Francis Kiarie Memia

Jomo Kenyatta University Of Agriculture And Technology.

Prof. Romanus Odhiambo

Jomo Kenyatta University Of Agriculture And Technology.

Dr. Karanja Ngugi

Jomo Kenyatta University Of Agriculture And Technology.

CITATION: MMemia F K, Prof Odhiambo R & Dr Ngugi K., (February, 2018), Influence of green supply chain on performance of manufacturing firms in Kenya: International Journal of Economics and Finance (IJEF), VOLUME 4 (II), 1 - 23. ISSN 2105 6008.

ABSTRACT

The study sought to determine the influence of green supply chain practices on organizational performance of manufacturing firms in Kenya. The target population for the study was the senior staff in supply chain, operations and finance or equivalent managers in the 563 manufacturing organizations listed by KAM. The sampling technique was stratified random sampling in based on the 14 sectors as identified by KAM. Using Yamane formula, the study sampled 312 respondents from 104 firms. The data collection instrument was a structured questionnaire. Data analysis was done using descriptive statistics and inferential statistics. The statistical tests were also done in the study. Presentation of data was in form of charts and tables as deemed appropriate. The study found out that green supply chain and organizational performance were moderately correlated, r = .567, p < .05. From regression analysis, an R2 value for the relationship between green supply chain and performance was 0.322 indicating that 32.2% of the variation in performance could be attributed to changes in green supply chain in the manufacturing firms of Kenya. The study also found that most of the organizations had implemented architectural designs which allowed natural lighting leading to conservation of energy hence increase in profitability. Also, majority of the organizations had waste management policies in their organizations, meaning that they were conscious of environment impact of waste on performance. The study therefore concluded that for the organizations to realize more value from green supply chain, it was prudent to implement more policies such as use of biodegradable packaging materials and energy generation which will improve performance. The study recommended that the firms needed to invest in the three R’s of waste management, that is, reusing, recycling and reducing wastes. It was also recommended that organizations needed to devise architectural designs that are more eco-friendly, use energy efficient machines and equipment as well as focus on improving reverse logistics by investing on returnable containers. Keywords": Green supply chain, organizational performance, manufacturing firms, KAM, supply chain. View Full PDF Version