Green supply chain management practices, information sharing and perfomance of manufacturing firms in Nairobi County, Kenya

Abstract

Manufacturing firms in Nairobi County perform poorly which could be as a result of poor integration of green practices in the supply chain activities as a means of ensuring better performance. Despite the efforts made by manufacturing firms to attain firm performance, they face numerous challenges, which inhibit them from implementing green practices this includes general challenges that affect the implementation of green practices amongst manufacturing firms. These challenges include; firm barriers which involves weak firm structures, poor employee empowerment, internal politics, inadequate skills and underdeveloped green practice culture. Environmental knowledge barrier; which involves inadequate access to green practice knowledge and expertise. Business environment challenges, which involve inadequate market, inadequate green practices measures, and distortion of verifiers of green practices. Supply barriers involve poor supply commitment to green practices and difficulties in obtaining information on materials. The study's purpose is to determine the moderating effect of information sharing on the relationship between green supply chain management practices and performance of manufacturing firms in Nairobi County, Kenya. Its specific objectives are to determine the effects of green manufacturing, green packaging, and green purchasing on the performance of manufacturing firms in Nairobi County, Kenya, while moderating each relationship with information sharing. The study was guided by the resource-based view theory, ecological modernization theory, and sustainability theory. The explanatory research design was applicable to the study. The target population for this study was six hundred and fifty (650) manufacturing firms in Nairobi County, Kenya clustered into different sectors depending on their nature of production activities. The sample size of the study was 242 firms. The unit of inquiry was purchasing or logistics managers of the firms registered with the Kenya Association of Manufacturers (KAM 2021). A stratified sampling technique was applied in the study. The data collection tool was a structured questionnaire where data was obtained from purchasing or logistics managers in the procurement departments. Data was analysed using descriptive and inferential statistics with the help of SPSS version 24. Descriptive statistics involves standard deviation and mean, while inferential statistics includes Pearson correlation and multiple regression analyses. The study results were presented using tables. The findings revealed that green manufacturing (β = 0.244, p=000<0.05), green packaging (β = 0.156, p=004<0.05), and green purchasing (β = 0.572, p=000<0.05 positively and significantly affect the performance of manufacturing firms in Nairobi County, Kenya. Besides, information sharing positively moderates the relationship between green manufacturing and firm performance (β = 0.42, R2Δ = 0.109, p=000<0.05), green packaging and firm performance (β = 0.34, R2Δ = 0.059, p=000<0.05) and green purchasing and firm performance (β = 0.65, R2Δ = 0.069, p=000<0.05). The study, therefore concludes that green manufacturing, green packaging, and green purchasing positively affect firm performance, with information sharing being a vital factor. It is recommended that manufacturing firms in Nairobi County should prioritize green manufacturing, green packaging, and green purchasing practices to enhance performance. Emphasis should be placed on collaboration, the use of eco-friendly materials, and transparent communication mechanisms to achieve sustainable growth, a competitive edge, and responsible business environments.