Abstract
The 21st century is facing distinct and unique challenges such as a surging population on the planet, food shortages underscored by the surge in the number of people under the threat of starvation, disease and heath challenges, as well as the constantly deteriorating extreme weather conditions across the world. The issue of environmental sustainability has increasingly become one of the important yardsticks in corporate decision-making. Many small and big enterprises in the market have to consider their implications to the environment before making strategic decisions. This study aims to evaluate the small businesses sector in China with the focus on their implementation of green policies in their management as well as their supply chains. The study will employ both primary and secondary data. It will carry out a questionnaire survey and interviews to collect both qualitative and quantitative data regarding the subject matter.
Table of Contents
CHAPTER 2: LITERATURE REVIEW… 11
2.1 Background and Introduction. 11
2.2 The Background and Development of Research. 12
2.3 The Concept of Supply Chain. 12
2.4 The Concept of “Green” Enterprise Management (Green SCM) 13
2.5 Comparing the Conventional SCM and the Green SCM in Chinese Enterprise Sector 14
2.6 Factors Influencing Green SC (Barriers and Benefits) 17
2.6.1 Environmental Benefits. 18
2.7 The Prevailing Status of the GSC in China’s SME Sector 18
2.7 Critical Evaluation of the Literature. 19
3.1.1 Positivist Philosophy. 21
3.2.1 Primary research method. 24
3.3 Research Validity and Reliability. 26
3.4 Research’s Ethics Aspects. 27
CHAPTER 4: RESULTS AND ANALYSIS. 28
4.2 Analysis of the Results. 38
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS. 43
CHAPTER 1: INTRODUCTION
1.1 Background Analysis
The modern world is increasingly dependent on the enterprise sector. According to Huang, Tan & Ding (2015), the day-to-day activities are centered on the enterprise and business related initiatives or activities. The development of the socioeconomic and even political aspects of the society is hinged on business. Countries trade with countries and companies with companies. Business transactions occur locally, regionally and internationally. The huge scale of businesses across the world indicates that the impact of business on the societies in the world and on the environment is equally massive. As a result, Zhu, Qu, Geng & Fujita (2015) argue that the regulation or the control of the conduct and execution of business in the world is important. The impact of the business activities on the environment has especially come into a strong focus in recent years. More and more people across the world have become informed and aware of the connection between human activities and environmental conditions deterioration. This has led to a massive shift in public opinion regarding the responsibility of the enterprise sector in curbing the deterioration of environmental phenomena such as pollution and climate changes.
Geng et al. (2017) argue that the shift of public sentiment has coincided with the burgeoning confidence and conviction of the scientists on the effects of pollution and especially the emission of carbon to the environment. There is increased conviction on the link between the carbon footprint and the elevated greenhouse effects and the phenomena such as global warming or climate change. Moreover, Geng et al. (2017) posit that this realization among the elite and the ubiquitous availability of information on climate change and the effects it is causing and those it can potentially cause have led to the dramatic shift in public opinion throughout the world. Consequently, businesses and their supply chains have been encouraged and sometimes enforced to make changes or alterations in their supply chain management (SCM) to ensure they are compliant to the new eco-friendly provisions in the societal expectations as well as the laws of the various countries in the world.
China is one of the largest economies in the world; it is only second to the United States in terms of sheer size. As a result, it is a significant member of the global economy and it has a significant carbon footprint. This is because of the aggressive industrialization and manufacturing policy that China has pursued in the recent decades. Alongside the United States, China is the biggest world pollution contributors and the leading in emissions of greenhouse gasses. The vibrant small business community or sector in China is contributing massively to the emissions of GHGs into the atmospheres (Green et al., 2012). The adoption of the green energy policies and philosophies therefore affects the small business community in China.
1.2 Purpose of the Study
The small and medium-sized enterprise sector is has grown into one of the dominant drivers of economic growth across the global economic structure. The primary contribution of this sector is its role in the creation of employment among the youth. It offers a gateway for the young demographic across the world to use their skills, innovation, and creativity to manipulate the environment to help them develop economically. In the process, entrepreneurship has grown into one of the crucial cogs in the modern economic growth agenda. Govindan et al. (2014) argues that the meteoric rise of the Chinese economy to become the second largest in the world owes to the vibrancy and expansion of its SME sector. In fact, China is ranked as the biggest exporter in the world ahead of industrialized powers like the US, Japan, and Germany. This underscores the importance of the SME sector to China’s economic development as well as the quest of many other emerging economies such as India, Brazil, and the MINT nations (Mexico, Indonesia, Nigeria, and Turkey).
According to Mathiyazhan et al. (2013), the centrality of the SME sector in global economic agenda also means that the sector has also become one of the biggest sources of greenhouse gases (GHGs) emissions in the world. In terms of the sustainability agenda, this sector has become one of the biggest targets of environmentalists and sustainability campaigners within the economic setup in the world. Therefore, this study aims to evaluate the implementation of the green supply chain management among the small and medium enterprises in China.
China has become the epicenter of environmental, sustainability, and eco-friendly studies because of its status as the biggest emitter of carbon into the atmosphere. With the largest and fastest expanding SME sector, China is a good sample for the study to focus on. In this case, the research will seek to evaluate the success of the sustainability efforts and the application of the green supply chain in the country. This will be juxtaposed with the global status even as the world grapples with ways to curb the runaway carbon emissions that are causing the deterioration of the global warming manifestations across the world.
The increasing implementation of an eco-friendly (green) supply chain system is aimed at changing the energy and management approach throughout the world. The Chinese SME sector is not left behind; according to Kuei et al. (2015), the Chinese authorities have made pacts and agreements with the other major players in the global economy to establish measures to ensure that they cut their emissions of greenhouse gasses into the atmosphere. This is aimed at ensuring that the world averts the projected effects of global warming resulting from the excessive emission of greenhouse gasses, which result in the greenhouse effects. This indicates that the business models, that do not inculcate the environment and its protection into their blueprint or core competencies, are not sustainable.
As one of the major economic powers, China provides a good example to study the adoption of green energy and its implementation in the enterprise sector. As a result, the Chinese small business industry provides a good barometer of the world’s progress in green energy as well as establishing or revealing the challenges or problems faced by these SMEs in their quest to comply with this new norm of supply chain management.
1.3 Rationale of the Study
Environmental sustainability has increasingly become an important socioeconomic and political factor in the global discourse. In fact, some leaders have declared climate change an “existential threat” to the human race. This serves to underscore the veracity of the danger posed by climate change. It also reveals the new scope of significance that the efforts to enhance sustainability such as the adoption of green or sustainable strategic approaches within the corporate and SME sectors across the world. This significance can also be demonstrated by the commitment of some of the largest emitters in the world such as China, the US, France, Germany, and Japan to the Paris agreement aimed at curbing carbon emissions. The agreement also aims at putting these industrial powers on a path to eventually adopt fully sustainable methods throughout their economic fabric.
By studying the SME sector in China, this study aims to establish the conservative levels of progress towards meeting the targets of green supply chains in China. However, since China has been one of the harshest critics of climate change and the efforts to curb carbon emissions, results from a study focusing on China will provide the gauge of progress made. It will also reveal the resistance among these small businesses. This is because the conflict between socioeconomic development and long-term sustainability of the planet is rife in China. Faced with the opportunity to industrialize and create millions of jobs or adopt the initially costly green strategic approaches and lose jobs along the way, China always sides with the politically and socioeconomically popular decisions.
The study is also important because the US’ politics after the 2016 presidential elections point to a pro-fossil fuels, pro-auto industry, pro-coal sector, and relatively anti-EPA in the US. One of the biggest features of the fight against climate change in recent years has been the leadership of the US. Therefore, it is crucial to gauge the reaction of China to the potentially shifting environmental and sustainability policies held by the US locally and its stance at the international stage in the post-Obama era.
1.4 Objectives
The primary aim of this research is to understand the contemporary status of the green supply chain in the Chinese small and medium-sized industry.
Some of the specific objectives are indicated below:
- The study aims to analyze the literature of the structure and functioning of the supply chain in the small and medium-sized enterprises sector in China.
- The research also aims to evaluate the importance of adopting “green” supply chain among these small enterprises in China.
- The study also targets the analysis of the application of “green” or eco-friendly supply chains among the Chinese enterprise sector.
- The research aims to make recommendations based on the analysis carried out regarding the efforts that can be made or changes that can be implemented to improve the eco-friendly chain management structures inn Chinese small enterprises.
1.5 Research Questions
- What is the structure and functioning of the supply chain in the small and medium-sized enterprises sector in China?
- What is the importance of adopting “green” supply chain among these small enterprises in China?
- What is the core application of “green” or eco-friendly supply chains among the Chinese enterprise sector?
- What are some of the recommendations that can be made based on the analysis carried out regarding the efforts that can be made or changes that can be implemented to improve the eco-friendly chain management structures inn Chinese small enterprises?
CHAPTER 2: LITERATURE REVIEW
2.1 Background and Introduction
According to Namagembe, Sridharan & Ryan (2016), some of the leading corporations throughout the world have incorporated environmental performance as part of their core competencies. A majority of these corporations have chosen to implement green supply chain policies to adapt to the increasingly dynamic and changing society. Under such initiatives, these corporations require their suppliers and other businesses involved in their supply chain management to meet certain requirements of environmental performance. China accounts for around 10 percent of the total exports in the world (Namagembe, Sridharan & Ryan, 2016). Such statistics indicate that the country is a significant power in the global supply chain. It makes China the factory of the world as well. This is because the country is leading in terms of manufacturing, which later translates to the exports. The drivers of the Chinese economy are the small and medium-sized businesses (Mathiyazhagan, Govindan & Noorul, 2014). These account for around 80 percent of the exports that China makes to the international market. These SMEs contribute around 60 percent to the national gross domestic product (GDP). This sector is also big in the provision of employment to the Chinese people (Mathiyazhagan, Govindan & Noorul, 2014). As a result, this sector is the single most crucial sector for the economic development and maintenance of the economic gains for the Chinese authorities. There has been an increase in the prioritizing of the environment and sustainability among organizations in the world as shown in the figure below.
2.2 The Background and Development of Research
The supply chain of a business is an essential aspect of the performance and success of the business. The SMEs in China need to have an effective supply chain to grow and assert their dominance and their economic benefits to the Chinese economy and the social development of its people. The global trend of adopting green supply techniques in the supply chain is increasingly being replicated among the Chinese SMEs. This research will focus on the comparison between the supply chain and the green supply chain among these SMEs in China. This will indicate where these supply chains differ and what benefits they both offer the SMEs in terms of revenue and sustainability for future businesses and generations as well. It will also focus on the management aspect of these businesses and the decision-making process. The leadership of a business sets the culture and the performance ethos among the workforce. Therefore, the management style and skills applied have a massive impact on the firm’s ability to meet the overall sustainability requirements within the external environment.
2.3 The Concept of Supply Chain
According to Luthra, Garg & Haleem (2015), the concept of supply chain refers to a collection of resources, individuals, activities, organizations and technology that is involved in the creation and sale of products. These are involved in the process that leads to the production of such a product (Luthra, Garg & Haleem, 2015). This is forming the delivery of the raw materials or the source materials from the supplier to the company or the manufacturer through the manufacturing or assembling process to the product to the targeted consumer. The distribution channel is the supply chain segment that concerns itself with getting the finished product to the end consumer from the manufacturer.
This indicates that a supply chain is crucial for the business. It takes care of the core competencies of a business. It ensures that there is a smooth transition between the different stages that the company has to go through to produce the end-products. These products are subsequently distributed to the target markets to reach the end user (Wang et al., 2016). The SC provides order to the delivery of the steps involved. It ensures that all steps are accounted for and that all the required resources are where they are supposed to be at the right time (Wang et al., 2016). The principle of a supply chain is to help the core competency of a business or company to be delivered promptly and with the desired quality. Most of the supply chains are aimed or designed to meet the customer needs and preferences.
2.4 The Concept of “Green” Enterprise Management (Green SCM)
According to Laari et al. (2016), the concept of green supply chain incorporates the thinking of environmental impact and sustainability into the supply chain. Here, all the units or components of a supply chain are designed to incorporate the environmental thinking into them (Laari et al., 2016). This means that all these step and units within an SC have to be environmentally friendly or eco-friendly in their planning, execution and the impact they leave on the environment or the carbon footprint they leave. Some of these SC units or steps include the product design, sourcing and selection of raw materials, manufacturing or assembling as well as the distribution channel. This also considers the management of such products that target the end-of-life scenarios (Laari et al., 2016). This is because the end of life of such products can result in a pollution menace in the environment just as much as other steps in the supply chain.
The principle of the green supply chain is to offer sustainability to the business models in the world and China as well (Zhu & Geng, 2013). For a long time, the protection of the environment has been associated with a fall in revenue for business and tight profit margins (Zhu & Geng, 2013). However, this belief is fast being debunked. There has been a demonstration that green supply chains can be as profitable as and even more so than the conventional SCs (Lee et al., 2014). The major gain for adopting green supply chain, aside from the increase efficiency and profitability, is the protection of the environment (Bohnsack, Pinkse & Kolk, 2014). The business model that is eco-friendly will reign in on issues such as global warming and climate change (Lee et al., 2014). As a result, it ensures there is a habitable planet left for the succeeding generations.
2.5 Comparing the Conventional SCM and the Green SCM in Chinese Enterprise Sector
China has the largest SME sector in the world. This SME sector is majorly engaged in production or manufacturing of products that China exports to the world (Lee et al., 2014). Luthra, Garg & Haleem (2014) argue that this means that the manufacturing strategy by the Chinese authorities is aggressive, and this is translated to the private SMEs within the Chinese economy (Luthra, Garg & Haleem, 2014). As a result, the supply chains adopted by these SMEs in China are crucial to determining how these businesses are run. They also determine the impact they have on the country socioeconomically as well as in terms of effects on the environment.
Since incorporation or the adoption of the open door policy in 1978 by the Chinese authorities, businesses in China have grown from strength to strength. These businesses have chiefly adopted the supply chain to guide their production and distribution of their products. The Chinese economy has grown massively since this turning moment in history (Lee et al., 2014). According to Luthra, Garg & Haleem (2014), the influx of foreign corporations into China has influenced the supply chain structure, principle and applications among the SMEs and other businesses in China. The supply chain has been concerned with the core principles that are discussed below (Lee et al., 2014).
- To use the services that the distinct groups within the target market need to segment the customers and adapt the supply chain to meet these customer needs and ensure profitability.
- To tailor or customize the logistics of the business to serve specific needs of the customers to ensure profitability.
- Respond to market signals and trends and tailor the planning for demand throughout the supply chain. This is designed to ensure consistency in the forecasts about the business sales and growth and thus to ensure optimal allocation of resources.
- Produce goods or products that are of interest to the customers and differentiate them to gain a competitive advantage in the market.
- To reduce total costs by managing the sources of supply in a strategic manner across the supply chain.
- To inculcate the use of technology to ensure that the efficiency of the supply chain is ensured. Issues such as inventory-taking, security as well as visibility of the goods throughout the supply cha are ensured with the use of technology.
- Encourage collective success through the adoption of channel-spanning efforts to improve performance within the firm.
These principles are the major driving forces for the supply chains within the Chinese SME sector. The policies and strategies that these businesses adopt are aimed at ensuring profitability. These firms are driving for growth and more growth no matter the impacts (Lee et al., 2014). They cite the socioeconomic benefits that they have brought to the Chinese society as proof that this system works. These SMEs have created millions of jobs within China, and they contribute massively to the economic growth of the Chinese economy. They have contributed to elevating the Chinese economy to be the second biggest economy in the world behind the United States.
The results of the supply chain use have been massive economic growth and several other economic benefits to the Chinese economy such as jobs and dominant position in the Chinese economy globally. However, there has been the effect of using this supply chains in China. There is the massive pollution of the environment within the neighborhoods where most of the Chinese people live. According to Mohamty et al., (2015), this has caused an uosurge in the number of disease and ailments to such societies (Luthra, Garg & Haleem, 2014). China has also joined the US as the largest polluters in the world. This economic and business model among the Chinese SMEs is not sustainable. It is ultimately expensive.
This has been the reason for the rise in the application of the green supply chains (GSC) among the SMEs in China. The major focus of the GSC is ensuring sustainability. It ensures that the environmental thinking is applied to the supply chains of these SMEs in China (Mohamty et al., 2015). There is a new-found focus on the GSC within businesses and enterprises in China. This has followed a global trend in ensuring eco-friendly business models (Boons & Lukede-Freund, 2013). This concerted focus has come about because of the realization that one country cannot reverse the effects that supply chains throughout the world have caused (Mohamty et al., 2015). The major polluters such as the United States, China, and the European Union have to work together to ensure global sustainability. They, therefore, need to save the planet from the scourge of pollution and unsustainability caused by the supply chains in the world and majorly in China’s vibrant SME sector.
This comparison indicates that there is a shift from the supply chain model to the green supply chains models among the SME sector in China. This has happened because of the realization of the benefits of adopting a green supply chain. These benefits range from financial benefits to the business to the environmental benefits to the communities and for posterity as well.
2.6 Factors Influencing Green SC (Barriers and Benefits)
According to Mathiyazhagan et al., (2015), GSC ensures the logistics network is working in an efficient manner. It ensures that it is energy efficient. This cuts the unnecessary costs from a business’ supply chain (Mathiyazhagan et al., 2015). The green supply chain is also designed to ensure productivity among the workers of a business. Here, the warehouses are structured to ensure optimization of space. This ensures efficiency among these businesses. Transportation is important for the logistics of a business. It helps the movement of raw materials from the source to the manufacturing plant (Mathiyazhagan et al., 2015). It also helps in the movement of finished products from the manufacturing plant or assembling plant to the end consumers. Green supply chains ensure the optimization of the routes and loads for transportation. The reverse logistics are also developed in a manner that is efficient. It ensures the proper management of the return process for the business.
There are other benefits for the adoption of green supply chains; these can be grouped into financial, environmental, products and social benefits.
2.6.1 Environmental Benefits
Adoption of the green supply chain by businesses ensures there is a marked reduction in the wastage of resources within the supply chain. It increases the efficiency of the use of energy. It leads to a marked decrease in the emission of carbon and other greenhouse gasses. There is a reduction in the discharges into the water bodies from manufacturing industries. There is also a reduction in the consumption of fossil fuel (Afolayan et al., 2016). This leads to a reduction in some emissions to the atmosphere that result from the combustion of these fuels.
2.6.2 Social Benefits
There is an improvement in the health of the communities living around such manufacturing plant; this is because there is a reduction of emissions and discharges to the environment. There is increased safety and security of the communities in the environs of where these businesses operate. This means there it is a considerable reduction in the impacts of such businesses to the community (Afolayan et al., 2016). There is a reduction in the noise pollution as well as a significant reduction in the congestion of traffic on the roads.
2.6.3 Financial Benefits
According to Afolayan et al. (2016), there is an increase in the revenue those businesses that have adopted green supply chains receive. There are also reduced costs since the businesses become efficient. The businesses increase their asset utilization and enhance their services to their customers. This leads to increased numbers of customers and improved customer loyalty (Afolayan et al., 2016).
2.7 The Prevailing Status of the GSC in China’s SME Sector
The manufacturing sector in China comprises about 90 percent SMEs. This indicates that the SMEs are the major manufacturers in the country. The Chinese authorities have come under international pressure to reign in their SME sector and reduce the emissions and other pollution types that this sector has caused (Boons et al., 2013). The Chinese authorities have responded by ensuring that the environmental performance is part of the core strategic plans of businesses. By ensuring this, the authorities have guaranteed that businesses will have compliance to the environmental performance and adopting the green supply chains (Tamošaitien et al., 2014). This has witnessed a steady rise in the number of SMEs that are adopting these green supply chain systems. The Chinese exports account for about 10 percent of the total exports in the world. This means that the adoption of GSC within China will contribute massively to the levels of sustainability globally (Tamošaitien et al., 2014). China has laid out plans to curb its emissions by around 45 percent by the year 2020. For China to meet these ambitious plans, the SMEs sector has to be brought on board and ensure that they adopt the environmental performance as part and parcel of their core business competencies.
A global survey has indicated that there are several environmental issues facing SMEs in China. Some of these issues include a lack of insufficient awareness on the issues of environment and the adoption of green supply chains within China (Plant, Xu & White, 2015). There are major issues about waste disposal, natural resources conservation and the preferences of green consumers.
2.7 Critical Evaluation of the Literature
According to Singh (2015), China is well in the path of adopting the green supply chains. The SMEs in China are the major drivers of the country’s economy and exports as well. This transition has been informed of the major changes in the perceptions of climate change and global warming among the members of society. The common citizens now understand the issues of global warming and climate change (Plant, Xu & White, 2015); this has led to the increased need for sustainability among Chinese businesses. This is specially the case in the SME sector. However, the literature does not explain the reason authorities around the world, especially the Chinese have held out on the adoption of GSC until now (Luhtra, Qadri, Garg & Haleem, 2014). This is because there has always been pressure on the authorities, and there has always been information on the global warming and climate change phenomena.
The Chinese authorities have joined the global efforts to ensure sustainability in development. They have, as a result, made regulations in China that environmental performance be part of every business’ core competency. This allows the government to appraise such companies, ensure that all these businesses or SMEs are compliant, and thus protect the environment among another raft of benefits. Such benefits include financial, environmental and socio-economic. However, the literature does not offer a guarantee of businesses that transition will maintain their successes (Luhtra, Qadri, Garg & Haleem, 2014). This is because the transitioning costs are massive and for the SMEs, it is a big burden. They might lose their competitive advantage and market share as well. This transition will favor the big and established businesses to the detriment of the SMEs in China. The literature does not illuminate these issues sufficiently.
CHAPTER 3: METHODOLOGY
3.1 Research Philosophy
The philosophical underpinning of a research approach is crucial because it forms the foundation that drives the entire study ethos. Therefore, the philosophy adopted by the researcher influences the methodology adopted, the approach used to collect, analyze, and interpret data. Therefore, the research philosophy is the guide that influences the thinking of the researcher when establishing the rationale and the objectives of the study.
3.1.1 Positivist Philosophy
This philosophical approach focuses on aspects of the study that can be measured and quantified through observation and measurements. In this case, the approach focused on aspects of the SME sector in China that can be observed, measured, and quantified. This approach allows the study to explore the extent, scope, and degree of impact that the targeted factors influence the industry in China. It also provides a combination of qualitative and quantitative data approach to establish an internal checks and balances that improves the reliability and validity of the study.
3.2 Research Strategy
The research strategy adopted for every study varies depending on the subject under investigation. A Research strategy refers to the strategic point of view researchers have regarding the research project (Singh, 2015). A research strategy is a plan put in place by researchers to ensure that the research questions are broadly and deeply addressed. Although the research study is often put in place by the main researcher, Xu et al. (2013) argues that most researchers deploy research assistants to help in strategy implementation. Drawing up the research strategy and implementing the same are two very different processes. Geng, Manouri & Aktas (2017) note that it is the work of the researcher to ensure that the research strategy adopted for the study is solid at the conception. They are also supposed to ensure the implementation stages before embarking on data collection. Prior or immediately after formulating the research topic and research objectives, a researcher can begin to get a clear picture of the research outlook.
The most important consideration put in place as an influencer of the research strategy to be adopted for this particular study is the scope of the study (Gunasekaran, Subramanian & Rahman, 2015). Properly formulated research approaches are those that have already defined their scope. By defining the scope of the research study, the researchers ensures that the ensuing research strategy will be aimed at benefiting the parties to the research that are current residents to the area covered under the scope of the research, or new inhabitants who are keen on joining the current population covered under the research scope (Gunasekaran, Subramanian & Rahman, 2015). While considering the research topic that has been developed for purposes of this research study. The current geographical research scope is limited to a country –People’s Republic of China, and it is up to the research strategy that is to be developed to ensure that the target population benefits from the research output. The research study seeks to undertake a comparative analysis in the approach to GSCM in the Chinese SME industry.
Geographical scope of the research mainly refers to the physical areas that are to be covered by the research (Mohd et al., 2015). From the research topic, it has become quite clear that the research intends to cover a considerable geographical area – the whole country of China. The research strategy will therefore be that which aims to ensure that not only small and medium sized companies, but also other stakeholders like scholars and investors in green supply chains can also benefit from the research outcome. The resources that are available at the researcher’s disposal are also of great influence to the research strategy that has been selected (Mohd et al., 2015).
For purposes of writing this research paper, the research strategies that will be under consideration include the quantitative research strategy approaches. A research strategy that is deemed to exhibit quantitative characteristics is that which entails analyzing data after data collection (Mohd et al., 2015). In contrast, qualitative research strategy is that which is merely describable using words is. For example, whereas the quantitative approach will seek to find out the exact number of small and medium size business firms, a qualitative approach to the research strategy will be content with descriptions such as ‘small’ or ‘medium’. This example reveals a key advantage of adopting this kind of research strategy for this research paper. From the example, it can be deduced that the only one approach to the research strategy, the qualitative approach is suitable for this type of study although the two are often complimentary in their application. Whereas one gives the exact number of small and medium sized enterprises, the other strategy will be descriptive in its output.
3.2 Research Methods
The study employed the mixed approach where it made use of both the primary and secondary data. The secondary data provided the background to the study. In this case, it provided the existing literature regarding the supply chain and the eco-friendly strategic approaches adopted in the Chinese SME sector. The primary data was designed to collect direct empirical data indicating the prevailing status of the sector. In this case, the study aimed to collect data from the owners and managers of these small enterprises in the market. Additionally, the research also focused on using qualitative and quantitative data. In this case, the qualitative data focused on obtaining the meanings, explanations, interpretations, and descriptions of the phenomena and issues that study encounters in the process of collecting data. The quantitative data represents the concepts the study encounters in a quantitative form using fractions, percentages, ratios, decimals, and codes to represent the aspects or observable phenomena the study encounters.
3.2.1 Primary research method
The primary research method involves collecting first-hand information from the subject being studied (Mohd et al., 2015). That is, primary data is original or first-hand data obtained from the field through the researcher’s interactions with the participant of the study. The primary research method involves interaction of the researcher with different members of the population to gather the required data. It usually precedes an outline on the scope of research. In this case, the primary research method for this study utilizes both questionnaires and interviews when gathering the required information. Questionnaires were administered online whereby; the participants of the study filled it online and sent them back to the researcher. Some of the interviews were direct while the remaining ones were done over the phone. The two tools of data collection were swift in collecting information and cost effective as well.
3.2.1.1 Questionnaire Survey
The questionnaire approach was used to reach the owners or managers of small businesses in China. The study targeted this group because they have a close relationship with the day-to-day running of these firms in the country. Additionally, they encounter the green or eco-friendly supply chain requirements from the Chinese national government as well as enforcement done by the local governments. Their role in implementation means that they are uniquely positioned to given an opinion and view on the role of business management in the application of policies. They can also shade some light on the impact of implementing a green SCM in the small and medium-sized businesses in the most ultra-competitive sector in the world.
3.2.1.2 Interview Approach
The interview approach focused on the policy makers in China. These individuals at the Chinese national government or local authorities oversee the implementation of the echo-friendly regulations as the country seeks to clean up its carbon footprint and transition into sustainable business models. The interview focuses on a one-on-one dynamic where each individual is asked to give his or her views, opinion, and experience regarding the implementation of green SCM in the country (Bocken et al., 2014). Additionally, they can also share their estimates regarding government’s expected changes in the economy regarding the impact of the transition from the fossil fuel-intensive models to the eco-friendly and greener strategic approaches among its businesses.
3.2.2 Secondary data
It is a fundamental aspect of this research. As opposed to primary research method, secondary data collection is obtained from secondary sources. That is, using information extracted from pre-existing materials such as scholar studies or government reports (Mohd et al., 2015). Secondary sources complement the primary sources and provide a foundation on which the primary sources can be obtained. It gives a general direction to the data sourcing process. The secondary methods are preferred because they are much cheaper than the primary methods since they are founded on a pre-existing research or report. Secondary methods are often used in the literature review process of the research to find out the nature of past and current research work on the topic (Geng, Mansouri & Aktas, 2017). Data and information from secondary research can be obtained through existing texts on the topic, news and broadcasts, business magazines and the various online platforms including individual company websites and blogs.
In this case, the secondary sources are studies of scholars such as Xu et al. (2013) who provide information of the position of China in the global supply chain. Other sources of secondary information are government as well as company reports, which shed more light on the subject of study.
3.3 Research Validity and Reliability
This study primarily used the mixed method. In this case, the study employed both primary data collected form the targeted sample as well as secondary data. This approach allows the researcher to establish an effective background on the subject matter using secondary data. This also enables the researcher to establish gaps in the literature and come up with questions that should be answered during the study. On the other hand, primary data seeks to obtain empirical data to fill the literature gaps and the questions posed by the study. This means that the primary and secondary data are used in a complementary manner to enhance the reliability of the research.
On the other hand, the study also combines the use of qualitative data and quantitative data. This creates an internal checks and balances dynamic. This is because the researcher has to tally the qualitative explanations and definitions of the phenomena encountered with the quantitative figures, percentages, and ratios established from the collected data. Therefore, this enhances the validity of this study.
3.4 Research’s Ethics Aspects
The first ethics for this study focuses on its ability to keep confidential information. This is especially the case when the bio-information of the participants is concerned. The research aims to keep all the participants’ information confidential; it will not be released to anyone express with the express permission of the individual involved. Secondly, the study will only proceed with the questionnaire or interview after the participants have made their informed consent. This means that each individual is informed of their exact role, possible consequences or reprisals before they are allowed to participate. Additionally, these participants are also informed of the merits of the study and how it will contribute to the knowledge body of a crucial sector in the business industry.
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CHAPTER 5: CONCLUSION AND RECOMMENDATIONS
5.1 Conclusion
Findings indicate that the Green SCM system in China’s SME sector offers a promising alternative to the promotion of an eco-friendly product supply. This is evidenced by the ISO140001 certification that boosted the environmental auditing of the suppliers as well as the clientele. This minimizes probable harmful effects of the products from the environment while promoting healthy customer relations. Findings also indicate that despite the fact that small businesses in China actively implement the GSCM system, they still face quite some issues that relate to economic factors. Additionally, there is a need for increased number of competent personnel to improve the service delivery system to the clients. However, these companies employ various strategies and approach some of its challenges in the implementation of the GSCM system. This is through taking initiatives towards adjustments in operations to boost the efficiency of service delivery. It is, therefore, paramount to note that, these issues are not universal as discussed through this research.
5.2 Recommendations
- There is a need for the Chinese government to establish training and education programs to the owners and managers of SMEs in the country. This will allow them to understand the management challenges and issues they face while implementing these policies.
- The Chinese government needs to be actively involved in not only enforcement but through a support system for the SMEs. Since these businesses are small and not established, they need financial and technical support to transition to GSCM systems.
- The government needs to expand its investment in the GSCM systems within the pubic system. This will act as the foundation and example for the rest of the private sector.
- The small firms should establish b2b relationships, partnerships, and joint ventures with established companies. This will help them to develop capacity, learn the strategic approaches and technologies used in GSCM systems.
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7.0 APPENDIX
7.1 Questionnaire
What is your Gender?
- Male
- Female
What is your Age?
- 18-25
- 26-35
- 36-44
- 46-55
- 55-65
- Over 65
What is Your Highest Level of Education?
- Bachelor’s
- Master’s
- PhD
- Other
What is your position in the business?
- Top Manager
- Medium Manager
- Staff
- Other
How long have you worked at this organization?
- Less than 3 years
- 4-10 years
- 11-20 years
- 21-30 years
Do you know about green supply chain management?
- Strongly Don’t understand
- Don’t understand
- Understand
- Clearly Understand
Do you think that the traditional supply chain and logistical structure should be changed?
- Yes
- No
- Other
Does your organization have a strategic approach to implement green supply chain?
- Yes
- No
- Other
Is the implementation of green supply chain profitable in the short-term?
- Yes
- No
other
Is the Chinese government serious in enforcing the “green” supply chain policies?
- Yes
- No
- other
7.2 Interview Questions
- What steps has the Chines government taken to enhance the implementation of sustainable business models and green supply chains?
- What is China’s motivation in implementing these policies?
- What is their impact on the SME sector?
- What has been the reaction of the SME industry to these sweeping changes in governance standards?
- What is the short-term importance of the implementation of green supply chain policies in China?
- What is the long-term importance of the implementation of green supply chain policies in China?
- How does China’s green supply chain policies targeting the SME sector compare with the other global powers such as Germany and the US.
- Is the application of green policies in the vibrant Chinese SME sector adversely affecting its competitive advantage in the global market?
Innovative Writers 