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Globalization has resulted in pressure on multinational firms to improve environmentalperformance. As a consequence of this pressure, and the efforts to address it, environmentalmanagement issues have become relevant to operations management researchers (Sanchezand McKinley, 1998; Murty and Kumar, 2003). Handfield et al. (1997) proposed sixstrategies for dealing with environmental issues, including resistant adaptation, embracingwithout innovating, and being reactive, receptive, constructive, and proactive. Givenmounting public perception that corporate responses to environmental challenges have beeninadequate, there is a mandate to move beyond constructive strategies. Companies need toadopt proactive strategies that shape a new vision of their short- and long-term environmentalresponsibilities.Automotive firms worldwide likewise face increasing pressures in the environmentalarena. Over the past decade, there has been a consistent trend toward the reduction ofenvironmental releases in the automotive manufacturing sector. One potential path forachieving improvement in environmental performance, while maintaining production qualityand cost goals at the plant level, is unique partnerships with suppliers (Geffen and Rothenberg,2000).Prior to the 1980’s, automakers’ relationships with suppliers are characterized by shorttermcontracts, arms-length relationships, and multiple suppliers per part (Helper, 1991). Tothe present, researchers have shown evidence of a movement toward closer and more
cooperative supplier-manufacturer relationships (Dyer and Ouchi, 1993). The close suppliermanufacturer
relationships observed in Japan’s auto industry are thought to be a key factor inthe success of Japanese manufacturers, as they contributed to decreased development time,
lowered costs, and increased product quality (Cusmano and Takeishi, 1991). However, the
extent of supplier involvement varies significantly between automotive companies (Flynn and
Belzowski, 1996).
Most of automobile manufacturers and customers are concerned about the environmental
and safety impact generated by the use of automobiles. While the major environmental impact
that occurs during the life cycle of an automobile is generated during the use of the product
itself, the environmental impact of the automobile manufacturing process is also of
significance (Keoleian et al., 1997).
Companies often carry out the retail process for production companies. One main industry
with interest in an extended supply chain management perspective is the automotive industry.
Car manufacturers became global companies with global development, sourcing,
manufacturing and selling. From 2007 onwards, car manufacturers will be forced by
European Union Law to recycle new cars sold within the European Union. Therefore, these
firms have a rising interest in optimizing their supply chain network from the development to
recycling stages.
Accordingly, this paper emphasizes the role of suppliers in green supply chain
management and hence examines whether suppliers’ involvement in different operational lifecycle
stages will or will not significantly influence the automakers’ environmentally-friendly
practices and environmental performance. In turn, this paper employs an environmental
viewpoint to explore the evaluation criteria and selection procedure of green suppliers
assessment for decision-makers.
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