Sustainable Supply Chain Management Practices and Organizational Performance of Beverage Manufacturing Firms in Nairobi City County, Kenya

Abstract

Purpose: The general objective of the study is to establish the effect of sustainable supply chain management practices on the performance of beverage manufacturing firms in Nairobi City County, Kenya. Specifically, the study sought to establish the influence of ethical sourcing and green purchasing on the performance of beverage manufacturing firms in Nairobi City County, Kenya. Methodology: This study was guided by Stakeholder Theory and Resource-Based View (RBV) Theory. According to KAM report (2023), there are o 321 beverage manufacturing firms in Nairobi City County, Kenya. The unit of analysis in this study was therefore 321 beverage manufacturing firms in Nairobi City County, Kenya while the unit of observation was procurement managers and supply chain managers. In each company, the study targeted 1 procurement manager and 1 supply chain managers. The total target population was therefore 642 management employees. The study used Yamane (1967) formula to determine the size of the sample. From the formula, the sample size was 246 respondents. This research used a questionnaire to collect primary data. This research used a questionnaire to collect primary data. The pilot study was carried out on 24 respondents. SPSS was used to analyze the data collected from the field. Quantitative data collected was analyzed using descriptive statistics techniques. Pearson R correlation was used to measure strength and the direction of linear relationship between variables. The study results were presented through use of tables and figures. Findings: The study found that ethical sourcing has a positive and significant influence on performance of beverage manufacturing firms in Nairobi City County, Kenya. In addition, the study found that green purchasing has a positive and significant influence on performance of beverage manufacturing firms in Nairobi City County, Kenya. Unique Contribution to Theory, Practice and Policy: Based on the findings, the study recommends that beverage manufacturing firms in Kenya should adopt green purchasing practices by prioritizing suppliers who provide environmentally friendly raw materials, recyclable packaging, and energy-efficient inputs, while also integrating environmental criteria into supplier selection and evaluation processes.