Environmental Factors and Adoption of Green Supply Chain Management among SMEs in Nigeria: Moderating Role of Environmental Uncertainty

Abstract

Environmental regulations and policies have been recognised as significant factors influencing the adoption of Green Supply Chain Management. However, the importance of these factors in influencing sustainable practices within supply chains has been emphasized in recent research as global environmental challenges continue to worsen. As a result, adopting Green Supply Chain Management practices is crucial for ensuring sustainable supply chain operations in Nigeria, as SMEs significantly contribute to economic growth and development in the country. Therefore, this study examines the effect of environmental factors on the adoption of GSCM in the Nigerian SMEs. To measure all the variables, validated items were adapted from prior studies. Thus, 412 copies of questionnaires were retrieved from the selected managers/owners of SMEs after testing for the validity and reliability of instruments through a pilot study. The findings of the study indicated that the environmental factor is a very good predictive faction for the GSCM adoption of SMEs business in Nigeria, most especially in the area of customer demand, environmental regulation, environmental uncertainty, and supplier relationships. Furthermore, the introduction of environmental uncertainty as a moderating effect influence the relationship between an environmental factor and the adoption of GSCM practices in the area of environmental regulation and supplier relationship. The study findings are useful for decision-makers in the SMEs sector so they may build methods to enhance the adoption of GSCM. These findings are also useful for academicians’ future research endeavors. Managers can use those environmental factors concretely as a reference for the companies that intend to support the United Nation SDG-2030 agenda and to find new business opportunities for the implementation of sustainable development. The findings have a number of managerial implications that could contribute to SMEs for planning and development a GSCM strategy through the internal of the green supply chain perspective. This study's recommendations can help Nigeria's SME sector achieve its sustainable development goals and lead global climate change and environmental protection initiatives.