Impact Of Sustainable Supply Chain Management Practices On Organizational Performance In Ghana

Abstract

The study explores the impact of ecological supply chain management practices such as Green Supply Chain, environmental and operational management practices of organizational performance in Ghana. The organizational performance was measured based upon three parameters constituting Sustainable Environmental Performance (SENP), Sustainable Economic Performance (SECP), and Competitiveness (COMP). Exogenous factors included the constructs of Sustainable Supply Chain Management (SSCM) practices and the single-item construct voluntary adoption of SSCM practices, while endogenous variables included the three aspects of firm performance. The relationship between sustainable management practices and organizational performance was ascertained using Structural Equation Modeling. A few significant results are presented as follows; (1) Environmental Management Practices (EMP) results in enhanced Sustainable Environmental Performance (SENP) and Sustainable Economic Performance (SECP); (2) Organizational Performance has a strong correlation with SECP and COMP; (3) SECP has a substantial and favorable relationship with both competitiveness and sustainable environmental performance, as well as sustainable economic performance. The positive relationship between SSCM practices and firm performance demonstrates that continual sustainable management principles eventually improve community capacity. This ultimately results in an organization’s competitiveness. Additionally, the managerial implications of the results are addressed.