Effect of green supply chain management practices on performance of manufacturing firms in Nairobi County, Kenya

Abstract

In today‟s global turbulences and increasing competition, organisations cannot do well in isolation as collaborations between different organisations have become the major input in achieving organisational goals and objectives. Green Supply Chain Management (GSCM) refers to management of activities that attempts to improve the environmental performance of purchased inputs, or of the suppliers who provide them. The purpose of the study was to determine the effect of GSCM practices on the performance of manufacturing firms in Nairobi Kenya. The specific objectives included; to establish the effect of green purchasing, green reverse logistics, green marketing, and green risk management on the performance of manufacturing firms in Nairobi Kenya. This study was carried out through a cross sectional descriptive survey. The target population of this study constituted 453 manufacturing firms in Nairobi Kenya. The study sought information from 208 procurement officers whose roles fall on the supply chain. This study made use of questionnaires which contained both structured and non-structured questions. On the other hand, the study used descriptive and inferential statistics to analyse the quantitative data. This study utilized the SPSS software to perform regression analysis on the collected data. The study revealed that adoption of GSCM practices led to improved overall quality, there is more strategic focus on reverse logistics and that efficiency, accuracy and timeliness in reverse supply chains activities are a priority. The study findings also show that manufacturing firms are able to meet customer expectations which led to new relations across the supply chain. It was clear from the study findings that the primary driving force to green risk management is an urge to meeting regulations. In conclusion, there is increased percentage of environmental innovations and green purchasing can improve a firm's economic position. On the other hand, there is a reduction in the waste of resources and promotion of environmental innovation is achieved. As a result of green marketing, manufacturing firms are able to meet customer expectations which lead to new relations across the supply chain. It is recommended that managers should embrace GSCM practices because they are designed to help organizations analyze and improve each element in their operations, from the selection of suppliers through to sales and distribution. The government needs to ensure that there is continuing coordination between the different administrative levels to implement the green supply chain.