Green Logistics Practices and Performance of Food and Beverage Manufacturing Firms in Kenya

Abstract

Despite contributing significantly to the economy of the country, the food and beverage manufacturing firms face challenges in optimizing performance. The purpose of this study was to examine the influence of green logistics practices on the performance of food and beverage manufacturing firms in Kenya. Specifically, the study examined the influence of reverse logistics, green warehousing, green packaging and green distribution on the performance of food and beverage manufacturing firms in Kenya. The study examined the moderating influence of absorptive capacity on the relationship between green logistics practices and the performance of food and beverage manufacturing firms in Kenya. Theoretical framework was guided by the complexity theory, ecological modernization theory, resource dependence theory and natural resource-based view theory. The research utilized the positivism research philosophy. A correlational cross-sectional survey research design was employed to test non-causal relationships among study variables without controlling any of the variables. The proportionate stratified random sampling technique was used to select a sample size of 141 food and beverage manufacturing firms from a target population of 217 food and beverage manufacturing firms in Kenya. A pilot study was conducted to determine the validity and reliability of the constructed survey questionnaire. A cross-sectional survey approach was used for the collection of primary data. Data processing was conducted prior to the data analysis. Data analysis utilized the descriptive and inferential statistics. The correlation results indicated that reverse logistics, green warehousing, green packaging and green distribution had positive and significant relationship with the performance of food and beverage manufacturing firms in Kenya. The regression results indicated that reverse logistics, green warehousing, green packaging and green distribution had positive and significant influence on the performance of food and beverage manufacturing firms in Kenya. The regression results indicated that absorptive capacity had a positive and significant moderating influence on the relationship between green logistics practices and the performance of food and beverage manufacturing firms in Kenya. The study recommends that managers and practitioners should consider a holistic reassessment and implementation of the green logistics to foster the performance of the food and beverage manufacturing firms. The policymakers should consider initiating a review of the existing policies to motivate the managers and practitioners to consider a holistic reassessment and implementation of the green logistics to foster the performance of the food and beverage manufacturing firms. Future research should examine the influence of green logistics on firm performance with absorptive capacity as a moderator in other sectors or contexts.