Impact of Green Supply Chain Management Practices on Organizational Performance of the Manufacturing Sector In Sri Lanka

Abstract

The present study explores the impact of implementing Green Supply Chain Management Practices on Organizational performance, in terms of environmental, operational and financial performance among manufacturing firms in Sri Lanka. Further the researcher examined the impact of Green Supply Chain Management (GSCM) Practices on three types of organizational performance dimensions (environmental, operational, and financial) separately to identify which performance dimension has the highest impact from the green supply chain management practices in Sri Lanka, especially concerning on manufacturing industry. Survey data were collected from 150 manufacturing firms which have already implemented GSCM Practices and manufacturing industry covering a variety of sectors including automobile, garments, food and beverage, electronics, chemicals. Structural Equation Modeling (SEM) was used to analyze the relationship between variables. The empirical evidence verifies that, a significant positive relationship between GSCM practices and organizational performance is observed. It can be concluded that higher the adaptation of GSCM practices, higher will be the organizational performance in Sri Lankan Context. Further, operational performance dimension has highest impact from GSCM practices. It is also concluded that higher the adaptation of GSCM practices, higher will be the operational performance. This suggests, this means impact of GSCM practices lead to increase amount of goods delivered on time, decrease inventory levels and scrap rate, promote products quality, reducing and eliminating waste, increased product line and finally improved capacity utilization under the operational performance.