Green supply chain strategy and sustainable Competitive advantage of large manufacturing Firms in Nairobi, Kenya

Abstract

ABSTRACT The manufacturing industry in Kenya has gradually grown and expanded in the last decade. This can be ascribed to better government policies, increased Research and Development, stable political situation, increased use of modern technology and entrepreneurship. These factors have enabled favourable environment for businesses to thrive. However the sector has many players, hence competition has been inevitable. To survive, compete and thrive, manufacturing firms have had to position themselves accordingly, addressing factors that inhibit their performance and taking advantage of opportunities from the environment. Of great concern for manufacturing firms, globally as well as locally, has been the increased global warming, whereby firms have to check their carbon emissions and embrace sustainable or eco-friendly practices. While this affects the entire firm, as it were, it more so impacts on the firm’s supply chain. Therefore, this study sought to establish the relationship between the green supply chain strategy employed by the large manufacturing firms in Nairobi and their sustainable competitive advantage. The study found out that, large manufacturing firms in Nairobi have gained and sustained greater competitive advantage, in terms of goodwill, market share, returns on investments and even profitability, as a result of implementing green supply chain strategies. Findings from this study can be useful to members of the Kenya Association of Manufacturers with regard to how they can tailor their strategies to go green. This would enable them take advantage of the changing ecological factors in their environment. This research adds to the body of knowledge on the relationship between strategy and supply chain, especially with regard to the contemporary green revolution. Besides, the research can be informative to policy makers and practitioners of organizations such as NEMA, UNIDO, UNEP and governments.