Impact of Green Supply Chain Management on Competitive Advantage of Business Organizations in Sri Lanka

Abstract

Organizations adopt many strategies to gain competitive advantage. An important strategy is adopting green practices. Cost-benefit and customer value enhancement are two other strategies. By combining all of these elements, organizations can acquire a superior competitive advantage. There are contradictory findings on applying the cost-benefit element to green supply chain management (GSCM) and no clear theory on how to combine these elements to gain a competitive advantage. The primary objective of this study is to identify the impact of GSCM on competitive advantage of business organizations in Sri Lanka. Sample technique used was convenience sampling method. Data was collected from 30 organizations that were following green practices in Sri Lanka. The data were analyzed using descriptive analysis, correlation coefficient, and simple regression model. The results show that there is a strong positive relationship between GSCM and competitive advantage, and rather than applying just one element to gain a competitive advantage, it was considered more effective to apply both cost-benefit and customer value enhancement simultaneously.