Green Manufacturing in Agro Processing SMEs: Unraveling the Relationship Between Drivers and Their Effects on Adoption Practices in Ghana

Abstract

Environmental matters have been a subject of importance for national policy makers, ecology concerned groups and organizations. Green initiatives such as, green manufacturing has been seen to be a game changer in ensuring environmentally safe manufacturing by firms and nations while reaping the accompanying benefits. Investigations into motivating factors are still not fully carried out from all contexts. This research sought to find the effects that these drivers have on adoption of eco-friendly initiatives among small and medium enterprises from a developing country context. Structural Equation Model was adopted to analyze the data and verify the hypotheses. The outcomes indicate that financial and business benefits, competitor pressure and national environmental regulations positively influenced the adoption of green manufacturing adoption initiatives. Management and staff commitment influenced adoption slightly. These outcomes are vital to developing strategies for improving green practices implementation within firms for positive environmental and economic performance. Governments in developing nations especially Ghana will be well informed on which parts of the regulations to strengthen and enforce for improved environmental responsibility from Ghanaian agro processing small and medium enterprises and other businesses.

Green Drivers and Green Manufacturing Practices Integration in Agro Processing Industry: Moderating Effect of Sustainability Orientation

“…Again, the study of Yu and Huo (2019) shows that, sustainability orientation has a significant impact, and thus facilitates green management practices especially in relations to supplier. The reason for this disagreement between the current and previous studies could be that, most of these firms are driven by external factors directly than by internal factors (Gyasi-Mensah and Hu, 2019).…”

“…Therefore in this analysis, results on the non significant direct relationship between driving factors and green practices adoption only will be compared after introducing the moderation variable of SUO. In reference to our previous work (Gyasi-Mensah and Hu, 2019), we realized that, the direct relationship between the drivers and green practices had statistically non significant p values as follows (MSC-->GMP, 0.548), (CAD-->GMP, 0.848) and (FRS--> GMP, 0.949). The rest being FBB, CIP and NEI had statistically significant relationship with GMP.…”

“…This study is a follow up study to the work of Gyasi-Mensah and Hu (2019) and so a similar analysis approach was adopted, using structural equation modelling with AMOS 24.0 to test the moderating effect of sustainable orientation. All procedures in Gyasi-Mensah and Hu (2019) were followed and then the mediating effect of sustainability orientation was also analyzed.…”

“…Table 2 Gyasi-Mensah and Hu (2019) and for that matter, there may be reference to that study when necessary. Therefore in this analysis, results on the non significant direct relationship between driving factors and green practices adoption only will be compared after introducing the moderation variable of SUO.…”