Abstract: The contribution of procurement to global economy and the Kenyan economy in particular is recognized and well documented. Given their importance, it is vital that the organization procures environmentally friendly products. The purpose of this project was to investigate the factors influencing adoption of green procurement practices by manufacturing firms in Kenya: a survey of firms in Kiambu County. The specific objectives were to determine the influence of cost of Technology on adoption of green procurement practices, to establish the influence of availability of green products on adoption of green procurement, to determine the influence of enforcement of environmental laws and policies on adoption of green procurement and to establish the influence of company management systems on adoption of green procurement. A descriptive study design from cross sectional approach were used involving both qualitative and quantitative approaches. The study took place at different manufacturing firms listed in Nairobi Securities Exchange (NSE) in Kiambu County The study adopted a survey design. The target population was 2915 employees, picked from the different firms. The study used both open and close ended questionnaires. Pilot testing was done to ensure the reliability and validity of the instrument. Quantitative data were analyzed using Statistical Packages for Social Science (SPSS version 24.0.) While qualitative data were analyzed using content analysis. Secondary data was collected from books, reports and journals Statistical quantitative data was analyzed using tables and diagrams, and inferential statistics. This means that diagrams and tables were used in the analysis. Additionally, correlation analysis was used. Lastly the researcher used regression method to further analyze data.
The findings indicate that 63% of the respondents agreed that initial cost for erecting a new technology for green procurement is high, 79% agreed that the cost of training staff on green procurement is high and 80% of the respondents agreed that the maintenance cost of green procurement technology is high. 77% agreed that green products raw materials are not available, 78% agreed that there is high level of competition for available resources and 80% agreed that substitute products are not available. The findings reveal that 74% agreed that Law enforcement agencies are active in enforcing environmental laws, 72% agreed that information on compliance is available, 83% agreed that corruption malpractices are high and 75% agreed that there is enforcement of environmental laws and policies in their organization. The findings show that 63% of the respondents agreed that they have a centralized management system, 85% agreed that they have a decentralized management system, 75% agreed that their organization has established a quality management system and 73% agreed that their organization has established a change management system.
Conclusions were made based on the results of findings of the study to guide manufacturing firms on importance of adopting green procurement thus performance and areas for further research was identified by the researcher. The study concluded that initial cost for erecting a new technology for green procurement is high, it also concluded that the maintenance cost of green procurement technology is high
The study concluded that raw materials are not available and there is high level of competition for available resources and also it concluded that substitute products are not available. The study concluded that law enforcement agencies are active in enforcing environmental laws, it also concluded that information on compliance is available, it further concluded that corruption malpractices are high. It concluded that there is enforcement of environmental laws and policies. The study also concluded that organizations have established a quality management system and it also concluded that the organizations have established a change management system.
The researcher recommended that the organizations should actively source for funds from investors to help them with election of new technology to support green procurement. The study further recommends that supply chain should write to top management a proposal to support green procurement initiative, they should give in details the cost benefit analysis of erecting new technology that will support green procurement.
Supply chain management should source green raw materials from global suppliers, since they will be in apposition to get green products at an affordable price. The researcher further recommends that organizations should enter into long-term relationship with those suppliers of green products, in order to curb issues of intense competition when it comes to green products. Supply chain management should ensure that law governing green procurement are observed by their organizations and employees, the researcher recommends also that organizations should train their staff on any law that is enforced that touches on green procurement. Another recommendation is that the organizations should have stringent measures when it comes to fighting corruption, they should highly penalize the staff who are found getting involved in any corruption malpractices. The organization should ensure that they adopt centralized procurement systems, in order to enjoy economies of scale that come with this centralized system. The researcher further recommends an improvement in a change management system, that it should train their employees to embrace change.
Title: FACTORS INFLUENCING ADOPTION OF GREEN PROCUREMENT PRACTICES BY MANUFACTURING FIRMS IN KENYA: A SURVEY OF FIRMS IN KIAMBU COUNTY
Author: ESTHER WANJIRU NDIRANGU, PROF WILLY MUTURI
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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