Relationship Between Stringent Customer Environmental Requirements and Environmental Performance in Sustainable Supply Chain

The recent move towards environmental sustainability around the world forced firms to adopt environmentally sustainable practice in their operations along the supply chain. The objective of this research is to critically comprehend and establish the concept of 'stringent customer environmental requirements' and to explore its impact on the supplier's capability and environmental performance in sustainable supply chain context. Using data from Bangladesh Ready-made garment (RMG) industry, this research investigates how the stringent environmental requirements from customers around the world impact the environmental performance of suppliers in garment supply chain. Result shows that the stringent customer environmental requirements, supplier's capability and environmental performance are highly correlated. It might help to understand the dynamics of environmental requirements from customers and may provide important insight to the managers of supplier organizations about how to handle unpredictable changes in environmental demands from their customers.