Awareness of green supply chain management practices of Sri Lankan SMEs

Abstract

As many economies embrace global supply systems, there is a pressing need to focus on reducing the supply chains' adverse environmental impact. Green Supply Chain Management (GSCM), is an alternative idea that combines supply chain effectiveness with environmental considerations. GSCM is a powerful tool for distinguishing or separating a company from its competitors, and it can have a substantial impact on the company's success strategy. It is becoming more significant for Sri Lankan SMEs as they become more attentive to corporate social responsibility and the obligation to follow the terms of eco-friendly policy. Recently, it was found that there are many issues in the area of supply chain to the balance of biodiversity specially from the Small and Medium sector enterprises in Sri Lanka. Though various researchers have highlighted the penetration of GSCM practices in large-scale manufacturing industries, the present study is aimed at exploring the awareness of green supply chain management practices in Small and Medium Scale Industries (SMEs) in Sri Lanka. Therefore, the purpose of this research was to evaluate the current state of Sri Lankan Small and Medium Enterprises in the context of Green Supply Chain Management Practices (GSCMP). This research study takes a qualitative approach rather than a quantitative one. The study depends on primary data, collected through face-to-face, semi-structured interviews with seven Small and Medium enterprises in North Western Province, Sri Lanka. Interviews were conducted with managers of a set of SMEs in the Sri Lankan market in an attempt to meet the main objectives of this research. All the targets are located in North Western Province, as a matter of determining the geographical coordinates of the target. This study follows a thematic analysis approach to analyze the data. Highlighted findings were such that insignificant attention from SMEs in Sri Lanka is being paid towards the environment. SMEs were found not to be willing and seriously ready to take action so as to help in reducing environmental threats. Lack of customer awareness, Lack of knowledge & experience training to personnel in Green supply chain management, Lack of top-level management commitment in adopting green supply chain management, Suppliers or vendors are reluctant to adopt Green supply chain management practices, Cost of Implementation for Green supply chain management and Lack of support & guidance from regulatory authorities are the main reasons for lower level adoption to the green supply chain management practices among Sri Lankan SMEs. Various suggestions were offered in this study and proposed solutions according to the identified insufficiencies.