Effect of green manufacturing practices on operational performance of large manufacturing firms in Nairobi County

Abstract

The increasing focus on environmental sustainability has led manufacturing companies to consider adopting green manufacturing practices. The empirical research in the area showed that there were mixed results on how green manufacturing related to operational performance. Some studies showed a positive relationship (Seth & Shrivastava, 2016; De Oliveira et al., 2019; and Musau, 2019) while others brought a negative (Hejazi et al., 2023; Adam et al., 2021) or insignificant (Ahmad et al., 2022; Otundo, 2019) relationship. The Kenyan studies brought out research gaps where the studies showed conceptual, methodological and/or contextual gaps. This research sought to fill the gaps through an examination on how green manufacturing practices affects operational performance of large manufacturing companies in Nairobi County, Kenya. Specifically, it looked into the effect of eco-friendly production methods, waste reduction and energy efficiency on operational performance. The study was carried out in the months of April and May 2024. The study used a multi-theory based on the resource-based view and triple bottom line theory. The study employed a positivist research philosophy and a descriptive cross-sectional research design targeting 115 large manufacturing firms in Nairobi County. A total of 89 manufacturing companies were sampled through simple random sampling. Data was gathered from 89 top managers in the operations department of large manufacturers in Nairobi using a structured questionnaire. Pilot study was done to establish the reliability and validity. Reliability was checked through internal consistency check using Cronbach alpha while validity was checked by having experts check on the research instrument. Descriptive statistics and simple linear regression analysis were adopted for analysis. The study found that eco-friendly production process, waste reduction and energy efficiency had a positive and significant regression coefficient on operational performance. This shows that green manufacturing practices positively affects operational performance of manufacturing companies. The study concluded that green manufacturing practices of eco-friendly production process, waste reduction and energy efficiency have a positive effect on operational performance of large manufacturing firms in Nairobi County. This study recommends that manufacturing companies in Nairobi County increase the adoption of eco-friendly production processes in order to improve their operational performance. They also need to gear up their waste reduction efforts and increase the adoption of energy efficiency in their operations for improved performance. The policy makers also need to come up with relevant policies that would support the implementation of green manufacturing among large manufacturers in Kenya. This would lead to improved performance among the manufacturing companies. There is need for further research based on other factors influencing operational performance of manufacturing companies; other measures of operational performance and green manufacturing practices; in a rural county like Kirinyaga County; and involving small manufacturing companies in Nairobi County. The study will be valuable to policy makers, management of large manufacturers, academicians and researchers as it creates an understanding on how green manufacturing practices affect operational performance.