Extending green supply chain management activities to manufacturing small and medium enterprises in a developing economy

Abstract

Background: The implementation of green supply chain management activities as a business strategy remains unfamiliar to many small and medium enterprises (SMEs) in developing countries such as South Africa.

Setting: Implementation of green supply chain management activities by South African SMEs is necessary, given both the high failure rate of such enterprises in the country and the proven ability of such activities to promote the success of businesses.

Aim: The aim of this study was to investigate the relationship between green supply chain management activities, operational performance and supply chain performance in manufacturing SMEs in South Africa.

Methods: Data were collected from 219 manufacturing SMEs operating within Gauteng. A confirmatory factor analysis was conducted to assess the psychometric properties of measurement scales. Hypotheses were tested using structural equation modelling.

Results: Four green supply chain management activities, namely green purchasing, reverse logistics, environmental collaboration with suppliers and green manufacturing, exerted a positive influence on operational performance. Environmental collaboration with suppliers exerted the highest influence on operational performance when compared to green purchasing, reverse logistics and green manufacturing. In turn, operational performance exerted a strong positive influence on supply chain performance.

Conclusion: The results of the study suggest that manufacturing SMEs in developing countries could benefit by adopting green supply chain management activities, with improvements being realised in terms of increases in both operational and supply chain performance.