The impact of green supply chain on performance of oil marketing firms in Kenya

Abstract

This study sought to establish the impact of green supply chain on performance of major oil marketing firms in Kenya. Environmental consciousness by consumers and government environmental regulations have compelled organizations to seek ways of pursuing environmental friendly practices in their business activities while ensuring they comply with environmental regulations set by the government. In this study, oil marketing firms were identified as significant contributors in waste emissions and natural resource use and therefore the study sought to determine the extent to which green supply chain is practiced and the impact of adoption of green supply chain on performance of oil marketing firms in Kenya. Primary data for the study was collected from the major oil marketing firms in Kenya through self administered questionnaires and analyzed by use of descriptive statistics. The study showed that the oil firms have adopted green supply chain to a moderate extent but needed awareness and support to fully implement the concept. The study also found out that its practice had a positive impact on overall firm’s performance by improving quality, productivity, efficiency and cost savings. Lack of government support 26%, was identified as a major stumbling block with improved environmental performance 27% rated as the most beneficial aspects of the practice. The study recommends formulation of an environmental policy and more government support for GSC practices. Similarly more awareness needs to be created on the GSC concept among stakeholders with oil marketing firms encouraged to adopt total quality management and redesign factory layout to enhance productivity and efficiency.