Green Supply Chain Management Practices and Performance of Alcoholic Beverage Manufacturers in Kenya

Abstract

The aim of this research was to determine Green supply chain management practices and how they affect operational performance of alcoholic beverage manufacturers in Kenya. The research study had two objectives: First, to determine GSCM practices adopted by the alcoholic beverage manufacturers in Kenya and secondly, to determine the effect of its adoption on operational performance. The research design for the study was descriptive survey. The researcher proposed to do a census on all the 41 alcoholic beverage manufacturers registered by NACADA in Kenya, 2015.The researcher utilized the statistical package for social sciences (SPSS) software to analyze the efficiency and effectiveness of the data in details. The relationship between GSCM and operational performance were as follows: internal environment had highest and significant relationship, waste management, reverse logistics, investment recovery and green purchasing had high and significant relationship. Eco-design had a low but significant relationship. The research finally concludes that internal environment greatly affects operational performance. It was concluded so because of the commitment of the middle managers, support of senior managers to middle level managers for environmental practices, share of information and existence of cross functional GSCM. The study recommends that the implementation of GSCM should be implemented among alcoholic beverage manufacturers in Kenya because there are benefits that accrue from such implementation. For instance, firms will benefit through increased use of recyclable materials; savings on costs due to effective utilization of available productive resources; reduction of the environmental impact of business processes and reduction of operational costs and risk of prosecution based on anti-environment reasons. The limitations of the study were that the finding were not general hence other manufacturers operating in different economic, social and political environment may find it difficult to use and others the subject didn‟t interest them. The research also suggests further research to be done on all alcoholic beverage manufacturers including traditional alcoholic beverage manufacturers and also on manufacturers who are registered with other registering bodies (KEBS and KRA) besides NACADA.