Determinants of sustainable supply chain management: A case study from the oil and gas supply chain

Abstract

The global economy is significantly dependent on the Oil and Gas (O&G) sector. However, this sector has a considerably negative impact on the environment and society. A Sustainable Supply Chain Management (SSCM) system can help towards addressing some of the environmental and social issues in the sector. Recent research on SSCM in the case sector is limited, and determinants that influence the adoption/implementation of the SSCM practices and their influence on the Operational and Business Performance (OPR) have not been deeply analyzed. The present study tries to bridge this research gap by identifying and analyzing the influence of determinants of SSCM on the OPR of the case supply chain in the Indian context. This study has been carried out in two stages; in the first stage, Interpretive Structural Modeling (ISM) methodology was employed for establishing the mutual relationship between the determinants. Also, the dependency of OPR on the determinants was identified. Later, in the second stage, primary data on determinants of SSCM and their impact on OPR were collected. Then, the Structural Equation Modeling (SEM) methodology was employed for analyzing the data. The ISM approach led to the inference that one determinant namely ‘Regulatory Pressure (RP)’ had the highest driving power; on the other hand, results of the SEM methodology showed that one determinant namely ‘Collaborative Green Logistics (Forward & Reverse) (CGLC)’ had a significant influence on the OPR. These results are intended to guide the researchers and environmentalists as well as government policy- and decision-makers, and organizational managers in understanding the various determinants, their interrelationship and influence on the OPR.