Reverse logistics and performance of government owned manufacturing firms in Kenya

Abstract

In the present day competitive business environment, business managers have been under intense pressure to come up with ways of improving companies performance from both the financial and non-financial position. One of the tools that can be adopted is the reverse logistics, since the adoption of its practices can be a source of competitive advantage to companies in a competitive environment. Reverse logistics can help with product returns, which in turn may lead to improved goodwill. The objective of the study was to establish the effect of reverse logistics on the performance of government owned manufacturing firms in Kenya. The study adopted a descriptive research design where each of the 14 government owned manufacturing firms formed the sample frame. A questionnaire was the main research instrument in which three questionnaires was dropped and latter collected from the firms. The managers answered questionnaire items constructed by the researcher. The inferential relationship was imputed using the ordered regression analysis. The findings showed that the government owned manufacturing firms in Kenya have adopted reverse logistic practices to appreciable levels. Specifically, it was seen that increased organisational performance of manufacturing firms were found to be dependent on increased adoption of reuse, remanufacture and recycling reverse logistics practice. It is therefore recommended that the management of various manufacturing firms consider putting in place targeted measures intended to spur adoption of reverse logistics practices.