Sustainable Procurement Trade-offs and Environmental Supply Chain Performance of Export Processing Zone Firms in Kenya

Abstract

The study explored sustainable procurement trade-offs and environmental supply chain performance of export processing zone (EPZs) firms in Kenya. The study sought to achieve the following objectives: (i) To identify the sustainable procurement trade-offs adopted by export processing zones (EPZs) firms in Kenya and (ii) To establish the relationship amongst sustainable procurement trade-offs and environmental supply chain performance of export processing zones (EPZs) firms in Kenya. Primary quantitative data was collected in line with the study objectives. The data was collected from the heads of supply chain departments of EPZ firms or their representative in Nairobi and Machakos counties. The findings of the research reveal that export processing zones (EPZs) firms in Kenya have adopted a range of sustainable procurement trade-offs to a greater extent. This includes: procuring products with less environment effects; continuously building new supplier relationships to obtain sustainable products as opposed to retaining existing suppliers and sourcing products from new suppliers who provide sustainable products. The firms opt to spend more on the procurement of products and resources that have environmentally-friendly attributes over those that are not; they have invested in the use of clean materials over toxic and hazardous materials and they use sustainable traceable raw materials rather than unsustainable raw material. Further, the firms label products in compliance to environmental certification criteria established by industry rather than long-established organisational specifications. The relationship between sustainable procurement trade-offs and environmental performance is significant. The environmental performance of EPZs firms in Kenya can be attributed to the sustainable procurement trade-offs the firms have adopted. Thus, sustainable procurement trade-offs can help in improving the firms’ overall environmental supply chain performance.