Factors Affecting Implemation of Green Supply Chain Management: A Study on Ethiopian Pharmaceutical Supply Service
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Date
2024-06
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Addis Ababa University
Abstract
This study sought to examine factors that affect green supply chain management of pharmaceutical supply chain by taking Ethiopian Pharmaceutical Supply Service as a case. A quantitative research approach along with an explanatory research design was adopted. The survey was conducted on employees working in the quantification & market shaping, procurement and logistics departments of Ethiopian Pharmaceutical Supply Service. A sample of 228 valid and usable responses were collected from the targeted respondents. Multistage sampling techniques was applied to select the employees at the three departments judgmentally, and applied stratified random sampling technique to select the respondents randomly from each stratum. Primary data were collected through a self-administered questionnaire. A multiple linear regression analysis was used to identify factors affecting green supply chain management and their effect on pharmaceutical supply chain with the help of the SPSS 22.0 Software. These factors are government policy, supplier’s flexibility, customer demand, staff competence, management support and organizational capacity. The results revealed that, among them, staff competency had relatively the highest effect on green supply chain management followed by management support and customer demand. Whereas, supplier flexibility had the least contribution preceded by organizational capacity and government policy. The managers of quantification, logistics and operation departments should implement business re-engineering system by incorporating performance evaluation systems to mitigate loss of unnecessary costs due to poor operational activities, backed by reward/incentives.
Key words: Ethiopian Pharmaceutical Supply Service, Green Initiative, Green Supply Chain Management, Pharmaceutical Industry, Supply Chain Management, Sustainable Business.