GREEN SUPPLY CHAIN MANAGEMENT PRACTICES AND PERFORMANCE OF ISO 14001 CERTIFIED MANUFACTURING FIRMS IN EAST AFRICA
Abstract
Increasing levels of environmental degradation by manufacturing firms has
resulted in heterogeneous pressures from various organizational groups on the need for them
to conduct environmentally friendly operations. A viable option for these firms has been the
implementation of green supply chain practices. The key concern however is whether the
implementing these practices actually lead to improved performance. The main objective of
this study therefore was to examine the relationship between the implementation of GSCM
practices and performance of ISO 14001 certified firms in East Africa. Through the use of
positivist research paradigm and descriptive cross-sectional research design, primary data
was collected from persons in charge of environmental issues in ISO 14001 manufacturing
firms in East Africa. Based on the objective, the study establishes a statistically significant
positive direct relationship between implementation of GSCM practices and organizational
performance. The study therefore confirms existence of a positive link between GSCM
practices and organizational performance thus helping to reduce the uncertainty which has
arisen out of contradictory findings from past studies on whether it is beneficial to pursue
these practices. The results support the natural resource based view that GSCM practices
affords the firm an opportunity for competitive advantage and performance improvement
through unique causally ambiguous and socially complex resources. The study recommends
that manufacturing firms should implement environmentally sound practices in all phases of
the supply chain, beginning with procurement of raw materials through to design,
manufacture, packaging, distribution and end of life disposal of their products. Regulators
can use the findings to scale up the level of implementation of GSCM practices by enforcing
stricter environmental legislation and giving incentives to firms that have already
implemented these practices. The findings also provide future researchers’ with a useful
conceptual and methodological reference to pursue further studies in this under-studied
GSCM area especially in the African context.
resulted in heterogeneous pressures from various organizational groups on the need for them
to conduct environmentally friendly operations. A viable option for these firms has been the
implementation of green supply chain practices. The key concern however is whether the
implementing these practices actually lead to improved performance. The main objective of
this study therefore was to examine the relationship between the implementation of GSCM
practices and performance of ISO 14001 certified firms in East Africa. Through the use of
positivist research paradigm and descriptive cross-sectional research design, primary data
was collected from persons in charge of environmental issues in ISO 14001 manufacturing
firms in East Africa. Based on the objective, the study establishes a statistically significant
positive direct relationship between implementation of GSCM practices and organizational
performance. The study therefore confirms existence of a positive link between GSCM
practices and organizational performance thus helping to reduce the uncertainty which has
arisen out of contradictory findings from past studies on whether it is beneficial to pursue
these practices. The results support the natural resource based view that GSCM practices
affords the firm an opportunity for competitive advantage and performance improvement
through unique causally ambiguous and socially complex resources. The study recommends
that manufacturing firms should implement environmentally sound practices in all phases of
the supply chain, beginning with procurement of raw materials through to design,
manufacture, packaging, distribution and end of life disposal of their products. Regulators
can use the findings to scale up the level of implementation of GSCM practices by enforcing
stricter environmental legislation and giving incentives to firms that have already
implemented these practices. The findings also provide future researchers’ with a useful
conceptual and methodological reference to pursue further studies in this under-studied
GSCM area especially in the African context.
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