Supply chain risk management, green supply chain practices and performance of selected manufacturing companies in Nigeria

Abstract

Growing concerns about supply chain risks and the need for manufacturing firms to produce environmentally friendly products led to this study which examined the role and contributions of supply chain risk management and green supply chain practices on the non-financial performance of selected manufacturing companies in Nigeria. The specific objectives were to: determine the effect of green supply chain practices on the non-financial performances of these companies; ascertain the influence of green supply chain practices on supply chain risk management; determine the influence of reverse logistics on the performance of these companies; examine the factors militating against reverse logistics in these companies and determine the effect of supply chain risk management on the performance of these companies. The causal survey research design was adopted to study supply chain risk management, green supply chain practices and performance of selected manufacturing companies in Nigeria. The purposive sampling technique was used to select listed firms, while the simple random sampling technique was employed in selecting staff members in the listed manufacturing firms on the Nigerian Stock Exchange. The healthcare and consumer goods strata constituted the population of firms where nine were purposively selected from a total of nineteen. The study sampled two hundred and eighteen (218) staff in the selected manufacturing companies. Data analysis was executed with descriptive statistical methods (frequency, percentages, bar chart, mean, standard deviation) and inferential statistics methods (partial least square regression {PLS-SEM}). Specifically, objectives one, two, three and five were analyzed using the PLS-SEM technique.

Green supply chain practices were found to be a significant predictor of firm performance (R2=0.732, p=0.000); and supply chain risk management processes (R2=0.724, p=0.000). The result also showed that reverse logistics significantly predict firm performance ((R2=0.652, p=0.000). The most common factors militating against reverse logistics were lack of enforceable laws and policies (𝑥̅ = 4.26, 𝜎 = 1.048) as well as lack of supportive economic policies for effective implementation of reverse logistics (𝑥̅ = 4.10, 𝜎 = 1.159) nevertheless, lack of infrastructure needed for monitoring the reverse logistics process (𝑥̅ = 4.01, 𝜎 = 1.168) was not popular among these firms. Supply chain risk management was also a significant predictor of firm performance (R2=0.775, p=0.000). Therefore, green supply chain practices influence performance and supply chain risk management processes while supply chain risk management influences the performance of the selected companies. The study recommended that companies should continue to use green supply chain practices and supply chain risk management processes to produce environmentally friendly products.