Critical success factors for green supply chain management practices: An empirical study on data collected from food processing companies in Saudi Arabia

Abstract

The aim of this research paper is to explore critical success factors required to implement green supply chain management. A descriptive analytical method was used by which a questionnaire was developed based on literature review and suggestions of academics as well as experts. It was distributed to a sample of 360 managers selected from food processing companies in Saudi Arabia. Out of 360 questionnaires, 278 were returned valid with a response rate of 77%. Using the principal component analysis to reduce the available data along with the confirmatory factor analysis to confirm the structure of extracted factors as observed variables and latent variables, the results revealed 16 critical success factors loaded on the major dimensions, which were management-led drivers (awareness of GSCM effects, management commitment, organizational involvement, investment recovery practices, green purchasing, environment-oriented TQM, and green information systems), external drivers (government drivers, cost drivers, customer drivers, supplier drivers and energy consumption reduction) in addition to product processing and recycling factors (society drivers, product end-of-life processing, eco-designed product-sand ISO 14001 certification). Considering these results, it was concluded that green supply chain management implementation is an integrated process consisted of activities directed to produce ecofriendly products oriented by internal and external drivers. This paper contributes to the literature through conceptualizing green supply chain management as a construct which embodies three major elements, management, environment and product. Managers in food processing companies who seek to achieve a successful implementation of green supply management initiative should take these three dimensions into their account.

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