Sustainable Logistics Management Practices and Competitive Advantage Among Food and Beverage Manufacturing Firms in Nairobi County, Kenya

Abstract

The integration of sustainable management practices has become a transformative force in businesses, challenging conventional approaches and making sustainability a core aspect of Supply Chain Management. The general research objective of this study was to establish the relationship between sustainable logistics management practices and competitive advantage of the FBMFs in Nairobi County, Kenya. This study was guided by two objectives: to establish the extent to which sustainable logistics management practices have been embraced by food and beverage manufacturing firms in Nairobi County, Kenya and examine the connection between sustainable logistics management practices and the competitive advantage of these firms. A descriptive blueprint was acceded to and results presented in tabulations. The study focused on seventy-seven FBMFs whereby data collection aftermath obtained fifty-two responses from the targeted universe. Based on the first grail, sustainability engagements by FBMFs on environmental lines showcased a pronounced extent of incorporation to a large magnitude followed by and socially-related practices to a large extent as economic activities registered the least with overall rate of adoption registering a moderate score. The outcome on second objective affirmed that sustainable environmental, social and economic practices were significant in explaining the changes in the competitive advantage of the Nairobi County FBMFs. The tool used to model competitive advantage facets on a multiple platform indicated stronger relevance on quality, speed, cost and flexibility as evidenced by their overall R squared in that array respectively. Consequently, ANOVA analysis on the second grail revealed a highly significant p-value indicating substantial differences among the compared groups. The R-squared value indicated that observed variations in competitive advantage could be attributed to the inclusion of sustainable environmental, economic, and social practices. In search of superior sustainability and green labels of logistical management, a recommendation was arrived at for FBMFs to embrace a holistic approach pegged on the pillars of sustainability as they establish safer working environment for their employees and ensure fair remuneration that matches the work performed. It is strongly recommended that these firms consistently ensure compliance with tax regulations and operate within the established legal boundaries of the country to avoid potential financial burdens associated with non-compliance and mitigate the risk of costly tax penalties. The scope of the research was seen as a major limitation to this study. The study exhorts that forthcoming explorations and research journeys be conducted on strategic employee capabilities and CA of FBMFs beyond Nairobi County, Kenya.