The intellectual capital - environmental practices, performance and their relationships in the Romanian banking sector

Purpose – This paper reviews the knowledge assets that can be capitalized for successful Green Supply Chain Management (GSCM) implementation in the Romanian banking industry. GSCM is defined as the company’s ability to understand and manage the environmental risks along the Supply Chain (SC) (Carter and Rogers,2008). Banks are very much members of the SCs (McKenzie and Wolfe, 2004), called to integrate the environmental management into both operational and core commercial activities and to manage the environmental risk in their supply chain (FORGE Group,2000; International Finance Corporation, 2006; UNEP Finance Initiative, 2009a). Intellectual capital, or the ‘stock’ of knowledge-based equity firms hold, is recognized as a key contributor to their competitiveness (Bontis et al., 1999), which may act as a driver of environmental pro-activeness (Bernauer et al., 2006; Wu et al., 2007), as well as an obstacle in the process to design and implement GSCM (Post and Altman, 1994; Baresel-Bofinger et al., 2007), while organizational learning is seen as the key component in overcoming the organizational obstacles to environmental changes (Post and Altman, 1992; Post and Altman, 1994; Anderson and Wolff, 1996). Design/methodology/approach – This research paper describes the empirical results of a cross-sectional design employed in a sample of 41 banks operating in Romania with the purpose a. to explore the stage of designing and implementing GSCM practices in the Romanian banking sector; b. to determine which GSCM practices tend to be followed the most, c. which are the bank managers’ perceived benefits from implementing GSCM practices, as well as perceived obstacles in GSCM implementation in the banking sector; and d. what is the relationship between the aforementioned variables. For these purposes several statistical analyses were used, including both descriptive and inferential statistics. Originality/value – This is the first study looking for GSCM issues in the Romanian banking industry. The results of this research provide insights into what extent knowledge assets could be capitalized for successful Green Supply Chain Management implementation in the Romanian banking industry. Furthermore, it is increasing the ecological awareness, the theoretical and managerial insights for an effective implementation of GSCM practices in the banking sector. The analysis reveals that GSCM practices (especially practices in the immaterial flow) are strongly and significantly correlated with perceived benefits and pressures. However,this should be addressed in future research because the present study offers only correlational data and cannot establish causation. The study also concludes that bank’s size and foreign/Romanian ownership do not influence at all the level of GSCM practices implementation and related perceptions (pressures, obstacles,benefits) in the Romanian banking sector. Practical implications – The findings of this paper point to the conclusion that the banking sector in Romania is at a somehow advanced stage of ecological adaptation in the physical flow and at an early stage in the immaterial and commercial flows. Based on the literature and study’s findings, regarding the role that the management of intellectual capital and knowledge flow plays, several recommendations are proposed for enhancing the implementation process of GSCM practices in the banking industry in Romania

Adoption of "eco-advantage" by SMEs: emerging opportunities and constraints

Purpose: A recent study has asserted that businesses need to adopt “eco-advantage”. This paper aims to explore the viability of small and medium enterprises (SMEs) achieving “eco-advantage” by exploring their understanding of sustainability issues, how they adopt and innovate in terms of sustainability and the benefits and obstacles they face. Design/methodology/approach: The research approach is exploratory, comprised of 15 SME embedded cases based in the UK. The cases are participants in short interventions in sustainable product and process design as a part of a university knowledge transfer project, representing the overall case. Cases are based on interviews with company participants and collaborating academics, supplemented by documentary and observational evidence. Findings: The results build on the work on “eco-advantage” found in a recent study, highlighting marketing, rather than compliance issues as a catalyst for change. The newly aware SME enters a development process which involves cumulative capabilities, gaining a nascent inner confidence, which includes espousing wider sustainable values. Research limitations/implications: The results reveal the scope and challenges for SMEs to adopt more sustainable practices, encompassing innovations and a broad set of capabilities. Further research points to the need to monitor benefits as well as inputs in evaluating sustainability improvements and to consider longitudinal business sustainability issues. Originality/value: The paper informs the emerging debate on sustainability in SMEs, providing a rich source of data to enhance the provision of business support and knowledge transfer activities, where a more holistic and customised approach is required to realise the real environmental and economic benefits accrued from implementing sustainable improvements

Examining green production and its role within the competitive strategy of manufacturers

Purpose: This paper reviews current literature and contributes a set of findings that capture the current state-of-the-art of the topic of green production. Design/methodology/approach: A literature review to capture, classify and summarize the main body of knowledge on green production and, translate this into a form that is readily accessible to researchers and practitioners in the more mainstream operations management community. Findings: The existing knowledge base is somewhat fragmented. This is a relatively unexplored topic within mainstream operations management research and one which could provide rich opportunities for further exploration. Originality/value: This paper sets out to review current literature, from a more conventional production operations perspective, and contributes a set of findings that capture the current state-of-the-art of this topic

The key role of institution pressure on green supply chain practice and the firm's performance

Purpose: This study was conducted to investigate the influence of isomorphism institutional theory on green supply chain management (GSCM) and firm performance by using the structural equation model (SEM) to explain the driving factors of reducing the impact of environmental processes on the firm. Design/methodology/approach: Structural equation model (SEM) to explain the driving factors of reducing the impact of environmental processes on the firm. Findings: Isomorphism institutional factors showed a statistically significant positive effect on GSCM practices. Moreover, GSCM practices showed a statistically significant positive effect on firm performance. Under the literature review, customer pressure and top management support are primary factors to achieve GSCM practices and potential to establish firm performance. Research limitations/implications: First, the common hypothesizes do not provide insight into all the relationships that warrant additional inspection. Second, Thailand manufacturers have experiences pressures from foreign customers and competitors but they have opportunities to learn from them to better improvement GSCM practices. Practical implications: Results may highlight pressure for greening and which more efforts are needed for GSCM practices. GSCM practices generally require more effort due to need for collaborating with customer and competitor. Thailand manufacturers are increasingly confronted with isomorphism institutional pressure to implement GSCM practices. Social implications: It is useful the Thailand government promotes GSCM by creating an awareness of the benefits. GSCM can help to alleviate the question of the followers about implementing GSCM and decrease their risk association with the environmental adoption. Originality/value: Research creates clarity of the relationship between isomorphism institutional pressures, top management support, and performance in Thailand, which is a developing country with environmental investment concerns that affect profits from the operations of the firm.Peer Reviewe

Improving sustainability performance through supplier relationship management in the tobacco industry

Purpose: The purpose of this study is to explore how tobacco manufacturing companies can improve their sustainability performance via effective supplier relationship management (SRM). Design/methodology/approach: This study has adopted a single case study of an international tobacco company. The primary data involved semi-structured interviews with participants from the case company who are familiar with sustainable SRM in the tobacco industry and are engaging in various techniques to improve sustainability performance. Findings: The drivers for sustainable SRM commonly identified in literature are observable within the case company. There is also clear evidence of integrating sustainability in its SRM processes. However, the perception of sustainability as a requirement to meet stringent regulations limits its scope and drive in pursuing sustainable SRM. It has also limited supplier sustainability evaluation and performance metrics. Furthermore, the findings of this paper reinforce the importance of a procurement team’s ability to work with other functional teams in implementing sustainable SRM. The findings also contribute to the emerging literature on the impact of sustainability on supplier segmentation and multi-tier supplier management. Research limitations/implications: This study provides insight into the varying SRM methods used in the tobacco industry to ensure compliance and improve sustainability performance. However, further research is required to explore the generalisability of the findings of this study derived from a single case study. Originality/value: The tobacco industry is an under-researched industry, particularly in terms of sustainable operations and supply chain management practices. The findings of this study seem to be relevant to those comparable industries with stringent regulations as well

Sustainable supply chain management needs sustainable logistics services. The strategic role played by logistics service providers

Purpose – The purpose of this research is to examine the concept of sustainable service co-creation in triadic business relationships in logistics and supply chain management. More companies seek to develop sustainable solutions that would not be sustainable exclusively for themselves but for the supply chain they belong to. In doing that – especially when dealing with services – they may need the external support from logistics service providers (LSPs). This paper aims to explore the innovative initiatives undertaken by LSPs in triadic relationship management with their customers and suppliers while co-creating sustainable services along the supply chain. Design/methodology/approach – To investigate the research question, a systematic literature review and empirical exploratory investigation through case study will be conducted adopting the qualitative methodology, to explore trends and evolving paradigms. Findings – A literature review conducted in this paper enriches existing literature through an integration of sustainability in a viable system approach and logistics service provision, in particular, it investigates the ways in which sustainability is achieved. It is assumed that the triadic relationship among an LSP and its customers and suppliers requires significant modifications in collaboration and an innovative approach in operating procedures. Research limitations/implications – This paper is an exploratory study and limited in its scope to an example of a relationship that focuses mainly on three actors: the supplier, the LSP and the customer. However, it could be extended in terms of numbers of case studies investigated. Practical implications – The implications arising from the literature and the empirical research offer a range of current sustainable practices in the services sector. This could be a starting point for other research and company activities. Originality/value – There is little research that addresses the issue of sustainability and logistics service providers simultaneously, hence the present paper is meant to fill the gap by providing a foundation which actors of different supply chains could use as a benchmark. This study gives evidence of how logistics services may contribute to sustainable development. Key words – sustainable supply chain management, logistics service providers, viable system approach, co-creation, business relationship managemen

Sharpening the Cutting Edge: Corporate Action for a Strong, Low-Carbon Economy

Outlines lessons learned from early efforts to create a low-carbon economy, current and emerging best practices, and next steps, including climate change metrics, greenhouse gas reporting, effective climate policy, and long-term investment choices

The role of supply chain integration in achieving competitive advantage: A study of UK automobile manufacturers

The competitive nature of the global automobile industry has resulted in a battle for efficiency and consistency in supply chain management (SCM). For manufacturers, the diversified network of suppliers represents more than just a production system; it is a strategic asset that must be managed, evaluated, and revised in order to attain competitive advantage. One capability that has become an increasingly essential means of alignment and assessment is supply chain integration (SCI). Through such practices, manufacturers create informational capital that is inimitable, yet transferrable, allowing suppliers to participate in a mutually-beneficial system of performance-centred outcomes. From cost reduction to time improvements to quality control, the benefits of SCI extend throughout the supply chain lifecycle, providing firms with improved predictability, flexibility, and responsiveness. Yet in spite of such benefits, key limitations including exposure to risks, supplier failures, or changing competitive conditions may expose manufacturers to a vulnerable position that can severely impact value and performance. The current study summarizes the perspectives and predictions of managers within the automobile industry in the UK, highlighting a dynamic model of interdependency and interpolation that embraces SCI as a strategic resource. Full commitment to integration is critical to achieving improved outcomes and performance; therefore, firms seeking to integrate throughout their extended supply chain must be willing to embrace a less centralized locus of control

Environmental proactivity and firms' performance: Mediation effect of competitive advantages in Spanish wineries

The main aim of this paper is to show the extent to which environmental proactivity is able to generate competitive advantages in a firm in order to improve their economic-financial performance by introducing the role of managerial perception into the analysis. This study focuses on Spanish wineries and their environmental practices and covers a total of 4598 wineries with a sample of 142 valid responses during the month of November 2015. The results can be summarized as follows. Firstly, there is positive environmental proactivity in terms of obtaining both cost-based and differentiation-based competitive advantages. Likewise, this proactivity has a positive impact on the manager’s perception of performance. Secondly, obtaining differentiation-based competitive advantages has a positive impact on the manager’s perception of performance although a negative impact on performance itself. There is, however, no significant evidence of the impact of cost-based competitive advantages on financial performance nor on the perception of performance itself, nor the impact of environmental proactivity on financial performance

Environmental proactivity and firms' performance: Mediation effect of competitive advantages in Spanish wineries

The main aim of this paper is to show the extent to which environmental proactivity is able to generate competitive advantages in a firm in order to improve their economic-financial performance by introducing the role of managerial perception into the analysis. This study focuses on Spanish wineries and their environmental practices and covers a total of 4598 wineries with a sample of 142 valid responses during the month of November 2015. The results can be summarized as follows. Firstly, there is positive environmental proactivity in terms of obtaining both cost-based and differentiation-based competitive advantages. Likewise, this proactivity has a positive impact on the manager’s perception of performance. Secondly, obtaining differentiation-based competitive advantages has a positive impact on the manager’s perception of performance although a negative impact on performance itself. There is, however, no significant evidence of the impact of cost-based competitive advantages on financial performance nor on the perception of performance itself, nor the impact of environmental proactivity on financial performance