A Comparative Analysis of Green Supply Chains
Among Countries in the Middle East, Latin
America, and Europe
Alexander Wollenberg
Department of Humanities and Social Sciences, Khalifa University, Abu Dhabi, United Arab Emirates
Email: alexander.wollenberg@ku.ac.ae
José Guadalupe Octavio Cabrera Lazarini and Juan José Cabrera Lazarini and Luis Fernando Orta Parra
Department of International Business, Tecnológico de Monterrey, Monterrey, México
Email: octavio.cabrera@tec.mx, jcabrera@tec.mx, A01610337@itesm.mx
Ameya Sathya Kakade
The International School Bangalore, Bangalore, India
Email: ameya.kakade17@gmail.com
Abstract—We used Data Envelopment Analysis (DEA) to
compare the development of Sustainable (Green) Supply in
three regions of the world, the countries of the Gulf
Cooperation Council (GCC) in the Middle East, six
countries in Europe, and six countries in Latin America,
which were selected based on the rank of their Logistics
Performance Index. The focal region were the six member
countries of the GCC against which countries in the other
two regions were compared over a 10-year period. We
based our empirical analysis on UN SDGs concerned with
affordable and clean energy (SDG 7), industry, innovation
and infrastructure (SDG 9), sustainable cities and
communities (SDG 11), and climate action (SDG 13). Using
a modified model of RAM-DEA, Kuwait, Qatar, and Saudi
Arabia in particular showed high levels of inefficiency,
which were marked by high oil consumption, low
investment in good inputs (e.g. R&D, academic basic and
applied research), and low outputs, specifically in terms of
clean (e.g. solar) energy. It could be said that countries in
Western Europe still led in terms of inputs versus outputs.
However, certain countries in other regions are also strong
contenders in sustainable supply chains. These include the
UAE, Oman, México, Panamá, and Ecuador.
Index Terms—DEA, GCC, Latin America, sustainable
development goals, efficiency, supply chains, sustainability,
renewable energy, corporate social responsibility, logistics
performance index
I. INTRODUCTION
Global competitive pressures are forcing countries to
strengthen their position in the world market through
regional integration. With trade and customs agreements
individual countries have been enabled to improve their
competitive position within a single regional market
towards other regions and countries globally. This was
also the incentive for the Gulf countries to establish a
Cooperation Council for the Arab States of the Gulf in
1981, also known as Gulf Cooperation Council (GCC),
comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia,
and the United Arab Emirates. Gulf integration has
enabled facilitation of the movement of production,
removing trade barriers, and coordinating economic
policies, extending the size of the market to 35.65 million
people who live in this region [1], [2]. Moreover, it has
created the preconditions for establishment of supply
chains and sophisticated logistics networks with the aim
of joint GCC exposure connecting the GCC as a region
and globally. Internally, the GCC is an area of economic
cooperation comprising the four freedoms akin to the EU.
Externally the GCC has a growing network of free trade
agreements with various parts of the world, most notably
with EFTA countries, the US (Framework Agreement for
Trade, Economic, Investment and Technical
Cooperation), Singapore (GCC-Singapore FTA), and
Australia, and bilateral cooperation agreements of
individual countries such as UAE with Mexico. [3], [4].
According to the Statistical Centre for the Cooperation
Council for the Arab Countries of the Gulf [5], total
export of GCC countries was approximately USD 652
billion of USD in 2018 with an increasing trend. The
export of oil, natural gas, and chemical produts are the
most important exports; however many other products
form an important share of exports from GCC countries.
For example, non-oil exports contribute 70% to the GDP
of the UAE; however, these are mostly other
commodities such as gold, jewellery, and electronics; a
notable exception are the aerospace and defense sectors
in which the UAE also excels and exports [7]. No other
country in the GCC has reached the same level of
economic diversification as the UAE. On average, the oil
58
Journal of Advanced Management Science Vol. 10, No. 2, June 2022
©2022 Journal of Advanced Management Science
doi: 10.18178/joams.10.2.58-64
Manuscript received January 1, 2022; revised April 3, 2022.