Green Supply Chain Management Practices and Economic Performance of Food and Beverage Manufacturing SMEs in North-Western Nigeria

Abstract

Green supply chain management (GSCM) has become increasingly important to manufacturing firms seeking to balance environmental responsibility with economic performance. However, empirical evidence on whether individual GSCM practices translate into economic benefits remains mixed, particularly among small and medium-sized enterprises (SMEs) in developing economies. This study examines the direct influence of four GSCM practices green design, green purchasing, green manufacturing, and green transportation on the economic performance of food and beverage manufacturing SMEs in North-Western Nigeria. The study adopted a quantitative, descriptive-survey design. Data were collected through a self-administered questionnaire from respondents drawn from food and beverage manufacturing SMEs registered within the study area. Of 305 questionnaires distributed, 243 usable responses were obtained. Data were analysed using SPSS and Partial Least Squares Structural Equation Modelling (PLS-SEM) through SmartPLS 4.0. The findings show that green design has a significant positive relationship with economic performance (β = .302, t = 4.283, p < .001), while green manufacturing also has a significant positive relationship with economic performance (β = .302, t = 3.603, p < .001). In contrast, green purchasing (β = .039, t = .567, p = .285) and green transportation (β = .126, t = 1.003, p = .158) do not have statistically significant direct relationships with economic performance. The findings indicate that GSCM practices do not generate uniform economic returns in the context studied. The study contributes context-specific evidence from Nigerian food and beverage manufacturing SMEs and suggests that managers should prioritize environmentally oriented design and production improvements while developing the supporting capabilities and supplier relationships needed to convert other green practices into economic value.