Effect of green logistics practices on performance of logistics firms in Kenya

Abstract

Emissions from logistics industry are rising at a greater concern than any other industry and the trend is expected to continue such that 2030 these levels will be 80% higher than they were in 2007 unless there is a change. Environmental concerns have become essential for organizations given the current context of globalization. Taking measures concerning environmental concerns in a socially responsible way is becoming an important part of the modern organization agenda. This study focused on establishing the effect of green logistics practices on performance of logistics firms operating in Kenya. The study was guided by the philosophy of positivism research and it applied the cross-sectional survey research design. The population of interest consist of 892 logistics firms in Kenya from which a sample of 300 firms is drawn. Primary data were collected using a structured questionnaire. Validity and reliability measurement were done using three frequently used methods –construct reliability (CR), average variance extracted (AVE), Cronbach's alpha. Data were analyzed using covariance-based structural equation modelling (CB-SEM). The study established that there is a significant positive relationship between the implementation of green logistics practices and firm performance of logistics firms in Kenya (β=0.63, p<0.001). It is recommended that logistics firms in Kenya should implement environment-friendlypractices both within firms and in the wider supply chain.