ABSTRACT
The broad aim of the study was to ascertain the effect of green logistics practices on the marketing performance of selected transport firms in South-South, Nigeria. Specifically, the objectives were to; examine the effect of green transportation on firm competitiveness of selected transport firms in South-South, Nigeria; ascertain the effect of green transportation on customer patronage of selected transport firms in South-South, Nigeria; determine the effect of green warehousing on firm competitiveness of selected transport firms in South-South, Nigeria; examine the effect of green warehousing on customer patronage of selected transport firms in South-South, Nigeria; ascertain the effect of green packaging on firm competitiveness of selected transport firms in South-South, Nigeria; and to examine the effect of green packaging on customer patronage of selected transport firms in South-South, Nigeria. The study adopted the descriptive research design in order to provide a framework to examine the characteristics of the variables. The population for this study was 289 and a census was used for in study. The data collected for the study were analyzed based on the stated objectives of the study. Simple regression model was used to test all hypotheses. This depended on the normality of the distribution. All analyses were done through the use of the SPSS software package version 20.0. Findings revealed that Green transportation have significant and positive effect on competitiveness of transportation firms in South-South Nigeria. Similarly, green transportation has positive and significant factor also influencing customer patronage of transportation firms in South-South Nigeria. Green warehousing in the studied transportation firms in South-South Nigeria exerts statistically significant effect on firm competitiveness. Also, green warehousing exerts significant effect on customer patronage of the studied transportation firms in South-South Nigeria. Green packaging was found to be statistically significant and positively related to firm competitiveness. Also, green packaging was found to be statistically significant and positively affecting customer patronage. The study recommended that the studied transportation firms in South-South Nigeria should encourage proper utilization of materials and recycling of materials as the study found that green packaging affects the marketing performance of transport firms in South-South Nigeria positively. The firms should also purchase products from manufacturers whose design products minimize consumption of materials and energy, that facilitate the reuse, recycle and recovery of component materials. Also, the management of transport firms in South-South Nigeria should integrate green warehousing process in all its warehousing processes since it’s characterized by a low environmental impact that further translates to high firm performance. Warehousing environmentally friendly products increases customer patronage as have been found in the study.
TABLE OF CONTENTS
Title Page i
Declaration ii
Certification iii
Dedication iv
Acknowledgement v
Table of Contents vii
List of Tables xi
List of Figures xiii
Abstract xiv
CHAPTER 1: INTRODUCTION 1
1.1 Background of the study 1
1.2 Statement of the problem 4
1.3 Objective of the study 6
1.4 Research questions 7
1.5 Research hypotheses 8
1.6 Significance of the study 8
1.7 Scope of the study 10
1.8 Limitations of the study 10
1.9 Definition of terms 11
CHAPTER 2: REVIEW OF RELATED LITERATURE 12
2.1 Conceptual framework 12
2.1.1 Overview of logistics management and firm performance 12
2.1.2 Concept of green logistics 14
2.1.3 Dimensions of green logistics 16
2.1.3.1 Green purchasing 17
2.1.3.2. Green warehousing 18
2.1.3.3 Green packaging 20
2.1.3.4 Reverse logistics 22
2.1.3.5 Waste management system 23
2.1.3.6 Eco-design 24
2.1.3.7 Green transportation 27
2.1.4 Environmental collaboration with suppliers 30
2.1.5 Environmental orientation and green logistics management 32
2.1.6 Marketing performance 33
2.1.6.1 Customer patronage 35
2.1.6.2 Effectiveness 37
2.1.6.3 Competitiveness 38
2.1.7 Green logistics and marketing performance 40
2.1.8 Green purchasing and marketing performance 42
2.1.9 Eco-design and marketing performance 43
2.1.10 Green logistics and financial performance 45
2.1.11 Green logistics and environmental performance 48
2.1.12 Green logistics practices and firm competitiveness 50
2.2 Theoretical framework 52
2.2.1 Stakeholder theory 52
2.2.2 Institutional theory 54
2.2.3 Resource based theory 55
2.2.4 Ecological modernization theory 56
2.3 Empirical review 57
2.4 Summary of literature review 63
2.5 Research gaps 63
CHAPTER 3: RESEARCH METHODOLOGY 65
3.1 Research design 65
3.2 Population of the study 65
3.3 Sample size 66
3.4. Sampling techniques 66
3.5 Instrumentation 67
3.6 Validity of the instrument 68
3.7 Reliability of the instrument 68
3.8 Method of data analysis 68
3.9 Model specification 69
CHAPTER 4: RESULTS AND DISCUSSION 72
4.1 Presentation of data 72
4.1.1 Questionnaire distribution and return 72
4.1.2. Sex of respondents 73
4.1.3. Age bracket of respondents 74
4.1.4. Marital status of respondents 74
4.1.5. Educational background of respondents 74
4.1.6. Number of respondent’s years in transport/logistics business 75
4.1.7. Does your company know about green logistics practices? 75
4.1.8. Does your company employ green logistics practices? 76
4.1.9. What is your company’s main reason for the adoption of green
logistics practices? 76
4.1.10. For how long has your company been implementing green
logistics management? 77
4.2 Analyses of data 83
4.2.1 Effect of green transportation on firm competitiveness of selected
transport firms in south-south, Nigeria 83
4.2.2 Effect of green transportation on sales growth of selected transport
firms in south-south, Nigeria 84
4.2.3 Effect of green warehousing on firm competitiveness of selected transport
firms in south-south, Nigeria 85
4.2.4 Effect of green warehousing on customer patronage of selected transport
firms in south-south, Nigeria 86
4.2.5 Effect of green packaging on firm competitiveness of selected transport
firms in south-south, Nigeria 87
4.2.6 Effect of green packaging on customer patronage of selected transport
firms in south-south, Nigeria 88
4.3 Discussion of result 88
CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATIONS 92
5.1 Summary of findings 92
5.2 Conclusion 93
5.3 Recommendations 93
5.4 Contribution to knowledge 95
5.5 Areas of further research 97
References 99
Appendi
LIST OF TABLES
3.1 Population distribution of the selected transport firms in south-south Nigeria 65
4.1 Distribution and return of questionnaire 72
4.2. Frequency distribution showing the Sex of respondents 73
4.3. Frequency distribution showing the age bracket of respondents 73
4.4. Frequency distribution showing the marital status of respondents 74
4.5. Frequency distribution showing the educational background of
respondents 74
4.6. Frequency distribution showing the number of years the
respondents have been in transport/logistics business 75
4.7. Frequency distribution showing the respondents’ knowledge
of green logistics practices 75
4.8. Frequency distribution showing responses on the application
of green logistics practices by the studied firms 76
4.9. Frequency distribution showing responses on the reasons for the
application of green logistics practices by the studied firms 76
4.10. Frequency distribution showing responses on the number of years the
studied transport firms have been implementing green logistics practices 77
4.11. Frequency distribution showing responses on green transportation
practices in the studied transportation firms 78
4.12. Frequency distribution showing responses on green warehousing
practices in the studied transportation firms 79
4.13. Frequency distribution showing responses on green packaging
in the studied transportation firms 80
4.14. Frequency distribution showing responses on customer patronage
in the studied transportation firms 81
4.15. Frequency distribution showing responses on firm competitiveness
in the studied transportation firms 82
4.16 Regression analysis showing the effect of green transportation on firm
competitiveness of selected transport firms in south-south, Nigeria 83
4.17: Simple regression analysis showing the effect of green transportation on
customer patronage of selected transport firms in south-south, Nigeria 84
4.18: Simple regression analysis showing the effect of green warehousing on
firm competitiveness of selected transport firms in south-south, Nigeria 85
4.19 Simple regression analysis showing the effect of green warehousing on
customer patronage of selected transport firms in south-south, Nigeria 86
4.20. Regression analysis showing the effect of green packaging on firm
competitiveness of selected transport firms in south-south, Nigeria 87
4.21. Regression analysis showing the effect of green packaging on customer
patronage of selected transport firms in south-south, Nigeria 88
LIST OF FIGURES
2.1 Conceptual framework showing the relationships between green
logistics practices and marketing performance 52
5.1 Operational conceptual framework showing the relationships between
green logistics practices and marketing performance 97
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Throughout history, logistics has been necessary for economic development and society's prosperity. McKinnon (2010) stated that logistics has over the past 50 years come to be regarded as a key determinant in business performance. Logistics according to the Council of Supply Chain Management Professionals (2007) can be defined as the part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption, in order to meet customers’ requirements. A well-established logistical system could lead to increased effectiveness, reduced operation costs and improved marketing performance (Tseng, et al., 2005). Achieving a superior logistic structure is also a vital aspect to consider when striving towards a competitive advantage (Mentzer & Williams, 2001). However, the need to continuously improve on logistics by reducing costs and meeting increased demand has led to larger environmental impacts. Economic growth as a result of industrialization, technology improvements and global access, are leading to large increases in air pollution, land degradation, deforestation and excessive amounts of carbon emissions.
According to Logistics Operational Guide (2013), this has led to negative consequences on people’s health, agricultural production and accelerates the climate changes. With increasing globalization and international trade, logistics is becoming a major cost for companies around the world (Rodrigues, et al., 2005). These impacts have resulted in logistics being an integrated part of a company’s endeavour to become further environmentally friendly. Due to this, managers need to be concerned with sustainability and comprehend what operations are affecting their company’s performance on an everyday level. According to Wu and Dunn (1995) the choice of activity, especially within transportation and logistical operations, may contribute to increased amounts of carbon dioxide and greenhouse gases and this has led to the call for green logistics practices.
Green logistics activities are vital for transport and logistics firms in South-South Nigeria to be competitive in today’s market conditions. Green Logistics is defined as the strategic, transparent, integration and achievement of an organization’s social, environmental, and economic objectives in the systemic coordination of key inter-organizational business processes for improving the long-term performance of the firm and its supply chain partners (Wu & Dunn, 2012). Traditionally, cost is the only factor in planning green logistics activities to achieve this objective. However, increased emphasis on green issues makes it also necessary for transport and logistics firms to consider the environmental damage created by their transportation and logistics operations (Dekker et al., 2012). For this purpose, various transport and logistics firms in South-South Nigeria are beginning to implement some sort of green logistics practices. Of course, the degree of application is not same for all firms. For instance, while some firms follow a proactive strategy, others try to meet only regulatory requirements (Murphy and Poist, 2000). In short, not all transport and logistics firms in South-South Nigeria are eager to do their best for green logistics.
As the awareness of the world’s environmental issues such as global warming, carbon emissions, toxic substance usage, and resource scarcity has escalated over the past decades. Policy makers and activists are advocating for going green, and many organizations throughout the world have responded to this by applying green principles (Xie & Breen, 2012). In the past decade Green Logistics has emerged as an important component of the environmental and logistics strategies for a number of companies and they have been aiming at integrating environmental concerns in their business operations and in interactions with their stakeholders in embracing environmental sustainability into business strategies (Chege, 2012). The benefits of implementing a green logistics policy have been found to include sustainability of resources, lowered cost and increased efficiency, increased customer patronage, product differentiation and competitive advantage, risk reduction, improved products, increased sales and revenue, etc (Chege, 2012).
Nigeria is confronted with several peculiar challenges with make a green agenda appear unattainable. Top of these include the solutions that have been adopted because of the inefficiencies in the energy and transport systems (ALITHEIA Capital, 2010). The poor state of infrastructure and the lack of impactful investments mean most Nigerian cities lack efficient transportation systems which further impacts on green logistics practices. Dubey, et al. (2013) described green logistics as a means of ensuring cleaner supply chain technologies. Green logistics is further regarded as critical in monitoring and controlling supplier performance objectives in terms of meeting the expectations and requirements of a business through its capability to provide materials that are in line with environment specifications (Eltayeb et al., 2011). As indicated by Dubey, et al. (2013), effective employment of green logistics strategies enables businesses to diligently manage their supplier environment performance, which can result in improved marketing performance. Blome, Hollos and Paulraj (2014) further highlight that green logistics is instrumental in achieving superior supplier performance, since it ensures that only quality material is processed.
There is a growing body of literature supporting the view that “being green” pays off (De Giovanni & Esposito, 2012; Yang, et al., 2013; Zhu, et al., 2013), it is necessary to shed light on which type of green logistics practices are most effective in terms of performance. In particular, literature on the performance implications of the choice of initiating environmental collaboration or monitoring is still scanty. The unclear performance outcomes of green logistics practices might be an obstacle for firms seeking to justify green logistics implementation (Zhu, et al., 2012).
Qinghua, Sarkis and Lai (2007) observed that Green logistics in developed nations like Nigeria has become a key approach for enterprises seeking to become environmental sustainable and increase performance in instances where there is increased competition. Transport and logistics firms in South-South Nigeria should take advantage of latest business innovations to drive overall marketing performance (Bello & Adeoye, 2018), and one area where such intervention enhances performance is in green logistic activities, such as transportation, inventory management, warehousing, material packaging and other logistics activities (Agu, Obi-Anike, & Eke, 2016; Oyebamiji, 2018; Saini, Agrawal, & Jain, 2018). Despite the availability of these advances, the marketing performance of transport firms in South-South, Nigeria has declined significantly in recent times (Simbo, Iwuji, & Bagshaw, 2012) and a wide range of reasons have been adduced, including cost of logistics (Obabori, 2016; Simbo, et al., 2012; Söderbom & Teal, 2002). Consequently, transport firms in South-South Nigeria are unable to improve marketing performance notwithstanding the resources at their disposal.
1.2 STATEMENT OF THE PROBLEM
The concept of green logistics is gaining prominence across many sectors in the world. The transport and logistics industry is an important sector in South-South Nigeria as it makes a substantial contribution to Nigeria’s economic development. Unfortunately, it has been causing environmental deterioration. The transport and logistics industry is one of the main contributors to the deterioration of environmental sustainability in South-South Nigeria. Thus, the concept of green logistics design is now gaining importance since it can help to minimize negative impact of the industrial processes while enhancing the marketing performance of the firms (Rao, 2006). Performance management practices has received an increasing attention in many manufacturing organizations in the recent past due to increased competition, improved initiatives, changing nature of work and improved technology. Hence this study wishes to establish green logistics practices and their effect on the performance of transport firms in South-South Nigeria.
Green logistics activities in transport industry of South-South Nigeria are at present fairly undeveloped. Responsible operators of transport and logistics firms in the State have not acted as quickly as other parts of the world regarding the environmental sustainability of logistics. However, this issue requires serious attention and over recent years the concern is becoming more acknowledged in Nigeria.
Nigeria transport and logistics sectors are lagging behind when compared to those of similar countries and regions. In fact, the low amount of investments and the contribution of poor roads, leads to a high percentage of roads transport cost (CSIR, 2012). Low quality and maintenance of infrastructure leads to increased logistical costs and could be a hurdle for the implementation of green logistics. Another logistics problem in Nigeria is the remoteness between cities. With cities all being far apart (for instance, Calabar and Rivers), these distances can present severe logistical problems. This causes challenges for green logistics as longer transportation and extended supply chains are necessary.
There are many transport firms operating in South-South Nigeria and its economy is fast growing. However, green concerns are of low importance and this is reflected in their high carbon emissions. Wu and Dunn (1995) stated that logistics managers have several challenges to overcome regarding green logistics as they have to find good network designs that are able to fit into the company's structure, as well as having to address environmental concerns along with integrating green initiatives. Although much research has been done on logistics in Nigeria, few studies have looked at green logistics practices and marketing performance of transport and logistics firms within a developing country, such as Nigeria and in particular, South-South Nigeria
Secondly, the implementation of green logistics with regards to perceptive barriers and incentives are also rarely looked at. Most studies looked at the current state of logistics in Nigeria (Ittmann & King, 2010) or the trends of logistics (Cilliers & Nagel, 1994) or even the logistics costs (Havenga, 2010). However, there is a lack of research concerning the effect of various aspects of green logistics like inventory management, transportation, storage and materials handling, warehousing, etc. on dimensions of marketing performance of transport and logistics firms in South-South Nigeria. The Zone is gradually moving towards greener logistics, but more needs to be done in ways that it affects their marketing performance. Therefore, it is important to investigate the current actions being undertaken within the transport industry in South-South region of Nigeria and how it can affect the marketing performance of such transport firms in the Zone.
1.3 OBJECTIVES OF THE STUDY
The main aim of this study was to ascertain the effect of green logistics practices on the marketing performance of selected transport firms in South-South, Nigeria.
Specifically, the objectives were to;
i. examine the effect of green transportation on firm competitiveness of selected transport firms in South-South, Nigeria;
ii. ascertain the effect of green transportation on customer patronage of selected transport firms in South-South, Nigeria;
iii. determine the effect of green warehousing on firm competitiveness of selected transport firms in South-South, Nigeria;
iv. examine the effect of green warehousing on customer patronage of selected transport firms in South-South, Nigeria;
v. ascertain the effect of green packaging on firm competitiveness of selected transport firms in South-South, Nigeria;
vi. examine the effect of green packaging on customer patronage of selected transport firms in South-South, Nigeria.
1.4 RESEARCH QUESTIONS
The following research questions were derived from the foregoing in order to address the research objectives.
i. What is the effect of green transportation on firm competitiveness of selected transport firms in South-South, Nigeria?
ii. Does green transportation have any effect customer patronage of selected transport firms in South-South, Nigeria?
iii. How does green warehousing affect firm competitiveness of selected transport firms in South-South, Nigeria?
iv. What is the effect of green warehousing on customer patronage of selected transport firms in South-South, Nigeria?
v. Does green packaging affect firm competitiveness of selected transport firms in South-South, Nigeria?
vi. What is the effect of green packaging on customer patronage of selected transport firms in South-South, Nigeria?
1.5 RESEARCH HYPOTHESES
The following null hypotheses were tested in line with the study objectives
HO1: Green transportation does not have any significant effect on firm competitiveness of selected transport firms in South-South, Nigeria
HO2: There is no significant effect of green transportation on customer patronage of selected transport firms in South-South, Nigeria
HO3: Green warehousing on firm competitiveness of selected transport firms in South-South, Nigeria
HO4: There is no significant effect of green warehousing on customer patronage of selected transport firms in South-South, Nigeria
HO5: Green packaging does not have any significant effect on firm competitiveness of selected transport firms in South-South, Nigeria.
HO6: There is no significant effect of green packaging on customer patronage of selected transport firms in South-South, Nigeria
1.6 SIGNIFICANCE OF THE STUDY
The study is on the effect of green logistics design on the marketing performance of transport and logistics firms in South-South Nigeria. This is premised on the realization that; logistics is very important in Nigeria’s transport sector even with the little attention it is given by the players in the industry. As such, it transforms into an obstacle on the marketing performance of these organizations.
The rationale of the study was enabled by the need to generate new strategies and comprehensive approaches to be used by transport firms to help them manage their logistics designs. The study will thus seek to provide details of strategies applicable by the transport and logistics firms when streamlining their logistics designs. This is premised on the fact that the transport firms lack measures in place to strengthen the execution of logistics practices that enhance competitive advantage and marketing performance.
Other stakeholders such as the Government would benefit from the findings of this study by getting to understand the best green logistics practices and procedures that promote efficient internal audit and performance of organization. Consequently, it can accelerate the transport and logistics firms with resources that would aid in putting measures that will strengthen the execution of the logistics practices helpful and geared towards realizing the economic pillar of economic development.
Academic institutions will use the findings of this study as a basis for further research in green logistics practices. As expected, this study will open floodgates of more academic researches on the role of green logistics practices and related topics in Nigeria and the world at large thus, contribute to filling the knowledge gaps in the discipline.
Lastly, this study is important in identifying significant environmental policy cracks as a foundation for advising the environmental policy makers, other stakeholders on appropriate logistics policy practices, procedures and interventions that need to enhance marketing performance in the transport industry of South-South Nigeria.
1.7 SCOPE OF THE STUDY
This study domiciled in logistics management and marketing management with emphasis on green logistics practices and marketing performance of selected transport and logistics firms in South-South Nigeria, which makes it an interesting one, considering the quest of the country to curb the effect excess air pollution from the Transport industry. The research object is the staff of the studied firms in South-South Nigeria involved in transport and logistics activities of various kinds in the State. The research questions of this study are based on green logistics practices and marketing performance indices like green transportation, green warehousing, green packaging, customer patronage and competitiveness. The geographical coverage is the entire South-South Nigeria. The Zone is made up of Rivers State, Akwa-Ibom State, Bayelsa, Cross River State, Delta State and Edo State. The Zone is also known as the Niger Delta region of Nigeria. The unit of analysis comprises of the staff of selected transport firms in South-South Nigeria.
1.8 LIMITATION OF THE STUDY
A Study of this magnitude should have cut across many industrial sectors as there are that are involved in logistics practices in the study area. However, as a result of the various constraints mostly time, resources and/or finance militating against such an elaborate study, the researcher focused on selected transport firms in South-South Nigeria. The researcher believed that the information obtained from these transport firms in South-South Nigeria will have much relevance to other sectors in the Zone and beyond, although there might be slight differences.
Having mentioned the limiting factors of time and finance, it is also necessary to reveal here that attitude of most of the studied transport firms in South-South Nigeria toward the release of vital information was skeptical. Perhaps, this was out of fear that such information may get into the hands of their competitors. Such uncooperative, lukewarm and often repulsive attitude imposed some limitations to this study. However, these constraints do not in any way invalidate the findings of this study.
1.9 DEFINITION OF TERMS
1. Customer Patronage: means customers’ or the financial support from customers or clients received by a firm
2. Firm Competitiveness: The ability of a firm to produce goods and services that successfully match the market’s needs.
3. Green Logistics: the process of minimizing damage to the environment due to the logistics operations of an organization.
4. Green Packaging: also known as sustainable packaging, is the use of materials and manufacturing methods for the packaging of goods that has a low impact on both energy consumption and on the environment
5. Green Warehousing: the cluster of technological and organizational solutions designed for the efficiency of warehouse processes by maintaining the highest social standards and minimizing the effect on nature in terms of financial efficiency
6. Green Transportation: comprises of those methods of transportation that do not depend on diminishing natural resources like fossil fuels. These transportation modes depend rely on renewable energy sources. They also have very low impact on the environment as these modes practice minimal or no greenhouse gas emission.
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