Sustainable Procurement Practices and Performance Of Procurement In Food And Beverages Manufacturing Firms In Kenya

Abstract

The study sought to establish the influence of sustainable procurement practices on the performance of procurement in food and beverages manufacturing firms in Nairobi County, Kenya. Four specific objectives guided this study, namely: to establish the influence of reverse logistics, green specification, green inventory management and green tendering on the performance of procurement in food and beverages manufacturing firms in Nairobi County. The study was grounded on organization theory, system theory, legitimacy theory and stakeholder theory. The study used descriptive cross-sectional survey research design to survey one hundred and eight firms sampled stratifically from two hundred and seventeen food and beverage manufacturing firms registered members of Kenya Association of Manufacturers under Nairobi County. Procurement managers were used as the unit of observation. A structured questionnaire was used to collect primary data. The questionnaires were self- administered with assistance from the research assistants. The study used descriptive statistics such as standard deviation, medium and mean to describe data while multiple regression model was used to test the hypothesised model. The data analysis was facilitated by Statistical Packages for Social Science (SPSS) version 20. The findings were presented on tables and figures. The study revealed that reverse logistics, green specification, green inventory management and green tendering are practiced across the manufacturing firms across Nairobi County. Importantly, the study established that the four sustainable procurement practices (reverse logistics, green specification, green inventory management and green tendering) significantly positively affect procurement performance through reduction of cost, clean environment and increased quality of supplies. Therefore the study concludes that sustainable procurement significantly increase procurement performance with the ultimate positive impact on firm performance. The study therefore recommends that manufacturing firms should institutionalise sustainable procurement practices through formulation and implementing of green procurement policies and procedures in order to manage their operational costs, comply with environmental regulatory authority requirements and increase quality of supplies. Secondly, management should proactively sensitise the general employees on befits of sustainable practices and specifically in regard to procurement function in order to create green culture with consequential performance benefits. Further, the government should take a deliberate step through policy interventions to encourage firms to green their operations as a way of preserving the environment and sustainably manage the natural resources to support future needs of the populace. Finally, the study recommends that a further study should incorporate service industry in order to compare and bring out a global view.