Environmental Policy, Recycling and Sustainable Performance of Manufacturing Firms in Nigeria

There is great concern for sustainable development to ensure that the future of unborn generations is not sacrificed for the market model of profit maximization by firms. Prior studies have investigated the attitude of individuals toward recycling, firms’ green supply chain management and sustainable performance. However, how public environmental policy influences recycling practices at the firm level and the mediation of recycling practices between environmental policy regimes and the triple bottom line of economic, social and environmental performance have not been adequately examined. Accordingly, the focus of this paper, through the theoretical lens of the Natural Resource Based View, investigated the nexus between environmental policy, recycling practices and sustainable performance of firms. The study adopted an analytical survey design. A sample of 174 managers was selected through a stratified sampling procedure, and data were collected using a structured questionnaire. The data were analyzed with structural equation modeling using Smart PLS software version 4.1.4 The result indicated that there was a positive relationship between environmental policy and recycling of waste materials; there was a positive relationship between recycling and sustainable social and environmental performance of manufacturing firms. The paper concluded that recycling practices reduced production costs, fostered eco-efficiency and enhanced sustainable performance. The paper recommended that managers of manufacturing firms need to invest in recycling systems to integrate eco-design and reverse logistics architecture and promote sustainability outcomes.