Product Portfolio Management through Integrated Green Practices in Supply Chain Practices for Operational Performance

Manufacturing firms those who produce a variety of products with complex product designs are being challenged when sourcing and distribution of goods are globalized. Apparel fabrication is a one such Industry in Sri Lanka which produce a greater variety of apparel with complex product designs. The Industry operates in globally connected dynamic supply chain that adhere to green initiatives and environment compliances and hence operational performance has been confronted. Thus, the purpose of this study is to examine the role of integrated green supply chain practices on operational performance when the varieties of products been produced. A survey was conducted with 161 front end factory merchandising units of apparel manufacturers' in Sri Lanka. Structured Equation Modeling with AMOS is used to test the hypothetical relationships. The study found that, operational performance is lower in firms when they produce a variety of products. But, the operational performance intensified positively with the production of variety of products within a green supply chain integrated. Variety of product designs did not result positive operational performance unless the supply chain is not integrated. This study emphasized the complementary application of resource based view with coordination theory to explain how resources of the firm should allocate and coordinate among production portfolio. The resource allocation and coordination among the actors in the networked set-up associates with production portfolio dynamics and hence result positive outcomes.