Green supply chain management and enterprise performance in the South African mining industry

Abstract

In the past decade, sustainability issues have emerged as an important area of consideration in business. The mining industry in South Africa has not been spared from this debate since it is one of the major contributors to the environmental challenges that South Africa and other sub-Saharan countries are facing. The purpose of this study is to explore green supply chain management (GSCM) practices and their relationship with enterprise performance in the South African mining industry. More specifically, this research explores the effect of GSCM practices and other organisational factors on enterprise performance in mining companies that operate in Rustenburg in North West Province. This study adopted a research model relating GSCM practice and enterprise performance through three organisational variables (employee job satisfaction, operational efficiency, and relational efficiency) as moderators. Statistical analyses were based on the data collected through survey questionnaires from two South African platinum mining companies in supply chain management departments. Reliability and validity of the research model were tested by the widely accepted statistical tools. To test the hypotheses relating GSCM practice implementation and enterprise performance, correlational analysis and multi-regression models were used. The most anticipated finding of the study was a direct link between GSCM practice implementation and enterprise performance. Indeed, statistical significance was found between the variables. Furthermore, there were significant direct relationships that were found between GSCM practice implementation and enterprise performance through three mediating variables of employee job satisfaction, operational efficiency and relational efficiency. This result indicates that enterprise performance will be improved when GSCM enhances employee job satisfaction, operational efficiency and operational efficiency.