Effects of Green Supply Chain Adoption on the Performance of Agri-manufacturing Firms in Rwanda

Abstract

Green supply chain has been a major component of competitive strategy to enhance organizational productivity and profitability as well as metric measure, however performance pertaining to green supply chain and supply chain performance among Agri-Manufacturing firms in Rwanda has not received adequate attention from researchers or practitioners today. Thus, the general objectives determined effects of green supply chain adoption on supply chain performance: survey of Agri-Manufacturing Firms in Rwanda. The study was guided by the following objectives; to determine the effect of internal environment management practices on supply chain performance, to assess the effect of green purchase on supply chain performance, to ascertain the effect of eco-design practices has no significant effect on supply chain performance , to establish the effect of investment recovery on supply chain performance and to determine the moderating effect of institutional pressures on the relationship between green supply chain and supply chain performance among Agri-Manufacturing Firms in Rwanda. The study was informed by Resource-Based View, Natural-Resource-Based View, Resource, Dependence Theory, Institutional Theory and Stakeholder Theory. This study employed both cross-sectional and explanatory research design and is in line with positivism approach. The target population was 567; including Operations Manager, Chief Supply Chain Officer, Logistics Specialist, Supply Technician, IT Technician, Production Technician, Returns Specialist. Procurement specialist in supply chain department from 67 Agri-Manufacturing Firms. Stratified and simple random sampling was used to select a sample of 226. This study collected both secondary and primary data, but mainly primary data using a structured questionnaire. Data analysis was performed with the aid of SPSS version 22.0 using both descriptive and inferential statistics. Hypothesis 1 to 4 was tested using multiple regression model, while hypothesis 5 was tested using hierarchical regression. Findings showed that internal environmental management, green purchasing, eco-design results and investment recovery positively and significantly influences supply chain performance. In addition, institutional pressure significantly moderates the relationship between internal environment management, green purchasing, eco-design results and investment recovery and supply chain performance. It is therefore important for both the senior managers and mid – level managers to be committed and supportive of GSCM. Also, firms need to make an initiative towards identifying a recycling system for used and defective products. Therefore, managers need to ensure that the raw materials acquired from suppliers can be recyclable, reusable, and re-manufactured. As such, the firms need to ensure that the environmental impacts of the product’s life cycle are understood before even engaging in manufacturing decisions.