The Effect of Green Supply Chain Management Practices on Operational Performance:

A Case Study of Some Selected Manufacturing Firms in Dire Dawa City Administration

Abstract

Green supply chain management is defined as a set of practices that are comprised of many activities starting from the generation of ideas and evolving through the design purchasing, logistics, manufacturing, and managing all kinds of waste. The purpose of this study was to examine the effect of green supply chain management practices on operational performance a case study of some selected manufacturing firms in Dire Dawa city administration. The researchers used an explanatory research design, both primary and secondary source of data was used to achieve the objective of the study. In this study, close-ended questionnaires were used for data collection procedures from selected respondents. The total populations of the study are 5626 and the researchers took 315 employees as sample respondents. In this study, the purposive sampling technique, both descriptive (mean and standard) and inferential statistics (Pearson and ordinal logistic regression) was used for the data analysis method. The researchers used a statistical package for social science software to analyze descriptive (percentage, mean, and standard deviation) and inferential statistics (Pearson correlation and ordinal logistic regression). The findings of the study imply that green purchasing, eco-design, and green manufacturing practices have a positive and significant effect on operational performance, whereas reverse logistics practice has a positive and insignificant effect on operational performance. Therefore, the researchers would recommend that the companies should give priority to green purchasing practices because green purchasing practices may affect the companies’ performance more than the rest of green supply chain management practices.