The Impact of Green Supply Chain Management (GSCM) Practices on Organizational Performance: Special Reference to Textile and Apparel Industry in Sri Lanka

Abstract

The purpose of this study was to examine the impact of Green Supply Chain Management (GSCM) practices on organizational performance. The study was conducted in 384 textile and apparel manufacturing companies in Sri Lanka, particularly examining the impact of implementing a set of Green Supply Chain Management practices: eco-design, green purchasing, environmental corporation, and reverse logistics on different dimensions of the organizational performance: operational, environmental, economic, and social performances. GSCM practices and dimensions of organizational performance were found through a comprehensive survey of literature and the research model was formed through these practices and performance dimensions. The study followed the quantitative research approach. An e-mail based questionnaire survey was conducted to collect the primary data for the study. To test the hypotheses related to GSCM practices and organizational performance, the simple liner regression analysis was used. Through the findings of the study, the researcher concluded that GSCM practices positively affected the all the above mentioned organizational performance dimensions. Finally, it concluded that organizational performance of the textile and apparel industry could be developed through the implementation of GSCM practices. However, the generalizability of these findings is limited, since the study concerned only 384 textile and apparel manufacturing companies in Sri Lanka. In the Sri Lankan context researches on GSCM is still in the emerging stage. Encouraging researching in this context will be more beneficial to make popular the concept in both manufacturing and service sector in Sri Lanka.