Environmental Capabilities of Suppliers for Green Supply Chain Management in Construction Projects: A Case Study in Korea

Abstract

Green supply chain management (GSCM) enhances a firm's competitiveness for sustainable growth. GSCM is especially important in the construction industry, a project-based business that often results in heavy environmental pollution. For the successful implementation of GSCM in the construction industry to occur, contractors should make the best use of suppliers' environmental capabilities based on shared understanding of the capabilities. This paper examines the shared understanding of suppliers' environmental management capabilities between the contractor and suppliers by assessing the consistency between the contractor's and suppliers' evaluations of the capabilities. This explorative case study investigates a supply chain comprised of a major construction firm and 106 suppliers in Korea. The results of the case analysis show that the suppliers' self-evaluation scores of environmental capability are higher than the contractor's evaluation scores. Furthermore, from both evaluators, suppliers received the lowest scores in the evaluation item rating the relationship with second-tier suppliers and the highest in the evaluation item rating the relationship with the contractor. The consistency between the suppliers' and contractor's evaluation is related to several characteristics of suppliers, such as industry type, firm size and partnership duration with the contractor. This study contributes to the literature of GSCM and strategic alignment amongst supply chain partners for the construction industry.