Small and medium enterprises (SMEs) in Bangladesh are vital to the economy but face pressure from buyers and regulators to adopt green supply chain management (GSCM) practices. Despite growing awareness, SMEs encounter significant challenges in implementation. This study identifies these challenges and offers recommendations for improvement using organisational theory.
SMEs in Bangladesh are vital to the economy but face pressure from buyers and regulators to adopt GSCM practices. Despite rising awareness, many SMEs struggle with implementation. This study investigates these challenges using a positivist framework and a deductive approach, informed by ecological modernisation theory (EMT) and transaction cost economics (TCE). Data from 315 SMEs were collected through a pre-tested five-point Likert scale questionnaire and analysed using covariance-based structural equation modelling (AMOS) to test the proposed hypotheses, offering insights and recommendations for improving GSCM practices.
The findings indicate that internal barriers, such as high costs and low perceived benefits, along with external market factors, hinder the adoption of GSCM. Only commitment to GSCM practices, energy-efficient product design and ISO 14001 certification had a significant impact, while green purchasing, customer cooperation, and investment recovery showed no notable effects. This study integrates EMT and TCE, emphasising a multifaceted approach.
Bangladesh's SMEs hesitate to adopt green supply chain practices mainly due to a knowledge gap. Existing barriers have been unhelpful amid economic instability. This study introduces a mixed-method approach based on EMT and TCE.
