Effect of Green Manufacturing, Informational sharing on Performance of Manufacturing Firms in Nairobi County, Kenya

Abstract

Purpose: The purpose of the study is to determine the effects of green manufacturing on the performance of manufacturing firms in Nairobi County, Kenya. The study is guided by the ecological modernization theory.

Material/methods: An explanatory research design was employed for the study. The target population consisted of 650 manufacturing firms in Nairobi County, categorized into different sectors based on their production activities. A sample size of 242 firms was selected, with the unit of inquiry being the purchasing or logistics managers of firms registered with the Kenya Association of Manufacturers. A stratified sampling technique was used. Data was collected using a structured questionnaire administered to the managers in the procurement departments. Data analysis was conducted using descriptive and inferential statistics with the aid of SPSS version 24. Descriptive statistics included measures of standard deviation and mean, while inferential statistics comprised Pearson correlation and multiple regression analyses.

Findings: The findings indicated that green manufacturing has a positive and significant effect on the performance of manufacturing firms in Nairobi County, Kenya (β = 0.244, p<0.05). Additionally, information sharing was found to positively moderate the relationship between green manufacturing and firm performance (β = 0.42, R²Δ = 0.109, p<0.05).

Conclusion: The study concludes that green manufacturing positively affects firm performance, with information sharing being a crucial moderating factor. It is recommended that manufacturing firms in Nairobi County should prioritize green manufacturing practices to enhance performance.

Value: The study provides valuable insights for manufacturing firms in Nairobi County, highlighting the importance of adopting green manufacturing practices. Emphasis should be placed on collaboration, the use of eco-friendly materials, and transparent communication mechanisms to achieve sustainable growth, gain a competitive edge, and foster responsible business environments.