Contributions of Green Supply Chain Management Practice on Performance of Steel Manufacturing Companies in Kenya

Abstract

The main purpose of this study was to examine the contributions of Green supply chain management practice on performance of Steel Manufacturing Companies in Kenya which are the key contributors to the economic development of the country. The metrics for measuring the company’s performance were the product quality and customer satisfaction. The descriptive research design was used in the formulation of knowledge on the contributions of Green supply chain management practice on the performance of Steel manufacturing Companies in Kenya and provided solutions to areas that needed improvement. Structured questionnaires and oral interviews research techniques was used to get primary data from the senior managers in production department, marketing department, Information Technology department and Supply chain department while scheduled interviews was used for firm’s procurement managers and observation checklists was used for comparison of records. Analytical research method was used to analyze secondary data and ex-post facto research design was used to report things the way they are. Both quantitative and qualitative research techniques were used during data presentation using inferential statistics to draw conclusions from the nominal measurement scale. Purposive sampling technique was used to identify and select eligible participants for the study. The null hypothesis formulated was that there is significant relationship between green supply chain management practice and the performance of steel manufacturing Companies in Kenya. The sample size was determined using Cochran sampling frame for large population. The Spearman’s Coefficient of correlation was used to measure the degree of association between the pair of rankings N objects and the null hypothesis was tested by use of F- ratio using a two way Fisher’s Analysis of Variance [ANOVA] on assumption of the homogeneity of the variance of the sample that is normally distributed at 95% confidence interval. The study revealed that Green Supply Chain management practice statistically significantly predicted the performance of Steel Manufacturing Companies in Kenya, F (1, 242) = 40.516, p < .05, R² = .143. The analysis further revealed that there is a significant and a moderate positive correlation between Green Supply Chain Management practice and the performance of Steel Manufacturing companies in Kenya (r =0.379, p ˂ 0.01).    The study recommends that the Steel manufacturing companies in Kenya to incorporate the Green supply chain management practice in their business operations for the enhancement of their performance.

Keywords: Green Supply chain management, Steel Manufacturing Companies in Kenya, Supply chain performance