Impact of Green Supply Chain Management Practices on Organizational Performance of the Manufacturing Sector in Sri Lanka

The present study explores the impact of implementing Green Supply Chain Management Practices on Organizational performance, in terms of environmental, operational and financial performance among manufacturing firms in Sri Lanka. 150 no of firms (n = 150) which have already implemented GSCM practices in the Sri Lankan manufacturing industry were selected covering a variety of sectors including automobile (29), garments (36) , food and beverage (13), electronics (20), chemicals (20) and other (32) as the sample size of this study.  Structural Equation Modeling (SEM) was used to analyze the relationship between variables. The empirical evidence verifies that, a significant positive relationship between GSCM practices and organizational performance exists. It can be concluded that higher the adaptation of GSCM practices, higher will be the organizational performance in Sri Lankan Context. Further, it is also concluded that higher the adaptation of GSCM practices, higher will be the environmental, operational and financial performance.  This suggests, that the impact of GSCM practices lead to reduce air emission, wastage of water and solid wastages and decrease the consumption of hazardous materials, frequency of environmental accidents under the environmental performance. When considering operational performance, the impact of GSCM practices lead to increase amount of goods delivered on time, decrease inventory levels and scrap rate, promote products quality, reducing and eliminating waste, increased product line and finally improved capacity utilization. Decrease of cost for energy consumption, cost for environmental accidents, and decrease in level of production costs, decrease in packing costs can be considered under the financial performance. This study will play an important role for managers and firms, also this study is contributing in increasing the sales through understanding the benefits of practices of the green supply chain management and got the highest benefits from it. Keywords: Green Supply Chain Management, Green Supply Chain Management Practices, Organizational Performance, Structural Equation Modeling (SME) Cite this paper: N. Priyashani, G.C.I. Gunarathne (2021), Impact of Green Supply Chain Management Practices on Organizational Performance of the Manufacturing Sector in Sri Lanka, Vidyodaya Journal of Management, 7(1), 1-25

Impact of Lean Utilization on Operational Performance: A Study of Sri Lankan Textile and Apparel Industry

The increasingly competitive local and international market for the Textile and Apparel industry has forced the manufacturers to adopt practices that lead to cost reductions and improve Operational Performance (OP). According to Gamage et al. (2010) lean had been initiated to fulfill this requirement. Yet it was crucial to be aware whether Lean Practices would essentially have a positive impact on OP. This research was therefore conducted to identify the relationship between Lean and OP and the impact Lean utilization creates on the OP levels. The objectives also covered the identification of issues that hinder the ability to derive the expected benefits and suggesting how Lean could be used effectively to attain the expected OP levels. A survey questionnaire was used to gather data from Textile and Apparel factories that met the criteria of possessing Lean manufacturing as the standard of operation for more than a period of one year, to ensure adequate time to gain results on an impact on the OP measurement criteria identified in the model. This was studied in a sample of thirty medium to large scale factories registered in the Board of Investments. Data were specifically gathered on Lean utilization under three constructs, Just in Time (JIT), Waste Elimination (WE) and Flow Management (FM) extracted from literature. OP was measured through 12 Key Performance Indicators identified from industry. Descriptive Statistics, Multiple Regression Analysis and Correlation Analysis were employed to analyze the data. Results indicated that there is a positive relationship between Lean Utilization and OP in the Textile and Apparel industry. WE techniques utilized in the industry had a highly significant relationship with OP compared to JIT and FM. Also it was evident that lack of awareness of the human factor, lesser number of studies and consultancy expenses has hindered their ability to gain expected outcomes. The study encourages WE techniques such as elimination of bottlenecks and would support the management in long term decision making. KeywordsKey Performance Indicators, Lean Practices, Operational Performance,Textile and Apparel Industr