The Performance of Green Supply Chain Management Practices: A Case Study of the Automotive Industry in Thailand

Abstract

The objectives of this study were 1) to examine how the automobile sector had effectively combined green supply chain practices in the operation, 2) to investigate the positive effects of partner companies in the automobile sector using green supply chain practices, and 3) to explore the issues and barriers that came up in the green supply chain of the partners in the automobile sector. This qualitative study adopted case studies of the automotive industry by providing an understanding of the current business environment in the green supply chain. Two case studies from four companies were used. Both case studies consisted of partners that were automotive manufacturers and auto parts manufacturers. The results of this study showed that companies that were successful in green supply chain management had supply chain management in five areas: 1) internal environment management, 2) green purchasing, 3) cooperation with customers, 4) benefits received back from investment, and 5) eco-friendly design. The benefits of implementing the green supply chain included environmental performance, economic performance, and social performance or firm reputation. The barriers that arose in the green supply chain were employee involvement in the organization as employees lacked knowledge and understanding of the green supply chain and the determination of top executives to have the vision to achieve common goals of partner companies in order to achieve mutual success.