Effect of Green Supply Chain Management Practices on Environmental Performance of Sugar Firms in Western Kenya.

Abstract

Organizations are facing increasing pressure to consider the environmental impact of their industrial operations, particularly in high-polluting industries. Supply chain management is now being utilized more frequently to address the environmental pollution challenges that arise due to industrial development. Despite the implementation of environmental management policies, sugar companies in Western Kenya are still encountering disputes with local communities due to pollution caused by their production processes. Experts suggest that the incorporation of Green Supply Chain Management (GSCM) strategies may be effective in reducing the environmental impact of manufacturing processes. However, the effectiveness of these strategies had not been examined through empirical research. As a result, this study aimed to investigate the impact of GSCM practices on the environmental performance of Western Kenya's sugar manufacturing firms. A survey was conducted using an explanatory design, with 127 respondents drawn from various departments within the organizations. The reliability of the survey instruments was evaluated using Cronbach's alpha coefficient. The findings revealed that R2 for GSCM practices was 0.684 (p=0.00) and statistically significant, indicating that GSCM practices account for 68.4% of the variance in environmental performance. The study concluded that manufacturing companies should adopt GSCM as a critical strategy for sustainable initiatives, which can contribute to a company's competitive advantage and overall profitability.