Effect of green supply chain management on organizational performance among tea processing firms in Kericho and Bomet Counties in Kenya

Abstract

The aim of this study was to investigate the effect of Green Supply Chain Management (GSCM) on Organizational Performance among tea processing firms in Kericho County. The objectives of the study were: to investigate the effect of Green Purchasing on Organizational Performance, to establish the effect of Green Manufacturing on Organizational Performance, to investigate the effect of Green Distribution on Organizational performance, to examine the effect of Green Marketing on Organization Performance and to investigate the effect of Reverse logistics on Organizational Performance. The study adopted a correlational study design and was a census survey. Data was collected from 32 tea processing firms in Kericho and Bomet Counties and analyzed using SPSS. The respondents for this study were Factory managers and Environmental representatives. Multiple regression model was developed and used to establish the effect of GSCM on Organizational Performance. Correlation analysis coupled with single tailed significance test was conducted to test each hypothesis. ANOVA test was used to determine the level of significance of the relationship between the variables. The results were presented using tables. The study established that GSCM has positive effect on organizational performance. The study therefore recommends that managements of tea processing firms and other manufacturing firms adopt GSCM practices. The study suggests that further studies should be conducted in other processing firms other than tea processing firms. Further studies should also be done to relate GSCM with other variables like quality and customer services as well as to explore other GSCM practices other than green purchasing, green manufacturing, green distribution, green marketing and reverse logistics.