The Influence of Eco-Friendly Vehicle Utilization on Supply Chain Performance of Manufacturing Companies in Southwest Nigeria

Abstract

This study aimed to examine the linkages between the use of eco-friendly vehicles and the performance of supply chains of selected manufacturing firms in Southwest Nigeria. A cross-sectional survey was conducted among ten manufacturing firms, from which 395 responses were received. Eco-friendly vehicle utilisation was assessed based on the use of fossil fuel-based vehicles, utilisation policies, reasons for utilising eco-friendly vehicles, the introduction of structured programmes, and the measurement of fleet performance. The data were analysed using Pearson product-moment correlation and likelihood-ratio model fitting. The results indicated that supply chain performance was positively correlated with environmentally friendly vehicle utilisation, with the strongest association with delivery efficiency observed for fleet performance measurement (r = 0.870). Furthermore, delivery efficiency (r = 0.731) and environmental sustainability (r = 0.753) showed strong positive correlations with eco-friendly fleet size. The model was statistically significant (chi-square = 84.701, df = 12, p < 0.001). The results suggest that the adoption of eco-friendly vehicles can be more strongly linked with supply chain performance when their introduction is supported by policy, structured programmes, route and energy data, and the measurement of service and environmental performance. A key contribution of the study is the simultaneous consideration of fleet adoption, governance, implementation, and measurement within an empirical model of manufacturing supply chains in Southwest Nigeria.