Influence of green supply chain management on Organization performance of Kenya Electricity generating Company

Abstract

The poor organizational performance of KenGen has been attributed to a number of factors. Inefficient supply chain processes have led to delays, disruptions, and inefficiencies in operations, affecting the company's ability to generate and deliver electricity reliably and cost-effectively. Poor supply chain management has resulted to in increased costs associated with sourcing materials, transporting equipment, and managing inventory, thereby impacting KenGen's profitability and financial performance. The study investigated effect of green supply chain management/practices on organization performance of Kenya Electricity Generating Company. The specific objectives were to establish the effect of green distribution, green purchasing, reverse logistic and green production on organization performance of Kenya Electricity Generating Company. The study was guided by resource-based perspective theory, the transaction cost economics theory, and the resource dependency theory. The study used a causal research approach to investigate cause-effect correlations. The research was conducted at the facilities of the Kenya Electricity Generating Company, namely at their main office situated at Stima Plaza, Phase 3, Kolobot Road, Parklands. The study targeted 107 respondents comprising of Procurement Officers, Transport and Logistics Officers, Finance Manager, Operation Manager, and Warehouse/Storage officers who usually play a key role in supply chain operations. From each stratum the study used simple random sampling to select 84 respondents from a target of 107. Primary data was collected using a well-designed questionnaire. Piloting was conducted to determine validity via content and construct validity as well as reliability using Cronbach alpha. Quantitative data was analyzed using descriptive and inferential statistics. Descriptive analysis summarized data in form of central tendency as well as dispersion and inferential analysis was used to test hypothesis. Descriptive analysis included; frequencies, Mean, Standard deviation and percentage while inferential analysis involved correlation analysis and multiple linear regression analysis. Prior to conducting multiple linear regressions, the study ensured that the assumptions of linear regression were met. The data was presented in form of tables and models. Multiple regression analysis revealed that when other variables are controlled in the model, a unit change in green purchasing would results to a significant change in organization performance by 0.204 units in the same direction (β2=0.204, P=0.001). Pearson Correlation results revealed a significant relationship between reverse logistic and organization performance of Kenya Electricity Generating Company (r=0.632, P<0.05). The study concluded that green distribution has significant influence on organization performance of Kenya Electricity Generating Company. The study concluded that Reverse logistic has significant effect on organization performance of Kenya Electricity Generating Company. The study recommended that KenGen should prioritize expanding its green production initiatives as they are proven to significantly enhance performance. This can be achieved through further investments in clean technologies, renewable energy sources, and processes aimed at reducing waste and environmental impact.