Explaining Environmental Sustainability in Supply Chains Using Graph Theory

The need for theory building in environmental supply chains has been at the centre of many discussions in recent years. Existing research, however, does not typically consider methods that aim at theory generation. Current methods such as econometric modelling or structural equation modelling face challenges related to how causality is established due to potential issues regarding cross-sectional data sets. To address this gap, this paper suggests a Total Interpretive Structural Modelling (TISM) based approach. We use graph theory logic to synthesize expert interpretations in the form of a theoretical supply chain model. This method may prove to be an alternative method to econometric based modelling or structural equation modelling. We provide an application of the method in exploring the drivers of low carbon supply chain and their relationships. Limitations and future research opportunities are also provided.