The Impact of Green Supply Chain Management (GSCM) Practices on the Petrochemical Industry in Saudi Arabia: A Survey Study.

Abstract

Background: The petrochemical industry is one of the core pillars of the Saudi Arabian economy. It is also a significant source of harmful gases and other pollutants. However, the growing concern and awareness about climate change and other harmful environmental effects have led to increased calls to adopt GSCM practices to reduce environmental damage and boost organisational performance. Research Aim: The study explored the effects of implementing GSCM practices (green purchasing, green distribution, and green manufacturing) on the performance of the petrochemical industry in Saudi Arabia. Research Design: This survey study employed a quantitative approach with a correlational research design to help understand the relationship between the variables. It relied on a survey strategy to collect data from employees and executives working in major petrochemical firms in Saudi Arabia. The researcher sent out 170 questionnaires and received back 155 responses from the survey participants. The study utilised a systematic sampling method. SPSS software helped perform correlation analysis based on the collected data. Key Findings: The study found that GSCM practices positively correlated with profitability, sustainability, competitiveness, and efficiency. The analysis also established that the correlation was statistically significant for all GSCM practices and performance metrics. However, out of the three GSCM practices explored, green manufacturing had a more significant effect on organisational and sustainability performance than green purchasing and green distribution. Contribution: The study findings build on the existing literature and add new knowledge of the impact of GSCM practices on environmental and corporate performance across petrochemical firms in Saudi Arabia. The current research also supports the findings from the past studies and bridges the literature gaps in this area. More importantly, the new insights open new opportunities for future research in the Saudi Arabian context. They will also help guide GSCM implementation in petrochemical firms operating in the country. Project managers, policymakers, and operations managers will benefit from new knowledge as they will use it to make better decisions.