Benchmarking Indian ceramic enterprises based on green supply chain management pressures, practices and performance

The purpose of this paper is to identify and analyze the impact of green supply chain management (GSCM) pressures, implementation level of GSCM practices and improvement in performance of the Indian ceramic enterprises. The paper also aims at benchmarking the Indian ceramic enterprises based on enterprise size and market orientation (export activity).

The research is based on the empirical study of Indian ceramic industry. Propositions are developed to study: the impact of GSCM pressures, implementation level of GSCM practices, improvement in GSCM performance, and the effect of GSCM pressures on implementation of practices, and impact of GSCM practices on GSCM performance. Data are collected from Indian ceramic enterprises of different sizes. Exploratory factor analysis is performed to segregate the pressures, practices and performance variables into constructs. Two-step algorithm, with log-likelihood measures of distance and Bayesian information criterion, is used to decide the optimal number of clusters. These clusters are compared and benchmarked according to the enterprise size and export activity.

This study finds that the implementation level of GSCM practices is higher in large- and medium-size enterprises as compared to small-size enterprises. Large- and medium-size enterprises have high impact of mimetic and informative pressures and small enterprises have high impact of coercive pressure (CP). Although the CP is high on small enterprises but due to the limited resources, these enterprises cannot afford to implement GSCM practices. The implementation of GSCM practices results into the improvement of environmental and operational performance but decrease in economic performance.

The findings of this study will suggest the policy maker to encourage the diffusion mechanism through a collaborative partnership with larger enterprises to enhance the implementation level of GSCM practices in small-size enterprises.

The novelty of the paper are: it analyzes and benchmarks GSCM pressures, practice and performance for Indian ceramic enterprises by considering enterprises size and export activities as control variables, and it finds the effect of GSCM pressures on the implementation level of GSCM practices and improvement in enterprise performance for Indian ceramic enterprises.