Influence Green Logistics Management on Performance of registered Automotive Firms in Kenya

Abstract

The automotive sector is a fast growing sector and competition is stiff. The sector players are seeking way of improving performance through green procurement. Both public and private sector organizations are implementing Green procurement practices that include environmental (and social) considerations so as to improve performance. This has been captured by scholars in empirical literature and they point at a possible relationship between green procurement and organizational performance. These studies show both positive and negative relationship. The objective of the study was to study the influence of green procurement practices on performance of registered automotive in Kenya. The study design used was correlational research. The target population for the study was 305 heads of departments of the registered automotive firms in Kenya and a sample of 170 was arrived at using the Fischers’ model. Questionnaires and interview guide were used for collecting primary data. Quantitative data was analyzed through descriptive and inferential statistics. Multiple regression analysis was used to establish the coefficients of regression model in determining the effect of green logistics management on performance of registered automobile firms. Green logistics management had a moderate positive correlation (.260) giving a significant relationship with performance (.004). The study concluded that that some green procurement practices like green logistics management had a significant effect on performance. The study also recommends enhancement and deployment of green logistics management for performance improvement. For further research, studies could be carried out on other elements of green procurement like waste disposal management, supplier screening for environmental management and green logistics management.