Practice of Green Supply Chain Management and Organization Performance in the Manufacturing Industries of the Kathmandu Valley

Practice of Green Supply Chain Management and Organization Performance in the Manufacturing Industries of the Kathmandu Valley

Seeprata Parajuli, Ruby Shrestha, Niranjan Devkota, Sashi Rana Magar, Sharad Rajbhandari, Udaya Raj Poudel
Copyright: © 2022 |Pages: 18
DOI: 10.4018/978-1-7998-9140-6.ch007
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Abstract

This chapter aims to analyze the practice of green supply chain management and organization performance in manufacturing industries of Kathmandu valley. This study uses descriptive research design. Two hundred and seven manufacturing industries in three industrial estates (Balaju, Bhaktapur, and Patan) of Kathmandu valley were taken as a sample for the study whereas all 245 operating industries were the population of the study. The findings revealed that 33.3% of industries are highly practicing green supply management chain whereas 23.7% and 19.6% are practicing it moderately and less, respectively. It was found that industries of all scale—large, medium, and low—are equally practicing green supply management chain to a greater extent. Thus, the study concludes that manufacturing industries ought to consider the systemic interaction between the internal and external facets of the application of the GSCM and to ensure that their respective operations are integrated in order to achieve improved environmental and organizational efficiency and consequently to achieve economic benefits.
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Introduction

In today's world, environmental issues and the preservation of human life are more crucial than ever (Harper & Snowden, 2017). The main goals of a company's green management are the aspects in which businesses carry out operations that have no adverse effect on the local or world economy (Skibińska & Kott, 2015). Global warming and climate change are the major issues in the present world faced by humanity, caused by the various business activities such as huge energy generation and consumption, exploiting natural resources, disposal of toxic waste (Hernandez & Ona, 2015). Therefore, the concept of green management has arouse in order to cope with emerging business problems due to environmental issues (Rostamzadeh, Govindan, Esmaeili, & Sabaghi, 2015).

Likewise, supply chain is a channel of all actors (e.g. producer, maker, seller, wholesaler, consumer, client, etc.) directly or indirectly involved in the production and transfer of products or services to ultimate consumers, on both the upstream and downstream sides, through physical storage, information exchange and finance (Chin, Tat, & Sulaiman, 2015). Green supply chain management (GSCM) can be viewed as an alternative to this management theory, incorporating certain aspects of the supply chain that are seen as a truly ethical and inclusive method for organizations or also integrating environmental thinking to supply chain management (Rostamzadeh et al., 2015). Nowadays many organizations has initiated the agenda of green supply chain management as it motivates the managers to gain the potential benefits that they can achieve by implementing green practice.

Nepal, being a mountainous, forest-rich, least developed, landlocked country with political, social and economic changes and complexities, conspicuous social and gender disparities, increasing climate change and lack of good governance for which there are no strong or consistent hopes of a transition into a green economy at both national and local level (Karki, 2014). Most of the business organization in Nepal does not have a special person working with green issues, and many of them aren't conscious. Many manufacturing industries in Nepal even do not have particular team responsible for environmental issues and local industries only considers green issues in choosing the suppliers. The fact that Nepal is a small country, implementing such green practices and strategies is bit slow (Shrestha, 2017).

The nature of the economy and resource endowment plus existing geo-socio-political reality of Nepal demands green economy or green growth channel to explore inclusive and sustainable development intervention ahead (Bhuju, Thapa-parajuli, Sharma, & Aryal, 2014). Talking about energy aspect, Nepal acquires a lot of hydropower potential but due to many problems it has not been able to use even its renewable energy as solar power. Promoting the use of renewable energy and demotivating them to use fossil fuel by the help of right policies, Nepal can contribute to the green economy by enhancing its alternate energy sector. Hence, further study seems to be required in the area. Thus, this research aims to analyze practice of green supply chain management and organizational practices in manufacturing industries of Kathmadu valley.

This study is further categorized into five sections. Second section includes review of literature whereas, third section includes methodology followed by result and discussion in fourth section and fifth section finally concludes the study.

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