An assessment of sustainable supply chain management practices in the upstream pharmaceutical industry of Ghana

Abstract

The drive for the adoption of Sustainable Supply Chain Management practices among pharmaceutical companies is on the rise given the global effort to attain net zero of carbon emissions as well as attaining other targets for the sustainable development goals. The pharmaceutical industry plays vital role in the manufacturing and distribution of medications, and therefore sustainability issues are critical for the survival of the industry. However, the adoption of sustainable practices in the upstream pharmaceutical industry is still low, and there is lack of empirical research in this area, particularly in emerging economies like Ghana. This study aims to fill this gap by examining the level of adoption of sustainable supply chain practices, focusing on the role of the policy framework, the influence of these practices on company performance, and the role of top executives in ensuring sustainability. The study utilizes a mixed method approach and leverages the upper echelon theory to explore the role of managers on sustainable supply chain practices. This dissertation explore the state of the upstream pharmaceutical Sustainable Supply Chain Management practices in Ghana, evaluate the role of the upstream pharmaceutical policy framework of Ghana on supply chain sustainability, identify how upstream pharmaceutical Sustainable Supply Chain Management Practices influence the performance of pharmaceutical companies in Ghana, and to examine the role of top management in ensuring upstream pharmaceutical sustainable supply chain management practices in Ghana. By addressing the above objectives, the study promotes academic debate and provides insights for policy directions in the pharmaceutical industry for sustainable growth and development. The research design includes both explanatory and exploratory approaches, with a concurrent/parallel mixed methods design combining quantitative and qualitative data. Specifically, the concurrent triangulation design mixed method was adopted. The target population was employees of locally owned upstream pharmaceutical companies in the Greater Accra region of Ghana. From a finite population of about 2000, stratified and purposive strategies were used to select 18 participants under the qualitative aspect, while random sampling technique was used to select 334 for the quantitative aspect of the study. Therefore, the total sample size for this study was 352 participants. Data collection involved the use of questionnaire and structured interview guide, and data analysis included structural equation modeling for quantitative data and thematic analysis as well as content analysis for qualitative data. Quantitative results indicated that Sustainable Supply Chain Management practices have a positive significant association with Sustainable Supply Chain Management performance for upstream pharmaceutical companies. Results showed that, there was positive impact of Top Management Commitment on Sustainable Supply Chain Management to performance. Furthermore, there was justification for Top Management Commitment as a moderator on the association between Sustainable Supply Chain Management practices and Sustainable Supply Chain Management performance. The study's findings on sustainable supply chain management practices in the upstream pharmaceutical sector in Ghana have significant theoretical, managerial, and policy implications. The interviews revealed the importance of socially inclusive practices, eco-friendly manufacturing, waste management, supplier involvement, and collaborations are important factors to consider in achieving sustainability goals. Theoretical implications include the recognition of responsible sourcing as a crucial component of sustainable supply chain management and the importance of socially responsible human resource management strategies. Managerially, the adoption of green manufacturing practices, waste management, and supplier engagement are highlighted as strategies for enhancing sustainability. Policy implications emphasize the need for supportive policies and regulations that promote responsible sourcing, green manufacturing, waste management, and supplier engagement in the upstream of pharmaceutical industry. The study contributes to the literature by providing empirical evidence of the positive association between sustainable supply chain management and organizational performance. The role of top management in ensuring the adoption and implementation of sustainable supply chain management practices is crucial, with implications for leadership, resource allocation, collaboration, and stakeholder engagement. Policy-wise, support for sustainable supply chain management practices and capacity-building initiatives are crucial for the adopting and implementations of these practices within the pharmaceutical industry. Overall, the study provides insights for theory, practice, and policy to enhance sustainability in the pharmaceutical supply chain.