Financial Performance and Green Supply Chain Management in a South African National Electrical Energy Provider

Abstract

Introduction: The body of literature on green supply chain management (GSCM) in various organisations has increased steadily. However, contextual literature on GSCM is still limited, such as within the electrical energy sector in developing countries such as South Africa. Purpose/objectives: The study examined the relationships between internal GSCM (IGSCM), customer monitoring (CM) and -supplier monitoring (SM), customer-supplier collaboration (CC, SC), and financial performance at Eskom Holdings, the national electrical energy provider in South Africa. Design/ Methodology: The study employed a quantitative approach design on a sample of 350 supply chain professionals drawn from various Eskom depots nationwide. Hypotheses were tested using structural equation modelling based on the SMART partial least squares (PLS) technique. Findings: IGSCM positively impacted customer and supplier monitoring and collaboration, linked to higher financial performance. However, IGSCM negatively impacted financial performance. Practical implications: To managers in the electrical energy sector, the study suggests that implementing IGSCM, SM, CM, CC, and SC activities is key in influencing the level of FP. Similarly, it is important to implement IGSCM activities in tandem with customer and supplier monitoring and collaboration if gains in FP are to be realised. Originality/Value: This study contributes to GSCM literature as it is one of the few studies that explore IGSCM, customer and supplier monitoring, customer-supplier collaboration, and financial performance within a South African national electrical energy provider.