Hard dimensions evaluation in sustainable supply chain management for environmentally adaptive and mitigated adverse eco‐effect environmental policies

Abstract

In the oil and gas industry, adopting policies that can reduce the negative environmental effect is vital. Environmentally Sustainable Supply Chain Management (ESSCM) is an approach to carrying out Supply Chain Management (SCM) in an eco‐friendly manner and according to environmental requirements. There are different environmental policies that companies can apply based on their resource availability. Therefore, this study aims to evaluate the impact of hard dimensions on Environmentally Adaptive (EA) and Mitigated Adverse Eco‐Effect (MAE) policies in the oil and gas industry. To rank the data, Bayesian Best‐Worst Method (BWM) and Ordinal Priority Approach (OPA) have been applied. Cause‐and‐effect relationships are then calculated by employing the Decision‐Making Trial and Evaluation Laboratory (DEMATEL) technique. The results indicate that the ranking of the hard dimensions varies based on the companies' business policies and their new product/technology development projects. In other words, the findings of this research demonstrate that ‘innovation’ is the crucial dimension in companies that are focussed on developing eco‐friendly products while ‘technologies for cleaner production’ is the most important dimension in the companies attempting to reduce destructive consequences on the environment. In both types of the company policies, ‘lean manufacturing’, ‘total quality management’, and ‘institutional pressures’ are the key dimensions for a successful implementation of ESSCM while the least important dimensions include ‘supplier relationship management’, ‘green purchasing’, and ‘green logistics’. The findings of this research can assist the decision‐makers in the oil and gas sector in prioritising and identifying the interrelationship of the dimensions that significantly impact the ESSCM.