REVERSE LOGISTICS AND PERFORMANCE OF FOOD AND BEVERAGE MANUFACTURING FIRMS IN KENYA
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Abstract
This study examined the influence of reverse logistics practice on performance of food and beverage manufacturing firms in Kenya. The study was guided by complexity theory. This research adopted positivism research philosophy. The research design was explanatory survey research design. The target population for the study constituted 217 food and beverage manufacturing firms and Slovin’s formula was used to sample 141 firms. The study used structured questionnaires to collect relevant to the study. The hypotheses were then tested using multiple linear regression and hierarchical linear modeling. The results affirmed that reverse logistics practice have a significant negative influence on the performance of food and beverage manufacturing firms in Kenya. Therefore, managers and practitioners in the food and beverage manufacturing industry should consider reverse logistics strategies and green warehousing in the sector to facilitate a harmonious balance between environmental responsibility and the sustained growth and success of food and beverage manufacturing firms in Kenya.
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References
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Bonaventura, M., Bonini, S., Capizzi, V., & Giudici, G. (2018). Does Post-Ipo M&A Activity Affect Firms’profitability And Survival?. Journal of Financial Management, Markets and Institutions, 6(01), 1850005.
Chang, Y. Y., Gong, Y., & Peng, M. W. (2012). Expatriate knowledge transfer, subsidiary absorptive capacity, and subsidiary performance. Academy of Management journal, 55(4), 927-948.
Cohen, S., & Roussel, J. (2013). Strategic supply chain management: the five disciplines for top performance. McGraw-Hill Education.
Diabat, A., Khodaverdi, R., & Olfat, L. (2013). An exploration of green supply chain practices and performances in an automotive industry. The International Journal of Advanced Manufacturing Technology, 68(1), 949-961.
European Union EU (2018). European CPFR Insights, ECR European facilitated by Accenture, Brussels.
Faizal. J, (2015). Impact of corporate governance index on firm performance: evidence from Pakistani manufacturing sector. Journal of Governance and Regulation. 4(1), 31-69. 10.22495/jgr_v4_i3_c1_p6.
Fang, C., & Zhang, J. (2018). Performance of green supply chain management: A systematic review and meta analysis. Journal of Cleaner Production, 183, 1064-1081.
Genchev, S. E., Landry, T. D., Daugherty, P. J., & Roath, A. S. (2010). Developing reverse logistics programs: a resource-based view. Journal of Transportation Management, 21(1), 3.
Geng, R., Mansouri, S. A., & Aktas, E. (2017). The relationship between green supply chain management and performance: A meta-analysis of empirical evidences in Asian emerging economies. International Journal of Production Economics, 183, 245-258.
Govindan, K., & Soleimani, H. (2017). A review of reverse logistics and closed-loop supply chains: a Journal of Cleaner Production focus. Journal of Cleaner Production, 142, 371-384.
Govindan, K., Soleimani, H., & Kannan, D. (2015). Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future. European journal of operational research, 240(3), 603-626.
Huang, Y. C., & Yang, M. L. (2014). Reverse logistics innovation, institutional pressures and performance. Management Research Review.
Hussain, N., Rigoni, U., & Orij, R. P. (2018). Corporate governance and sustainability performance: Analysis of triple bottom line performance. Journal of Business Ethics, 149(2), 411-432.
Jin, G., & Xu, J. (2022). Does intellectual capital affect financial leverage of Chinese agricultural companies? Exploring the role of firm profitability. Sustainability, 14(5), 2682
KAM, (2023), MANUFACTURING PRIORITY AGENDA (MPA) 2023, https://kam.co.ke/wp-content/uploads/2023/02/Manufacturing-Priority-Agenda-MPA-2023.pdf
Kenya National Bureau of Statistics. (2019). A Census of Industrial Production. www.knbs.or.ke.
Khor, K. S., Udin, Z. M., Ramayah, T., & Hazen, B. T. (2016). Reverse logistics in Malaysia: The contingent role of institutional pressure. International Journal of Production Economics, 175, 96-108.
Kim, Y. H., & Schoenherr, T. (2018). The effects of supply chain integration on the cost efficiency of contract manufacturing. Journal of Supply Chain Management, 54(3), 42-64.
Krupskyi, O., & Kuzmytska, Y. (2020). Organizational culture and business strategy: connection and role for a company survival. Central European business review, 9(4)
Lee, C. K. M., & Lam, J. S. L. (2012). Managing reverse logistics to enhance sustainability of industrial marketing. Industrial Marketing Management, 41(4), 589-598.
Mangla, S. K., Govindan, K., & Luthra, S. (2016). Critical success factors for reverse logistics in Indian industries: a structural model. Journal of cleaner production, 129, 608-621.
Rashid, A., Asif, F. M., Krajnik, P., & Nicolescu, C. M. (2013). Resource conservative manufacturing: An essential change in business and technology paradigm for sustainable manufacturing. Journal of Cleaner production, 57, 166-177.
Sarkis, J. (2012). A boundaries and flows perspective of green supply chain management. Supply chain management: an international journal.
Sarkis, J., Zhu, Q., & Lai, K. H. (2011). An organizational theoretic review of green supply chain management literature. International journal of production economics, 130(1), 1-15.
Schoenherr, T. (2012). The role of environmental management in sustainable business development: a multi-country investigation. International Journal of Production Economics, 140(1), 116-128.
Shaik, M. (2015). Comprehensive performance measurement methodology for reverse logistics enterprise.
Shapiro, S. S., and Wilk, M. B. (1965), An analysis of variance test for normality (complete samples), Biometrika 52, 591–611
Somuyiwa, A. O., & Adebayo, I. T. (2014). Empirical study of the effect of reverse logistics objectives on economic performance of food and beverages companies in Nigeria. International Review of Management and Business Research, 3(3), 1484.
Tan, Y., & Guo, C. (2019). Research on two-way logistics operation with uncertain recycling quality in government multi-policy environment. Sustainability, 11(3), 882.
Thuita, T. M., Miriti, G. M., & Mwirigi, R. N. (2023), Influence Of Innovativeness On The Performance Of Food And Beverage Manufacturing Enterprises In Nairobi City County, International Journal of Social Science and Economic Research, 08, Issue:02, pp 309-322
Vahabzadeh, A. H., & Yusuff, R. B. M. (2015). A content analysis in reverse logistics: A review. Journal of Statistics and Management Systems, 18(4), 329-379.
Wanjiku, E. (2019). Influence of procurement best practices on the performance of food and beverage manufacturing firms in Kenya (Doctoral dissertation, COHRED-JKUAT).
Wu, K. J., Liao, C. J., Tseng, M. L., & Chiu, A. S. (2015). Exploring decisive factors in green supply chain practices under uncertainty. International Journal of Production Economics, 159, 147-157.
Younis, H., Sundarakani, B., & Vel, P. (2016). The impact of implementing green supply chain management practices on corporate performance. Competitiveness Review.
Abdulrahman, M. D., Gunasekaran, A., & Subramanian, N. (2014). Critical barriers in implementing reverse logistics in the Chinese manufacturing sectors. International Journal of Production Economics, 147, 460-471.
Agrawal, S., & Singh, R. K. (2019). Analyzing disposition decisions for sustainable reverse logistics: Triple Bottom Line approach. Resources, Conservation and Recycling, 150, 104448.
Agrawal, S., Singh, R. K., & Murtaza, Q. (2015). A literature review and perspectives in reverse logistics. Resources, Conservation and Recycling, 97, 76-92.
Ahi, P., & Searcy, C. (2013). A comparative literature analysis of definitions for green and sustainable supply chain management. Journal of cleaner production, 52, 329-341.
Ahn, J. M. (2020). The hierarchical relationships between CEO characteristics, innovation strategy and firm performance in open innovation. International Journal of Entrepreneurship and Innovation Management, 24(1), 31-52.
Akhi, I. J. (2020). Competency Framework for Supply Chain Department of Epyllion Group
Bonaventura, M., Bonini, S., Capizzi, V., & Giudici, G. (2018). Does Post-Ipo M&A Activity Affect Firms’profitability And Survival?. Journal of Financial Management, Markets and Institutions, 6(01), 1850005.
Chang, Y. Y., Gong, Y., & Peng, M. W. (2012). Expatriate knowledge transfer, subsidiary absorptive capacity, and subsidiary performance. Academy of Management journal, 55(4), 927-948.
Cohen, S., & Roussel, J. (2013). Strategic supply chain management: the five disciplines for top performance. McGraw-Hill Education.
Diabat, A., Khodaverdi, R., & Olfat, L. (2013). An exploration of green supply chain practices and performances in an automotive industry. The International Journal of Advanced Manufacturing Technology, 68(1), 949-961.
European Union EU (2018). European CPFR Insights, ECR European facilitated by Accenture, Brussels.
Faizal. J, (2015). Impact of corporate governance index on firm performance: evidence from Pakistani manufacturing sector. Journal of Governance and Regulation. 4(1), 31-69. 10.22495/jgr_v4_i3_c1_p6.
Fang, C., & Zhang, J. (2018). Performance of green supply chain management: A systematic review and meta analysis. Journal of Cleaner Production, 183, 1064-1081.
Genchev, S. E., Landry, T. D., Daugherty, P. J., & Roath, A. S. (2010). Developing reverse logistics programs: a resource-based view. Journal of Transportation Management, 21(1), 3.
Geng, R., Mansouri, S. A., & Aktas, E. (2017). The relationship between green supply chain management and performance: A meta-analysis of empirical evidences in Asian emerging economies. International Journal of Production Economics, 183, 245-258.
Govindan, K., & Soleimani, H. (2017). A review of reverse logistics and closed-loop supply chains: a Journal of Cleaner Production focus. Journal of Cleaner Production, 142, 371-384.
Govindan, K., Soleimani, H., & Kannan, D. (2015). Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future. European journal of operational research, 240(3), 603-626.
Huang, Y. C., & Yang, M. L. (2014). Reverse logistics innovation, institutional pressures and performance. Management Research Review.
Hussain, N., Rigoni, U., & Orij, R. P. (2018). Corporate governance and sustainability performance: Analysis of triple bottom line performance. Journal of Business Ethics, 149(2), 411-432.
Jin, G., & Xu, J. (2022). Does intellectual capital affect financial leverage of Chinese agricultural companies? Exploring the role of firm profitability. Sustainability, 14(5), 2682
KAM, (2023), MANUFACTURING PRIORITY AGENDA (MPA) 2023, https://kam.co.ke/wp-content/uploads/2023/02/Manufacturing-Priority-Agenda-MPA-2023.pdf
Kenya National Bureau of Statistics. (2019). A Census of Industrial Production. www.knbs.or.ke.
Khor, K. S., Udin, Z. M., Ramayah, T., & Hazen, B. T. (2016). Reverse logistics in Malaysia: The contingent role of institutional pressure. International Journal of Production Economics, 175, 96-108.
Kim, Y. H., & Schoenherr, T. (2018). The effects of supply chain integration on the cost efficiency of contract manufacturing. Journal of Supply Chain Management, 54(3), 42-64.
Krupskyi, O., & Kuzmytska, Y. (2020). Organizational culture and business strategy: connection and role for a company survival. Central European business review, 9(4)
Lee, C. K. M., & Lam, J. S. L. (2012). Managing reverse logistics to enhance sustainability of industrial marketing. Industrial Marketing Management, 41(4), 589-598.
Mangla, S. K., Govindan, K., & Luthra, S. (2016). Critical success factors for reverse logistics in Indian industries: a structural model. Journal of cleaner production, 129, 608-621.
Rashid, A., Asif, F. M., Krajnik, P., & Nicolescu, C. M. (2013). Resource conservative manufacturing: An essential change in business and technology paradigm for sustainable manufacturing. Journal of Cleaner production, 57, 166-177.
Sarkis, J. (2012). A boundaries and flows perspective of green supply chain management. Supply chain management: an international journal.
Sarkis, J., Zhu, Q., & Lai, K. H. (2011). An organizational theoretic review of green supply chain management literature. International journal of production economics, 130(1), 1-15.
Schoenherr, T. (2012). The role of environmental management in sustainable business development: a multi-country investigation. International Journal of Production Economics, 140(1), 116-128.
Shaik, M. (2015). Comprehensive performance measurement methodology for reverse logistics enterprise.
Shapiro, S. S., and Wilk, M. B. (1965), An analysis of variance test for normality (complete samples), Biometrika 52, 591–611
Somuyiwa, A. O., & Adebayo, I. T. (2014). Empirical study of the effect of reverse logistics objectives on economic performance of food and beverages companies in Nigeria. International Review of Management and Business Research, 3(3), 1484.
Tan, Y., & Guo, C. (2019). Research on two-way logistics operation with uncertain recycling quality in government multi-policy environment. Sustainability, 11(3), 882.
Thuita, T. M., Miriti, G. M., & Mwirigi, R. N. (2023), Influence Of Innovativeness On The Performance Of Food And Beverage Manufacturing Enterprises In Nairobi City County, International Journal of Social Science and Economic Research, 08, Issue:02, pp 309-322
Vahabzadeh, A. H., & Yusuff, R. B. M. (2015). A content analysis in reverse logistics: A review. Journal of Statistics and Management Systems, 18(4), 329-379.
Wanjiku, E. (2019). Influence of procurement best practices on the performance of food and beverage manufacturing firms in Kenya (Doctoral dissertation, COHRED-JKUAT).
Wu, K. J., Liao, C. J., Tseng, M. L., & Chiu, A. S. (2015). Exploring decisive factors in green supply chain practices under uncertainty. International Journal of Production Economics, 159, 147-157.
Younis, H., Sundarakani, B., & Vel, P. (2016). The impact of implementing green supply chain management practices on corporate performance. Competitiveness Review.
Abdulrahman, M. D., Gunasekaran, A., & Subramanian, N. (2014). Critical barriers in implementing reverse logistics in the Chinese manufacturing sectors. International Journal of Production Economics, 147, 460-471.
Agrawal, S., & Singh, R. K. (2019). Analyzing disposition decisions for sustainable reverse logistics: Triple Bottom Line approach. Resources, Conservation and Recycling, 150, 104448.
Agrawal, S., Singh, R. K., & Murtaza, Q. (2015). A literature review and perspectives in reverse logistics. Resources, Conservation and Recycling, 97, 76-92.
Ahi, P., & Searcy, C. (2013). A comparative literature analysis of definitions for green and sustainable supply chain management. Journal of cleaner production, 52, 329-341.
Ahn, J. M. (2020). The hierarchical relationships between CEO characteristics, innovation strategy and firm performance in open innovation. International Journal of Entrepreneurship and Innovation Management, 24(1), 31-52.
Akhi, I. J. (2020). Competency Framework for Supply Chain Department of Epyllion Group