Green Supply Chain Management Practices and Economic Performance: The Mediating Role of Operational Performance and Moderating Role of Green Organizational Culture among Nigerian Food and Beverage Manufacturing SMEs

Abstract

The growing pressure for environmental sustainability has encouraged manufacturing firms to integrate green supply chain management (GSCM) practices into their operations. However, evidence regarding whether individual GSCM practices translate directly into economic performance remains mixed, particularly among small and medium-sized enterprises (SMEs) in developing economies. This study examines the influence of green design, green purchasing, green manufacturing, and green transportation on economic performance among food and beverage manufacturing SMEs in North-Western Nigeria. It further investigates the mediating role of operational performance and the moderating role of green organizational culture. The study adopted a quantitative research design. Data were collected using a structured questionnaire from 243 respondents selected from a sample of 305 Nigerian food and beverage manufacturing SMEs. Data were analysed using SPSS and Partial Least Squares Structural Equation Modelling (PLS-SEM) through SmartPLS 4.0. The findings indicate that green design (β = .302, t = 4.283, p < .001) and green manufacturing (β = .302, t = 3.603, p < .001) have significant positive relationships with economic performance, whereas green purchasing and green transportation do not have significant direct relationships with economic performance. Green purchasing significantly predicts operational performance, while green transportation also shows a significant relationship with operational performance. Operational performance significantly mediates the relationships involving green purchasing and green transportation, whereas the mediation involving green manufacturing is not supported. Green organizational culture significantly moderates the relationship between operational performance and economic performance (β = .491, t = 3.283, p = .001). The findings contribute to GSCM literature by demonstrating that the economic value of green practices may depend not only on direct effects but also on operational capabilities and organizational culture.