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MRR 33,6 C l factorsfor

implementinggreensupplychain

management

practice

586 An empirical study of e

l

Allen H. Hu

Environmental Engineering and

Management, National Taipei University of Technology, Taipei, Taiwan, ROC, and

Chia-Wei Hsu

Institute ofEngineeringTechnology,

National TaipeiUniversity ofTechnology,

Taipei, Taiwan, ROC

Management Research Review Vol.33 No. 6, 2010

pp. 586-608# Emerald Group PublishingLimited 2040-8269DOI 10.1108/01409171011050208

AbPu

ondirectives.Design/methodology/approach– AtentativelistofcriticalfactorsofGSCMwasdevelopedbasedonathoroughanddetailedanalysisofthepertinentliterature.Thesurveyquestionna

ire contained 25items, developedbased on theliterature andinterviews withthree industryexperts,specificallyquality andproduct assurancerepresentatives. Atotal of 300questionnaireswere mailed out,and 87 werereturned, ofwhich 84 werevalid,representing aresponse rate of28 percent. Usingthe data collected,the identifiedcritical factorswere performedvia factor analysisto establishreliability andvalidity.Findings – Theresults show that20 criticalfactors wereextracted intofour dimensions,whichdenominatedsuppliermanagement,productrecycling,organizationinvolvement andlife cyclemanagement.Researchlimitations/implications – Thisstudy obtained84 validresponses fromthe Taiwaneseelectrical andelectronicsindustries, thelimitation of thestudy is theinsufficient

sampling.Futureresearchesneedtobeperformedusingalargersampleandstudyingmorecountries.Practicalimplications–TheTaiwan

eseelectricalandelectronicsindustryplays adecisive rolein the globalinformationandcommunicationstechnology(ICT)industry.Consequently, thevalidatedinstrumentenablesdecisionmakers atICTmanufacturers toevaluate theperceptionsof GSCM intheirorganizations. Inaddition, thecriticalfactors ofimplementing GSCMpracticesvalidated inthis workcan helpenterprisesidentifythose areasof GSCMwhereacceptanceandimprovements will bemade, andinprioritizingGSCMefforts.Originality/value – Thisstudypresents anempiricalinvestigatio

n ofGSCMpractices, andfills agap intheliterature on theidentificationandestablishmentofcriticalfactorsforGSCMimplem

en

Ke

upply chain managemen

t, Critical success factors, Taiwan, Electronicsindustry, Environmental regulationsPaper type Research paper

IntroductionGreen supply chain management (GSCM) has emerged as an

importantnewapproach for e

nterprises to achieve profit and market share objectives by reducing

This manuscript was managed by Stefan Seuring as a special topic editor.

environmental risk and impact (vanHoek, 1999). With the increasedenvironmental concerns during thepast decade, awareness is growingthat issues of environmental pollutionaccompanying industrialdevelopment should be addressedtogether with supply chainmanagement, thus contributing to theinitiative of GSCM (Sheu et al.,2005). From a legislative perspective,the Waste Electrical and ElectronicEquipment (WEEE) Directive of theEuropean Union (EU) came intoforce in August 2004, and requiredmanufacturers and importers in EUcountries to take back used productsfrom consumers and ensure theirenvironmentally sound disposal(Widmer et al., 2005). Furthermore,the Restriction of HazardousSubstance (RoHS) Directiveprohibits the use of regulatedhazardous substances (lead,cadmium, mercury, hexavalentchromium, PBBs and PBDEs) inproducts.

Numerous multinational enterprisesare investing in researching anddeveloping green products, establishingstandards restricting the use ofhazardous substances, and requiringsuppliers to provide products that arefree of hazardous materials at all levelsof the supply chain. GSCM thus hasemerged as a strategy for some leadingcompanies in the electronics industry,including Dell, HP, IBM, Motorola,

Sony,Panasonic,NEC,Fujitsu, andToshiba (ZhuandSarkis,2006).Thisphenomenonimplies thatcompaniesarenowstarting torecognizethatenvironmentalawarenesscan beasourceofcompetitiveadvantage

(Walton et al., 1998). GSCM can alsopromote efficiency and synergy amongbusiness partners and their leadcorporations, and helps to enhanceenvironmental performance, minimizewaste and achieve cost saving (Rao andHolt, 2005). Meanwhile, the most far-reaching approach of environmentalmanagement is to create value throughgreening the supply chain (van Hoek,1999).

The GSCM issue is significantbecause recent studies have shownthat the majority of the world’smanufacturing will be carried out inAsia within the next couple ofdecades (US-AEP, 1999). Taiwan isone of the most industriallydeveloped countries in the Asia-Pacific region. Most electrical andelectronic manufacturers in Taiwanoperate on the basis of originalequipment manufacturing (OEM) andoriginal design manufacturing(ODM). Those organizations play animportant role in the global marketbecause their products have asignificant market share. Forexample, the Taiwanese informationindustry has outpaced the majority ofits international counterparts, at onetime resulting in the island beingpositioned as the third largestproducer of information productsglobally (Chen, 2004). Notably, in2004, Taiwan was the leadingprovider of notebook PCs, liquidcrystal display monitors and chipfoundry services, with 72, 68 and 70percent market share and worth of$22 billion, $14 billion and $8.9billion, respectively(BusinessWeek, 2005).

The common problem ofTaiwanese companies is that theysuffer great pressure from customersand regulations requests with respectto green products and greenmanufacturing. Both WEEE andRoHS directives, particularly theRoHS, directly impact the electricaland electronic industries in Taiwanthat export products to the EU –exports in 2004 exceeded US$7.8

billion. Also,morethan3,000companieswereaffected bythedirectives ofEU(Huang,2005).Inaddition,Chinaisdevelopingitseconomyrapidly,whileat thesametimeincreasingitsawarenessof,andactionsassociatedwith,environmentalprotection(ZhuandSarkis,2006).

Meanwhile, the China governmenthas instituted stringent environmentalregulations (Wang et al., 2004), suchas China’s RoHS and WEEEdirectives. This poses anothersignificant pressure for Taiwaneseelectrical and electronics industries asmost companies have moved theirfactories from Taiwan to China.

Factorsfor

impleme

ntingGSC

M

587

MRR The authors detected that the majority of electrical and electronics manufacturers in

33,6 Taiwan had implemented well-developed GSCM practices. This is because Taiwanesegovernment (such as the Industry Development Bureau) has long been promoting theCorporate Synergy System (CSS), a cooperative system which large companies workwith their upstream suppliers and downstream buyers to achieve certain goalscommon to member organizations – such as industrial waste minimization. It is

588 considered as an innovative measure to implement which was also originally deemedthe concept of GSCM (Chiu et al., 1999).

Recently, Taiwanese government has funded a Green Plan (also named G-Plan)project for electrical and electronics companies to tackle the EU directives. It includesto establish an information management system for their green supply chains and todevelop a recycling system and management platform for green products, as well asto generate a certification database for green parts and components that conform toenvironmental requirements, particularly for RoHS and WEEE directives of EU(MOEA, 2005). In addition, the RoHS Service Group, coordinated by the IndustrialDevelopment Bureau of Ministry of Economic Affairs (MOEA), is formed to providediagnostic and guidance services, as well as technological consultation, education andtraining, and an information service for Taiwanese electrical and electronics companies.

Moreover, the Taiwan Electrical and Electronic Manufacturers Association (TEEMA)have also invited domestic certification and verification organizations, and equipmentsuppliers, large electronics companies, and academic and research institutions to jointhe GP and assist industries in overcoming barriers to green technology. To date, morethan 1,480 companies have received guidance and assistance (MOEA, 2005). Rao (2002)argued that many large Taiwanese companies have adopted CSS systems to enhancetheir international competitiveness, improve product quality, enhance environmentalperformance and reduce production costs. Therefore, an investigation of critical factorsfor GSCM practices in Taiwanese organizations is worthwhile to carry out.

Although a number of authors (Lamming and Hampson, 1996; Lippmann, 1999; US-AEP, 1999; Bowen et al., 2001a; Eveloy et al., 2005; Handfield et al., 2005; Trowbridge,2001; Yuang and Kielkiewicz-Yuang, 2001; Rao, 2002; Evans and Johnson, 2005; Zhuet al., 2005; Wright and Elcock, 2006) have identified various factors for GSCMpractices, no study has yet explored and statistically established the reliability andvalidity of a set of critical factors. Consequently, the main objective of this study is toidentify the common set of critical factors for GSCM that could be used by themanagers in implementing and adopting their own GSCM practices, particularly inelectrical and electronics industries.

Literature reviewCurrently, the lack of consensus regarding the definition for GSCM is not surprising,as GSCM is the conflation of corporate environmental management and supply chainmanagement, both of which are relatively new areas of study and practice (Zhu andSarkis, 2004). Moreover, different studies (Green et al., 1996; Rao, 2002; Zhu and Sarkis,2004) have defined GSCM from different perspectives, driving forces and purposes(Rao, 2002), implying that the definitions for GSCM can be redefined for particularindustries, goals, and properties. In this study, GSCM is defined as the management ofraw materials, parts/components and processes from suppliers to manufacturers tocustomers and product take back with improvement to environmental impacts thoughlifecycle stages.

A number of critical factors for implementing GSCM practice have been proposed.These strategies are aimed at mitigating the risks associated with supply chaininterruptions or delays, and protecting a company’s reputation and brand image fromdamaging public controversies. Critical factors for GSCM practices have been identifiedby various authors; they are briefly outlined below and summarized as Table I.

Suppliers meetingTo ensure that suppliers simultaneously can comply with the environmentalrequirements with their buyers, a supplier meeting is regarded as an effective tool foraddressing environmental issues and communicating expectations and sharinginformation with suppliers (Lippmann, 1999). At the AMD Corporation, quarterlymeetings with major suppliers have regularly been conducted to address supply andquality issues as well as to provide them with feedback on how AMD perceives theirperformance (Trowbridge, 2001).

Suppliers environmental questionnaireLippmann (1999) argued that questionnaires are probably the most common toolsused within the field of GSCM, largely because they are relatively inexpensive andsimple to prepare (although they may be extremely resource intensive for suppliers tocomplete accurately). Generally, a questionnaire survey was delivered to suppliers.The purpose of which was to help them conduct a self-assessment in advance, thusensuring they understand the environmentally conscious capabilities that meetenvironmental regulations. In addition, the required information can be effectivelyacquired in advance, hence saving time and resources. Furthermore, questionnairescan assist companies in identifying suppliers that require the most attention for high-risk components. In addition, they help in identifying those that may requireeducation and supervision to ensure that they can deliver RoHS-compliantcomponents (Handfield et al., 2005).

Environmental auditing for suppliersThe integration of auditing into supplier management in GSCM can ensure that thesuppliers practice green manufacturing. It has been pointed out by Handfield et al.(2005) that GSCM involves the introduction and integration of environmental issuesas well as concerns into supply chain management processes by auditing suppliersusing environmental performance metrics. Additionally, Yuang and Kielkiewicz-Yuang (2001) also pointed out that supplier performances can be enhanced throughon-site third-party auditing. Some suppliers may be reluctant to subject themselves toan audit. Consequently, some firms have adopted a collaborative tone for these audits,presenting them as opportunity for joint learning that will strengthen theirrelationships (Lippmann, 1999).

Compliance statementOne of the most significant measures for GSCM practices is to request that suppliersprovide compliance statements. Evans and Johnson (2005) noted that compliancestatements should include a date (or dates) for compliance and outline supplierrequirements, such as methods for verification of compliance (i.e., testingdocumentation). This process can ensure that suppliers guarantee that all thematerials, parts and products manufactured conform to regulations. Likewise, it holdsthem responsible for the liability incurred. Moreover, in consideration of compliance

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Table I. C

riticalfactors

for

GSC

Mim

plementation

emphasized

byselected authors

590

Criteria factors Representative reference

1. Suppliers meeting Lippmann (1999), Trowbridge (2001), Yuang and Kielkiewicz-Yuang (2001), Rao (2002)2. Suppliers environmental questionnaire Lamming and Hampson (1996), US-AEP (1999), Bowen et al. (2001a), Rao (2002), Evans

and Johnson (2005), Handfield et al. (2005)3. Environmental auditing for suppliers Lippmann (1999), US-AEP (1999), Yuang and Kielkiewicz-Yuang (2001), Zhu et al. (2005)4. Compliance statement Yuang and Kielkiewicz-Yuang (2001), Evans and Johnson (2005), Eveloy et al. (2005)5. Product testing report Evans and Johnson (2005), Wright and Elcock (2006)6. BOM Evans and Johnson (2005), Eveloy et al. (2005)7. Establishing environmental requirements for Lamming and Hampson (1996), Lippmann (1999), US-AEP (1999), Yuang and Kielkiewicz-Yuang

purchasing items (2001), Evans and Johnson (2005)8. Green purchasing Yuang and Kielkiewicz-Yuang (2001), Rao (2002), Handfield et al. (2005), Zhu et al. (2005)9. Collaborative R&D with suppliers Lamming and Hampson (1996), Lippmann (1999), US-AEP (1999), Bowen et al. (2001a),

Yuang and Kielkiewicz-Yuang (2001), Rao (2002)10. Information system Yuang and Kielkiewicz-Yuang (2001), Trowbridge (2001), Evans and Johnson (2005)11. Joining local recycling organizations US-AEP (1999), Bowen et al. (2001a), Rao (2002), Tsoulfas and Pappis (2006)12. Collaboration on products recycling with the Grenchus et al. (2001), Yuang and Kielkiewicz-Yuang (2001), Ravi et al. (2005)

same sector industry13. Produce disassembly manuals Lamming and Hampson (1996), Rao (2002), Wright and Elcock (2006)14. Green design US-AEP (1999), Yuang and Kielkiewicz-Yuang (2001), Rao (2002)15. Environmental education and training Lippmann (1999), Yuang and Kielkiewicz-Yuang (2001), Zhu and Geng (2001)16. Top management support Lippmann (1999), US-AEP (1999), Evans and Johnson (2005), Handfield et al. (2005)17. Environmental policy for GSCM Lamming and Hampson (1996), Lippmann (1999), US-AEP (1999), Yuang and

Kielkiewicz-Yuang (2001)18. Cross-function integration Lippmann (1999), US-AEP (1999), Yuang and Kielkiewicz-Yuang (2001), Evans and Johnson (2005)19. Manpower involvement Rao (2002)20. Effective communication platform within Lippmann (1999)

companies and with suppliers21. Establish a environmental risk management Bowen et al. (2001a, b), Evans and Johnson (2005)

system for GSCM22. Supplier evaluation and selection Lamming and Hampson (1996), Yuang and Kielkiewicz-Yuang (2001), Rao (2002), Hsu and Hu (2009)23. Tracking the development of directives US-AEP (1999)24. Applying LCA to carry out eco-report Lamming and Hampson (1996), US-AEP (1999), Rao (2002)25. Establish an environmental database of products Lamming and Hampson (1996)

with the requirements of the RoHS directive, Eveloy et al. (2005) suggested thatlead-free compliance self-certification should be supported by ‘‘compliance’’documentation from the suppliers.

Product testing reportIn order to confirm their compliance with RoHS, producers of EEE should requestdocumentation from their suppliers for any materials, components, assemblies, orequipment that have been provided to them (Wright and Elcock, 2006). It is evident thatthe testing report of a component is regarded as a crucial document in determining whereRoHS-restricted substances exist within its components. Furthermore, Hu et al. (2008)argued that assembly manufacturers in Taiwan are using compliance testing reports as anessential requirement in ensuring that components do not contain chemical substances thatexceed their allowed limits. Thus, it is able to determine who is responsible when productsviolate environmental legislation.

Bill of materialAlthough RoHS requires manufacturers to know what substances are prohibited in theirproducts, it is also important to know what substances and materials are used in them(Evans and Johnson, 2005). As an example of lead-free compliance self-certification,Eveloy et al. (2005) indicated that the Bill of Materials (BOM) represents a single productor assembly, or a group of products, which can be used to recognize the RoHS-restrictedsubstances in all materials and components in the final product.

Establishing environmental requirements for purchasing itemsSimilarregulationsrelated to RoHShave spreadthroughout theworld, such asRoHS-Korea,RoHS-China andRoHS-California(AB 48). Hence,this emergingissue has raisedgreat difficultiesin managinghazardoussubstances forgreen

components. Therefore, it is necessary to formulate requirements for green purchasingas a management approach to ensure that products comply with variousenvironmental regulations and consumer requirements. Environmental standards inpurchasing thus provide a basis or constructive dialogue with suppliers involving ajoint commitment to quality improvement. In turn, this should motivate suppliers tobe more concerned with the activity of their own suppliers (Lamming and Hampson,1996).

Green purchasingThe recent emergence of purchasing as an important participant in the corporatesustainable enterprise debate is the result of the convergence of several developmentsthat have highlighted the purchasing role in effective environmental management(Handfield et al., 2002). By incorporating the green principle into purchasing,companies can provide design specifications to suppliers that include environmentalrequirements for green purchased items. Moreover, this would assist them in decidingwhich suppliers to collaborate with for materials, equipment, parts, and services thatsupport environmental goals (Lamming and Hampson, 1996; Zsidisin and Hendrick,1998). The AMD Corporation can purchase a new chemical, whether for productionor R&D, by taking a careful look at the EH&S personnel review availableinformation contained in the material safety data sheet and supplemental informationfrom the chemical user and supplier (Trowbridge, 2001).

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Collaborative R&D with suppliersWhile the capability of R&D is decided by suppliers, Lamming and Hampson (1996)argued that suppliers may be able to help customers understand environmental effectsand their causes in the supply chain if a collaborative approach is employed inpurchasing. For example, Philips Corporation works on eco-design initiatives with itskey suppliers, including developing common roadmaps for improving environmentalperformance and working together with its suppliers to attain the goals they have set(Yuang and Kielkiewicz-Yuang, 2001). Involving suppliers in the design process cangenerate significant environmental and business benefit. In the end, it can developmore environmentally friendly products in accordance with the requirements ofenvironmental regulations (Lippmann, 1999).

Information systemAn effective management of green supply chain involves the collection andincorporation of relevant information on each department within a company. Thiswould include information on products and components, and reports and documentsprovided by suppliers (Hsu and Hu, 2008). Companies must establish a database forinformation received from suppliers so that they can use it to determine compliancewith environmental regulations (Evans and Johnson, 2005). On its own initiative,AMD Corporation is currently implementing an enterprise resource planning systemthat will help centralize procurement information worldwide and ensure the closemonitoring of all suppliers in high-risk business areas (Trowbridge, 2001).

Joining local recycling organizationsThe EU’s WEEE Directive, which came into force in August of 2004, requiresmanufacturers and importers in EU states to take back their products from consumersand ensure environmentally sound disposal (Widmer et al., 2005). Consequently,companies may decide either to undertake the recovery of used products on their own,or to establish cooperation via local or more extended networks for the collection andrecycling of similar products (Tsoulfas and Pappis, 2006). Considering the complexand varying recycling systems from different members of the EU, Acer Corporationdecided to join several recycling systems in Europe, including the Swiss Association

forInformation,CommunicationsandOrganizationTechnology(SWICO)in

Switzerland, the E1-Kretse in Sweden, the El-Retur in Norway, Recupel in Belgium,Information & Communications Technology (ICT) Producer Cooperative in Finland,ICT Milieu in Netherlands and Ecotrel in Luxemburg (Acer, 2006).

Collaboration on products recycling with the same sector industryThe WEEE directive encourages a set of criteria for collection, treatment andrecovery of waste electrical and electronic equipment and makes producersresponsible for financing these activities (WEEE, 2003). IBM and Dell ComputerCorporations have embraced reverse logistics by taking steps to streamline the waythey deploy old systems. In the process, they make it easier for customers to refurbishexisting computers or buy new parts (Ferguson, 2000). The Global Asset RecoveryServices organization of IBM’s Global Financing Division has integrated some of thekey components of its reverse logistics network to support and enhance environmentalperformance (Grenchus et al., 2001). Moreover, reverse logistics program can bringcost benefits to the companies by emphasizing resource reduction, adding value fromthe recovery of products or by reducing the disposal costs (Ravi et al., 2005).

Produce disassembly manualsProducers are required to educate consumers about the recycling and recovery optionsavailable to them, and explain that they must not dispose of WEEE together with theirgeneral trash (Wright and Elcock, 2006). To facilitate an end-of-life disassembly,product disassembly manuals need to be carried out as a reference for disassemblyworkers to implement the non-destructive detachment of components or modules andacquire the recovery of original functionality in order to contribute to environmentalbenefit.

Green designProbably the strongest testament to the greening of the international market is theexpanding number of companies seriously addressing environmental aspects as partof their product development process (Lewis et al., 2001). By incorporating the greenissue into new product development, the green design has increasingly considered asa systematic method for companies to reduce the environmental impact of theirproducts and processes while simultaneously cutting costs and increasing productmarketability (Brezet and Hemel, 1997; National Research Council Canada, 2003).Xerox designers, for instance, choose a minimal number of materials from the Xeroxmaterial environmental index to simplify the eventual segregation of materials and toavoid the use of hazardous materials (Tsoulfas and Pappis, 2006).

Environmental education and trainingInitially, companies encounter challenges when implementing green initiatives relatedto GSCM practices. As such, practices are generally very complex, and mostemployees are not aware of green principles. Various education and training in greenissues need to be launched for promoting the environmental awareness of their staffand suppliers. As pointed out by Lippmann (1999), a wide range of training canenhance the suppliers’ own environmental management capabilities. Moreover,enterprise provides education on quality, environmental performance and otheraspects simultaneously. As a result, this can greatly improve their staff’senvironmental awareness (Zhu and Geng, 2001). Furthermore, in the educationaltraining needed to understand lead-free products, there is a need to cover a host oftopics ranging from lead-free legislation, implementation, material and part election,design, manufacturing, to lead-free reliability (Eveloy et al., 2005).

Top management supportMany supply chain management and environmental professionals in leadingcompanies noted that the understanding of the top management of the value and

support for theirefforts made acritical differenceto the success oftheir GSCMprograms(Lippmann,1999). To complywith the RoHSdirective, Evansand Johnson(2005) pointedout that seniormanagementmust support thisinitial exposureassessment andsomeone withinthe companymust takeresponsibility fordirecting theeffort. Also,Handfield et al.(2005) arguedthat topmanagement atthe companyshould recognizethe importance ofenvironmentalissues in thesupply chain.

Environmental policy for GSCMYuang andKielkiewicz-Yuang (2001)

indicated that in order to deliver and raise the awareness of environmental issues amongsuppliers, customers and staff, the organization needs to draw up the environmental policyfor GSCM to its customers/suppliers.

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MRR In view of this, the company can facilitate GSCM practices by establishing an

33,6 environmental policy for its suppliers as a manifestation of its position regarding greenpurchasing, green design, and supplier auditing, among others.

Cross-function integrationThe broad scope of GSCM leads to some complexity and difficulty in its implementation.

594 Therefore, a cross-functional team of representative personnel should be integrated toachieve optimal synergy. Yuang and Kielkiewicz-Yuang (2001) argued that the cross-functional teams should consist of sales, environmental personnel, purchasing personnel,and personnel from other relevant departments, all of which can be found in organizationswith the most advanced strategies for sharing sustainability-oriented information.Moreover, the most successful GSCM systems incorporate environmental issues with theirfirm’s existing supply chain management strategies applied throughout the design,procurement and distribution processes (Lippmann, 1999).

Manpower involvementBy incorporating a corporate-wide compliance team into GSCM practices, Evans andJohnson (2005) pointed out that the RoHS directive requirements are complex andtheir impacts are far-reaching. Thus they affect product design, manufacturing,distribution, procurement and sale. There are some manpower issues involved in theimplementation of GSCM because the staff of various departments must takeresponsibility for individual impact and requirement of environmental regulations.

Effective communication platform within companies and with suppliersIn order to facilitate GSCM practices, it is essential to establish an effective communicationplatform between companies and suppliers. Lippmann (1999) pointed out that companiesshould provide clear, consistent and frequent communication about environmental issues withtheir suppliers and other partners in the green supply chain. To do so, suppliers must understandhow to carry out the green initiatives of GSCM in accordance with the requirements of clients.In addition, companies need to communicate their environmental goals within their hierarchy.Likewise, it must ensure that the people throughout the organization understand how thesegoals relate to their individual functions. This is necessary because the GSCM involves variousand complex issues. Hence, an internal communication platform is needed not only to raise theawareness of their employees on GSCM but also to eliminate the barriers in the successfulimplementation of the GSCM.

Establish an environmental risk management system for GSCMConsidering the risk management of GSCM related with the issue of hazardoussubstances, Evans and Johnson (2005) indicated that product-specific assessments arenecessary to identify the components at the greatest risk for compliance and the keysuppliers of those components. Their study suggested that a risk-based supply chaincompliance program should combine components risk with the suppliers risk indetermining the situation of risk along the green supply chain. As further pointed out byHu et al. (2008), a novel risk assessment framework of green components to hazardoussubstances has been developed. This framework can systematically detect high-risk greencomponents as an insight for incoming quality control staff to improve the efficiency ofinspection for hundreds and thousands of green components.

Supplier evaluation and selectionGiven that a firm’s environmental sustainability and ecological performance can bedemonstrated by its suppliers (Godfrey, 1998), supplier selection in GSCM is clearlya critical activity in purchasing management (Rao, 2002; Lamming and Hampson,1996; Yuang and Kielkiewicz-Yuang, 2001). If appropriate consideration withinsupplier selection is not accomplished with environmental regulations, a companymay be at risk and lead to a disrupted supply chain (Hsu and Hu, 2009). An exampleof this may be taken from the experience of Sony Corporation in 2001, when morethan 1.3 million boxes of PlayStation2 game systems were blocked by the Dutchgovernment because it exceeded the allowed amount of the toxic element cadmium inthe cables of the game controls. This caused losses exceeding $130 million, whileindirectly leading to the re-inspection of over 6,000 factories and the establishment ofa new supplier management system (Esty and Winston, 2006). Apparently, largeelectronics firms have exerted pressure on their suppliers not only to achieve betterenvironmental performance (Zhu et al., 2005) but also to implement a supplier ratingsystem to recognize the high risk supplier.

Tracking the development of directivesSimilar regulations have spread throughout the world, and the emerging issue of thegreen product seems to have been picked up rapidly in Asia. This is particularly truein countries such as Japan, Taiwan and Korea, which are forerunners in terms ofgreen electronic products (Boyse`re and Beard, 2006). Companies need to track thedevelopment of environmental regulations with respect to the emerging hazardoussubstances. This is necessary because the restricted substances and exemption annexof RoHS directive are continuously being updated. Otherwise, without a systematicmechanism for collecting the information of environmental regulations related tohazardous substances, enterprises cannot avert the risk while their green productsexceed the allowed amount of chemicals.

Applying LCA to carry out eco-reportIn 2003, the Energy-using Products (EuP) directive emerged as the first EuropeanCommission directive with a focus on green design. Its aim is to reduce overallenvironmental impact by pinpointing the products related to energy use (Hansen etal., 2005). Grote et al. (2007) pointed out that the ‘‘life cycle assessment’’ (LCA)principle is the basis for the EuP directive. This is sometimes referred to as the‘‘cradle to grave’’ approach. Moreover, Yung et al. (2008) indicated that the EuPdirective is directly linked to LCA with respect to the ‘‘whole life cycle’’ concept. Asmentioned above, LCA is an appropriate tool that could be employed for facilitatingthe analysis of environmental impacts. This is needed in order to construct the eco-profile of products in their compliance with the EuP directive.

Establish an environmental database of productsIn considering the RoHS compliance related to hazardous substances for a substantialnumber of green components, Evans and Johnson (2005) suggested that a companymust establish a database for information received from suppliers. The EuP directiverequires manufacturers to integrate eco-design considerations into the product designstage and establish eco-profiles for products via a lifecycle approach. This employsan approach wherein the highest priority is the inventory of environmental data forproducts throughout their lifecycles as a foundation for generating eco-profiles. It is

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33,6 acquire systematically huge data for implementing the analysis of the environmentalimpact of green products.

MethodologyDevelopment of the survey instrument

596 This study focused on sampling the perceptions and experience of GSCM-basedcompanies in the Taiwanese electrical and electronics industries. Based on theliterature review (Lamming and Hampson, 1996; Lippmann, 1999; US-AEP, 1999;Bowen et al., 2001a; Eveloy et al., 2005; Handfield et al., 2005; Trowbridge, 2001; Yuangand Kielkiewicz-Yuang, 2001; Rao, 2002; Evans and Johnson, 2005; Zhu et al., 2005;Wright and Elcock, 2006), authors’ consultation experience and interviews with threemanagers responsible for GSCM, 25 elements were identified and used as the basisfor questionnaire development. An in-depth discussion with the semi-structuredinterviews was conducted with three senior quality assurance and product assurancerepresentatives to establish the tentative list of critical factors for supportingquestionnaire development. Both of them were selected as the demonstrated firms ofGSCM implementation for the G-Plan Program in Taiwan for having abundantexperience in GSCM. The reason for interviewing personnel from the quality andproduct assurance departments is that GSCM is usually considered to control thehazardous substances within products and currently most quality assurance andproduct assurance personnel are responsible for it in Taiwan.

The questionnaire designed in this study mainly comprised two parts: companyprofile and critical factors of GSCM. The first part was designed to provide fundamentaland background information, including firm size and industry type; meanwhile, thesecond part focused on analysis of the critical factors for GSCM implementation.Respondents were asked to rate each item under a five-point Likert-type scale (e.g.1 ¼ not at all important, 2 ¼ not important, 3 ¼ moderate, 4 ¼ important,5 ¼ extremely important), to indicate the extent to which each item was practiced intheir respective organization.

Data collectionData collection covered distributing questionnaires to various companies involved inelectrical and electronics manufacturers, which include semiconductors, optoelectronics,communication and networks, household appliances, and electronics and computers. Alltarget respondents were selected from among the members of the TEEMA, the greatestassociation in Taiwan, which have more than ten thousand members and have a longhistory since 1948. Questionnaires were addressed to the managing directors of the qualityassurance or purchasing departments of the target organizations. This was done becausemost of the sample companies may lack GSCM representatives or departments. A mailsurvey was utilized to gather data in order to facilitate the questionnaire which was beingsent to a large number of organizations. Because Taiwan is a small inland her excellentpostal system provides a very convenient and prompt service.

A total of 300 questionnaires were mailed out and 87 were returned, of which 84 werevalid, representing a response rate of 28 percent. Regarding the other studies related togreen supply utilized a sample size of similar proportion to this study, Bowen et al.(2001b) used a sample of only 24 firms to conjecture that supply management capabilitiesare jointly developed by a proactive corporate environmental approach and a strategicpurchasing and supply process. In addition, Rao (2002) produced significant

finding of green supply with a sample only 52 firm. More recently, Simpson et al. (2007)also used a sample of 56 usable surveys to explore the moderating impact of relationshipconditions existing between a customer and its suppliers in greening supply chain. Thisimplies that the sample proportion of response rate of this study is acceptable, and itreflects the virtue of novel issue of GSCM practice. Collected data were analyzed usingstatistical software – SPSS Version 10.0, and both factor analysis and reliability testingwere carried out to identify the critical factors for GSCM practice.

Data analysis and resultsProfile of respondentsTable II lists the distribution of respondents in terms of their sectors and companysize. The highest percentage of respondents is from computer industries (37.0percent), followed by electronics and household appliances (26.2 percent),communication and networks (19.0 percent), and semiconductors and optoelectronicsindustry (17.8 percent). Regarding the size of the respondents, it ranged from under500 to over 2,500 employees which found that respondent’s enterprises are mainlyfrom less than 500 to more than 2,500 as shown in Table II.

Identification of critical factors using factor analysisThe authors utilized factor analysis to extract factors based upon the principal componentsanalysis with varimax rotation. Bartlett’s test of sphericity and the Kaiser-Meyer-Olkin(KMO) measure of sampling adequacy were employed to test the appropriateness of thedata for factor analysis (Kaiser, 1974; Bagozzi and Yi, 1998). The test results of KMOshow that the compared value is 0.863, significantly exceeding the suggested minimumstandard of 0.5 required for conducting factor analysis (Hair et al., 1995). Based on theabove tests, it is evident that all factors are suitable for applying factor analysis. Theauthors performed factor analysis to extract factors in accordance with the eigenvalues ofdiscontinuity greater than 1 (Tabachnick and Fidell, 1989); and factor loading exceeding0.6 was principle in choosing factors (Kline, 1997). The five variables were eliminatedbecause their factor loadings were less than 0.06. The remaining 20 items, therefore, werere-analyzed and extracted into four dimensions, which denominated supplier management,product recycling, organization involvement and life cycle management (see Table III).

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Profile of respondents Frequency Percentage

SectorSemiconductors and optoelectronics 15 17.8Electronics and household appliances 22 26.2Communication and networks 16 19.0Computers 31 37.0Total 84 100

Size (employees)>2,500 24 28.61,000-2,500 14 16.7500-1,000 17 20.2 Table II.<500 29 34.5 Distribution of surveyTotal 84 100 respondent enterprises

TableIII. Factor analysis results

598

Item loading CumulativeDimension Critical factor range Eigenvalues percentage Cronbach’s alpha

Supplier management 1. Environmental auditing for suppliers 0.657 12.504 50.02 0.92892. Supplier environmental questionnaire 0.7223. Compliance statement 0.8284. Product testing report 0.8425. BOM 0.6196. Establishing environmental requirements for purchasing items 0.7477. Green purchasing 0.830

Product recycling 1. Joining local recycling organization 0.886 2.605 60.44 0.83382. Collaboration on products recycling with the

same sector industry 0.9313. Produce disassembly manual 0.613

Organization involvement 1. Green design 0.624 1.325 65.74 0.93672. Top management support 0.6183. Environmental policy for GSCM 0.6584. Cross-function integration 0.7505. Manpower involvement 0.7696. Effective communication platform within companies

and with suppliers 0.6777. Establish a environmental risk management system for GSCM 0.7278. Supplier evaluation and selection 0.639

Life cycle management 1. Applying LCA to carry out eco-report 0.830 1.032 69.87 0.91562. Establish an environmental database of

products 0.829

Reliability and validity analysisReliability concerns the extent to which an experience, test or any measuring procedure yieldsthe same results on repeated trials (Carmines and Zeller, 1979). The reliability of the factorsneeds to be determined to support any measures of validity that may be employed (Nunnally,1978). Both reliability tests and item analysis were recalculated without those five items. TableIII lists the new Cronbach’s alpha values, ranging from 0.8338 to 0.9367, after the five itemswere dropped. Generally, Cronbach’s alpha value exceeding 0.7 is considered to have highinternal consistency of scale (Nunnally, 1978). All the Cronbach’s alpha values in our study aregreater than 0.7, revealing the high internal consistency.

Content validity depends on how well the researchers create measurement items tocover the content domain of the variable being measured (Nunnally, 1967). Thecontent validity of the questionnaire in this work is based on an exhaustive literaturereview and detailed evaluations by three senior quality assurance and productassurance practitioners. Consequently, we are confident that the critical factorsconstructed by the factor analysis have content validity. Criterion-relation validity,sometimes called predictive validity or external validity, is concerned with the extentto which a measuring instrument is related to an independent measure of the relevantcriterion (Badri et al., 1995). No criterions were designed to explore the correlationwith the performance for GSCM. The results of this study may provide a betterunderstanding and help identify the opportunities of GSCM implementation.

Summary of empirical findingsThe various approaches of GSCM practices proposed by different authors wereextracted into four dimensions and 20 critical factors of GSCM by factor analysis,and statistical tests showed that four dimensions were all valid as shown in Table IV.

Level of critical factors of GSCM practiceTable IV showsthe rated levels ofGSCM practicefor each of thecritical factors forGSCM in theTaiwaneseelectrical andelectronicsindustries. It isobservationalfrom analysisresults of thisinvestigation asshown in TableIV, the mean ofall critical factorsin the dimensionof suppliermanagement andorganizationinvolvementalmost are over4.0 (important).The only factor

whose mean (3.9459) falls somewhat below important (4.0) is the factor of BOM.Most factors may be seen that importance are very strong that Taiwanese electricaland electronics enterprises are quite aware of those practices for implementingGSCM as to complying with the environmental regulations of EU. Some items ofcritical factors for GSCM practices show much higher ratings. Those items includethe following:

. top management support;

. compliance statement;

. product testing report;

. green purchasing;

. environmental auditing for suppliers;

. establishing environmental requirements for purchasing items; and

. supplier evaluation and selection.

The analytical results demonstrate that top management support is the most importantitem for the successful implementation of GSCM practice in the Taiwanese

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Factors of GSCM Mean Standard deviation Rank

Dimension 1 – Supplier management1. Environmental auditing for suppliers 4.3919 0.7731 52. Supplier environmental questionnaire 4.1892 0.8387 113. Compliance statement 4.4189 0.8110 2

6004. Product testing report 4.4189 0.7586 25. BOM 3.9459 0.7919 156. Establishing environmental requirements for

purchasing items 4.3784 0.7531 67. Green purchasing 4.4054 0.7387 4

Dimension 2 – Product recycling1. Joining local recycling organization 3.7297 0.9972 192. Collaboration on products recycling with the same

industry sector 3.5405 1.0878 203. Produce disassembly manual 3.9459 0.9636 15

Dimension 3 – Organization involvement1. Green design 4.2703 0.7271 102. Top management support 4.4730 0.6869 13. Environmental policy for GSCM 4.2838 0.7123 84. Cross-function integration 4.2838 0.8362 85. Manpower involvement 4.0676 0.7645 136. Effective communication platform within companies

and with suppliers 4.1370 0.7873 127. Establish a environmental risk management system

for GSCM 4.0548 0.7244 148. Supplier evaluation and selection 4.3014 0.7009 7

Dimension 4 – Life cycle management1. Applying LCA to carry out eco-report 3.8378 0.9367 182. Establish an environmental database of products 3.9459 0.9916 15

Table IV.Notes: e.g. 1 ¼ not at all important, 2 ¼ not important, 3 ¼ moderate, 4 ¼ important, 5 ¼ extremelyLevel of practice

of GSCM important

electrical and electronics industries. Numerous environmental professionals of supplychain management at leading companies noted that top management’s understandingof the value of, and support for, their company efforts was crucial to the success ofGSCM programs (Lippmann, 1999). Trowbridge (2001) also pointed out that uppermanagement can strongly support GSCM and risk management as internal drives tostrengthen cooperative mechanisms among various units. Because of GSCM practicesinvolve a broad scope and wide-ranging tasks, which lead to complexity and difficultyfor operation. In addition, Walton et al. (1998) suggested that purchasing managersmust proactively influence supplier process, since liability for non-compliance toenvironmental regulations extends to all supply chain management. Consequently,top-level managers have a better understanding of the needs of supply chainmanagement because they are the most cognizant of firm strategic imperative toremain competitive in the market place (Hahn et al., 1990).

The results also indicated that both product testing reports and compliancestatements are equally important for enterprises to ensure that supplier providedproducts are environmentally friendly. Currently, wide-ranging approaches to suppliermanagement for OEM/ODM companies in Taiwan embrace testing report and

compliance statement as requirements essential to assuring that products do not containhazardous substances, as those approaches can recognize the responsibility when productsviolate environmental legislation. Eveloy et al. (2005) argued that firm strategy (or legal

policies) tocomply with theRoHS Directiveshould beestablished and

documented as a position statement that can be distributed to customers and suppliers.Additionally, customers frequently require suppliers to provide a compliance statement ofself-certification to promise that their products conform to EU regulations regardingproduct characteristics. This action can enable firms to ensure that all the materials, partsand products manufactured for consumers will completely fulfill the RoHS directive andwill also be held to compensate for any accidental event occurred.

Purchasing has been considered recently as an important participant in creating asustainable enterprise for their role in contributing effective environmentalmanagement practices (Handfield et al., 2002). In GSCM practice, purchasing wasinvolved in the activities of reduction, recycling, reuse and materials substitution,which are all necessary to lead and facilitate the GSCM implementation. The resultsof this investigation show that practicing green purchasing and establishingenvironmental requirements for purchasing items can ensure product environmentalquality. Both of them can enable firms to provide design specifications to suppliersthat include environmental requirements for purchased items, and can collaboratewith suppliers to provide materials, equipment, parts and services that supportenvironmental goals (Lamming and Hampson, 1996; Zsidisin and Hendrick, 1998).

There is an increasing attention for companies recently to integrate environmentalissues into supplier selection and evaluation while adopting GSCM (Handfield et al.,2002; Humphreys et al., 2003; Rao, 2005; Koplin et al., 2007); that is because theenvironmental performance and sustainability of a company depends on theirsuppliers. This approach can ensure that supplier processes do not contravene thepurchasing firm’s environmental posture (Zsidisin and Siferd, 2001). In addition,GSCM involves introducing and integrating environmental issues and concerns intosupply chain management by auditing and assessing suppliers on environmentalperformance metrics (Handfield et al., 2005). Taiwanese manufacturers commonlyutilize supplier auditing to recognize and inspect the situation for their suppliers tosee whether they have implemented GSCM practices regularly. The focus of supplierauditing encompasses extensively environmental policy compliance with regulations,environmental management plans, environmental communication, green design,operational management, environmental monitoring, and hazardous substances.

Regarding the dimensions of product recycling and life cycle management, allfactors seem to be considered as the slight important aspects with the means of lessthan 4.0. Table IV shows that some of the items of GSCM have relatively lowpractice ratings as follows:

. collaboration on products recycling with the same sector industry;

. joining local recycling organizations;

. applying LCA to conduct eco-reports;

. BOM;

. produce disassembly manuals; and

. establish an environmental database of products.

The above results show that Taiwanese enterprises lack awareness of carrying outproduct recycling initiatives, which is related to the disposal stage. This is mainly

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MRR33,6 602

becauseExtendedProducerResponsibilityconcept isrelativelynewforTaiwaneseelectricalandelectronicsindustries.MostmanufacturershavenotembracedthisconceptuntiltheEUWEEEDirectivecameintoforcein the

August of 2004, making enterprises responsible for taking back their products fromconsumers and ensuring their environmentally friendly disposal in EU countries. Inaddition, most Taiwanese manufacturers are ODM, OEM or electrical manufacturingservices (EMSs), they will not be directly impacted by the WEEE directive, for thetake-back and environmentally friendly obligation of disposal for the WEEE directiveare focused mainly on the ordnance bench mark (OBM) enterprises. This is also thesame reason that ‘‘produce disassembly manuals’’ received a low rating. Moreover, itis observed from the Taiwanese OBM companies that they preferred ‘‘joining localrecycling organization’’ for recycling electronic waste. Because ‘‘collaboration onproducts recycling within the same industry sector’’ needs to consider a lot of aspects,including the volume of product recycling, economic effects, risk, capital andmanpower investment, and difference of recycling laws in each EU country.

The dimension of life cycle management is not as strong as important, it is notsurprising because the initial development of requirements of EuP directive areunclear so that enterprises rated slight importance for adopting LCA technique andestablishing database of green products. LCA has been extensively applied to greenproduct design to explore the environmental characteristics of products. Neither theapplications of the LCA technique nor the establishment of an environmental databaseof products are critical for the Taiwanese electrical and electronics industries.Taiwanese manufacturers have minimal experience using LCA software due to thedifficulties encountered when operating software (e.g. Simapro, GaBi) and lacking ofnecessary database in carrying out LCA. Based on authors’ consultation experience,firms need to invest enormous time and money maybe is another reason forTaiwanese companies reluctant to apply this technique. Although the EuP directivedoes request companies to provide ecological profiles for products, it has not hadclear and definitive standards regarding the criteria of eco-design. Hence, the attitudeof Taiwanese manufacturers at this moment is to wait and see LCA becoming one ofthe candidate tools to comply with the EuP directive.

Comparative analysis of empirical findingsCompared to previous studies for GSCM practice, this empirical investigation is thefirst one to study the green initiatives of GSCM in electronics industry. Specifically,its emphasis is on the compliance with the EU WEEE, RoHS and EuP directives.Moreover, it is examined from the experiences of Taiwan, an important OEM orODM-based country for global ICT market. Although various investigations haveproposed different approaches for implementing GSCM (Lamming and Hampson,1996; Lippmann, 1999; US-AEP, 1999; Bowen et al., 2001a; Eveloy et al., 2005;Handfield et al., 2005; Trowbridge, 2001; Yuang and Kielkiewicz-Yuang, 2001; Rao,2002; Evans and Johnson, 2005; Zhu et al., 2005; Wright and Elcock, 2006), therehave been far less research in identifying the consistency critical factors of GSCMimplementation for responding to the EU directives, particularly for electronicsindustry. Most of the available studies focus mainly on the experience of case study orover review of GSCM practice (Lamming and Hampson, 1996; Lippmann, 1999;Yuang and Kielkiewicz-Yuang, 2001; Evans and Johnson, 2005). On the other hand,for those studies which conducted statistical analysis on GSCM, they did not focus onthe electronics industry (Zhu et al., 2005).

The empirical findings of this study show that the dimensions of supplier managementand organization involvement have been identified as important. These findings aresimilar to those in the earlier literature (Lippmann, 1999; Yuang and Kielkiewicz-Yuang,2001; Handfield et al., 2002; Humphreys et al., 2003; Evans and Johnson, 2005; Rao,2005). Evidently, green initiatives related to supplier management and organizationinvolvement are essential and applicable for conducting GSCM practices regardless of the

difference of theenvironmentallegislative andindustrialproperty.

Consideringthe

environmental regulations for WEEE and EuP directives in implementing GSCMpractices, both of the dimensions of product recycling and life cycle management areidentified as differences to previous studies associated with GSCM practices. This isbecause the requirements of WEEE and EuP directives focus mainly on theelectronics industry. Moreover, studies related to GSCM practices in electronicsindustry for exploring the approaches in response to WEEE and RoHS directives havenever found in previous literature.

With respect to the dimension of product recycling, however, this study found it wasslightly important for implementing GSCM practices. Likewise, this result is differentfrom the findings of Zsidisin and Hendrick (1998). Their study found that in the USA andGermany, enterprises highlight investment recovery as the most important practice forgreen purchasing. Zhu et al. (2005) pointed out recently that investment recovery inChina has received much less attention due to Chinese waste management policies and theinsufficiency of recycling systems. Although our result is similar to the study by Zhu etal. (2005), the causes are different. Most firms in Taiwan employ OEM, ODM and EMS,but the direct influence and significant impact of WEEE directive to the enterprises ismainly on the OBMs. Considering the WEEE-compliance in the EU area, our interviewwith industrial experts indicated that Taiwanese enterprises embrace the priority approachto merge the local recycling systems. There are some difficulties in the collaboration ofproduct recycling of companies in the same sector. This is due to the varying volume ofrecycling products and recycling systems in each member-state in the EU. The enormousvolumes of products recycling are sufficient to create market value and economic benefit.On the other hand, the examples of IBM and Dell Computer Corporations show that theyhave embraced reverse logistics by taking steps to streamline the way they deploy oldsystems. In the process, it became easier for the customers to refurbish existing computersor buy new parts (Ferguson, 2000).

Conclusions and future research directionsAs growing numbers of business functions and operations are outsourced, andservices, components, sub-assemblies and even whole products are purchased fromoutside, organizations are increasingly relying on their supply networks to competesuccessfully in the global marketplace (Yuang and Kielkiewicz-Yuang, 2001). Untilrecently, supply chain management practices of enterprises that consideredenvironmental factors as either threats or opportunities were still limited to conformto environmental regulations. However, WEEE, RoHS and EuP directives, andparticularly the RoHS, not only directly impact the electrical and electronics productsTaiwanese exports to Europe, but also strongly influence the distribution of supplychain partners for multinational enterprises. As a result, uncertainties in currentregulations have resulted in difficulties implementing GSCM practices. Consequently,enterprises cannot ensure their current management approaches are working or havingrisks and whether they can continue to maintain sustainable operations and advantagein the future.

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Thisstudyaimstoexplore andanalyze thecriticalfactors ofGSCMpracticeimplemented inTaiwaneseelectronicandelectricalindustries.Themaincontributionof thisstudyis torecognizethecriticalfactors ofGSCMimplementa

tion in electronics industry from a regulation perspective, which can assist enterprisesin mitigating risk, reducing cost and adopting strategies in response to customer andlegislative needs. In addition, identification of the critical factors of GSCM permitsmanagers to obtain a better understanding of GSCM practices and follow academicresearchers to proceed with the task of developing and testing theories of GSCM. Theinstrument developed in this study enables decision makers to assess the perception ofGSCM in their organization. Additionally, the critical factors of GSCM practice inthis study can help other enterprises to identify those areas of GSCM that requireacceptance and improvements, and in prioritizing GSCM efforts.

Empirical results presented in this study show that the critical factors identified in thisstudy are reliable and valid for GSCM practice. The systematic and comprehensiveliterature review that conducted by different authors (Lamming and Hampson, 1996;Lippmann, 1999; US-AEP, 1999; Bowen et al., 2001a; Eveloy et al., 2005; Handfield etal., 2005; Trowbridge, 2001; Yuang and Kielkiewicz-Yuang, 2001; Rao, 2002; Evans andJohnson, 2005; Zhu et al., 2005; Wright and Elcock, 2006) helped ensure the contentvalidity of the measures. The obtained validity coefficient (alpha) of the measures rangedfrom 0.8338 to 0.9307. This measurement result demonstrated that all of the Cronbach’svalue in our scales are greater than 0.7 and reveals the high internal consistency.

To date, GSCM remains a new management paradigm that lacks sound andcomprehensive theory for companies, especially in electronic and electrical industriesdue to the uncertainty of regulations. As a result, the current results of analysis forimplementing GSCM would be transferred to accompany changes of regulations inthe future; further studies should continue exploring GSCM practice for acquiringcompetitive advantage. In order to obtain a better and more comprehensiveunderstanding of GSCM practices, it is suggested to increase the number ofparticipating firms and compare with different countries, particularly in China, formany manufacturers have shifted their factories from Taiwan to China. It is alsoworthwhile to explore the differences of the implementing approaches for GSCMbetween the firm’s home-country and host-country.

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Further reading

Yusof, S.M. and Aspinwall, E.M. (2000), ‘‘Critical success factors in small and mediumenterprises: survey results’’, Total Quality Management, Vol. 11 No. 4, pp. S448-62.

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About the authorsAllen H. Hu received his PhD degree in Environmental Engineering from the University ofConnecticut in 1996. After graduation, he went back to Taiwan and worked for Industrial TechnologyResearch Institute (ITRI) for three years. In 1999, he changed his career to academia and stayed withNanhua University for four years. He joined the Institute of Environmental Engineering andManagement, National Taipei University of Technology as an Associate Professor in 2003. Hisresearch interests are all related to corporate environmental management, including strategicenvironmental management, environmental disclosure and reporting, green supply chainmanagement, life cycle assessment, and corporate social responsibility. Allen H. Hu is thecorresponding author and can be contacted at: allenhu@ntut.edu.tw

Chia-Wei Hsu is a PhD Candidate of the Institute of Engineering Technology, NationalTaipei University of Technology. He received his BS of Environmental Engineering and MS ofEnvironmental Management from Da-Yeh University and Nanhua University in 2002 and 2004,respectively. His research interests include corporate environmental management, green supplychain management, design for environment, and corporate social responsibility.

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