The impact of green manufacturing practices on economic performance of the listed manufacturing companies in Sri Lanka

Abstract

Green manufacturing practice is of vital importance in today’s context as people have become more conscious about the environment and this has mainly affected the manufacturing industry. Companies that should be considered when making strategic decisions on green manufacturing could benefit from the guidance provided by studies like this one that link green manufacturing practices with the economic performance of Sri Lanka's listed manufacturing companies. Most of the studies were done relating to the impact of the green practices on operational or financial performance, where limited studies revealed the impact on the economic performance of the manufacturing companies in Sri Lanka. Hence the purpose of this study is to investigate the impact of green manufacturing practices on economic performance of the listed manufacturing companies in Sri Lanka. This study will mainly test the existing practices, key aspects of economic performance subjected to green manufacturing practices & relationship between the green manufacturing practices and economic performance. This research will use the return on equity (ROE), return on asset (ROA) and return on capital employed (ROCE) to measure the economic performance of the organization. This research has used all the manufacturing listed companies as the population, and 50 companies were selected as the sample for the study. Data will be collected from annual reports for the period from 2017 to 2022. In this study, descriptive analysis, correlation analysis, and regression analysis are used to analyze the data by using e views software. The findings will report that all the green manufacturing practices considered in this study affect the economic performance of the listed manufacturing companies in Sri Lanka. This study is expected to contribute to all the society, decision makers and policy makers to identify regarding the economic performance and green practices in organization.