A recent study by Indian Institute of Management Indore reveals that proactive environmental sustainability strategies enhance both operational integration and profitability. The research highlights supplier collaboration and closed-loop supply chains as critical success factors, debunking myths that green initiatives hinder business performance.
The Indian Institute of Management Indore (IIM-I) has published a seminal study that links sustainability efforts with improved profitability and market competitiveness. Co-authored by Prof. Saurabh Kumar, the study, appearing in The International Journal of Logistics Management, used data from 119 U.S. manufacturing firms to analyze how environmental proactivity drives closed-loop supply chain integration and financial outcomes.
Key findings demonstrate that companies actively embracing green practices foster superior internal coordination and supplier collaboration—essential for implementing circular economy models involving reuse and recycling. Importantly, the study found that customer integration showed limited impact at early stages, underlining the strategic value of supplier partnerships.
The research suggests that sustainability strategies are not peripheral but central to modern business operations, delivering tangible ecological and economic benefits. It offers a practical roadmap for managers and policymakers aiming to align long-term strategic goals with sustainable development.
Notable Updates:
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Environmental proactivity significantly enhances internal and supplier coordination.
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Closed-Loop Supply Chains (CLSC) lead to better environmental and market performance.
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Customer integration less critical initially; supplier collaboration is key.
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Sustainability initiatives positively influence profitability and competitiveness.
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Strategic sustainability requires cross-organization supply chain integration.
Sources: Free Press Journal, IIM Indore Publication, International Journal of Logistics Management