Sustainable Manufacturing Operations and Performance of Plastics & Rubber Manufacturers in Kenya

Abstract

The growing demand for sustainable products has catalyzed increased interest among firms in sustainable manufacturing practices, as they seek to address market expectations. Over the past decades, global plastics production has surged twenty-fold since 1964, primarily driven by population growth and the resultant demand for plastic goods. This escalating demand has significant implications for environmental pollution, with the adverse effects intensifying due to the increased migration of plastic waste, facilitated by water and wind transport to regions distant from human settlements. This study seeks to integrate existing knowledge and explore gaps in understanding sustainable manufacturing operations, eco-innovation, and performance within the plastic and rubber manufacturing sector in Kenya. The goal is to enhance responsiveness to governmental directives aimed at preserving natural resources. The theoretical framework for this study is grounded in institutional theory, supplemented by stakeholder theory, dynamic capabilities theory, and ecological modernisation theory. A positivist research philosophy underpins the study, employing a descriptive research design within a cross-sectional survey framework. The research targeted all 90 registered plastic and rubber manufacturers in Kenya, affiliated with the Kenya Association of Manufacturers. Data collection utilized a structured questionnaire, deployed both online and via physical drop-off and pick-up methods while adhering to COVID-19 health protocols. Descriptive and inferential statistics were employed, incorporating a component-based structural equation modeling (PLS-SEM) approach. The findings indicate a statistically significant positive impact of sustainable manufacturing operations on firm performance. However, the results also reveal an insignificant negative moderating effect of eco-innovation on the relationship between sustainable manufacturing operations and firm performance. Furthermore, eco-innovations were found to negatively moderate the link between sustainable manufacturing operations and environmental performance. A nuanced analysis of individual eco-innovation indicators yielded mixed results regarding their impact on both environmental and firm performance. Additionally, the study found no evidence of mediation by environmental performance in the association between sustainable manufacturing operations and firm performance. However, the combined effects of sustainable manufacturing operations, eco-innovations, and environmental performance exhibited a robust significance, effectively countering the insignificance of individual constructs, thereby affirming the overall significance of these combined factors on firm performance. The study concludes that sustainable manufacturing operations are crucial to enhancing the performance of plastic and rubber manufacturers in Kenya. It highlights the need for manufacturers to adopt specific eco-innovations, particularly eco-processes and material flow innovations, that significantly influence the interplay between sustainable manufacturing operations and environmental performance. It is recommended that both manufacturing firms and the Kenyan government collaborate to establish policies that promote eco-innovation. Future research should consider employing mixed-methods approaches and incorporate additional performance indicators such as financial performance and customer relations.