Influence Of Green Supply Chain Management On Performance Of Mining And Extraction Firms In Kenya

James Odhiambo Otieno, Dr. Kitheka Samson, Dr. Anwar Hood, Dr. Aggrey Adem

School of Business

Technical University of Mombasa

Abstract

Background: The current shift from old supply chain management approach to sustainable supply chain management has put a lot of pressure on mining and extraction companies for improvement of not only existing supply chain operations, but also ensuring that there is attainment of long-term viability obligations and requirements. It’s in the light of this problem that this paper aimed at determining the effect of green supply chain management on performance of Kenyan mining and extraction companies. A resource-based view theory was used to support the study.

Methods: The study adopted survey research design and the target study population were heads of supply chain, Finance, Technical services and corporate service departments in the mining and extraction firms in Kenya. Data was collected using close and open-ended questionnaires which were administered directly and via google questionnaire form. The sample size was 320 with a response rate of 69.68%.

Findings and Conclusion: Statistical Package for Social Sciences (SPSS) version 26 was used to analyze data. Scatters plot showed that performance and green supply chain management are in a linear relationship. ANOVA result indicates that the significance of the F-statistic (p<0.05) is less than 0.05, an implication that green supply chain management has a significant influence on performance of Mining and Extraction Firms. The coefficients and t-statistic obtained from the regression model was constant term 𝛽0 = 2.786 interpreted to mean that if green supply chain management is held constant, then there will be a positive performance of Mining and Extraction Firms in Kenya by 2.79. The regression coefficient for green supply chain management was positive and significant (𝛽1 = 0.368, (p<0.05) with a t-value of 6.642. This implies that a unit increase in green supply chain management is predicted to increase the performance of Mining and Extraction companies by 0.368 units.

Key Words: Green supply chain management, ANOVA, SPSS and performance