Effect Of Green Supply Chain Management Practices On Performance Of Dairy Processing Firms In Kenya

Abstract

Lately, organizations have been under increased pressure from different stakeholders to ensure that their operations are environmentally friendly. The concept of sustainability in the supply chain has emerged recently and has been touted as an effective means of addressing environmental challenges while contributing to enhanced performance of organizations. The aim of this study was to examine the effects of green supply chain management (GSCM) practices on the performance of dairy processors located in Kenya. This study had the following specific objectives: To establish the effect of each of the diverse components of green supply chain management namely, green procurement, ecological design, green packaging and reverse logistics, and their influence on performance of the firm. This study was guided by three theories, namely, the theory of constraints, channel coordination theory and supply chain network theory. A descriptive survey research design was adopted. The targeted population of the study comprised of 30 dairy processing firms domiciled in Kenya and licensed by Kenya Dairy Board (KDB). The unit of study included 3 employees from each firm selected from the procurement and logistics department, finance, and production department, making a total of 90 respondents A census study was carried out due to the limited number of licensed dairy processors in the country. The questionnaire was administered to 90 individuals with decision making authority and was collected via self-administered structured questionnaires. After collection of data, the researcher carried out data analysis by use of descriptive statistics to make key inferences. The study achieved a response rate of 95.5%. The study established that green procurement, ecological design, green packaging, and reverse logistics have a positive relationship with performance of dairy processing firms in Kenya. The study recommended that dairy processing firms should adopt green supply chain management practices so as to improve their performance and further inquiries should to be carried out in other firms across other industries to establish if similar results can be obtained. There is also need to identify the role that drivers of green supply chain management practices play in adoption of these practices in organization.