SUSTAINABLE PROCUREMENT AND PERFORMANCE OF CEMENT MANUFACTURING FIRMS IN KENYA

Abstract

Manufacturing firms are businesses engaged in the transformation of raw materials into finished goods through various processes. In Kenya, manufacturing firms play a pivotal role in the economy by converting raw materials into finished goods, which are essential for both consumer use and industrial applications. The main purpose of this study is to establish the influence of sustainable procurement on performance of cement manufacturing firms in Kenya. Specifically, the study sought to establish the influence of reverse logistics on performance of cement manufacturing firms in Kenya, to assess the influence of green specification on performance of cement manufacturing firms in Kenya, to evaluate the influence of green inventory management on performance of cement manufacturing firms in Kenya and to establish the effect of green tendering on performance of cement manufacturing firms in Kenya. This study was anchored by: Resource-Based View (RBV), Innovation Diffusion Theory, Systems Theory and Stakeholder Theory. The descriptive cross-sectional study design was used. The target population comprised of 126 procurement and logistics officers working in seven cement manufacturing firms namely. Census method was used. The study used 13 respondents in the pilot study to ascertain the data collection instrument validity and reliability. The study used descriptive statistics in the form of measures of central tendencies (mean, standard deviation, and percentages) to describe the data. The study used inferential statistics (correlation and regression analysis) to test the relationship between the dependent and independent variables. The study findings were presented through use of tables and figures. The study concludes that reverse logistics has a positive and significant effect on performance of cement manufacturing firms in Kenya. In addition, the study concludes that green specification has a positive and significant effect on performance of cement manufacturing firms in Kenya. Further, the study concludes that green inventory management has a positive and significant effect on performance of cement manufacturing firms in Kenya. The study also concludes that green tendering has a positive and significant effect on the performance of cement manufacturing firms in Kenya. Based on the findings, the study recommends that the management of cement manufacturing firms in Kenya should implement a comprehensive waste management and recycling program. By establishing a system that encourages the return of unused or excess cement, as well as packaging materials, companies can significantly reduce waste and promote sustainability. In addition, the study recommends that the management of cement manufacturing firms in Kenya should adopt eco-friendly materials and production processes that prioritize sustainability. By integrating recycled materials, such as fly ash or slag, into their cement formulations, companies can reduce their carbon footprint and resource consumption.

Key Words: Sustainable Procurement, Green Specification and Green Tendering, Cement Manufacturing Firms