Green Supply Chain Management and Organizational Performance of Food and Beverage Manufacturing Firms in Kenya

Abstract

Utilization of green supply chain management has been limited in that a decade ago it was almost non-existent. The study aimed at establishing the extent to which the food and beverage manufacturing industry in Kenya have adopted green supply chain management, come up with challenges faced by the food and beverage manufacturing industry by practicing green supply chain management practices and determining the effect of green supply chain management on performance of and beverage and food manufacturing in the Kenyan industry. The research is guided by the following theories; stakeholder theory, resource dependence theory and the theory of technology diffusion. A descriptive survey research design was employed in the study. Descriptive survey design is utilized to grant researchers to collect, compile, and interpret information. This research centred on large food and beverage manufacturing firms in Kenya which was 46. Collection of primary data was by using of semi-structured questionnaire. The targeted interviewees were procurement managers and quality assurance managers in the beverage and food manufacturing firms in Nairobi, Kenya. Analysis of data was by using tables, frequencies, mean standard deviation and percentages. Relationships between green supply chain management and organizational performance was assessed and explained by conducting a regression analysis. The study concluded that on reverse logistics there exists a positive correlation coefficient with organizational performance of Food and Beverage Manufacturing Industry in Kenya. There is also a positive relationship between reverse logistics and organizational Performance of Food and Beverage Manufacturing Industry in Kenya. On the green technology adoption, the study found out there was strong positive correlation between green technology adoption and organizational performance of Food and Beverage Manufacturing Industry in Kenya. The study further concludes that a strong positive correlation coefficient exists between green supplier assessment and performance in the organization of Food and Beverage Manufacturing Industry in Kenya. The study further concludes a relationship that is positive between Green supplier assessment and organizational performance of Food and Beverage Manufacturing Industry in Kenya. On the corporate social responsibility and organizational performance, the study concludes existence of a strong positive correlation coefficient with organizational performance of Food and Beverage Manufacturing Industry in Kenya. The study recommends that Kenyan Government, through Kenya Environmental Authority should develop policies that make it a requirement for all manufacturing firms to adopt environmentally friendly practices in the entire supply chain.