Effect of Green Procurement Practices on Performance of Manufacturing Firms in Kisumu County, Kenya
Abstract/ Overview
Green procurement refers to the purchase of services and products that have a lesser effect on the environment throughout its life cycle more than average equity. The Kenya Association of Manufacturers reiterates that the decline in productivity is disrupting business and reflects total competition and jeopardizes the government's 20% growth ambitions for Kenya to succeed. As experts point out the possible correlation between green procurement and general organizational performance, there is a need to establish the effects of green procurement processes in practice on the performance. The research sought to investigate the effect of green procurement practices on the performance of manufacturing firms in Kisumu County, Kenya. The objectives of the study are; to assess the effect of green purchases on the performance of manufacturing factories in Kisumu County, Kenya; to determine the effect of green suppliers collaboration on the performance of manufacturing factories in Kisumu County, Kenya; to assess the effect of green distribution on the performance of manufacturing factories in Kisumu County, Kenya. The hypothesis were: there is no significant effect of green purchases on the performance of manufacturing firms in Kisumu County, Kenya; there is no significant effect of green suppliers collaboration on the performance of manufacturing firms in Kisumu County, Kenya. and there is no significant effect of green distribution on the performance of manufacturing firms in Kisumu County, Kenya. The research is important for the manufacturing industry, the general public, and future researchers. The research was anchored on resource-based theory, systems theory, and logistics management theory. A cross-sectional survey design was employed by the research. The study population were 141 employees of the procurement, finance, manufacturing and transport departments in all six manufacturing firms in Kisumu County, Kenya. Yamane formula was applied in sampling 104 respondents. The study adopted stratified and simple random sampling to select 104 respondents from all six manufacturing industries. The structured questionnaire and interview guide were used as data collection tools. Descriptive and inferential statistics were used to analyze data. The study found that green purchases had effect on the performance of manufacturing firms in Kisumu County, Kenya (mean = 4.5; std. deviation = 0.807); The collaboration of green suppliers had effect on the performance of manufacturing firms in Kisumu (mean = 4.44; std. deviation = 0.962) and green distribution had effect on the performance of manufacturing firms in Kisumu County, Kenya (mean = 4.46; std. dev. = .959) ; and green procurement processes have had a significant effect on the operations of the manufacturing firms in Kisumu County, Kenya (mean = 4.33; std. dev. =. 981). The regression results displayed a strong relationship between green procurement practices and the performance of manufacturing firms in Kisumu County, Kenya (R = .835; p value <.05). Squared R indicated that green procurement practices contributed to a 69.8% variation in the performance of the manufacturing firms in Kisumu. The research concluded that: green procurement had effect on the performance of manufacturing firms in Kisumu County, Kenya; The collaboration of green suppliers had effect on the performance of the manufacturing firms in Kisumu County, Kenya; and the green distribution had effect on the performance of the manufacturing firms in Kisumu County, Kenya. The results revealed that green procurement practices played key role in the overall performance of the manufacturing firms in Kisumu County, Kenya. The study recommended that managers of manufacturing firms in Kisumu County, Kenya should employ adequate green purchasing strategy in order to boost performance. In addition, the study recommended that, there is a need to increase the collaboration of green providers. In order to increase quality performance, the study recommended that managers of manufacturing enterprises in Kisumu employ the suitable green distribution strategy.