Green Supply Chain Management Practices and Performance of Beverage Manufacturing Industry in Kenya

Abstract

The purpose of this study was to establish the influence of GSCM practices on the performance of beverage manufacturing industry in Kenya. Green supply chain management practices have been an increasing interest in the green aspects of purchasing and supplier relations as a business issue. GSCM practices have attracted a growing and compelling interest among beverage manufacturing industry in Kenya due to pressure from different stakeholders including government regulators such as KEBS, NEMA; local and foreign clients; competitors; neighboring communities; NGOs; media; investors, and employees. The motivations for GSCM practices are wide-ranging and heterogeneous. They include the desire to reduce the risk of environmental hazards in the supply chain, fear of adverse publicity of non-compliance with associated government penalties, contribution towards sustainability and to demonstrate an image of an environmentally responsible corporate. Although green issues are globally viewed as the pedal for economic, social, and environmental reasons, they have not been fully incorporated into supply chains in developing countries. Other reports are based on case studies and therefore, their findings cannot be used to make general conclusions about GSCM practices and beverage manufacturing industry performance. This research problem was studied through the use of a descriptive research design. The specific objectives of the study were; to establish the influence of internal environmental management, green purchasing, eco-design, and reverse logistics on the performance of beverage manufacturing industry in Kenya. The study target population was the beverage manufacturing industry in Kenya focused on the 181 beverage companies registered under KAM 2020 directory where a sample of 64 companies was identified. Questionnaires were the major instrument for data collection. Data analysis was conducted using descriptive and inferential statistics. The study found that internal environmental management, green purchasing, eco-design and environmentally-oriented reverse logistics and performance of beverage manufacturing industry are positively and significant related. The study concluded that internal environmental management and performance of beverage manufacturing industry are positively and significant related. To enhance firms’ performance, it is imperative for manufacturing firms to invest heavily in internal environmental management with respect to green supply chain management practices. The study concluded that an increase in the practice of green manufacturing system, purchasing energy saving equipment’s by the company, purchasing products that have been stamped by reliable eco-labels, cooperating with suppliers to ensure standard packaging and allowing products back from consumers positively influences the performance of beverage firms.  The study concluded that improved performance was attributed to eco-design practices such as: production processes designed to reduce wastes and ensure water conservations; enhancing full capacity utilization; reduction of hazardous wastes during the production process; product eco-design and; cleaner production techniques. The study recommends that full commitment of top management should be understood, communicated, implemented and maintained at all levels in the organization in order to improve organization process efficiency. The government through the ministry of environment recently banned use of polythene bags across the country. It is therefore recommended that the beverage processing firms back this initiative by reducing polythene usage in their packaging and other supply chain processes. The manufacturing firms ought to show their commitment towards having a greener environment by putting measures that encourage environmentally oriented reverse logistics.