Green Management Practices and Supply Chain Performance of Pharmaceutical Companies in Nairobi, Kenya

Abstract

This study is about the relationship between green management practices and supply chain performance among pharmaceutical companies in Kenya. The study had three objectives to achieve: To determine the extent to which green supply chain management is practiced in the pharmaceutical industry in Nairobi, Kenya; to determine the relationship between Green Supply Chain Management practices and supply chain performance in pharmaceutical industry in Kenya and to establish the challenges faced in the implementation of Green Supply Chain management practices by the pharmaceutical industry in Nairobi, Kenya. The research design was a descriptive study. Data was collected using a questionnaire that was administered through drop and pick later method. Percentages and frequencies were used to analyze objective one and three whereas regression analysis was used to analyze the relationship between business integration and supply chain performance. The findings were presented in tables. It was also clear that there was a significant relationship between green management practices and supply chain performance represented by R2 value of 0.794 which translates to 79.4% variance explained by the five independent variables of green management practices improves supply chain performance. The study focused on pharmaceutical companies in Nairobi only as per the Export Processing Zone website, it did not include all GSCM practices. The study confirmed that Green supply chain management practices is significant in enhancing the performance of supply chains. The study recommends that pharmaceutical companies should assure proper utilization of materials by customers. The companies should also find appropriate business processes needed in implementing green supply chain management practices. The pharmaceutical companies should practice waste reduction, reuse and recycling approaches in order to enhance effectiveness in the supply chain.