The Impact of Green Supply Chain Management on Firm’s Performance

Abstract

As the world grows and develops, people become more aware of business operational processes that are extremely harmful to our environment. Recently, customers’ demands, and governmental legislations have forced domestic and global organizations to implement environmentally sustainable practices in order to cure what has been damaged in the previous decades. This study focuses on the impact of green supply chain management practices on firm’s performance. These practices are green purchasing, green packaging, green manufacturing, green design and green marketing. A questionnaire was circulated among two companies of two industries: shipping and automobile. 80 managers and supervisors were targeted; 59 responses were received indicating a response rate of (74%). For testing, regression analysis and T-test were used. From the analysis, it was found that most of green practices influence firm’s performance with green manufacturing the most adopted practice that shapes the industries, followed by green marketing and green purchasing. On the other hand, little impact was found in green packaging and negative impact of green design on firm’s performance. Overall, the study indicates that the tested sample is moving towards the green concept but still it is in its first stages and needs more efforts and support from firms, suppliers and customers.