Challenges in Green Supply Chain Management Implementation in SMEs: An Empirical Analysis through Ecological Modernisation and Transaction Cost Economics

Belal, HM ORCID: 0000-0001-6737-1445, Rahaman, MM, Bushra Chowdhury, AR and Tarin, SA Challenges in Green Supply Chain Management Implementation in SMEs: An Empirical Analysis through Ecological Modernisation and Transaction Cost Economics. Benchmarking: An International Journal. ISSN 1463-5771 (Accepted)

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Abstract

Purpose: Small and medium enterprises (SMEs) in Bangladesh are vital to the economy but face pressure from buyers and regulators to adopt green supply chain management (GSCM) practices. Despite growing awareness, SMEs encounter significant challenges in implementation. This study identifies these challenges and offers recommendations for improvement using organisational theory.

Design/Methodology/Approach: Small and medium enterprises (SMEs) in Bangladesh are vital to the economy but face pressure from buyers and regulators to adopt Green Supply Chain Management (GSCM) practices. Despite rising awareness, many SMEs struggle with implementation. This study investigates these challenges using a positivist framework and a deductive approach, informed by Ecological Modernisation Theory (EMT) and Transaction Cost Economics (TCE). Data from 315 SMEs were collected through a pre-tested five-point Likert scale questionnaire and analysed using covariance-based Structural Equation Modelling (AMOS) to test the proposed hypotheses, offering insights and recommendations for improving GSCM practices.

Findings: The findings indicate that internal barriers, such as high costs and low perceived benefits, along with external market factors, hinder the adoption of Green Supply Chain Management (GSCM). Only commitment to GSCM practices, energy-efficient product design, and ISO 14001 certification had a significant impact, while Green Purchasing, customer cooperation, and investment recovery showed no notable effects. This study integrates Ecological Modernisation Theory and Transaction Cost Economics, emphasising a multifaceted approach.

Originality/Value: Bangladesh's small and medium-sized enterprises (SMEs) hesitate to adopt green supply chain practices mainly due to a knowledge gap. Existing barriers have been unhelpful amid economic instability. This study introduces a mixed-method approach based on Ecological Modernisation Theory (EMT) and Transaction Cost Economics (TCE).

Item Type:	Article
Additional Information:	This author accepted manuscript is deposited under a Creative Commons Attribution Non-commercial 4.0 International (CC BY-NC) licence. This means that anyone may distribute, adapt, and build upon the work for non-commercial purposes, subject to full attribution. If you wish to use this manuscript for commercial purposes, please contact permissions@emerald.com
Uncontrolled Keywords:	Green supply chain management; small enterprises; internal barriers; external barriers; 0104 Statistics; 0803 Computer Software; 1503 Business and Management; Business & Management; 3503 Business systems in context; 3507 Strategy, management and organisational behaviour
Subjects:	H Social Sciences > HF Commerce > HF5001 Business H Social Sciences > HE Transportation and Communications
Divisions:	Liverpool Business School
Publisher:	Emerald
Date of acceptance:	17 October 2025
Date Deposited:	20 Oct 2025 11:09
Last Modified:	20 Oct 2025 11:15
URI:	https://researchonline.ljmu.ac.uk/id/eprint/27375

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