Do Sustainable Supply Chain Practices Really Matter to the Environment? An Empirical Investigation in the Context of Bangladesh

Abstract

Sustainable Supply Chain Management Practices (SSCMPS) have become a mainstream research topic within the past few decades. The research on sustainable practices in the supply chain was taboo not long before, simply because sustainability costs extra (Pagell and Shevchenko, 2014). While firms aim to maximize wealth and profit, consideration for the environment and implementation of environment-friendly equipment and use of eco-friendly manufacturing materials curtails the profit margin that organizations so much want to enjoy (Mugoni et al., 2023). However, the increasing concern over the climate in recent times has made sustainable supply chain practice a buzzword and is forcing the hands of corporations to implement sustainable and eco-friendly supply chain practices (Chowdhury et al., 2023). Skepticism is seeping in among professionals over the effectiveness of the “so-called sustainable practices” that they are practicing at the expense of profit.

Some recent academic literature is fueling the cynicism of supply chain managers and making them question whether what they do has actually any benefit to the environment.  For example, one highly cited article by Pagell and Shevchenko (2014) claimed that even though the current sustainable practices are positive tokens towards a better world that surely deserve appreciation, in all practicality these activities are not “truly sustainable”. The current level of knowledge is not adequate enough to make the supply chain truly sustainable. However, there have been quite a few researches in the past advocating that SSCMPS have a positive impact on the environment (Zhu et al., 2008; Green et al., 2012; Schmidt et al., 2017). Yet, the room for question is still there. The impact of supply chain practices may differ in different contexts. There has been a scarcity of empirical tests on whether SSCMPS really has any positive environmental performance in the context of Bangladesh.

The objective of this research is to empirically test whether the sustainable supply chain practices adopted by the companies of Bangladesh have any positive effect on the environment or not. The research uses a self-reporting Likert scale as a research instrument to collect empirical evidence on the research objective. Green Purchasing (GP), Green Manufacturing (GM), Green Product Design (GPD), Green Distribution (GD), Green Information System (GIS), and Reverse Logistics (GL) are six constructs used to measure the latent variable SSCMPS.

As a country with political and economic turmoil, it is critical for Bangladeshi firms to use the best strategies and practices available to survive and thrive. It is also important for Bangladeshi companies to understand the proper impact of their actions. Many of the companies of Bangladesh are adopting sustainable supply chain practices like reducing carbon footprints, reusing building materials, and recycling industrial waste. There is not enough empirical study on the impact of these activities on the environment in the context of Bangladesh (Chowdhury et al., 2023).  As a result, this research can bridge the existing gap in the literature and provide the firms with critical insight into the actions and activities they are doing.