The Effect of Green Supply Chain Strategies on the Performance of food and Beverage Manufacturing Firms in Nairobi City County, Kenya

Reuben Mwove, Miriam Thogori, Rael Mwirigi and Anne Ngeretha
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Reuben Mwove: Faculty of Business Studies, Departments of Management Science and Business Studies, Chuka University, P O Box 109- 60400 Chuka
Miriam Thogori: Faculty of Business Studies, Departments of Management Science and Business Studies, Chuka University, P O Box 109- 60400 Chuka
Rael Mwirigi: Faculty of Business Studies, Departments of Management Science and Business Studies, Chuka University, P O Box 109- 60400 Chuka
Anne Ngeretha: Faculty of Business Studies, Departments of Management Science and Business Studies, Chuka University, P O Box 109- 60400 Chuka

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 9, 3418-3428

Abstract: The literature on Green Supply Chain Management (GSCM) has extensively explored its potential for improving environmental performance, yet there remains a significant gap in understanding its direct impact on the economic performance of manufacturing firms, particularly in developing economies like Kenya. Previous studies have often focused on environmental and operational benefits, with limited attention to profitability, market share, and sales growth, especially within the context of Kenya’s food and beverage manufacturing sector. Additionally, much of the research on GSCM strategies has been conducted in developed economies, making the applicability of findings in developing regions uncertain. This study addresses these gaps by examining the economic implications of GSCM strategies in a sector that contributes approximately 7.8% to Kenya’s GDP but faces declining output due to economic challenges, competition, and rising operational costs. A descriptive cross-sectional design was employed to provide a snapshot of the current state of GSCM practices and their immediate effects on firm performance. This design was chosen for its ability to capture data from a diverse set of firms simultaneously, allowing for generalizable conclusions across the sector. Grounded in Closed Loop Supply Chain theory, the study surveyed a sample of 164 respondents from 138 food and beverage manufacturing firms in Nairobi City County, achieving a response rate of 90.9%. The data was analyzed using simple and multiple regressions, Pearson’s product-moment correlation, and Spearman’s Rank Correlation, with SPSS version 28. The results show that GSCM strategies have a moderate positive correlation with overall firm performance (correlation coefficient = 0.285, p-value = 0.000) and profitability (correlation coefficient = 0.243, p-value = 0.003). However, the strategies’ impact on sales growth was not statistically significant (correlation coefficient = 0.135, p-value = 0.101), while their influence on market share was both positive and significant (correlation coefficient = 0.314, p-value = 0.000). These findings suggest that while GSCM strategies can enhance firm performance in terms of profitability and market share, their effect on sales growth remains limited. The study provides actionable insights for firms aiming to integrate GSCM practices to boost competitiveness and sustainability, with broader implications for policy formulation and industry standards in Kenya.

Date: 2024
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