IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i20p13197-d942186.html
   My bibliography  Save this article

Rethinking Green Supply Chain Management Practices Impact on Company Performance: A Close-Up Insight

Author

Listed:
  • Lekan Damilola Ojo

    (Department of Architecture and Civil Engineering, City University of Hong Kong, Hong Kong, China)

  • Onaopepo Adeniyi

    (Faculty of Engineering and Environment, Northumbria University, Newcastle upon Tyne NE1 8ST, UK)

  • Olajide Emmanuel Ogundimu

    (Cakasa (Nig.) Company Limited, Palm Avenue, Mushin 100253, Lagos State, Nigeria)

  • Olasunkanmi Ososanmi Alaba

    (Dangote Petroleum Refinery and Petrochemicals, Ibeju-Lekki Coastal Road, Lekki 105101, Lagos State, Nigeria)

Abstract

Manufacturing organisations have contributed to a poor living environment via unsustainable practices in the production process and the entire service delivery operation. More importantly, the health performance of manufacturing employees may also be affected by unsustainable production practices in the industry. Therefore, the green supply chain management (GSCM) practice has become a topical issue in recent decades due to its significant impact on the ecosystem at large. Via green practices, various performances have been achieved in organisations; meanwhile, the relationships between the practices and performance metrics in most developing countries are unclear, although there have been supposed general submissions. In addition, the study of relationships in a leading business conglomerate in developing nations is rare. Therefore, this paper investigated relationships between GSCM practices and performance metrics in a leading manufacturing organisation in Africa by using a close-up study approach with data collected from 154 respondents. The data were analysed using multiple methods such as factor analysis to consolidate the measured variables; correlation, multiple regression analysis with stepwise estimation, and structural equation modelling (SEM) were used to examine the relationships between GSCM practices and performance. The results of these analyses revealed that environmental performance is significantly predicted by the measure of the organisation’s commitment to GSCM vision, while financial performance is significantly impacted by eco-centric consumption and education. This study concludes that inhouse-drafted strategies based on the insight from the study will facilitate the optimisation of GSCM practices.

Suggested Citation

  • Lekan Damilola Ojo & Onaopepo Adeniyi & Olajide Emmanuel Ogundimu & Olasunkanmi Ososanmi Alaba, 2022. "Rethinking Green Supply Chain Management Practices Impact on Company Performance: A Close-Up Insight," Sustainability, MDPI, vol. 14(20), pages 1-19, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:20:p:13197-:d:942186
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/20/13197/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/20/13197/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dubey, Rameshwar & Gunasekaran, Angappa & Samar Ali, Sadia, 2015. "Exploring the relationship between leadership, operational practices, institutional pressures and environmental performance: A framework for green supply chain," International Journal of Production Economics, Elsevier, vol. 160(C), pages 120-132.
    2. Singhania, Monica & Saini, Neha, 2021. "Demystifying pollution haven hypothesis: Role of FDI," Journal of Business Research, Elsevier, vol. 123(C), pages 516-528.
    3. Kushagra Kulshreshtha & Naval Bajpai & Vikas Tripathi & Gunjan Sharma, 2019. "Consumer preference for eco-friendly appliances in trade-off: a conjoint analysis approach," International Journal of Product Development, Inderscience Enterprises Ltd, vol. 23(2/3), pages 212-243.
    4. Rand Al-Dmour & Omayma Yassine & Ra’ed Masa’deh, 2018. "A Review of Literature on the Associations among Employee Empowerment, Work Engagement and Employee Performance," Modern Applied Science, Canadian Center of Science and Education, vol. 12(11), pages 313-313, November.
    5. Mohammed Sangiru Umar & Ibrahim Danjuma & Dahiru Dauda Hammawa & Sherif Ahmed Habibu, 2016. "Effects of Technological Innovation in Relationship between Green Supply Chain Management Practices and Green Performance," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 677-682.
    6. Hu-Chen Liu & Xiao-Yue You, 2021. "Green Supplier Evaluation and Selection: Models, Methods and Applications," Springer Books, Springer, number 978-981-16-0382-2, October.
    7. Sarkis, Joseph & Zhu, Qinghua & Lai, Kee-hung, 2011. "An organizational theoretic review of green supply chain management literature," International Journal of Production Economics, Elsevier, vol. 130(1), pages 1-15, March.
    8. Mengying Feng & Wantao Yu & Xingyu Wang & Chee Yew Wong & Maozeng Xu & Zhi Xiao, 2018. "Green supply chain management and financial performance: The mediating roles of operational and environmental performance," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 811-824, November.
    9. Geng, Ruoqi & Mansouri, S. Afshin & Aktas, Emel, 2017. "The relationship between green supply chain management and performance: A meta-analysis of empirical evidences in Asian emerging economies," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 245-258.
    10. Wu, Tao & Kung, Chih-Chun, 2020. "Carbon emissions, technology upgradation and financing risk of the green supply chain competition," Technological Forecasting and Social Change, Elsevier, vol. 152(C).
    11. Joseph Bakos & Michele Siu & Adalberto Orengo & Narges Kasiri, 2020. "An analysis of environmental sustainability in small & medium‐sized enterprises: Patterns and trends," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1285-1296, March.
    12. Zhu, Qinghua & Sarkis, Joseph & Lai, Kee-hung, 2008. "Confirmation of a measurement model for green supply chain management practices implementation," International Journal of Production Economics, Elsevier, vol. 111(2), pages 261-273, February.
    13. Donghyuk Jo & Chulhwan Kwon, 2021. "Structure of Green Supply Chain Management for Sustainability of Small and Medium Enterprises," Sustainability, MDPI, vol. 14(1), pages 1-20, December.
    14. Felipe Romero-Perdomo & Juan David Carvajalino-Umaña & Jaime Leonardo Moreno-Gallego & Natalia Ardila & Miguel Ángel González-Curbelo, 2022. "Research Trends on Climate Change and Circular Economy from a Knowledge Mapping Perspective," Sustainability, MDPI, vol. 14(1), pages 1-17, January.
    15. Lorenzo Ardito & Rosa Maria Dangelico, 2018. "Firm Environmental Performance under Scrutiny: The Role of Strategic and Organizational Orientations," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 426-440, July.
    16. Graça Miranda Silva & Paulo J. Gomes & Joseph Sarkis, 2019. "The role of innovation in the implementation of green supply chain management practices," Business Strategy and the Environment, Wiley Blackwell, vol. 28(5), pages 819-832, July.
    17. Mohammed Sangiru Umar & Ibrahim Danjuma & Dahiru Dauda Hammawa & Sherif Ahmed Habibu, 2016. "Effects of Technological Innovation in Relationship between Green Supply Chain Management Practices and Green Performance," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 677-682.
    18. Shenggang Ren & Duojun He & Tao Zhang & Xiaohong Chen, 2019. "Symbolic reactions or substantive pro‐environmental behaviour? An empirical study of corporate environmental performance under the government's environmental subsidy scheme," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1148-1165, September.
    19. Onaopepo Adeniyi & Lekan Damilola Ojo & Oluwaseun A. Idowu & Sunday B. Kolawole, 2020. "Compliance with the stipulated procurement process in local governments: a case from a developing nation," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 13(5), pages 678-700.
    20. Anderson Gwanyebit Kehbila & Jürgen Ertel & Alan Colin Brent, 2009. "Strategic corporate environmental management within the South African automotive industry: motivations, benefits, hurdles," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 16(6), pages 310-323, November.
    21. Scot M. Miller & Anna M. Michalak & Robert G. Detmers & Otto P. Hasekamp & Lori M. P. Bruhwiler & Stefan Schwietzke, 2019. "China’s coal mine methane regulations have not curbed growing emissions," Nature Communications, Nature, vol. 10(1), pages 1-8, December.
    22. Liwen Liu & Yaling Zhang & Lu Zhao & Cun Zhan & Chuan Liang, 2021. "An Attempt to Evaluate the Green Construction of Large-Scale Hydropower Projects: Taking Wudongde Hydropower Station on the Jinsha River, China as an Example," Sustainability, MDPI, vol. 14(1), pages 1-17, December.
    23. Fahimnia, Behnam & Sarkis, Joseph & Davarzani, Hoda, 2015. "Green supply chain management: A review and bibliometric analysis," International Journal of Production Economics, Elsevier, vol. 162(C), pages 101-114.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ernesto A. Lagarda-Leyva & Angel Ruiz & Luis Fernando Morales-Mendoza, 2024. "A System Dynamics Approach to Valorize Overripe Figs in the Brewing of Artisanal Beer," Sustainability, MDPI, vol. 16(4), pages 1-14, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Junjun & Hu, Houbao & Tong, Xun & Zhu, Qinghua, 2020. "Behavioral and technical perspectives of green supply chain management practices: Empirical evidence from an emerging market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 140(C).
    2. Seles, Bruno Michel Roman Pais & de Sousa Jabbour, Ana Beatriz Lopes & Jabbour, Charbel José Chiappetta & Dangelico, Rosa Maria, 2016. "The green bullwhip effect, the diffusion of green supply chain practices, and institutional pressures: Evidence from the automotive sector," International Journal of Production Economics, Elsevier, vol. 182(C), pages 342-355.
    3. Amer Saeed & Yun Jun & Saviour Ayertey Nubuor & Hewawasam Puwakpitiyage Rasika Priyankara & Mahabaduge Prasad Fernando Jayasuriya, 2018. "Institutional Pressures, Green Supply Chain Management Practices on Environmental and Economic Performance: A Two Theory View," Sustainability, MDPI, vol. 10(5), pages 1-24, May.
    4. Sung Tae Kim & Hong-Hee Lee & Seongbae Lim, 2021. "The Effects of Green SCM Implementation on Business Performance in SMEs: A Longitudinal Study in Electronics Industry," Sustainability, MDPI, vol. 13(21), pages 1-23, October.
    5. Graça Miranda Silva & Paulo J. Gomes & Joseph Sarkis, 2019. "The role of innovation in the implementation of green supply chain management practices," Business Strategy and the Environment, Wiley Blackwell, vol. 28(5), pages 819-832, July.
    6. Lineia Jollembeck Lopes & Silvio R. I. Pires, 2020. "Green supply chain management in the automotive industry: A study in Brazil," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2755-2769, September.
    7. Samad, Sarminah & Nilashi, Mehrbakhsh & Almulihi, Ahmed & Alrizq, Mesfer & Alghamdi, Abdullah & Mohd, Saidatulakmal & Ahmadi, Hossein & Syed Azhar, Sharifah Nurlaili Farhana, 2021. "Green Supply Chain Management practices and impact on firm performance: The moderating effect of collaborative capability," Technology in Society, Elsevier, vol. 67(C).
    8. Tiberio Daddi & Iñaki Heras‐Saizarbitoria & Luca Marrucci & Francesco Rizzi & Francesco Testa, 2021. "The effects of green supply chain management capability on the internalisation of environmental management systems and organisation performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(4), pages 1241-1253, July.
    9. M. K. Dhillon & P. M. Rafi-Ul-Shan & H. Amar & F. Sher & S. Ahmed, 2023. "Flexible Green Supply Chain Management in Emerging Economies: A Systematic Literature Review," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 24(1), pages 1-28, March.
    10. Luísa Pinto, 2020. "Green supply chain practices and company performance in Portuguese manufacturing sector," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 1832-1849, July.
    11. Muhammad Talha Khan & Muhammad Dawood Idrees & Muhammad Rauf & Abdul Sami & Arsalan Ansari & Atif Jamil, 2022. "Green Supply Chain Management Practices’ Impact on Operational Performance with the Mediation of Technological Innovation," Sustainability, MDPI, vol. 14(6), pages 1-22, March.
    12. Panagiotis Trivellas & Georgios Malindretos & Panagiotis Reklitis, 2020. "Implications of Green Logistics Management on Sustainable Business and Supply Chain Performance: Evidence from a Survey in the Greek Agri-Food Sector," Sustainability, MDPI, vol. 12(24), pages 1-29, December.
    13. Sangita Choudhary & Anil Kumar & Sunil Luthra & Jose Arturo Garza‐Reyes & Simon Peter Nadeem, 2020. "The adoption of environmentally sustainable supply chain management: Measuring the relative effectiveness of hard dimensions," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3104-3122, December.
    14. Hung M. Nguyen & George Onofrei & Dothang Truong & Simon Lockrey, 2020. "Customer green orientation and process innovation alignment: A configuration approach in the global manufacturing industry," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2498-2513, September.
    15. Wenwen Zhu & Zhiqiang Wang, 2018. "The Collaborative Networks and Thematic Trends of Research on Purchasing and Supply Management for Environmental Sustainability: A Bibliometric Review," Sustainability, MDPI, vol. 10(5), pages 1-28, May.
    16. Dubey, Rameshwar & Gunasekaran, Angappa & Childe, Stephen J. & Papadopoulos, Thanos & Hazen, Benjamin & Giannakis, Mihalis & Roubaud, David, 2017. "Examining the effect of external pressures and organizational culture on shaping performance measurement systems (PMS) for sustainability benchmarking: Some empirical findings," International Journal of Production Economics, Elsevier, vol. 193(C), pages 63-76.
    17. Ruifeng Gong & Jian Xue & Laijun Zhao & Oleksandra Zolotova & Xiaoqing Ji & Yan Xu, 2019. "A Bibliometric Analysis of Green Supply Chain Management Based on the Web of Science (WOS) Platform," Sustainability, MDPI, vol. 11(12), pages 1-18, June.
    18. Xiaoli Guo & Weili Xia & Taiwen Feng & Hongyan Sheng, 2022. "Sustainable supply chain finance adoption and firm performance: Is green supply chain integration a missing link?," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(5), pages 1135-1154, October.
    19. Ardian Qorri & Saranda Gashi & Andrzej Kraslawski, 2021. "Performance outcomes of supply chain practices for sustainable development: A meta‐analysis of moderators," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 194-216, January.
    20. de Camargo Fiorini, Paula & Jabbour, Charbel José Chiappetta, 2017. "Information systems and sustainable supply chain management towards a more sustainable society: Where we are and where we are going," International Journal of Information Management, Elsevier, vol. 37(4), pages 241-249.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:20:p:13197-:d:942186. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.