Green Supply Chain Management: Pressures, Practices and Performance with Reference to Ethiopian Leather and Leather Products Industry

Abstract

Green supply chain management (GSCM) practices have emerged as an important proactive organizational approach for improving environmental performance of processes and products in accordance with the requirements of environmental goals. The main purpose of this study was to investigate the drivers, green supply chain management practices and its effect on organizational performance of Ethiopian Leather & Leather Products Industries. This study used descriptive and explanatory research design. Structured questionnaires were used to get primary data from top and middle level managers in the leather industry in Ethiopia. Data were analyzed using descriptive statistics, regression analysis, and structural equation model. The findings revealed that government and senior managers’ pressure is important driver for Ethiopian leather industry to adopt GSCM practices, whereas, employees’ and competitor’ pressure is not important drivers for leather industry of Ethiopia to implement GSCM practices. In addition, the result of the study indicated that the Ethiopian leather industry has implemented the GSCM practices. The companies in Ethiopian leather and leather product industry have significantly initiated implementing the practices of GSCM in terms of internal environmental management practice, eco-design, green manufacturing practice, green packaging and investment recovery. On the contrary, green distribution practice, cooperation’s with customers and reverse logistics practices are evidenced by low-level practices. Moreover, the findings of the study revealed that GSCM practice has insignificant effects on both environmental and operational performance of the companies. The originality of this research is that it ascertains the primary drivers in promoting green supply chain practices in African manufacturing industry. The study provides policy insights for professional organizations, regulators, and legislators to further promote Green practices.