dc.description.abstract | Increasing levels of environmental degradation by manufacturing firms has resulted in
heterogeneous pressures from various organizational groups on the need for them to
conduct environmentally friendly operations. A viable option for these firms has been the
implementation of green supply chain practices. The key concern however is whether the
implementing these practices actually lead to improved performance. The main objective of
this study therefore was to examine the relationship between the implementation of GSCM
practices and performance of ISO 14001 certified firms in East Africa. Specifically, the
study investigated the key institutional pressures that cause firms to implement these
practices and how environmental performance, operational performance, relational
efficiency and firm characteristics influence the relationship between implementing the
practices and organizational performance. To achieve the objectives, five broad hypotheses
were formulated. Through the use of positivist research paradigm and descriptive crosssectional
research design, primary data was collected from persons in charge of
environmental issues in ISO 14001 manufacturing firms in East Africa. The study achieved
a response rate of 62%. Based on the objectives, the study findings are that, first, coercive
and normative pressures are significant in causing the firms to implement GSCM practices,
mimetic pressures are not significant; second, there is a statistically significant positive
direct relationship between implementation of GSCM practices and organizational
performance; third, environmental and operational performance fully mediate the
relationship between GSCM practices and organizational performance. It was also noted
that the inclusion of environmental and operational performance constructs increased the
variance explained in organizational performance from 14.2% to 59%; fourth, relational
efficiency does not mediate the relationships between GSCM practices and environmental
performance, GSCM practices and operational performance and GSCM practices and
organizational performance. Fifth, firm size, firm age and spatial scope of the market served
by the firm do not positively moderate the relationship GSCM practices and organizational
performance. The study therefore confirms existence of a positive link between GSCM
practices and organizational performance thus helping to reduce the uncertainty which has
arisen out of contradictory findings from past studies on whether it is beneficial to pursue
these practices. In essence, it can be concluded that a firm will experience improved
marketing and financial performance as a result of GSCM activities having a positive
impact on its operations or are giving positive environmental impression to its customers
who would eventually provide more business opportunities to the firm. The results support
the natural resource based view that GSCM practices affords the firm an opportunity for
competitive advantage and performance improvement through unique causally ambiguous
and socially complex resources. The study recommends that manufacturing firms should
implement environmentally sound practices in all phases of the supply chain, beginning
with procurement of raw materials through to design, manufacture, packaging, distribution
and end of life disposal of their products. Regulators can use the findings to scale up the
level of implementation of GSCM practices by enforcing stricter environmental legislation
and giving incentives to firms that have already implemented these practices. The findings
also provide future researchers’ with a useful conceptual and methodological reference to
pursue further studies in this under-studied GSCM area especially in the African context. | en_US |