Analysis of Green Supply Chain Management Practices on Operational Performance in Food Manufacturing Industry in Sri Lanka

Abstract

This research has been conducted to analyse the relationship between green supply chain management practices and operational performance in the food manufacturing industry in Sri Lanka. The study has been carried out based on the research question; ‘How green supply chain practices influence operational performance in the food manufacturing industry?’ The main objective of this research was ‘To identify the relationship between green supply chain practices and the food manufacturing industry’s operational performance.’ The independent variables were green purchasing, eco design and packaging, green warehousing, green distribution and collaboration with customers. The dependent variable was operational performance. Primary data collection was done through a questionnaire survey. The responses were captured through a 5 point Likert scale. The sample size was 40 while the unit of analysis was the organization. A 75% response rate was achieved and 30 responses were considered. The respondents were executives in food manufacturing organizations in Sri Lanka and judgmental sampling was used because of the necessity of selecting organisations which are practicing green supply chains. Hypothesis were developed and tested at the significant level of 95%. During analysis, Cronbach's alpha value 0.705 was achieved. Sample adequacy was achieved by obtaining a value of 0.710 for the KMO test. R-square value 0.702 was obtained. P values were obtained to test hypothesis. Through the analysis it was identified that green supply chain practices considered for the study: green purchasing, eco design and packaging, green warehousing, green distribution and collaboration with customers all have a significant relationship with the operational performance of the organization. It could be identified that most of the organizations in the food industry in Sri Lanka have commenced to incorporate green practices into operations. Further they are practicing green practices related to the areas of distribution, purchasing, designing and packaging, warehousing, customer collaboration.