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The Roles of First and Second Tier Suppliers in Greening International Supply Chains

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Collaboration for Sustainability and Innovation: A Role For Sustainability Driven by the Global South?

Part of the book series: Greening of Industry Networks Studies ((GINS,volume 3))

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Abstract

Green Supply Chain Management (GSCM) requires coordinated action across firms from different countries. The chapter uses a case study of a Taiwanese SME supplying automotive parts to a large French car-maker to analyze to what extent and why final customers’ GSCM are integrated in their first tier suppliers (the case study company) and second tier suppliers (SME suppliers of the case study company). It is found that there are no formal collaboration mechanisms between firms in this supply chain. The SMEs are mainly reactive approaches in response to various pressures. Greening drive decreases in less environmentally regulated markets where final customers are not environmentally sensitive. Shared values act as incentive to exchange information and develop mentorship relations between customers and first-tier suppliers. These relations provided the blue-print for similar mentorship relationship between first-tier and second tier suppliers. First tier supplier teach second-tier supplier how to satisfy customers’ requirement but such collaboration depends on two factors: (a) the extent of environmental awareness of second tier suppliers have and (b) the supply chain complexity and weight of first and second tier sales to European Markets.

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Notes

  1. 1.

    GSCM performance measurement remains a big challenge in the automotive industry Olugu et al (2011) as many firms in this industry have failed in GSCM due to their incapability to develop an adequate performance measurement system.

    There is lack of conceptual tools to understand areas for improvement and appropriate metrics for evaluating GSCM e (Azevedo et~al. 2011). Moreover, Hervani et~al. (2005) affirm that green supply chain management performance measurement (GSCM/PM) is virtually nonexistent, and the existing PM largely neglects environmental aspects.

  2. 2.

    The finding is similar to Rao et~al. (2006) results from a survey conducted amongst, Western Australian SMEs, where 80 % state that their clients have never mentioned to assess their environmental performance would be a factor in deciding their future partnerships.

  3. 3.

    Company C owner acknowledges that cost of certification itself are low, including consulting. However maintaining the certification will imply substantial and expensive changes in facilities and the production line.

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Author information

Authors and Affiliations

  1. School of Management, Royal Holloway University of London, Egham Surrey, UK

    Chao-Min Liu & Diego A. Vazquez-Brust

  2. School of Business, Worcester Polytechnic Institute, Worcester, Massachusetts, USA

    Joseph Sarkis

Authors
  1. Chao-Min Liu
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  2. Diego A. Vazquez-Brust
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  3. Joseph Sarkis
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Corresponding author

Correspondence to Diego A. Vazquez-Brust .

Editor information

Editors and Affiliations

  1. School of Management, Royal Holloway University of London, Egham, Surrey, United Kingdom

    Diego A. Vazquez-Brust

  2. School of Business, Worcester Polytechnic Institute, Worcester, Massachusetts, USA

    Joseph Sarkis

  3. Brockport College at Brockport, State University of New York, Brockport, New York, USA

    James J. Cordeiro

Appendix

Appendix

4.1.1 Performance Measurement: Company C

Please mark 1, 2, 3, 4, and 5, where 1 as the weakest performance and 5 as the strongest.

Table 4.2 Performance measurement: Company C
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Liu, CM., Vazquez-Brust, D.A., Sarkis, J. (2014). The Roles of First and Second Tier Suppliers in Greening International Supply Chains. In: Vazquez-Brust, D., Sarkis, J., Cordeiro, J. (eds) Collaboration for Sustainability and Innovation: A Role For Sustainability Driven by the Global South?. Greening of Industry Networks Studies, vol 3. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-7633-3_4

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