Reverse Logistics Recycling Practice and the Performance of Large Manufacturing Firms in Kenya
DOI:
https://doi.org/10.70619/vol2iss1pp11-20Keywords:
Supply Chain Management, Reverse Logistics, Recycling, Manufacturing Firms, Performance, Practices.Abstract
Globally there are pressures on organizations to act responsibly in terms of the protection of the environment and create value for all stakeholders. There is a rising global interest in reverse logistics. Product disposal may no longer be the consumer’s responsibility as products need to be recycled or remanufactured by the original manufacturer. Increased, strict environmental and packaging regulations are forcing firms to become more accountable for residual and final products, long after the product is sold and is in the hands of the customers. As a result, there is a great opportunity for researchers and academicians to advance the study of reverse logistics to solve the problem of product handling within the supply chain. This study aimed to determine the influence of reverse logistics recycling practice and the performance of large manufacturing firms in Kenya. The study used a descriptive design and the target population was large manufacturing firms that are registered with the Kenya Association of Manufacturers. Data was analyzed using descriptive and inferential statistics. Pearson correlation coefficient for the output indicated that recycling practice was able to explain 31.7% variations in the firm performance. The study concluded that there is a significant positive relationship between recycling practice and firm performance. The beta coefficient for recycling practice was 0.563. This indicates that a unit increase in recycling practice would result in 56.3% increase in manufacturing firm performance. The study recommended that recycling practices be adopted by manufacturing firms as a way of improving firm performance. The study also recommended that all manufacturing farms should adopt Recycling practices to gain material recovery and environmental improvement.
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Copyright (c) 2022 Felix Ndungu Kamanga, Prof. Patrick Karanja Ngugi (PhD) , Dr. Anthony Osoro
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