A Measurement Framework for Green Supply Chain Management and its Relationship with the Circular Economy Principle in MSME’s

DOI: https://doie.org/10.10399/APER.2025454699

Authors:

Shruti Vadukiya , Dr. Sheetal Mundra

Keywords:

Green supply chain management (GSCM), Structural equation modeling (SEM), Circular economy (CE)

Abstract:

Purpose: The paper highlights the growing importance of green supply chain management (GSCM) in management research over the past two years. GSCM seeks to integrate environmental considerations into various aspects of supply chain management, including purchase planning, material selection, production methods, product delivery, and post-project management throughout the product's lifecycle. The research explores the relationship between GSCM and the Circular Economy (CE) concept by developing a framework to evaluate GSCM practices in correlation with circular economic principles, with a specific focus on small and medium-sized enterprises (MSMEs).
Design/Methodology /Approach:
The study engaged 360 participants from micro, small, and medium enterprises (MSMEs) in the Rajasthan region of India. Confirmatory factor analysis (CFA) was used to identify the key determinants that influence firm performance. The data was analyzed using SPSS and AMOS software, which led to the creation of a conceptual framework through structural equation modeling (SEM). The study's focus on the intersection of GSCM and CE, and its practical implications for MSMEs, make it a relevant and timely contribution to the growing area of research on sustainable business practices.
Findings: The paper presents a comprehensive measurement framework tailored for assessing the performance of green supply chain management (GSCM) practices and their relationship to circular economy (CE) principles within the context of micro, small, and medium-sized enterprises (MSMEs). This holistic framework provides a structured approach for MSMEs to evaluate the integration of GSCM and CE in their operations. Also, the research empirically investigates the synergies between GSCM and CE principles and their implications for MSME performance. The findings reveal significant positive relationships between the implementation of GSCM practices (e.g., green procurement, eco-design, reverse logistics) and the adoption of CE principles (e.g., resource efficiency, closed-loop systems, waste reduction) within the MSME segment.
Originality/value: The research is centered on MSMEs operating in the Rajasthan region, providing insights specific to this business environment. The study aims to develop a comprehensive framework for assessing green practices and its relationship with circular economic approaches within small and medium-sized enterprises.
 

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