Circular Manufacturing Practices and Performance of Manufacturing Companies in Kenya
DOI:
https://doi.org/10.47941/jbsm.3731Keywords:
Circular Manufacturing Practices, Supply Chain Practices, Manufacturing Companies, KenyaAbstract
Purpose: This study evaluated the influence of circular manufacturing on the performance of manufacturing companies in Kenya.
Methodology: Employing a cross-sectional survey design, the study targeted 795 manufacturing companies in Kenya, excluding the service sector, as per the 2023 KAM directory. A sample of 266 companies was drawn using Slovin's formula and stratified sampling technique. Data was collected using questionnaires. Quantitative data was analyzed using both descriptive and inferential statistics and with the help of SPSS version 27. Regression analysis was used to show the relationship between the dependent variable and the independent variable and the study employed multiple linear regression analysis to test the hypotheses.
Findings: Key findings revealed that circular manufacturing had significant effects on company performance and supply chain reconfiguration demonstrated a significant moderating effect on the relationship between circular manufacturing and company performance. These findings indicated that circular manufacturing negatively influence the performance of manufacturing companies in Kenya.
Unique Contribution to Theory, Policy and Practice: The findings contribute to understanding circular economy principles in the Kenyan manufacturing context and provide valuable insights for practitioners and policymakers in implementing circular supply chain management practices by pointing out that circular manufacturing practices may lead to short time performance declines but adequate planning to address these challenges can enable companies to achieve long-term benefits.
Downloads
References
Abong, G. O., Elmah, G., & Gekonge, D. O. (2021). Consumer awareness, practices and purchasing behaviour towards green consumerism in Kenya. East African Journal of Science, Technology and Innovation, 2(Special Issue), 1-14.
Alamsyah, D. P., Othman, N. A., Chung, W.-Y. D., Mulyani, W. I., Ibrahim, N. R., & Udjaja, Y. (2020). The attributes of eco-labels: The sustainability of customer green behavior. Test Engineering and Management, 8(3), 24569–24581
Andersén, J. (2021). A relational natural-resource-based view on product innovation: The influence of green product innovation and green suppliers on differentiation advantage in small manufacturing firms. Technovation, 104, 102254. https://doi.org/10.1016/j.technovation.2021.102254
Bhandari, K. R., Rana, S., Paul, J., & Salo, J. (2020). Relative exploration and firm performance: Why resource-theory alone is not sufficient? Journal of Business Research, 118, 363–377. https://doi.org/10.1016/j.jbusres.2020.06.052
Birkel, H., & Müller, J. M. (2021). Potentials of Industry 4.0 for supply chain management within the triple bottom line of sustainability – A systematic literature review. Journal of Cleaner Production, 289, 125674. https://doi.org/10.1016/j.jclepro.2020.125674
Biswas, P. (2017). Modeling reconfigurability in supply chains using total interpretive structural modeling. Journal of Advances in Management Research, 14(2), 194-221. https://doi.org/10.1108/JAMR-12-2016-0113
Byrne, G., Damm, O., Monostori, L., Teti, R., van Houten, F., Wegener, K., … & Sammler, F. (2020). Towards high performance living manufacturing systems – A new approach. CIRP Journal of Manufacturing Science and Technology, 31, 1-16. https://doi.org/10.1016/j.cirpj.2020.03.002
Child, J. (1972). Organizational structure, environment, and performance: The role of strategic choice. Sociology, 6(1), 1–22. https://doi.org/10.1177/003803857200600101
Choudhary, D., Fahham, Q. H., Alok, C., & Kiran, F. (2022). A model for managing returns in a circular economy context: A case study from the Indian electronics industry. International Journal of Production Economics, 249, 108505. https://doi.org/10.1016/j.ijpe.2022.108505
Cool, K. (2002). Constructing competitive advantage. In Handbook of strategy and management (pp. 20–40). Sage Publications.
De Oliveira, R. I., Sousa, S. O., & de Campos, F. C. (2019). Lean manufacturing implementation: bibliometric analysis 2007–2018. International Journal of Advanced Manufacturing Technology, 101(1–4): 979–988. https://doi.org/10.1007/s00170-018-2965-y
Garcia, D. G., Kipnis, E., Vasileiou, E., & Solomon, A. (2021). Consumption in the Circular Economy: Learning from Our Mistakes. Sustainability, 13, 601.
Harney, B. (2016). Strategic choice. In An encyclopedia of human resource management (pp. 414-415).
Hazen, B. T., Russo, I., Confente, I., & Pellathy, D. (2020). Supply chain management for circular economy: Conceptual framework and research agenda. The International Journal of Logistics Management, 32(2), 510-537. https://doi.org/10.1108/IJLM-12-2019-0367
Hedayat, K. M., & Lapraz, J.-C. (2019). A general overview of systems theory, integrative physiology, and the theory of Endobiogeny. In Volume 1: Global systems thinking and biological modeling for clinical medicine (pp. 17-29).
Pinheiro, M. A. P., Jugend, D., Lopes de Sousa Jabbour, A. B., Chiappetta Jabbour, C. J., & Latan, H. (2022). Circular economy‐based new products and company performance: The role of stakeholders and Industry 4.0 technologies. Business Strategy and the Environment, 31(1), 483-499. https://doi.org/10.1002/bse.2797
Kenya Association of Manufacturers (KAM). (2024). MANUFACTURING PRIORITY AGENDA (MPA) Steering economic growth through the manufacturing sector for common good. Nairobi: Kenya Association of Manufacturers.
Kenya National Bureau of Statistics (KNBS). (2024). Leading Economic Indicators. Kenya National Bureau of Statistics.
Korhonen, J., Honkasalo, A,. Seppala, J. (2018). Circular economy: the concept and its limitations. Ecol. Econ., 143, 37- 46.
Mor, R. S., Sangwan, K. S., Singh, S., Singh, A., & Kharub, M. (2021). E-waste management for environmental sustainability: An exploratory study. 28th CIRP Conference on Life Cycle Engineering, 193-198. https://doi.org/10.1016/j.procir.2021.02.060
Mugenda, O., & Mugenda, A. (2016). Research methods. Nairobi: ACTS Press.
Musau, E. M. (2021). Effect of green manufacturing on operational performance of manufacturing firms in Mombasa County, Kenya. European Scientific Journal, 17(23), 323.
Ngui, D., Chege, J., & Kimuyu, P. (2016). Kenya's industrial development. Oxford Scholarship Online, 1-38. https://doi.org/10.1093/acprof:oso/9780198767481.003.0002
Nia, A. S., Olfat, L., Esmaeili, A., Rostamzadeh, R., & Antuchevičienė, J. (2016). Using fuzzy Choquet Integral operator for supplier selection with environmental considerations. Journal of Business Economics and Management, 17(4), 503-526. https://doi.org/10.3846/16111699.2016.1190052
OECD. (2016). Environmental labelling and information schemes. https://www.oecd.org/env/policy-perspectives-environmental-labelling-and- informationschemes
Omai, K. M., Ngugi, P. K., & Kiarie, D. M. (2018). Effect of supply chain practices on sustainable supply chain performance in Kenyan textile and apparel industry. International Journal of Economics, Commerce and Management, 6(8).
Paul, O. (2012). Developing a corporate knowledge management strategy. Journal of Knowledge Management, 16(6), 862-878. https://doi.org/10.1108/13673271211276118
Peteraf, M., & Barney, J. (2003). Unraveling the resource-based tangle. Managerial and Decision Economics, 24, 309-323. https://doi.org/10.1002/mde.1126
Rosebell. (April 17, 2017). Kenyan companies that are going green. Nairobi, Kenya.
Schoggl, J.-P., Fritz, M. M., & Baumgartner, R. J. (2016). Toward supply chain-wide sustainability assessment: A conceptual framework and an aggregation method to assess supply chain performance. Journal of Cleaner Production, 822-835. https://doi.org/10.1016/j.jclepro.2016.05.135
Shikokoti, Okoth and Abungana, (2024). Research Methods in Education. Aura publishers.
ISBN: 978-9914-AB-K-20.
Shinn, L. (2018, June 15). Renewable energy: The clean facts. Natural Resources Defense Council. https://www.nrdc.org/stories/renewable-energy-clean-facts
Stanciu, A.-C., Constandache, M., & Condrea, E. (2014). Concerns about the sustainable performance of firms in the context of quality management systems implementation. Procedia - Social and Behavioral Sciences, 131, 340–344. https://doi.org/10.1016/j.sbspro.2014.04.178
Tian, Q., & Guo, W. (2019). Reconfiguration of manufacturing supply chains considering outsourcing decisions and supply chain risks. Journal of Manufacturing Systems, 52(B), 217-226. https://doi.org/10.1016/j.jmsy.2019.02.007
Trochim, W. M. K. (2016). Descriptive statistics. Research Methods Knowledge Base. Retrieved March 14, 2011, from https://socialresearchmethods.net/kb/statdesc.php
Trong, T. L. (2016). From cultural intelligence to supply chain performance. The International Journal of Logistics Management, 27(1), 95-121. https://doi.org/10.1108/IJLM-06-2014-0071
Tu, Q., Vonderembse, M. A., Nathan, T. R., & Nathan, B. R. (2004). Measuring modularity-based manufacturing practices and their impact on mass customization capability: A customer-driven perspective. Wiley Online Library, 35(2), 147-168. https://doi.org/10.1002/joom.103
Vision2030. (2019). Vision 2030 Delivery Secretariat. Retrieved from https://vision2030.go.ke
Zhu, Z. (2012). Decision-making, decision theory, decision-making software. Strategic Choice Theory.
Zidi, S., Hamani, N., & Kermad, L. (2022). Antecedents and enablers of supply chain reconfigurability and their effects on performance. The International Journal of Advanced Manufacturing Technology, 120, 3027-3043. https://doi.org/10.1007/s00170-022-08923-7
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Agnes Ayako Athiambo, Dr. Jane Omwenga, Dr. Eric Namusonge
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
