
and also a feedback on themselves. Fourth cluster includes the independent drivers
having strong driving power but weak dependence. It is observed that a variable
with a very strong driving power called the key variables, falls into the category of
independent or linkage drivers.
In this case it is observed that drivers 5 and 7 has a driving power of 8 and
a dependence power of 9 (see Tables 3 and 4) and therefore, it is positioned at a
place which corresponds to a driving power of 8 and a dependence power of 3 as
shown in Fig. 1. The objective behind the classication of driver is to analyze the
driving power and dependence power of the driver. In this classication of driver
the rst cluster is of autonomous driver that have a weak driving power and weak
dependence power. The second cluster consists of dependent driver that have weak
driving power and strong dependence power. The third cluster consists of linkage
driver that have strong driving and dependence power. Any action on these drivers
will have an eect on the other driver and also a feedback eect on themselves. In
this case, there are 2, 5, 6, 7, 8, 10, 11, 12, 13 driver. The fourth cluster includes
independent driver that have strong driving power and weak dependence power.
The driving power and dependence power diagram for drivers is shown in Fig. 1.
13
12
11
CLUSTER- IV
CLUSTER-III
10
9
10
5,7
11
12
Driving Power

4. Drivers Classifications
13
6
5
4
3
CLUSTER- I
CLUSTER- II
2
1
1
10
Dependence Power
Fig. 1. Cluster of GSCM drivers.
11
12
13
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331

5. Formation of ISM Digraph and Model

The structural model is generated from initial reachability matrix as suggested by
Singh and Kant [2008] (see Tables 5(a)5(g)). The structural model is generated
by means of vertices, or nodes and edges urges Jharkharia and Shankar [2005]. If
there is a relationship between the drivers i and j, this is presented by an arrow
which points from i to j. This graph is called as an initial directed graph, or initial
digraph. After removing the transitivities see step 4 of the ISM methodology the
nal digraph is formed (Fig. 2). This nal digraph is converted into the ISM-based
model (Fig. 2).
6. Discussion
The levels of driver are important in understanding of successful GSCM implementation. Market competitive pressure and regulatory pressure are the most important
drivers due to its high driving power and low dependence among the entire identied GSCM driver. These drivers positioned at the lowest level in the hierarchy of
the ISM-based model. The driver Green procurement/purchasing is at the highest
level in the ISM-based model due to its high dependence power and low driving
power. Those drivers which are at the fourth and third levels in the model with
highest driving power are known as strategic drivers. These drivers play a key
role in ensuring GSC process. These drivers require greater attention from the top
management. The driving power and dependence power diagram gives some valuable insights about the relative importance and interdependencies of the drivers.
The driving power and dependence diagram (Fig. 1) indicates that there are no
autonomous drivers in the process of successful GSCM. Autonomous drivers are
13
10
12
11
3
1
Fig. 2. Final digraph depicting the relationship among the GSCM Drivers.
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S0219877011002453
Green purchasing

Green Design
Supplier pressure
Green innovation
Economic Benefit
Green Corporate image
Cost Reduction
Stakeholder pressure
Customer pressure
Regulatory pressure
Fig. 3. ISM based model for GSCM drivers.
weak drivers and weak dependents. These drivers do not have much inuence on
the GSCM system. None of the autonomous drivers in this study indicates that
all the identied drivers inuence the process of successful GSCM. Therefore, it is
suggested that management should pay serious attention to all GSCM drivers.
7. Conclusions and Future Research
In this paper we have identied a number of drivers that enhances the GSC process in organizations. The thirteen drivers identied in this paper have signicant
overlaps and relationships that are sometimes dicult to see. A more complete
understanding of the drivers and their relationships, through a logical structure,
will help managers to better prioritize and target their resources in a more eective
way. Practicing some drivers may have greater returns and payback from a GSCM
implementation perspective then other driver. Researchers can use this technique to
more eectively iron out path relationships amongst various organizational factors.
Research questions and various relationships can be related not only to adoption
and implementation of GSCM practices, but their eventual success. The levels of
drivers are important in the GSCM implementation process. It can also be observed
from Fig. 1 that three drivers, namely Regulatory pressure (driver 1) Market competitive pressure (driver 4) Customer pressure (driver 3), have high driving power
and less dependence power. Therefore, these drivers can be treated as key GSCM
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333
drivers. On the basis of above discussion, we can conclude that all the thirteen
drivers are important (although in varying degrees) for the purpose of successful
implementation of GSCM. In this research only thirteen GSCM drivers have been
used to develop the ISM model but more GSCM drivers can be included to develop
the relationship among them using the ISM methodology. Thus, the ISM-based
model proposed in this paper for identication of drivers of GSCM can provide
the decision maker a more realistic representation of the problem in the course of
conducting GSCM. A major contribution of this research lies in the development of
linkages among various drivers of a GSC through a single systemic framework. The
utility of the proposed ISM methodology in imposing order and direction on the
complexity of relationships among elements of a system assumes tremendous value
to the decision makers.
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Biography

Minhaj Ahemad Abdul Rehman is Assistant Professor in department of

mechanical engineering in St.Vincent Pallotti College of Engineering & Technology, Nagpur India. Presently he is Ph.D candidate in nagpur university. His area of
interest is green manufacturing, green design, green supply chain management, production engg etc. He may be contacted at Email:minhaj ahemad@redimail.com.
Corresponding author for this paper.
Rakesh L. Shrivastava is a Professor of Mechanical Engineering in the Department of Mechanical at Yeshwantrao Chavan College of Engg, Nagpur, India. He
had Ph.D in mechanical engineering. Also supervising and guiding Ph.D scholars.
He was also the Dean of Industry institute interaction cell. He is active member of various technical committee. He is also lead auditor for ISO 9000. He
had presented several research paper in india and abroad. His area of interest is
Quality, Green manufacturing, Automation etc. He may be contacted at Emailrlshrivastava@yahoomail.com.

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