Green Logistics and Performance of Building and Construction Manufacturing Firms in Kenya

Abstract

Green logistics involves strategies that reduce the environmental and energy footprint of freight distribution, which focuses on material handling, waste management, packaging and transport. It consists of all activities related to the eco-efficient management of the forward and reverse flows of products and information between the point of origin and the point of consumption whose purpose is to meet or exceed customer demand green logistics activities include measuring the environmental impact of different distribution strategies, reducing the energy usage in logistics activities. The general objective of the study was to establish the effect of green logistics on performance of the building and construction manufacturing firms in Kenya. The study was guided by the specific objectives which include; to establish the effect of reverse logistics management, the effect of green packaging, to assess the effect of logistics innovation, the effect of green distribution systems on performance of the building and construction manufacturing firms in Kenya and to determine the moderating influence of firm characteristics on the relationship between green logistics and performance of building and construction manufacturing firms in Kenya. To achieve this, the study reviewed both theoretical and empirical literature and proposed the research methodology that addressed the gaps identified in literature as well as answer the stipulated research questions. This study adopted a cross-sectional research design. This method is preferred because it allows an in-depth study of the subject. The study population was 900 employees drawn from the 54 building and construction manufacturing firms in Kenya. The sample size was 270 respondents which was determined through purposive sampling targeting departments (production, quality assurance, procurement and supply chain, transport and logistics, and administration) in the 54 companies. Primary data was collected using a questionnaire. Quantitative data was analyzed through descriptive statistics (mean, standard deviation, frequency and percentages) and inferential statistics (ANOVA, P-value, t-test). The findings were presented in tables, pie-charts and bar-graphs. The results revealed that green logistics through reverse logistics, green packaging, logistics innovation and green distribution systems significantly influenced the performance of the building and construction manufacturing firms in Kenya. The study concluded that through embrace of green logistics, performance of the manufacturing firms was obtained. It is recommended that the management of the building and construction manufacturing firms embraces green logistics though which they can save on costs, enhance sustainability and promote performance