EFFECT OF GREEN SUPPLY CHAIN MANAGEMENT PRACTICES (GSCMPs) ON OPERATIONAL PERFORMANCE OF MANUFACTURING COMPANIES IN NORTHERN NIGERIA

Abstract

The manufacturing sector plays a pivotal role in fostering economic growth and development, with its contributions exerting a profound impact on the overall economic trajectory of nations. Green Supply Chain Management Practices is necessary for the manufacturing companies to achieve sustainable growth and development. This empirical study examines the effects of green supply chain management practices on the operational performance of firms in Northern Nigeria, who are members of the Manufacturing Association of Nigeria (MAN). Applying cluster random sampling, 196 (82%) responding firms were deemed valid for analysis, using SMART-PLS 4. The statistical results reveal that eco-design with (β=0.358, t=3.484, p<0.001) and green procurement with (β=0.255, t=3.225, p<0.001) have a positive and significant relationship with the operational performance of manufacturing firms. However, green production with (β=0.157; t=1.722; p>0.085) was found positive but insignificant. Our findings inform that green supply chain management practices particularly eco design and green procurement are essential for a sustainable future, and serve to address the effects of manufacturing activities on the environment as set forth in the UN’s sustainable development goals. The study concluded that, the need for GSCMPs to enhance operational performance of manufacturing companies in Northern Nigeria requires more commitments and collaboration between manufacturing companies and other relevant authorities, stakeholders and concerned organizations.