Abstract – This study investigates the green
procurement adopted by Thai electronic companies.
The relationship between green procurement adoption
and product performance, purchase price, the
organization’s environmental concerns, trading
partners, and health and safety issues, is studied.
Companies in the electronic industry and holding ISO
14001 certification in Thailand before December 2004
were sampled for the empirical study. The data were
then analyzed using statistical package for the social
sciences, to verify the hypothetical construction of the
study. The results indicate that the Original
Equipment Manufacturing (OEM) and Original
Designing and Manufacturing (ODM) companies in
Thailand’s electronic industry have adopted green
procurement practices in response to the current wave
of global environmental concern.
Key Words – Green supply chain, Environmental
performance, Green procurement, and Thailand.
I. INTRODUCTION
With increasing awareness of environmental
protection worldwide, the green trend towards conserving
the Earth’s resources and protecting the environment is
overwhelming, exerting pressure on corporations in
Thailand. The pressure accompanying globalization has
prompted enterprises to improve their environmental
performance (Zhu and Sarkis 2006). Consequently,
corporations have shown growing concern for the
environment. Increasing environmental concern has
gradually become part of the overall institutional culture
and, in turn, has helped to re-focus the strategies of
corporations.
Global warming, reductions in air quality, pollution
of waterways and widespread loss of biodiversity are but
a few examples of the types of environmental impact that
can be attributed to the coordinated activity of
organizations in a supply chain. Much of this arises from
manufacturing organizations that continue to produce
large amounts of unnecessary waste or emissions rather
than investing in better technologies or practices to
prevent its generation at the source (Klassen, 2000; King
and Lenox, 2002).
The “green” component to supply chain management
involves addressing the influence of supply chain
management on the natural environment. Motivated by an
environmentally-conscious mindset, it can also stem from
a competitive motive within organizations (Hervani,
Helms, and Sarkis 2005).
This study investigates the determinants of green
procurement adoption for successful Green Supply Chain
Management by the electrical and electronics industry in
Thailand, which is dominated by OEM (original
equipment manufacturing) and ODM (original designing
and manufacturing) companies. The prime objective of
this study is to understand the determinants of green
procurement adoption by Thai electronic companies.
II. LITERATURE REVIEW
Description of Green Procurement Practices
Purchasers can improve the environmental
performance of products and services by expressing
environmental preferences through so called “green
procurement”. Carter, et al. (1998) defined environmental
purchasing as consisting of involvement in activities that
include the reduction, reuse and recycling of materials in
the process of purchasing. Procurement or purchasing
decisions will have an impact on the green supply chain
through the purchase of materials that are either
recyclable or reusable, or have already been recycled
(Sarkis, 2003).
Green Procurement is a solution for environmentally
concerned and economically conservative business. It is a
concept of acquiring a selection of products and services
that minimizes environmental impact. It requires a
company or organization to carry out an assessment of the
environmental consequences of a product at all the
various stages of its lifecycle. This means considering the
costs of securing raw materials, and manufacturing,
transporting, storing, handling, using and disposing of the
product. "Green" products reduce waste, improve energy
efficiency, limit toxic by-products, contain recycled
content or are reusable.
With today’s application of green procurement:
Electronics industries comply with lead free (WEEE)
and Restriction of Hazardous Substances (RoHS) to
minimize the hazardous or toxic in electronic parts.
Furniture manufacturing industries change their
strategy to comply with green concern in the use of
water-based finishes as an alternative to solvent-
based ones.
Toy manufacturers strictly control and follow ISO
standards to limit the toxicity in toy components after
An Empirical Investigation of the Determinants of Adoption of Green
Procurement for Successful Green Supply Chain Management
Mohammad Asif Salam
1
1
School of Management, Assumption University, Bangkok, Thailand
(mbamas@yahoo.com)
978-1-4244-2330-9/08/$25.00 ©2008 IEEE
1038