EFFECT OF GREEN LOGISTICS PRACTICES AND SOCIAL PERFORMANCE ON PERFORMANCE OF LOGISTICS FIRMS IN KENYA
International Journal of Research Publications
Emissions from logistics industry are rising at a greater concern than any other industry and the trend is expected to continue such that by 2030 these levels will be 80% higher than present levels unless there is a change. Environmental concerns have become essential for organizations given the current context of globalization. Many firms aim at reducing cost and they need to strike a balance between economic, social and ecological factors for sustainability. Taking measures regarding
... ntal concerns in a socially responsible way is becoming an important part of the modern organization agenda. This study focused on establishing the effect of green logistics practices and social performance on the performance of logistics firms operating in Kenya. The study was guided by the philosophy of positivism research. The cross-sectional survey research design was employed. The population of interest consisted of all the 892 logistics firms in Kenya which were registered under Kenya International Freight and Warehousing Association (KIFWA) as at December 2018 (KIFWA, 2018) from which a sample size of 300 respondents was drawn. Primary data was collected using a structured questionnaire. Data were analyzed using covariance-based structural equation modelling (CB-SEM). The study established that there is a significant positive relationship between the implementation of green logistics practices and firm performance of logistics firms in Kenya. The mediating effect of social performance on the relationship between green logistics practices and firm performance was found to be positive and significant. It was recommended that logistics firms in Kenya Mutua Daniel / International Journal of Research Publications (IJRP.ORG) www.ijrp.org should implement environmentally sound practices in all phases of their operations and the larger supply chain, beginning with practices like green packaging, fuel efficiency, optimization of routes, carbon emission measurement and reverse logistics.