Green Supply Chain Performance Management Practices in Large Manufacturing Firms in Nairobi, Kenya

Abstract

This study examines the green supply chain performance management practices in large manufacturing firms in Nairobi, Kenya. The study had three objectives: To establish the green supply chain performance management practices in large manufacturing firms in Nairobi, Kenya, To determine the factors and establish the impacts of green supply chain performance management practices in large manufacturing firms in Nairobi, Kenya. The study used research design (descriptive survey) to collect data and descriptive statistics (frequency distribution, cumulative frequencies and standard deviation) to analyze quantitative data. Factor analysis was also used to analyze the factors influencing green supply chain performance management practices. The study found out that green supply chain performance management practices have been implemented in large manufacturing firms in a great and very great extent. The study also found out that five components of factors were extracted using factor analysis method (values greater than one were considered and interpreted as factors because they explain 72% of the variants in the data matrix). The study through regression analysis found that 70.0 % of the changes in impact of green supply chain performance management could be attributed to the combined effect of the independent variables (implementation of balanced scorecard, benchmarking, use of cleaner production philosophy and focusing on key performance indicator). However, there were limitations in the study. For instance, the data collection was collected by Likert scale questionnaires, which have a degree of biases in their responses. Some firms identified also did not participate, citing lack of time and privacy issues. The study recommends that green supply chain performance management practices are important in ensuring impact of green supply chain performance management because of positive relationship between dependent variable and independent variables. The study recommends that all large manufacturing firms in Nairobi need to implement all the green supply chain performance management practices. The study suggests further research to be done on green supply chain performance management practices in the service industry.