The Impact of green procurement practices on organizational performance, a study based on manufacturing companies in Sri Lanka

Abstract

Nowadays, most manufacturing businesses concentrate on green manufacturing to maximize resource efficiency by minimizing any adverse effects on productivity, the environment, or human health. Therefore, organizations are working to reduce pollution and waste, recycle, reuse, use fewer natural resources, reduce emissions, etc. Additionally, today's consumers are quite knowledgeable. Customers often refuse to buy a product if it is bad for the environment. They favor purchasing eco-friendly goods and are prepared to pay a premium for them. Therefore, to please their customers, manufacturers frequently use green procurement methods. However, there is still insufficient research on how these practices of green procurement affect organizational performance in manufacturing companies. This study's primary goal is to determine the impact of Green Procurement practices (Supplier Selection, Reverse Logistics, and E-Procurement) on organizational performance in manufacturing companies in Sri Lanka. Primary information has been gathered by an interview questionnaire and secondary data were collected through a survey. Data was collected from a total of 85 managers and assistant managers in manufacturing organizations. The questionnaire contains 30 question statements, all of which were constructed with 5-point Likert scales to assess the dimensions and variables associated with manufacturing organizations. All of the data were analyzed using SPSS version 22.00. Frequency Analysis, Descriptive Analysis, Reliability, Validity and Simple and Multiple regression analysis done for analyze the data. According to the data analysis, it was found that selected green procurement practices, Supplier Selection, Reverse logistics and E Procurement has a favorable effect on the performance of organization. The study was essential and helpful for the region's industrial business because it advanced information on green procurement, a vital component of optimal performance and environmental preservation.