MPACT OF ENVIRONMENTAL CRITERIA OF SUPPLIER SELECTION ON FIRM PERFORMANCE RELATED TO MANUFACTURING COMPANIES IN THE RATMALANA FREE TRADE ZONE

Abstract

Green concepts state as pioneers in current business world. Green supplier selection is an interesting concept for selecting suitable suppliers in manufacturing companies. The purpose of this study is to examine the impact of environmental criteria of supplier selection on firm performance. The study observed environmentally friendly packaging, reduce use of toxic substances and green material suppliers as independent variables and firm performance as the dependent variable. This is a quantitative research study where a structured questionnaire was disseminated among 70 manufacturing companies in Ratmalana Zone under the simple random sampling technique. Correlation analysis were employed to analyze the hypothesis. The final result revealed there is a high degree of positive relationship between independent variables and dependent variable. Furthermore, future researchers can do the broad research study related to this study area.