Sustainable Supply Chain Management Practices and Operational Performance of Manufacturing Firms in Mogadishu

Abstract

The purpose of this study was to establish the relationship between sustainable supply chain management practices and operational performance of manufacturing firms in Mogadishu, Somalia. The study sought to achieve three objectives: To establish the drivers of sustainable supply chain management adoption among manufacturing firms in Mogadishu, find out the sustainable supply chain management practices adopted by manufacturing firms in Mogadishu, ascertain the key enablers in adoption of sustainable supply chain management practices among manufacturing firms in Mogadishu and to determine the effect of sustainable supply chain management practices on operational performance of manufacturing firms in Mogadishu. The research took the form of a descriptive survey and all the 13 manufacturing firms in Mogadishu were involved in the study. Data was collected via questionnaires. It was established that key among the drivers of adoption of this concept include need to minimize costs, pressure from customers, pressure from civil society organizations, compliance with government regulations, pressure from media, the need to improve the public image of the firm, influence from other supply chain partners and desire to become a responsible corporate citizen. The study concluded that there are many sustainable supply chain management practices (SSCM) practices already adopted from various categories such as use of biodegradable materials, use of clean energy, minimal use of virgin materials and minimization of waste. The key enablers of SSCM adoption were top management commitment and support, availability of financial resources, availability of qualified personnel, availability of suppliers of sustainable inputs, employee receptiveness of the concept, stakeholder involvement, encouragement from customers, information sharing and type of regulatory framework a firm operates in. Collectively, the independent variables of the study: use of biodegradable materials, use of renewable and clean energy, minimum use of virgin materials and elimination of waste explain a significant percentage of the variance in operational performance of the manufacturing firms. The study recommends the adoption of renewable and clean energy such as wind power and zero use of plastics in manufacturing should be implemented among manufacturing firms in Somalia.