Abstract
Increasing environmental concern from customers, buyers, communities, and government regulations have forced companies to implement Green Supply Chain Management (GSCM) and green innovation. GSCM and green innovation have strategic interconnection in developing new green product. Little research attention on this relationship cannot boost better understanding for academic and practitioners. The purpose of this paper is to review the recent literatures that discuss the relationship between GSCM and green innovation. The findings of this paper show that GSCM leads to green innovation. However, future studies should be included the whole GSCM practices in exploring the link on green innovation and also directly increase empirical evidence to support the relationship.
1. Introduction
The rapid of environmental issues throughout the world have increasing much concern from customers, buyers, communities and also government. For instance, both the local or international customers and buyers are now requiring their suppliers to make environmental friendly products [1]. The increasing awareness from communities on the environmental problems also has created this matter become more critical to companies. Besides, the European Union has developed a range of recent environmental regulations such as the Waste Electrical and Electronic Equipment (WEE), Restriction of Hazardous Substances (ROHS), and Eco-design for Energy using Products (EUP) directives [2]. These directives will forbid manufacturers from selling the products that contains hazardous materials onto the markets. As a result, most companies started to execute a number of corporate environmental management [3] that is believed to overcome those problems.
