THE IMPACT OF GREEN SUPPLY CHAIN MANAGEMENT PRACTICES ON ECONOMIC PERFORMANCE WITHIN THE SRI LANKAN FOOD & BEVERAGE INDUSTRY

Abstract

This study investigates the multi-faceted impact of Green Supply Chain Management (GSCM) practices on Economic Performance (EP) of the unique Sri Lankan food and beverage (F&B) industry. The novelty of this research lies in the empirical examination of the high-resource-intensive industry of a developing nation, comparing five various dimensions of GSCM with a critical measure of financial performance, a relationship previously under-researched in Sri Lanka. EP was taken as the dependent variable, measured by five independent variables, including green purchasing, eco-design, internal environmental management, reverse logistics, and investment recovery. A convenience sample of 100 F&B businesses in the Galle district was surveyed. The research established that four of every five GSCM practices, green purchasing, eco-design, reverse logistics, and investment recovery, are positive and statistically significant with economic performance. This establishes that circular economy practices directly mirror organisational profits. However, internal environmental management was established to be statistically insignificant. This is a deviation from most literature in the world, suggesting that, independently, local top-management commitment may not lead to economic benefits in cash terms without extrinsic market pressures. The study offers strategic advice for managers to prioritise investment recovery and circular supply chains. Scholars can extend this study by considering other GSCM practices that exert a stronger influence on economic performance than the variables considered in this research.