A TOE Approach to Establish a Green Supply Chain Adoption Decision Model in the Semiconductor Industry

The green supply chain is an innovation that extends traditional sustainability initiatives to environmental activities in the supply chain and aims to minimize a product’s environmental impact throughout its life cycle. The adoption of a green supply chain involves a complex decision-making process characterized by multiple criteria. The goal of the current study is to construct a decision framework by identifying a comprehensive set of consideration factors and their causal relationships. The consideration factors are deliberately drawn from a variety of different, yet related, theories and are grouped into an extensive Technology-Organization -Environment (TOE) framework. In accordance with the Decision Making Trial and Evaluation Laboratory (DEMATEL) method, the decision framework was analyzed for appropriateness through surveys of selected experts in the semiconductor industry. Because the semiconductor industry has a long history of heavy resource usage and has proven an early advocate of green supply chains, results from this study can provide insights to other firms with similar operations and aims. The contributions of this research are twofold. First, its theoretical contribution consists of integrating previously separate strands of different theories into a holistic framework and exploring the causal relationships among decision factors. Second, its practical contribution lies in its establishment of a strategic path that provides firms a set of priorities when adopting green supply chains.