EFFECT OF SELECTED GREEN SUPPLY CHAIN MANAGEMENT PRACTICES ON PERFORMANCE OF SUGAR MANUFACTURING FIRMS IN WESTERN KENYA

Abstract

The drive to enhance overall sustainability in organization performance has resulted to focus on pollution prevention and minimization of environmental impacts at all stages of the product lifecycle from sourcing of raw materials, through manufacturing, transport, use and disposal, this has not been embraced by all companies in the sugar industry in Kenya while those that have embraced the Green Supply Chain Management Strategies are still under-utilizing them. The general objective of the study was to investigate the effects of selected green supply chain practices on performance of sugar manufacturing firms in western Kenya. The specific objectives were to determine the effect of green manufacturing on performance of sugar manufacturing firms in Western Kenya, to evaluate the effect of green packaging on performance of sugar manufacturing firms in Western Kenya, to establish the effect of reverse logistics on the performance of sugar manufacturing firms in Western Kenya and to examine the effect of green procurement on the performance of sugar manufacturing firms in Western Kenya. It was anchored on two theories of Natural Resource Based View and Transaction Cost Economics theories. The study adopted descriptive and causal research design using both qualitative and quantitative approaches. The study targeted 10 sugar manufacturing firms in Western Kenya with 190 employees from procurement and production departments. Sample size of 129 was selected using simple random sampling technique focusing on designated departments and then stratified sampling was used specifically targeting managers, middle-level managers, and supervisors within the procurement and production sectors. The data was collected using questionnaires within a period of two months. Closed ended questionnaires were used based on a five-point Likert scale. It was then edited and analyzed using Statistical Package for Social Sciences (SPSS) software using descriptive statistics indexes such as mean, percentages and frequency distribution method. Data was presented in form of frequency tables. Data was analyzed using regression analysis using both univariate and bi-variate models. Reliability was tested using Cronbach’s Alpha coefficient and validity of the research instruments was tested through content, criterion and construct, hypothesis testing was done basing on the p-values of specific independent variables. Regression coefficient results indicated that green procurement, green manufacturing, green packaging and reverse logistics had a significant effect on performance of sugar manufacturing firms in western Kenya. Findings indicated that green procurement, green manufacturing, green packaging and reverse logistics had a significant effect on performance of sugar manufacturing firms in western Kenya with p-values < 0.05. It was concluded that green supply chain practices affect performance of sugar manufacturing firms in western Kenya. It is advised that the administrators of the sugar manufacturing company should actively advocate for practices that promote sustainability and a green supply chain. The attainment of this objective can be facilitated by implementing training programs, workshops, and internal communication strategies that underscore the significance and advantages of green supply chain management (GSCM). The coefficient of determination (0.560) suggests that around 56% of the variations in sugar manufacturing performance—assessed through operational cost levels, product and service quality, as well as efficiency and effectiveness—can be elucidated by alterations in green supply chain practices. The research complied with ethical standards. The results will prove beneficial to scholars, professionals, and decision-makers.