Green Sourcing: Effects on Supplier Performance Metrics in Fast Food Restaurants in Frontier Markets

Abstract

Abstract Purpose: Following the banning of expanded polystyrene packaging material, the fast food restaurant industry was serendipitously plunged into green sourcing initiatives for its packaging materials leading to heightened efforts on evaluating the suitability of various suppliers of green packaging material. This study therefore sought to assess the performance of selected suppliers on supplier performance metrics of total cost of ownership, quality of sourced material and delivery performance, in Zimbabwe’s restaurant industry. Methodology: Data was collected from senior procurement officers of 30 officially registered fast food restaurants in Zimbabwe. Each restaurant randomly selected 5 suppliers from their supplier lists. Each unit was asked to rate their 5 major suppliers of packaging material leading to an effective sample size of 150 suppliers. Structural Equation Modeling (SEM) was used to analyse data in AMOS. The five steps in SEM, that is: model specification, model identification, parameter estimation, model evaluation and modification were done. Findings: The findings in this study revealed that green sourcing leads to improved procurement performance in terms of total cost of ownership, quality of the materials sourced, and delivery performance. Implications for theory and practice: It was therefore recommended that practically the restaurant industry should explore various options of green packaging material ranging from recyclable and reusable plastic, paper, aluminium and steel material. Originality and value: Although the study was done in a single market, there is dearth in literature on green sourcing in frontier markets, of which the study provides empirical evidence from the restaurant industry in Sub-Saharan Africa.