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The importance of GSCM has been growing over years. Organisations are
investing in green supply chain initiatives to beat market competition and build
brand image. Examples of few green supply chain initiatives are eco-design, green
purchasing, reverse logistics, customer cooperation, investment recovery and eco-
Design, internal environmental management, environment management system
adoption
Cost of green practices is a constraint to GSCM implementation (Min and Galle, 2001;
Zhu and Geng, 2013). Although implementation of a GSCM strategy can generate a
long-term cost reduction, many of the required practices for initial implementation can
increase cost (Simpson et al., 2007). GSCR and implementation of related practices
may require the development of supply chain systems and processes, which often
increases the costs of traditional operations (Luthra et al., 2011; Mudgal et al., 2010).
Many kernel distributors that want to implement GSCR practices may need additional
financial investments into the supply chain (Ravi and Shankar, 2005), such as
supporting many small-sized processors in volarization of RCNs shell by gasification
rather than being burned in open air (Tippayawong et al., 2011). Such financial
investments in suppliers may be beyond the financial capacity of kernel distributors
(Bhaskaran et al., 2006).
Financial Barrier
Greening the supply chains require different modern and high-tech green technologies,
infrastructure and eco-designs, which require huge financial investment (Lin 2013; Teixeira et al.
2016; Vachon 2007).
Implementation of GSCM requires latest green and flexible technologies for which considerable
amount of financial investment is required that may be beyond the reach of small and medium
enterprises in the supply chain network (Min and Galle 2001; Ravi and Shankar 2005).
According to Mathiyazhagan et al. (2013), good financial support is required for the
implementation of green supply chain management strategies. Therefore, financial barriers may
create a major hurdle in the achievement of GSCM and are considered as a barrier.
Cost of green practices is a constraint to GSCM implementation (Min and Galle, 2001; Zhu and
Geng, 2013). Although implementation of a GSCM strategy can generate a long-term cost
reduction, many of the required practices for initial implementation can increase cost (Simpson
et al., 2007). GSCR and implementation of related practices may require the development of
supply chain systems and processes, which often increases the costs of traditional operations
(Luthra et al., 2011; Mudgal et al., 2010).
The cost of disposal of hazardous products (B44) is significantly huge, with this huge cost
implication causing the uncertainty of implementing GSCM practices (Kushwaha 2010;
Sambrani and Pol 2016).
The additional cost incurred for implementing green practices poses a significant challenge for
all stakeholders as highlighted by several studies in construction and other sectors (Zhang et al.,
2011; Liu et al., 2012; Seuring and Muller, 2008)
Lack of knowledge and awareness
As evident from several studies in the construction literature (Sourani and Sohail, 2011; Zhang et
al., 2012), a lack of knowledge and awareness about green practices and its benefits is a
significant barrier stopping firms from investing time and resources in implementing green
practices.
This lack of knowledge of economic benefits (B45) that the companies seek to gain is considered
to be one of the potential barriers hindering GSCM implementation. Organizsations perceive
GSCM implementation as a programme with high initial and operating cost with no short-term
benefits and so are demotivated to such initiative (Chin, Tat, and Sulaiman 2015; Zhu and Sarkis
2004).
Introducing and practicing green initiatives in the traditional supply chains needs adequate knowledge
on green supply chain concept, proper training, and support (Islam 2012; Islam et al. 2017; Seuring and
Muller € 2008; Tseng and Chiu 2013). The lack of knowledge of green practices (B21) can significantly
hinder the implementation of GSCM practices (Kumar, Agrahari, and Roy 2015; Mehrabi et al. 2012).