Evaluation of the effectiveness of green practices in manufacturing sector using CHAID analysis

Abstract

Productivity, profitability and sustainability have become the essence of business survival; thus, modern industrial establishments are turning into frameworks consistent with environmental objectives by adopting cleaner technologies, green practices have ultimately resulting in generation of fewer pollutants. Urbanization and burgeoning technological advancement in different sector within India have brought the concept of green supply chain management, to highlight the importance of responsible consumption and production to maintain environmental quality, reduce wastage and bring out economic growth. This paper aims to segregate the sustainable and competitive performers from the average ones in the Indian manufacturing sector and to understand the degree of the impact of green practices of supply chain management based on their contribution towards sustainable environment. Using survey method, data are collected from 54 manufacturing organizations from Pune Nashik area, and a comprehensive framework of sustainability measurement is developed through successive applications of Chi-square Automatic Interaction Detector analysis, CHAID analysis. This paper is unique as it has applied the concept of CHAID analysis for first time to identify green logistics as main driver to achieve a reduction of ecological damage and improve business performance.