Green supply chain management in small and medium enterprises: Further empirical thoughts from South Africa

Chengedzai Mafini,Louis R Epoh

doi:10.4102/jtscm.v12i0.393

Abstract

Background: For South African small and medium enterprises (SMEs) to gain and maintain competitive advantages and succeed, they have to change their practices and adapt their strategies to the dynamic environment of today. A better understanding and application of green supply chain management practices by SMEs could enable such enterprises to improve their performance and succeed in their operations.Objectives: This study aimed to analyse the relationship between green supply chain management, environmental performance and supply chain performance in South African SMEs.Method: A conceptual model was proposed and subjected to empirical verification using data collected from SMEs based in Gauteng province. The structural equation modelling procedure was used to test hypotheses in the proposed relationships in SMEs within different industries.Results: The results of the study indicated mixed outcomes. No relationships were found between environmental performance and two green supply chain dimensions, namely green purchasing and eco-design. However, the remaining dimensions of green supply chain management, namely reverse logistics and legislation and regulation, positively and significantly predicted environmental performance. In turn, environmental performance positively and significantly predicted supply chain performance.Conclusion: Integrating green supply chain management practices, especially reverse logistics and adherence to legislation and regulation into the SME business strategy, leads to the improvement of environmental and overall supply chain performance.

Highlights

Over the past few decades, green supply chain management (GSCM) has gained popularity across the world, mainly in developed countries but in developing nations as well (Govindan et al 2014)
The first part of the statistical analyses tested the relationship between environmental performance and four GSCM practices, namely Green purchasing (GP), ED, Reverse logistics (RL) and Legislation and regulation (LR)
The study revealed that there was no significant relationship between environmental performance and two GSCM practices, namely GP and ED

Summary

Introduction

Over the past few decades, green supply chain management (GSCM) has gained popularity across the world, mainly in developed countries but in developing nations as well (Govindan et al 2014). This interest in GSCM is driven by the efforts of governments and other institutions to either prevent or limit the disastrous effects of industry-related activities on the environment (Wong, Wong & Boonitt 2015). Research on GSCM still has to be extended to small to medium enterprises (SMEs) as the majority of studies conducted have been confined to large organisations (Ahi & Searcy 2013). A better understanding and application of green supply chain management practices by SMEs could enable such enterprises to improve their performance and succeed in their operations

Objectives

Results

Discussion

Conclusion