Green supply chain management initiatives and operational competitive performance

Manufacturing organizations have begun to implement green supply chain management (GSCM) practices in response to customer demand for products and services that are environmentally sustainable and that are created through environmentally sustainable practices and in response to governmental environmental regulations. Despite rising concerns about green management, there seem to be few studies investigating GSCM and its impacts on the operational competitive capabilities from a developing economy. The purpose of this paper is to understand the extent of GSCM practices’ implementation in Ghana and how such practices impact firms’ operational competitive capabilities.

Structural equation modeling was used to study the relationship between GSCM practices and firm operational competitive performance in terms of cost, quality, flexibility, and delivery time using a survey of informants.

Using data from Ghana, the work demonstrates that GSCM practices such as environmental management systems (EMSs) and green purchasing (GP) practices will have a positive relationship with firm’s operational competitive performance in terms of cost, quality, and flexibility, but seems to have no positive relationship with delivery time. Further moderation analysis indicates that the paths from environmental management practices to reduced cost and flexibility were significant, indicating that the effect of environmental management practices on operational efficiency differs among services, manufacturing, construction and mining. The paths from Green purchase to improved quality, delivery time, flexibility, and reduced cost were insignificant.

The results indicate the relevance and the implications of GSCM practices such as implementing comprehensive EMSs and GP on operational competitive performance on firms from a developing country such as Ghana. Specifically, the results indicate that when organizations invest in GSCM practices, they are likely to achieve cost reductions, improved quality, and flexibility. The relationship between GSCM practices is moderated by various industrial sectors.

The research shows how GSCM practices such as EMSs implementation and GP practices can enhance firm’s operational competitive performance.

The work illustrates and provides some insights and build on the literature in the area of green supply chain and firms’ operational competitiveness from a developing country’s environment.