Sustainable Supply Chain Management Practices and Performance of Horticultural Firms in Kenya

Abstract

The aim of this study was to assess the relationship between sustainable supply chain management practices and performance of horticultural firms in Kenya. As one of the country’s economic backbone, the horticultural industry has been facing a decline in performance, orchestrated by among other factors, increased dynamisms and policy changes, unprecedented occurrence such as the Covid-19 pandemic and draught and increasing competition. The embrace of sustainable supply chain management practices in the sector has been meagrely documented, despite the emphasis for sustainable supply chain by global economies. This motivated this study. Specifically, the study sought to examine the relationship between green purchasing and performance of the horticultural industry; establish the relationship between reverse logistics and performance in the horticultural industry; the relationship between green packaging and performance of the horticultural industry; assess the relationship between green distribution and performance of the horticultural industry and analyse the moderating effect of value addition on the relationship between sustainable supply chain and performance of the horticultural industry. The study was informed by transaction cost economies theory, institutional theory, theory of reasoned action, diffusion innovation theory and stakeholder theory. The study adopted a descriptive research design while the target population was 289 horticultural firms in Kenya. A sampling formula was used to obtain the preferred sample size of 259 respondents. Questionnaire was used to collect the study data while the data was analysed through mixed analysis where both qualitative and quantitative techniques was used. Inferential analysis was used to establish the relationship between variables. The data was presented in form of tables and figures. The study found a positive relationship between green purchasing and performance in the horticultural firms in Kenya. Also, further reverse logistics had a positive influence on performance of the Horticultural firms in Kenya. The findings also showed that green packaging has positive influence on performance in the horticultural firms in Kenya. Green distribution had a positive influence on performance in the horticultural firms in Kenya. The study recommends that the management of the horticultural companies should improve on their green purchasing practices. This can be done by applying flexible sustainable supply chain management practices through research so as to understand the changing environmental needs and remain relevant in the market. The study also recommends that the companies should ensure that their reverse logistics are properly structured. This would ensure that customer needs are met, ensuring customer loyalty and making it difficult for competitors to imitate simple services that are geared towards value creation and the environment. The study recommends that the companies should involve all shareholders in green packing activities. This would ensure that they understand green packaging and challenges that come with the process so that they can fully embrace green packaging benefits. The study recommends that the horticultural firms should include green distribution as one of their strategies. This is because green packaging in essential if the company should be committed to in order to remain innovative, effective, competitive and efficient in today’s ever changing dynamic marketing environment.