Competitive Green Supply Chain Transformation with Dynamic Capabilities—An Exploratory Case Study of Chinese Electronics Industry

Abstract

Extant studies identify different strategic approaches for businesses to integrate environment management (EM) into corporate supply chain management (SCM) to create different competitive market advantages. With increasing market uncertainties, stakeholder complexities, constraints of resources, companies nowadays are required to develop more context-specific solutions for mitigating sustainability risk and improving market performance in supply chain sustainability practices. To address the challenges faced by businesses, this study aims to explore how a company adapts green supply chain strategies for a competitive transformation. Specifically, we aim to identify different green supply chain capabilities that form hybrid choices of green solutions for a company to leverage an adaptive green shift. Through an extensive literature review, this study proposes a conceptual framework for exploration which is based on a qualitative in-depth case study in the electronics industry—one of the most polluting manufacturing sectors in China. The findings show that supply chain characteristics play a significant role in the selection of different green SCM solutions by businesses. We find different hybrid choices of strategic decisions are being made by the case company operating with high-volume and high-value supply chains respectively. High-volume supply chains adopt both operational pollution and waste control strategies and incremental green product strategies to balance cost of operational change and develop a competitive eco-efficient market expansion. In contrast, high-value supply chains adopt radical green product innovation strategies and operational waste prevention strategies to balance cost of product innovation and build operational efficiency to expand in a competitive eco-differentiation market. A mix of dynamic capabilities involved in different supply chain green transformations are also identified.