ROLE OF SUSTAINABLE SUPPLY CHAIN MANAGEMENT PRACTICES ON PERFORMANCE OF MANUFACTURING FIRMS. A CASE OF UNILEVER KENYA LIMITED

Abstract

To remain globally competitive Kenya has to manage and sustain her environment and natural resource base (UNDP, 2018). Manufacturing firms are no exception to this. The manufacturing sector is an important pillar in the Kenyan economy and a key contributor to the country’s gross domestic product. It also has a big impact on the society and environment. Organizations that have sustainability at the heart of their operations have reaped great benefits. Research has it that 65% of firms that were at a more advanced stage of implementing sustainability in their supply chains noted that they had improved their brand reputation. This research aimed to determine the role of sustainable supply chain management practices in the performance of manufacturing firms in Kenya. It was guided by the following specific objective; to determine the role of eco-design and cleaner production and green packaging in the performance of these firms. The resource based theory and Ecological Modernization Theory provided theoretical foundation. The population of the study was 102 respondents from which a sample of 81 was drawn. Proportionate stratified random sampling was used to determine the sample sizes in each stratum. Data was analysed both descriptively and inferentially. Correlation analysis was used to determine the presence of multicolinearity in the data and also to determine the degree & direction of the relationship between the study variables. Regression analysis was used to determine the relationship between the independent and dependent variables. The study concluded that eco design, cleaner production and green packaging are significant predictors of manufacturing firm performance. The study recommended hiring of innovative employees to aid eco design and cleaner production initiatives.