Green Manufacturing and Operational Cost of Selected Fast Moving Consumer Goods Companies in Lagos State, Nigeria (Published)
Manufacturing firms have witnessed an unexpected high operating cost with the attendant reduction in profitability, operating costs are expenses associated with the maintenance and administration of a business on a day to day basis and as such businesses have to keep track of operating costs as well as the costs associated with non-operating activities. However, in recent years, difficulties in adopting green product design, inefficient green processes, unreliable green supply chain, and lack of green recycling have been identified as significant factors affecting the operational cost. Despite various research on green manufacturing and operational cost in developed economies, few studies have been conducted in Nigeria. Hence, this study examined the effect of green manufacturing on operational cost of selected fast-moving consumer goods in Lagos State, Nigeria. Survey research design was adopted. The population for the study was 3512 employees from three of the leading fast-moving consumer goods companies in Lagos State, Nigeria from which a sample of 451 employees was selected using the Cochran formula. Stratified random sampling technique was adopted. A validated questionnaire was used to collect data. Cronbach’s alpha reliability coefficients for the constructs ranged from 0.72 to 0.93. The response rate was 80.4%. Data were analyzed using descriptive and inferential statistics. Findings revealed that that Green Efficient Processes (β = 0.234, t = 3.554, p<0.05) and Green Recycling (β = 0.391, t = 5.869, p<0.05) have significant, positive, and direct effect on the operational cost of selected fast-moving consumer goods companies in Lagos State, Nigeria while Green Product Design (β = 0.071, t = 0.980, p>0.05) and Green Supply Chain (β = 0.041, t = 0.615, p>0.05) has an insignificant direct effect on operational cost in Lagos State, Nigeria. The study concluded that green manufacturing components have a significant effect on the operational cost of the selected fast-moving consumer goods companies in Lagos State, Nigeria. The study, therefore, recommends that the management of fast-moving consumer goods companies should insist on and practice continued green manufacturing to improve the overall operational cost in their companies.
Citation: Okunuga, A. M.,Amos-Fidelis, N. B., and Dogo, E B. (2022) Green Manufacturing and Operational Cost of Selected Fast Moving Consumer Goods Companies in Lagos State, Nigeria, European Journal of Business and Innovation Research, Vol.10, No.5, pp.,7-24,