Environmental sustainability practices of manufacturing small and medium enterprises in Uganda

Abstract

This study examined the relationship between environmental knowledge, environmental commitment, regulatory compliance mechanisms and environmental sustainability practices of manufacturing SMEs in Uganda. The study was motivated by the fact that many manufacturing SMEs use firewood and charcoal for fuel, polythene bags and plastics as packaging materials and poorly dispose of waste materials to the environment. Such practices have significantly contributed to environmental degradation that has led to the loss of lives and property. This study was correlational and cross-sectional in nature, adopted a critical realism paradigm and concurrent mixed-method strategy to survey 237 manufacturing SMEs and 7 institutions using stratified and purposive sampling respectively. A self-administered questionnaire and a semi-structured interview guide were used to gather quantitative and qualitative data from the institutional and business managers. SPSS-23 and AMOS-24 supported data analysis to establish the direct and indirect relationships between the study variables. Content analysis technique with the help of Atlas ti-8 software, on the other hand, was used to analyse qualitative data. Study findings indicate that there is a significant positive relationship between action knowledge (β=.141, p<.01), environmental commitment (β= .517, p<.01), regulatory compliance mechanisms (β= .146, p<.01) and environmental sustainability practices. In addition, regulatory compliance mechanisms partially mediate the association between action knowledge (β .030, p <.01), environmental commitment (β .079, p<.01) and environmental sustainability practices. These findings were supported by the qualitative results which revealed that manufacturing SME managers have environmental awareness, support pro-environmental actions and comply with the existing environmental regulations to conserve the environment. The study further confirmed waste management, eco-friendly packaging, energy efficiency and water conservation practices as actions undertaken by the manufacturing SMEs to safeguard the environment in Uganda. From this study, it is concluded that action knowledge, verbal and actual commitment, deterrence, social norms and values as well as controls are significantly and positively associated with environmental sustainability practices. The study recommends that policymakers should; spearhead the establishment of an environmental conservation fund for SMEs to support the dissemination of action knowledge, partner with private and civil society organizations to annually evaluate, recognize and award manufacturing SMEs that demonstrate commitment to implementing environmental sustainability practices and establish a desk under NEMA to monitor compliance of manufacturing SMEs to environmental regulations. Similarly, business managers should; train their staff, consult experts on environmental sustainability practices and reward employees who demonstrate pro-environmental behaviours.

Keywords: Environmental Sustainability Practices, Environmental Knowledge, Environmental Commitment, Regulatory Compliance Mechanisms, Manufacturing SMEs, Uganda.