Green supply chain management practices and competitiveness of Commercial Banks in Kenya

Abstract

The study sought to establish the role of green supply chain management practices on an organizational competitiveness among commercial banks in Kenya. Towards the achievement of the objectives, the study adopted a descriptive research design in which involved distribution of questionnaire to the banks. 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 that different banks 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 bank. It also established that most of the banks’ 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 banks 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 incorporation of green practices in the operations of organizations should form part of long term strategy of the organizations 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.