ENVIRONMENTAL POLICY, RECYCLING AND SUSTAINABLE PERFORMANCE OF MANUFACTURING FIRMS IN NIGERIA

Abstract

There is great concern for sustainable development to ensure that the future of unborn generations is not sacrificed for the market model of profit maximization by firms. Prior studies have investigated the attitude of individuals towards recycling, firms’ green supply chain management, and sustainable performance. However, how public environmental policy influenced recycling of waste materials at the firm level and the mediation of recycling between environmental policy regimes and the triple bottom line of economic, social and environmental performance have not been adequately examined and this is the focus of this paper. The study adopted an analytical survey design. A sample of 174 managers was selected through a stratified sampling procedures and data were collected through the distribution and retrieval of a structured questionnaire. The data were analysed using structural equation modelling with Smart PLS software version 4.1.2. The result indicated that there was a positive relationship between environmental policy and recycling of waste materials; there was a positive relationship between recycling and sustainable social and environmental performance of manufacturing firms. The paper concluded that recycling waste materials not only reduced costs associated with production but also brought about eco-efficiency and sustainable performance. The paper recommended that managers of manufacturing firms should invest in recycling systems with eco-design and reverse logistic architecture.