Green supply chain management: An empirical study in enhancing green economic performance

Abstract

Background: South Africa has successfully enhanced its manufacturing sector by incorporating green technologies and fostering sustainable job opportunities, demonstrating the importance of material transformation in supplying necessities and promoting economic growth. The manufacturing sector’s rapid economic growth has led to environmental concerns, prompting a push for green supply chain management (GSCM). This study explores green purchasing (GP), manufacturing and distribution practices. Objectives: By examining how GSCM techniques affect green economic performance (GEP) in Gauteng province’s industrial sector, the current study aims to close this gap. Green supply chain management techniques were examined in this study in the areas of green distribution (GD), manufacturing and purchasing. Method: The study surveyed 450 manufacturing companies in Gauteng province using a quantitative approach. Data were analysed using Statistical Package for Social Science (version 28.0) and SMART PLS (version 3.0) (using confirmatory factor analysis and structural equation modelling path analysis) to test research hypotheses. Results: The results of the study showed that in the manufacturing industry GSCM practices through GP, green manufacturing and GD greatly influence GEP. In addition, GD has the strongest effect on GEP compared to GP and GD. Conclusion: To enhance GEP and safeguard the environment, the industrial sector must implement GSCM strategies. Contribution: This study is significant for South African manufacturing companies because it offers opportunities for achieving GEP by adopting and comprehending GSCM practices. The findings will aid in the implementation of these practices in Gauteng province’s manufacturing firms.