Exploring the influence of internal environmental management, green procurement and reverse logistics on economic performances: Evidence from Ethiopian Industrial Parks

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IJEP 44(10): 889-903 : Vol. 44 Issue. 10 (October 2024)

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Tesfaye Kefale Torban1,2*, Mathewos Ensarmu Jalata3 and Chala Dechassa Geleta4

1. Bule Hora University, Department of Management, College of Business and Economics, Bule Hora, Ethiopia
2. Arsi University, Department of Logistics and Supply Chain Management, College of Business and Economics, Assella, Ethiopia
3. Addis Ababa University, Department of Logistics and Supply Chain Management, College of Business and Economics, Addis Ababa, Ethiopia
4. Oromia State University, Department of Management, College of Finance and Management, Oromia, Ethiopia

Abstract

As industries continue to expand, companies face increasing pressure to address environmental concerns and reduce pollution. This study examines the impact of internal environmental management (IEM), green procurement (GP), reverse logistics (RL) and environmental performance (EVP) on economic performance (ECP). The study also explores how EVP mediates the relationship between IEM, GP, RL and ECP. To gather data, we used customized questionnaires to survey the CEO, operations, human resources, logistics and procurement managers of 165 industrial park firms. We analyzed the data using PLS-SEM software (SmartPLS 4). Our results show that RL adoption has a significant effect on both EVP and ECP. IEM improves ECP but not EVP. Additionally, the study found that GP does not improve either EVP or ECP. However, the implementation of EVP mediates the relationship between IEM, RL and ECP. Our study also explores the connections between IEM-EVP-ECP, GP-EVP-ECP and RL-EVP-ECP, adding to the knowledge of supply chain and production.

Keywords

Internal environmental management, Green procurement, Reverse logistics, Environmental performances, Economical performances, SMARTPLS 4

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