Green supply chain

Environmental Engineering and Management Journal September 2017, Vol.16, No. 9, 2123-2132
http://omicron.ch.tuiasi.ro/EEMJ/
“Gheorghe Asachi” Technical University of Iasi, Romania
SUSTAINABLE SUPPLY CHAIN MANAGEMENT
IN MALAYSIAN SMEs: PERSPECTIVES FROM PRACTITIONERS
Ezutah Udoncy Olugu1
, Kuan Yew Wong2
, Mohamed Shaharoun Awaluddin2
,
Salwa Hanim Abdul-Rashid3
, Raja Ariffin Bin Raja Ghazilla3
1
Faculty of Engineering, Technology and Built Environment, UCSI University, 56000 Kuala Lumpur, Malaysia
2
Department of Manufacturing and Industrial Engineering, Faculty of Mechanical Engineering,
Universiti Teknologi Malaysia, 81310 UTM Skudai, Malaysia
3
Center for Product Design and Manufacture, Department of Mechanical Engineering, Faculty of Engineering,
University of Malaya, 50603 Kuala Lumpur, Malaysia
Abstract
This study was aimed at eliciting the perception of practitioners on sustainable supply chain management in small and medium
enterprises (SMEs). A total of 15 companies from the SMEs in Malaysia were selected. 5 of these companies serve as suppliers
to larger firms within and outside Malaysia, another 5 as manufacturers, and the rest as reverse logistics companies (collectors
and recycling plant operating companies). All the companies were selected based on their involvement in sustainable supply
chain management. A structured interview was conducted to uncover their perceptions and challenges in sustainable supply chain
management. Feedback from the conducted interview revealed that most of the practitioners from these companies believe that
sustainable supply chain management requires well-structured and efficient supply chain integration. In essence, this study
enhanced the understanding of the requirements for an efficient sustainable supply chain management in the SMEs of a
developing country and sustainable manufacturing in general.
Keywords: practitioner, SME, supply chain, sustainable supply chain management
Received: June, 2012; Revised final: January, 2014; Accepted: January, 2014

Author to whom all correspondence should be addressed: e-mail: olugu@ucsiuniversity.edu.my; Phone: +603-91018880; Fax: +603-91323663
1. Introduction
According to Goodland (1991) and Linton et
al. (2007), sustainability has become one of the most
contemporary issues in our everyday life in recent
years. It is also an established fact that industrial
production is accompanied by various environmental
and social concerns at various stages of the
production processes (Kemp, 1994; Seuring and
Muller, 2008). Hence, the emergence of sustainable
production as a viable option in combating these
production concerns has been a laudable
development. Since manufacturing companies do not
operate in isolation, sustainability in the
manufacturing sphere has been extended to include
manufacturing supply chains (Beamon, 2005; Matos
and Hall, 2007). Today, many researchers believe
that sustainable production can only be achieved
through a sustainable supply chain (Linton et al.,
2007; Olugu et al., 2010; Pan et al., 2015; Vachon
and Klassen, 2006; Solvang et al., 2006). In addition,
various studies have asserted that the management of
waste arising from end-of-life products should be
integrated into the initial production and sourcing
plan (Dychkoff et al., 2004; Solvang et al., 2006; Zhu
et al., 2008). Thus, it is worthy of note that despite
sustainability being in existence for a long time, its
extension to supply chains has just started gaining the
deserved attention (Chaabane et al., 2012; Linton et
al., 2007). Based on the assertion that sustainable

Olugu et al./Environmental Engineering and Management Journal 16 (2017), 9, 2123-2132
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development takes into cognizance the interwoven
relationship between the economic, environmental
and social performances of an organization (Beamon,
2005; Beamon, 2008; Chaabane, 2012; Linton et al.,
2007; Seuring and Muller, 2008), an integrated
approach that combines supply chain operations with
these elements of sustainability has been advocated
(Beamon, 2008; Chaabane et al., 2012).
In this study, the perception of practitioners
from the SMEs in developing countries towards
sustainable supply chain management (SSCM) has
been investigated. The study used fifteen SMEs from
Malaysia as case studies to understand the perception
of the practitioners towards SSCM in developing
countries. 5 of these SMEs are engaged as suppliers
to larger companies within and outside Malaysia, 5 as
manufacturers and 5 as reverse logistics operators.
The reverse logistics operators include collectors,
shredders and recycling plant operators. These
reverse logistics operators are termed as recyclers in
this study.
This study has 2 major contributions to
knowledge in SSCM. It has been observed in
literature that most studies only looked at
sustainability in SMEs from a generic point of view
(Lepoutre and Heene, 2006; Thompson and Smith,
1991), without considering its application to their
supply chain. Only a few studies have been
conducted on the adoption of SSCM but none has
really used a case study approach to elicit the
perception of practitioners from SMEs on SSCM for
a developing country. The study also serves as a
reference point for managers of larger or more
developed companies on how to achieve an effective
SSCM with the SMEs from developing countries.
The remainder of this study is organized in the
following manner: the following section contains the
definitions and implications of supply chain
sustainability. This section also looks at SMEs in
Malaysia and SSCM. This is followed by a
description of the research methodology adopted in
this study. The third section looks at the results and
discusses their implications in SSCM. This section
also contains recommendations of strategies towards
an efficient SSCM. The study culminates with
conclusions and recommendations for future
research.
1.1. Supply Chain Sustainability
SSCM has been defined as SCM which
incorporates all the three dimensions of sustainability
such as economic, environmental, and social
concerns (Gupta and Palsule-Desai, 2011; Linton et
al., 2007; Seuring et al., 2006). This implies the
involvement of a multi-disciplinary perspective,
encompassing the entire product life-cycle and
organizational management principles with
environmental impact as an imperative, taking into
consideration all the stages across the entire supply
chain for a given product. Furthermore, SCM in this
era of environmental and social consciousness should
be viewed as an operational structure between
suppliers, manufacturers and consumers with major
consideration on the environment (Barbosa-Póvoa,
2009; Beamon, 2008; Olugu et al., 2010, Tsoulfas
and Pappis, 2008).
The importance of sustainability in a supply
chain has been getting a lot of attention owing to the
fact that many customers, stakeholders and
employees are very concerned about social and
environmental responsibilities of companies
(Beamon, 2008; Otslin et al., 2008; Vanalle et al.,
2011). This is supported by the observation of
various studies that some of the major drivers of
sustainability in a supply chain stem from
governmental legislations, pressure from non-
governmental organizations, customers’ concerns,
and stakeholders’ requirements (Beamon, 2008; Gold
et al., 2010; Nawrocka, 2008; Seuring and Muller,
2008; Sharfman et al., 1997). Since many authors
have consented to the fact that manufacturing
competition is now between organizations’ supply
chains (Christopher, 1996; Cox, 1999; Hult et al.,
2007; Morgan and Monczka, 1996; Zhu et al., 2008),
it has become imperative to extend sustainability to
supply chains (Beamon, 1999; Koplin et al., 2007;
Salam, 2009). This will in turn transform supply
chain sustainability into a formidable competitive
strategy in the manufacturing industry.
To buttress the realization of the importance
of environmental sustainability, studies which have
focused on environmental sustainability in supply
chains have exceeded 200 (Seuring and Muller,
2008). Some of these studies have applied various
nomenclatures to depict sustainability in a supply
chain such as green supply chain (Beamon, 1999;
Kim and Min, 2011; Olugu et al., 2011; Zhu et al.,
2007), closed loop supply chain (Beamon, 1999;
Inderfurth, 2004; Spengler et al., 2004; Steven, 2004;
van Hoek, 1999; Zhu and Sarkis, 2006),
environmental supply chain (Beamon, 2005; Krause
et al., 2009; Govindan and Cheng, 2011; Hall,
2000;), ethical supply chain (Roberts, 2003; Beamon,
2005), and integrated supply chain (Mezher and
Ajam, 2006; Preuss, 2001; Vachon and Klassen,
2006; Zhu and Sarkis, 2006). In spite of all these
nomenclatural variations, the common fact with all
the studies remains as addressing environmental and
social concerns through SCM, while maintaining
economic benefits.
1.2. SMEs in Malaysia and SSCM
According to the Small and Medium
Enterprise Corporation of Malaysia, SMEs in the
manufacturing, manufacturing related services and
agro-based industries are enterprises with full-time
employees not exceeding 150 or with annual sales
turnover not exceeding RM25 million (about USD8
million). SMEs account for a greater proportion of
establishments in many countries of the world. SMEs
account for 99% of the total enterprises and 31% of
the industrial production in Germany (Kannan and

Sustainable supply chain management in Malaysian SMEs: Perspectives from practitioners
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Boie, 2003). SMEs in Malaysia account for about
94% of the companies that make up the
manufacturing sector (Saleh and Ndubuisi, 2006).
About 27% of the total manufacturing output, 26% of
value-added production and 39% of Malaysia’s
workforce are generated by SMEs (Saleh and
Ndubuisi, 2006).
A decade ago, SMEs were faced with a
myriad of challenges such as poor financing, low
productivity, inadequate managerial capabilities and
poor access to management and technology (Wang,
2003). In Malaysia, these challenges included lack of
access to loans, limited adoption of technology, lack
of human resources, competition from multinational
companies and globalization (Moha, 1999; Saleh and
Ndubuisi, 2006). Today, these challenges have been
compounded with the emergence of sustainability in
manufacturing (Enderle, 2004).
It has been observed that there is a dearth of
literature that dealt with SSCM involving SMEs
(Lepoutre and Heene, 2006; Spence et al., 2003;
Vives, 2006). Furthermore, literature that looked at
sustainability in general with respect to SMEs in
developing countries is even more scarce (Ciliberti et
al., 2008). Sustainability practices in SMEs differ
significantly from those in large corporations due to
SMEs’ peculiarities (Alshawi et al., 2011; Ciliberti et
al., 2008; Enderle, 2004; Vives, 2006). Based on
these peculiarities surrounding SMEs, SSCM in
SMEs cannot be looked upon as a miniaturized
version of larger organizations (Alshawi et al., 2011).
Vonderembse et al. (2006) stated that there is a need
to focus supply chain studies on a particular group
such as the SMEs as they have their peculiarities
associated with their operations.
It has been asserted in literature that SMEs’
international expansion is anchored on numerous
agreements with firms from the same or unrelated
industrial sectors, suppliers, customers, competitors
as well as public organizations (Spence et al., 2003;
Spence et al., 2008). Hence, the quest for SSCM in
SMEs has been mainly due to pressure from
stakeholders such as customers and non-
governmental organizations (Ciliberti et al., 2008;
Vives, 2006). It has also been pointed out that some
of the challenges faced by SMEs in SSCM in
developing countries include the lack of mentorship
and skill transfer, communication gaps, and lack of
awareness on opportunities for development
(Ciliberti et al., 2008). This study acts as an
exploratory study to understand the perception of
SMEs on SSCM using the case of an emerging
economy (Perrini, 2006; Roberts et al., 2006).
1.3. Conceptual framework for sustainable supply
chain management in SMEs
Based on the insights and results obtained
from the literature review, a general conceptual
framework can be proposed (refer to Fig. 1). It can be
seen from the conceptual framework that SSCM in
SMEs from the emerging economies is triggered by
certain drivers such as customers’ pressure (Carter
and Dresner, 2001; Ciliberti et al., 2008; Hall, 2001;
Handfield et al., 1997; Green et al., 1996; New et al.,
2002; Klassen and Vachon, 2003; Vives, 2006;
Walker et al., 2008; Zhu and Sarkis, 2006),
legislative and regulatory compliance (Beamon,
1999; Green et al., 1996; Hall, 2001; Walker et al.,
2008; Walton et al., 1998; Zhu and Sarkis, 2006),
competition (Ferguson and Toktay, 2006; New et al.,
2002; Sarkis, 2003; Zhu and Sarkis, 2006), and
public pressure (Beamon, 1999; Hall, 2001; New et
al., 2002). Hence, SMEs need to implement SSCM in
order to continue their manufacturing operations.
However, it is not an easy process because its
implementation is influenced by certain challenges
and problems such as cost of implementation
(Ciliberti et al., 2008; Hervani and Helms, 2005;
Orsato, 2006; Walker et al., 2008; Walker and Jones,
2012; Wycherley, 1999). The lack of understanding
and coaching on the implications of SSCM (Bowen
et al., 2001; Carter and Dresner, 2001; Cooper et al.,
2000; Enderle, 2004), and finally some barriers
which might be industry specific in nature (Zhu and
Sarkis, 2006).
Hence, it is posited that certain strategies can
be adopted to overcome these challenges. By
addressing these challenges, SMEs from developing
countries will be able to improve their sustainable
supply chain performance and achieve the full
benefits of sustainability in general.
SSCM
Challenges
Drivers towards SSCM
Implementation of SSCM
Improvement strategies
More efficient SSCM
Fig. 1. Conceptual framework for
sustainable supply chain management
2. Methodology
The main objective of this study is to elicit the
perception of the SMEs in Malaysia towards SSCM.
This will in turn increase the understanding of the
fundamentals towards the realization of an effective
and efficient SSCM in the SMEs in the context of
developing countries. This study follows a qualitative
approach which utilized direct interview as the
primary source of data collection. The study takes the
form of an embedded design approach in which
several sub-units have been included into the main
analysis (Yin, 1984). At the same time, the
contingency theory which believes that no theory or
method suits all (Scott and Cole, 2000; Thompson,
1967), was applied to understand the perception of
practitioners and stakeholders from SMEs on SSCM.
Thus, this implies the recognition of the fact that the

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operating environment and structure of an
organization directly affect its operations (Flynn et
al., 2010; Vonderembse et al., 2006). Hence, the
result of this methodology will add knowledge in the
area of SSCM performance maximization especially
where SMEs are involved (Castka et al., 2004;
Donaldson, 2001; Perrini, 2006).
The companies were selected based on the
fact that they are considered as leaders in sustainable
practices among SMEs within their industry (Pagell
and Wu, 2009). Automotive, semi-conductor and
food industries were selected for the study because
they are the dominant industries in Malaysia. This is
in line with within and across case analysis
recommended by Pagell (2004) in order to to
examine integration in a single context and
replication in cross cases.
A one-to-one approach was applied in the
interviews and the length of each interview varied as
each circumstance waranted, but was less than 90
minutes for each. These interviews were recorded
and transcribed to obtain the details of the perception
of each practitioner. Further clarifications were
sought during transcription through emails and phone
calls.
The interview was conducted with the various
parties such as suppliers, manufacturers, and
recyclers from various companies within the
manufacturing industry to understand their
perception on sustainability in supply chains. It has
been stated in literature that choosing various
segments such as suppliers, manufacturers and
recyclers will enable potential theoretical issues to be
highlighted (Eisenhardt, 1989; Matos and Hall,
2007). Matos and Hall (2007) further suggested that a
large number of case study should be conducted to
ensure differences in context and approaches have
been catered for and further ensure the potential
robustness of the theory derived from the results. It
was believed that major concerns and contributions
towards an efficient SSCM could be obtained from
these groups especially in the context of an emerging
economy such as Malaysia. Thus, the study would
uncover some grey areas in the manufacturing SSCM
in SMEs. The interview was anchored around their
perception on the current level of supply chain
sustainability, challenges and way forward. From the
interview conducted, it was easier to get a deeper
understanding of the perception of these echelons
within their supply chain.
The interview was conducted with the
managers and owners of 15 different SMEs. The
number of participating companies is considered
sufficient for this study as suggested in literature
(Eisenhardt, 1989; Matos and Hall, 2007; Pagell and
Wu, 2009; Wu and Choi, 2005). These companies are
ISO 14001 certified. ISO 14001 specifies the
requirements of an environmental management
system (EMS) for small to large organizations. The
managers and owners of these companies were
selected based on the fact that they are the people
who are well versed on the operations of their
companies. In some cases, the owners were
managers, which is a common practice in SMEs.
These companies were divided into the main
categories that constitute a sustainable manufacturing
supply chain (Matos and Hall, 2007). These
categories are suppliers, manufacturers, and
recyclers. Five companies from each category
participated in the interview. These companies come
from various supply chains which makes it possible
to obtain comprehensive views for SMEs. The
profiles of the selected companies are presented in
Table 1. The companies have been represented as A,
B, and C, which are suppliers, manufacturers and
recyclers respectively.
The companies selected are leading
manufacturers, suppliers, and reverse logistics
companies from the SME categories which are
believed to have numerous years of experience in
SSCM practices. Two of the selected companies for
each category were from the automotive industry.
Another two companies for each category were
selected from the electronics industry. Lastly, one
company for each category was selected from the
food and beverage industry. The distributors were
intentionally left out as it was assumed that they do
not have much effect on the physical composition of
the products.
Table 1. Profiles of the interviewed companies
Company Business category Industry Customers Staff Strength Interviewee’s position
A1 Supplier Automotive Global 51-150 Supply chain manager
A2 Supplier Automotive Global 51-150 Supply chain manager
A3 Supplier Semi-conductor Regional 1-50 Supply chain manager
A4 Supplier Semi-conductor Global 51-150 Supply chain manager
A5 Supplier Food & beverage Regional 51-150 Owner & manager
B1 Manufacturer Automotive Global 51-150 Production manager
B2 Manufacturer Automotive Global 51-150 Production manager
B3 Manufacturer Semi-conductor Regional 1-50 Production manager
B4 Manufacturer Semi-conductor Regional 1-50 Production manager
B5 Manufacturer Food & beverage Regional 51-150 Production manager
C1 Recycler Automotive Regional 1-50 Owner
C2 Recycler Automotive Regional 1-50 Owner
C3 Recycler Semi-conductor Global 51-150 Manager
C4 Recycler Semi-conductor Regional 1-50 Owner
C5 Recycler Food & beverage Global 51-150 Operation Manager

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Table 2. Samples of the questions administered to interviewees
General profile questions SSCM questions
1. When was the company started? What does SSCM mean to your company?
2. What is your company’s staff strength? How long has your company practiced SSCM initiative(s)?
3. Who are your customers? How would your company define SSCM?
4. Is the company solely locally owned, or
joint ventured (local & foreign)?
What do you think is the difference between SSCM and the traditional SCM
(supply chain management without environmental consideration)?
5. What is the relationship between the owner
and manager?
Is your company practicing any special SSCM initiative?
6. Are your inputs sourced locally or
internationally or both?
What do you think are the potential benefits of SSCM?
7. Is your company ISO 14001 certified? Do you think SSCM can lead to manufacturing sustainability?
8. Do you have any other environmental
system certification?
What are the major challenges towards the realization of SSCM in your firm?
9 What are the plans for expansion? What are the key driving forces of the company towards sustainable practices?
10 How is the competition within the sector? How have your customers influenced your product and process decisions?
The interview questions were structured in
such a manner that the respondents will provide their
view on the impact of SSCM on overall sustainable
manufacturing practices of their company. The
questions that were used to elicit their perception are
presented in Table 2. In addition, the practitioners
were asked to identify the challenges and rooms for
improvement towards achieving an effective and
efficient SSCM practice. The feedback from the
respondents is discussed in the ensuing sections.
3. Results and discussion
3.1. Feedback from practitioners
The results of the interview were synthesized
to obtain a common ground which represents the
common perception of each of the echelons. It was
observed that the only difference in the responses
was in the area of the respondents’ understanding of
SSCM. This is not unexpected as SCM implies
different things to different people depending on
where they are coming from (Gunersekaran et al.,
2001; Vonderembse et al., 2006). Some of the
consensual areas are discussed below to show the
perception of these industrialists towards SSCM.
3.1.1. Manufacturers’ feedback
From the manufacturers’ point of view, it was
gathered that changing market demands and
legislations have been the major drivers towards
SSCM. It was further explained that due to the fact
that most developed markets are keener on
sustainable products through legislations and
regulations, it is inevitable for them to follow the
trend. Therefore, manufacturers apply the same
stringent environmental regulations and legislation
being imposed on them in their supplier selection
which in turn creates room for the appointment of
new suppliers at the expense of old suppliers.
Customer demand was another issue that was raised
by the manufacturers. It was observed that the
customers’ needs are becoming increasingly
insatiable, especially where bigger and more
established firms are the customers. These more
established companies are transferring the ever
increasing regulations imposed on their product
category to the components being supplied by these
SMEs. This has made them more difficult to satisfy
their customers without expanding their product base
and modifying their mode of operations. Some
manufacturers claimed that their management has to
go into collaboration with other more advanced
manufacturers in order to cope with certain customer
demands. They went ahead to defend their position as
being the only option to deal with increasing
customer needs and growing market competition.
Lack of sufficient capital was also pointed out as one
of the major constraints towards the actualization of a
formidable SSCM practice.
One major issue pointed out by the
manufacturers was the right approach to SSCM. It
was observed that most of these companies actually
lack the technical understanding of the best approach
to SSCM. This is in line with the observation made
by Ciliberti et al. (2008). It was further gathered that
most of the laid down principles in major handbooks
and regulatory guidelines are not well-grounded to
cover the SMEs. This is supported by the assertion
given by Hamann et al. (2005) that SMEs in the
developing countries are not fully aware of the
standards towards SSCM.
3.1.2. Suppliers’ feedback
From the suppliers’ point of view, SSCM is a
laudable approach towards achieving sustainability in
the manufacturing sector. They equally concurred to
the fact that SSCM was actually born from
legislations and regulations. According to them, since
being environmentally certified has become one of
the basic criteria for supplier selection by
manufacturers, it has become a mandatory option to
join the wagon.
At the same time, one mutual concern raised
by most of the suppliers was time constraint. The
suppliers believed that there is a need to go with the
environmental sustainability trend, but echoed that
ample time should be given to them to establish a

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formidable sustainable supply base. Since some of
these suppliers have their manufacturing plants, they
believed that ample time is required to carry out
modifications to their existing manufacturing
systems. They complained that some of the
requirements that have been imposed on them by the
manufacturers entail new raw materials which imply
total plant modification. Another major concern
highlighted by these suppliers was the resources and
time required for the acquisition, training and
orientation of the employees towards the use of these
new plants.
In addition, the suppliers highlighted the
inadequate capital as another militating factor against
SSCM. Thus, since these suppliers are SMEs within
the manufacturing industry, they are unable to raise
enough capital for plant modification within a short
range of time. This is supported by the observation
from Saleh and Ndubuisi (2006), Moha (1999) and
Wang (2003) that lack of capital is a major problem
in SMEs. Therefore, they keep losing out to big and
well established suppliers in cases where SSCM is a
major criterion in supplier selection. The suppliers
believed that if they have enough capital to expand
and modify their plants, they can equally compete
favorably with the more established suppliers.
Furthermore, it was found from the suppliers
that there has been little or no supply chain
collaboration aimed at taking the suppliers into
consideration in the overall plan of the
manufacturers. The interviews also revealed that
most of the manufacturers do not actually have a
strong self-groomed supplier base. They rather go
through some supplier selection processes from time
to time to establish new suppliers based on new
criteria that suit their production objectives. This
issue has made it difficult for the suppliers which are
mostly SMEs to compete favorably.
3.1.3. Recyclers’ feedback
The recyclers which encompass end-of-life
products collectors, shredders, and recycling plant
operators stated that they deal more with products
which have established markets for the recycled
components and parts. One important aspect of
knowledge gained from the recyclers is that they
operate on a consolidation principle for like materials
irrespective of manufacturers. This also goes to
support the fact that there has not been any supply
chain integration in most of these supply chains. The
major driver for most of the recycled components
and parts are independent buyers of the recycled
products. Thus, if a product does not have a
formidable reverse logistics demand; it will be
difficult to find collectors and recyclers that will
invest their resources in that product or its
components. They also stated that few manufacturers
have been encouraging their collection, recycling and
re-absorption processes through some collaborative
initiatives. Thus, they prefer to deal with those end-
of-life products from those few manufacturers. They
went ahead to point out that those few manufacturers
(which have established processes for collection,
recycling and re-absorption) indirectly promote the
value of their end-of-life products.
3.2. Recommended strategies
From the interviews, the study was able to
synthesize the various opinions together with
established strategies to come up with
recommendations. Some of these recommended
strategies are discussed in the ensuing paragraphs.
3.2.1. Supply chain integration
Supply chain integration is a phenomenon
used to describe the degree to which a manufacturer
strategically collaborates with its supply chain
partners and collaboratively manages intra and inter-
organizational processes, in order to achieve an
effective and efficient flow of products and services,
technology, information, money and decisions, aimed
at maximizing customer values (Flynn et al., 2010;
Pagell, 2004). Therefore, there is a need for total
supply chain integration which is aimed at bringing
about environmental collaboration within the supply
chains. Hence, supply chain integration in the
presence of environmental sustainability acts as a
catalyst towards sustainable manufacturing. This is
sequel to the fact that this kind of collaboration will
involve the forward flow of physical goods and
services between the suppliers, manufacturers,
retailers and customers, and the reverse flow of
recycled materials, information and data from the
customers/retailers, recyclers, collectors to the
manufacturers and suppliers (Cousins and Menguc,
2006; Morgan and Monczka, 1996).
From the interviews, it has been observed that
one of the core missing links to SSCM is the absence
of well-established supply chain integration. Since
many customers and stakeholders in various
manufacturing supply chains are very concerned
about social and environmental responsibilities of
companies and their products (Beamon, 2008; Östlin
et al., 2008; Vanalle et al., 2011), a system that takes
this into account is needed.
It has become an established fact that the
coordination and integration within a supply chain
directly influence the supply chain performance
(Gunasekaran et al., 2001; Vachon and Klassen,
2008; Vickery et al., 2003). Since the effectiveness of
a supply chain measures the extent to which
customers’ expectations are met (Neely et al., 2005),
well established integration of manufacturing supply
chain processes will be associated with higher levels
of supply chain performance (Frohlich and
Westbrook, 2001).
3.2.2. Integrated material efficiency
Material efficiency in industrial production is
defined as the amount of a particular material needed
to produce a particular product (Peck and Chipman,
2007). It was further described as a strategy aimed at

2129
reducing the primary material demand to fulfill a
certain function without substantially affecting the
level of usability (Allwood et al., 2011; Worrell et
al., 1995). This implies the improvement on material
consumption which allows the products to offer the
same possible functions with a reduced amount of
material inputs. Material efficiency is not a new
practice but it has received less attention from both
practitioners and researchers even though
environmental impacts due to materials are
significant (Salwa et al., 2008). All companies should
address the inefficient use of materials and their
resulting environmental impact as the first step
towards practicing wider strategies such as SSCM. It
was further pointed out that an integrated approach
towards energy and material efficiency is necessary
to attain a more cost-effective and influential
reduction strategy especially for the SMEs.
According to Meyer et al. (2007), many
manufacturing companies are unaware of the
available technical alternatives and their cost
implications due to inadequate material management
initiatives. According to Allwood et al. (2011),
practitioners should aim to provide material services
with less material production. Thus, the SMEs could
adopt some material-efficient manufacturing
processes in order to achieve SSCM.
It was further pointed out that material
inefficiency is present as a result of industrial
production, lack of and/or inadequate recycling
processes, unnecessary heavy designs, fabrication of
products and construction (Jochem, 2004). Worrell et
al. (1995) pointed out that an integrated material
efficiency approach can be achieved through proper
housekeeping which involves the end user’s
improved product usage, material-efficient product
design, material substitution by the manufacturer,
product and material recycling, and quality cascading
involving the use of secondary materials for a
function with lower quality demands. Hence, this
integrated approach towards material efficiency
within the supply chains will enhance SSCM
practices in the SMEs.
Another aspect of integrated material
efficiency is designing for the environment (Design
for “X”) which has been identified as one of the
approaches through which environmental issues and
manufacturing costs related to products could be
tackled (Kuo et al., 2001). Design for “X” covers
designing for the ease of recyclability, designing for
the life cycle of a product and designing for the
environment in general (Kuo et al., 2001; Bartolozzi
et al., 2015). It has been further pointed out in
literature that modular design is a very vital
technique which facilitates life cycle design for the
improvement of maintainability, upgradability,
reusability, and recyclability (Kuo et al., 2001;
Umeda et al., 2008). Therefore, the adoption of
modular design in the development of products by
the SMEs will reduce manufacturing cost and further
aid the change of certain components as the need
warrants.
4. Relationship between proposed conceptual
framework and case studies
From the case studies conducted, it can be
seen that most of the drivers and challenges
highlighted in the literature as presented in Section
1.3 were identified by the respondents. These
feedbacks serve as a validation of the conceptual
framework presented in Figure 1. Hence, it supports
the fact that SSCM in SMEs is a result of certain
drivers and forces, which make SSCM an inevitable
practice for SMEs in developing countries that wish
to continue their collaboration with larger firms in
more developed countries. In spite of all these
drivers, SMEs implementing SSCM are faced with
certain established challenges which must be
overcome for an improved sustainable manufacturing
performance. These challenges that were uncovered
by the case studies are in line with those that have
been established in literature in Section 1.3. Two
suggested strategies that can be undertaken to address
these challenges are supply chain integration and
integrated material efficiency.
5. Conclusions and recommendation
This study investigated the perception of
SMEs on SSCM. Interviews were conducted to elicit
the view of the practitioners on SSCM. The obtained
feedback revealed that there is a strong indication
that practitioners support SSCM as a major strategy
towards sustainable manufacturing and subsequently
sustainable products. The study further obtained
some recommendations from the SMEs and their
stakeholders on the strategies that will ensure a more
effective and efficient SSCM in the SME sector.
The managerial implications of the study is
that the common practice of big corporations
engaging suppliers and component manufacturers
from developing countries where production and
labor costs are considerably lower will require supply
chain integration and integrated material efficiency in
order to cope with sustainable manufacturing
practices in their home country. These could be
achieved through mentoring as pointed out in
literature. This study will further boost managerial
understanding and operations via supply chain
integration to reduce negative impacts on the
environment. This study has further shown that
SMEs in the developing countries should be
externally motivated towards SSCM. Since it has
been asserted that larger companies should influence
smaller companies within the same supply chain
network to meet SSCM practices, this study has
further buttressed the need for larger corporations to
mentor and guide SMEs in SSCM.
Some of the limitations of the study include
the use of a qualitative approach, hence there is a
need for future study that should be more quantitative
in nature, accommodating more respondents and
taking into consideration more objective questions.

2130
Furthermore, the study only looked at general
issues without going into the supply chain dynamics
of each supply chain. In addition, the study only
looked at the views and perception of practitioners
and suggested some strategies for improvement.
Thus, there is still a need for a framework for the
suggested strategies. Hence, future work should
focus on conducting a study to understand the view
of various echelons in a supply chain of a particular
industry. In addition, a study that will put forward a
framework for supply chain integration and material
efficiency amongst the SMEs is necessary.
Acknowledgements
This study was sponsored by the Institute of Research
Management and Monitoring (IPPP), University of Malaya
under the Research University Grant Project (RP018C-
13AET).
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