Green Supply Chain: China vs Western Countries - Dissertation Example

China’s economic role in the global market is pivotal not only because of the country’s rapid economic growth and position in the global market (Haddad 2007; Yao 2006) but also because China’s economic development impacts the environment (Funk 2003; Zhu et al. 2005). China’s global economic position has exerted environmental burdens. Issues of environmental degradation always happen when a country attains industrial development (Sheu et al 2005).

In this sense, as China continues to be the manufacturing hub of the world, there is urgency in promoting enhanced environmental performance via minimizing waste and reducing costs (Rao and Holt 2005). In this aspect, the greening of the supply chain adds value to the entire enterprise (van Hoek 1999).  However, GSCM in China is still in its nascent stage (Zhu et al., 2010). As such, there is a necessity to understand GSCM within the context and condition of contemporary China.

GSCM discourses rest on the positive contribution of supply chain management to firm performance and competitive advantage (Lambert, Cooper and Pagh 1998; Guinipero et al. 2008). Supply chain management refers to processes about the movement of goods from supplier to manufacturer, manufacturer to distributor, distributor to end-user (Novak and Simco 1991). The integration of supply chain management in the strategic positioning of the organization is stimulated by three crucial factors. These are “(1) information revolution (2) increased level of global competition creating more demanding consumers and demand-driven markets and (3) the emergence of new types of inter-organizational relationships” (Handfield and Nichols 1999, p 5). These drivers act as the trigger mechanism for firm integration of the supply chain.

Rapid developments in computers and information brought information revolution.  Information flows are essential for management, monitoring, demand forecasting, planning, and analysis methods in determining customers’ demands. Through information technology, companies can access information accurately promptly, at lower costs (Bowersox and Calantone 1998). AS such, ICT is the vehicle wherein a smoother information flow is achieved (Power 2005). It keeps trading partners in touch 24/7 without any delays or any additional costs to both parties with quality of information guaranteed (Lee et al 1997; Power 2005).

Likewise, the satisfaction of customers’ preferences is the primary barometer in creating a market niche (Hastings and McDermott 2006). For example, in the construction sector, delivery of customers' needs, when needed, and delivering it without waste is pivotal for client satisfaction (Ballard 2000; 2004; Ballard and Zabelle 2000). Customer satisfaction becomes more competitive with the Internet as a platform in reaching consumers.

Finally, new types of inter-organizational relationships serve as an impetus for the strategic positioning of the organization. The interdependence and cooperation among firms in the supply chain are critical for its continued success. By keeping a healthy relationship with the company’s suppliers, information is shared, alliances are made, and consistency and alignment of objectives are achieved (Power 2005).