Sustainable performance of bottled water firms in Ethiopia

The role of green supply chain management

Abstract

Due to growing awareness of the negative environmental effects associated with the bottled water industry, there is increased pressure from customers, the government, and stakeholders for firms to adopt green supply chain management (GSCM) practices. These practices aim to minimize environmental consequences while enhancing social and economic performance. However, GSCM and sustainable development are still in their early stages of practice, particularly in Ethiopia where research investigations are limited. This study examines the impact of GSCM practices on environmental, economic, and social performance in the bottled water manufacturing industry in Ethiopia. A survey of 323 managers reveals that GSCM practices have a positive impact on all three dimensions of sustainability performance: environmental, social, and economic. However, the specific impact of each practice varies. All five GSCM practices improve the environmental performance of firms. Some practices also improve other dimensions of sustainability performance. For example, internal environmental management and cooperation with customers significantly improve social performance, but not economic performance. On the other hand, investment recovery improves economic performance. However, eco-design and green purchasing do not have a significant impact on economic or social performance. The findings of this study have theoretical implications and practical insights regarding sustainable performance for managers.