5. Discussion
Despite the fact that the GSCM concept and implementation has gained the attention of scholars and practitioners in last decade and a consensus was reached on how GSCM can impact financial return, environmental outcomes and the operational firms’ improvement in automobile sector in global context such as Germany (Thun and Müller, 2010), USA (Xia and Li-Ping Tang, 2011), Japan (Kumar and Yamaoka, 2007), Brazil (Vanalle et al., 2017) and India (Luthra et al., 2016), limited study has conceptualized the impact of risk management on green supply chains and its impact on project management activities to predict project success. This study has closed the literature gaps that managing risk can assist the company to reduce risk of failure on new car development by implementing green supply chain strategy. It can also improve project managers confidence by adding value to project management activities for project success.
To answer the research problem, this study incorporated project risk as a predictor of GSCM adoption. Project risk was found as the driver of GSCM adoption in the Malaysia automobile industry. In the automobile sector, the project risks can come from additional costs and profit loss via government regulations and market requirements, which can be overcome by frequently conducting risk assessment. Project risk can be caused from product failure and the inability of an automobile firm to accommodate the technical and market requirements on environmental aspects. According to Somsuk and Laosirihongthong (2014), four main drivers of GSCM adoption exist in Thailand; these are government pressure, top management support, customer pressures, cost reduction and employee involvement/motivation. In Brazil, Mauricio and Jabbour (2017) identified critical success factors of GSCM adoption including top management commitment, information management and green product/process design. Cost is an interesting domain, which drives firms to adopt GSCM. Each industry and country have different market requirements and priorities in driving firms to adopt GSCM (Zhu and Sarkis, 2006).