Effects of Green Supply Chain Management Practices on Competitiveness of Firms in the Food and Beverage Sector in Kenya

Abstract

Green Supply Chain Management practices have become a policy tool for many organizations due to concerns of environmental sustainability, climate change and its effects. Many firms are consciously including environmental and social considerations in their procurement processes. The main objective of this study was to investigate the effects of green supply chain management practices on the competitiveness of firms in the food and beverage sector in Kenya. The study was also guided by specific objectives which include establishing the influence of green procurement, green production, green distribution and reversing logistics on the competitiveness of manufacturing firms in the food and beverage sector in Kenya. The study was built upon the Sustainability Theory, Resource Based Theory, Exchange Relationships Theory and the Supply Chain Operation Reference Theory. The study adopted a descriptive research design which involved distribution of questionnaire to the food and beverage firms in Kenya. A good response rate of 81% was realized. The study also established a regression and correlation analysis between the dependent variable and the independent variables. The findings of the study was on the effects of green supply chain management practices on competitiveness, firms in the food and beverage sectors   adopt different green supply chain practices depending on the activities that they are engaged in and also which green supply chain practice will yield better competitiveness to the firm. It also established that most of the firms’ green supply chain practices involved environmental collaboration, monitoring, purchasing and the greening of the production phase. It was also found out that the competitiveness to the food and beverage firms resulting from the green supply chain practices includes improved operational efficiency, increased customer base, offering superior services, reduction in waste level and all these leads to improved financial performance. The study concluded that  green supply chain management practices has a positive effect on the food and beverage firms  and should form part of long term strategy of the food and beverage firms in order to gain competitive advantage over its competitors. It has therefore been recommended that organizations should consider adopting green supply chain fully as the potential benefits to be realized are enormous compared to the initial and operation cost of implementing the practice.

Keywords: Green supply chain management practices, food and beverage firms, competitiveness