The moderating effect of organization culture on the relationship between green supply chain management strategies and performance of sugar companies In Western Kenya

Abstract

Although the drive to enhance overall sustainability in organization performance has resulted in to focus on pollution prevention and minimization of environmental impacts at all stages of the product lifecycle from sourcing of raw materials, through manufacturing, transport, use, and disposal, this has not been embraced by all companies in the sugar industry in Kenya, while those that have embraced the Green Supply Chain Management Strategies are still under-utilizing them. Culture may have a big influence on the performance of all organizations worldwide. The key to good performance is a strong culture. The general objective of the study was to investigate the moderating effect of organization culture on green supply chain management strategies on the performance of sugar companies in western Kenya. The study was underpinned by three theories which were; Complexity Theory, Transaction Cost Theory, and Organization Culture Theory. The study adopted an explanatory and cross sectional research design in studying the targeted population. The population under study comprised 10 sugar firms with 500 employees from procurement, production, and operation departments, and a final sample size of 272 employees was arrived at. The data was collected using questionnaires. The study's findings revealed that green procurement (β= 0.264, ρ<0.05), green manufacturing (β= 0.182, ρ<0.05), eco-design (β= 0.295, ρ<0.05), and green distribution (β= 0.364, ρ<0.05) had a positive and significant effect on the performance of sugar companies in western Kenya with an R squared of 0.549. This means that performance is explained by green supply chain management strategies by 54.9 percent. Further, the findings revealed that organization culture had an antagonizing moderation effect on the relationship between green procurement (β= -0. 292, ρ<0.05), green manufacturing (β= -0.227, ρ<0.05), eco-design (β= -0.285, ρ<0.05), and green distribution (β= -0.270, ρ<0.05) on performance with an R square of 0.723. These findings highlight the important interconnection between green supply chain management strategies in explaining performance. In light of these findings, the study offered targeted recommendations for policy and practice. Managers should integrate green procurement practices by partnering with suppliers who prioritize environmental sustainability. Managers should also prioritize eco-design principles to minimize waste and promote product recyclability. Managers should foster a collaborative culture that encourages employee participation in sustainability initiatives, as this can enhance the overall effectiveness of GSCM strategies. Company managers should actively cultivate and promote an organizational culture that supports sustainability and green initiatives. The main limitation was that culture was studied at one point in time and it is evolutionary thus similar studies could employ longitudinal research designs that would unravel the causal dynamics underlying the relationships identified. Future studies could also consider other jurisdictions as well as other potential moderators. Main limitation was that culture was studied at one point in time and it is evolutionary thus similar study could employ longitudinal research designs that would unravel the causal dynamics underlying the relationships identified. Future studies could also consider other jurisdictions as well as other potential moderators.