Supply chain cooperation as a green supply chain management implementation strategy to achieve competitive advantages in natural disaster prone regions

Abstract

Purpose This study aims to present a competitive advantages framework suited for disaster prone regions in the era of climate change, present supply chain cooperation (SCC) as an integral part of GrSCM within the automobile industry and evaluate the competitive advantages framework merits based on SCC as a new implementation tool. Design/methodology/approach In an effort to address limited green supply chain management implementation strategies in disaster prone regions, the paper presents SCC as an economic, social and political implementation tool. To explore this; the study introduces SCC in a three-phase competitive advantages model adopted from the Barney 1995 model (with slight differences). Smart PLS 3.0 software package was adopted to carry out multi-variable data analysis. The study’s assumption is a capital economic system and bases its argument of analysis on stockholder theoretical lenses. Findings Big company size does not significantly affect SCC, suggesting that companies of all size can organize and enhance their network to be cooperative. Companies with cooperative supply chain network tend to have competitive advantages. SCC is also a viable way to manage business risks, be there internal or external. Research limitations/implications One of the study’s limitation is the stockholder theory it adopts, which shoulders its assumptions on a capital economic model of operation. Indeed, the study covered China, which is seen to be a communist-based economy. Another study’s limitation is that it narrows its data collection to disaster prone areas as documented by Guha-Sapir et al. (2012). Consequently, the findings of this study might be only applicable to areas that experience significant level of disruptions usually caused by disaster incidents. Originality/value The study is also the first of its kind to propose a model for automobile manufacturing in disaster prone regions. This is done by introducing SCC as an economic, social and political factor, while risk ranking is introduced as an environmental factor to constitute the external changes that Barney 1995 introduced.