Survey analysis reveals green supply chain practices enhance economic success in Ethiopian bottled water firms, indicating environmental responsibility drives sustained profitability.
Ethiopia's bottled water industry faces mounting pressure to balance economic growth with environmental responsibility. This study investigates the effect of green supply chain management (GSCM) on Ethiopian bottled water companies' economic performance, with environmental performance as a potential mediator. We employ structural equation modelling (SEM) on survey data from managers of 99 bottled water firms in Ethiopia. The findings revealed that while some GSCM practices indirectly enhance the bottom line through improved environmental impacts, others, like investment recovery initiatives, directly enhance economic performance. Notably, the study demonstrates that GSCM fosters an environmentally sustainable future for Ethiopia's bottled water industry, where environmental responsibility ultimately leads to long-term economic performance. This research offers valuable insights for policymakers and stakeholders seeking to promote balanced environmental and economic growth within the Ethiopian bottled water industry, moving beyond mere “greenwashing” towards genuine sustainability.
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Ababulgu et al. (2024) studied this question.
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