Abstract:
The main objective of this research is to find out the
economic impact of adopting green practices to the supply chains
of manufacturing companies in Sri Lanka and the competitiveness
gained through it. Greening the supply chain is looked at from
three perspectives in this research namely, greening the inbound
function, greening the production function and greening the
outbound function where the final outcome presents the
correlation between each of these with the improvement of
economic performance and competitiveness when it comes to the
manufacturing companies of Sri Lanka.
The population of the research is the ISO 14001
(Environmental Management System) certified manufacturing
companies in Sri Lanka. Data was collected through a survey
done involving all the ISO 14001 certified manufacturing
companies where environment management representatives of the
firms were targeted through online questionnaires. A four point
likert scale was used to obtain responses. Exploratory factor
analysis and structural equation modeling (SEM) was used to
analyze data regarding the five variables.
The research concludes with a statistically proven result that
greening the inbound, production and outbound functions of a
supply chain individually as well as collectively leads to improved
economic performance while competitiveness can be improved by
greening the inbound function of a supply chain.
