Impediments of Green Supply Chain Management Implementation in Addis Ababa Tannery Companies
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Date
2019-06
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Addis Ababa University
Abstract
Green supply Chain Management has emerged as a trending topic of discussion for the Organization development, enhanced competitive advantages, increase customer satisfaction, improved brand image, and of course minimum adverse impacts on the environment. However, Green business practices are not easy to adopt and implement, due to the presence of many barriers. Identification of essential barriers for Green Supply Chain Management implementation is also difficult because of its numerous characteristics. The purpose of this study was to examine the main impediments of green supply chain management implementation in Addis Ababa Tannery Companies. In order to attain the objectives of the study, mixed approach was entertained. As a means of data collection instrument; questionnaire and structured interview questions were applied. The population of the study were 49 employees of 7 tannery companies in Addis Ababa, mainly those at managerial position and responsible either directly or indirectly for the supply chain activities of the company. All the population taken as a sample; from a total of 49 questionnaires distributed, only 42 of them were correctly filled and applied in the study, and this revealed a response rate of 85.71%. The interviews were conducted with Environmental Technology Directorate, Director of Leather Industry Development Institute ( LIDI) and Deputy Manager of City Government of Addis Ababa Environmental Protection Authority. In order to analyze, interpret and present the data captured via questionnaire, Statistical Package for the Social Science (SPSS) were used. The quantitative data were analyzed using mean, mode, standard deviation, correlation and regression analysis. The findings of the study revealed that; the existence of statistically significant negative association between the impediments and implementation of green supply chain management. The regression result also showed that except the financial barrier; company‟s lack of perception on environmental impact towards implementation GSCM, technological, organizational and informational barriers have statistically significant predicting power on the implementation of GSCM. With regards to the hypothesis testing the Chi-square test of independence was employed. The result revealed that; there exist significance relation between the dependent and all independent variables. Thus the entire null hypotheses were rejected.
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Keywords
Impediments, Green Supply Chain Management, Tannery Companies.