INFLUENCE OF SUPPLY CHAIN SUSTAINABILITY ON PERFORMANCE OF COMPANIES IN THE OIL INDUSTRY IN KENYA.
DOI:
https://doi.org/10.47941/ijscl.299Keywords:
Reverse Logistics Management, Information Technology Adoption, Early Vendor Involvement, Green Procurement Adoption And Performance Of CompaniesAbstract
Purpose: The purpose of the study was to examine the influence of supply chain sustainability on performance of companies in the oil industry in Kenya with an aim of making recommendations on proper use of supply chain sustainability strategies. The study aimed at establishing how reverse logistics management, information technology adoption, early vendor involvement and green procurement adoption influences performance of companies in the oil industry. To achieve this, the study reviewed both theoretical and empirical literature and proposed the research methodology that addressed the gaps identified in literature as well as answer the stipulated research questions.
Methodology: This research study adopted a descriptive research design approach targeting procurement staff at the 53 oil companies. This method is preferred because it allows an in-depth study of the subject. To gather data, structured questionnaire was used to collect data from 159 procurement officers, who were selected using simple random sampling, from the three strata. Once collected, data was analysed using descriptive and inferential statistics. Quantitative data was analysed using multiple regression analysis. The qualitative data generated was analysed by use of Statistical Package of Social Sciences (SPSS) version 22.
Results: The response rate of the study was 75%. The findings of the study indicated that reverse logistics management, information technology adoption, early vendor involvement and green procurement adoption have a positive relationship with performance in companies in the oil industry.
Contributions to policy and practice: The study recommended that companies in the oil industry should embrace supply chain sustainability so as to improve performance and further researches should to be carried out in other institutions to find out if the same results can be obtained.
Downloads
References
Amol, S., & Ashish, T. (2016). "Sustainable green supply chain management: trends and current practices", Competitiveness Review, 26(3), 265-288.
Anne, T., & Hellen, W. (2015). "Theories in sustainable supply chain management: a structured literature review", International Journal of Physical Distribution and Logistics Management, 45(2), 16-42.
Baumann-Pauly, D. (2013). Managing corporate legitimacy: A toolkit. Sheffield, UK: Greenleaf Publishing.
Beske, P., & Seuring, S. (2014). "Putting sustainability into supply chain management". Supply Chain Management: An International Journal, 1(9), 322-331.
Brettel, M., & Voss, U. (2013). "Antecedents of management control combinations-An explanation from resource dependence theory". Schmalenbach Business Review, 6(5), 409-430.
Buysse, K., & Verbeke, A. (2013). Proactive environmental strategies: a stakeholder management perspective. Strategic Management Journal, 24(5), 453-470.
CCG (2014). National Development Fund Report Instructional Structures and Reforms. Nairobi: Centre for Corporate Governance.
Chien, M. K., & Shih, H. (2011). An empirical study of the implementation of green supply chain management practices in the electrical and electronic industry and their relation to organizational performances. International Journal of Environmental Science and Technology, 4(3), 383-401.
Christmann, P. (2010). Effects of "best practices" of environmental management on cost advantage: The role of complementary assets. Academy of Management journal, 43(4), 663-680.
Christopher, M. (2010). The agile supply chain: competing in volatile markets. Industrial marketing management, 29(1), 37-44.
CIPS (2012). Sustainable Procurement Practices. Retrieved from: https://www.cips.org. November 2017.
Croom, S., & Jones, A. (2010). E-procurement: Key Issues in inventory control implementation and operation in the public sector.
Davila, A. (2010). The adoption and the use of inventory control technology model, European Management Journal, 21(1), 11-23.
Donaldson, T., & Preston, L. (2015). "˜The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications.' Academy of Management Review, 20(1), 65-91.
Drees, J. M., & Heugens, P. P. (2013). "Synthesizing and extending resource dependence theory: A meta-analysis". Journal of Management, 3(9), 1666-1698.
Duber, D. C. (2012). The Green Imperative. Soap, Perfumery, and Cosmetics, 78 (8), 24-26.
Fouka, G., & Mantzorou, M. (2011). "What are the major ethical issues in conducting research? Is there a conflict between the research ethics and the nature of nursing?" Health Science Journal, 5(1), 3-14.
Freeman, R. E., & Phillips, R. A. (2012). Stakeholder theory: A libertarian defense. Business Ethics Quarterly, 24(5), 331-349.
Frooman, J. (2015). "˜Stakeholder Influence Strategies.' Academy of Management Review, 24(2), 191-205.
Grandia, J., Steijn, B., & Kuipers, B., (2015). It is not easy being green: Increasing sustainable public behavior, Innovation. The European Journal of Social Science Research.
Greeno, J., & Robinson, S. (2012). Rethinking corporate environmental management. The Columbia Journal of World Business, 3(1), 222-232.
Hall, J., & Matos, S. (2010). Incorporating impoverished communities in sustainable supply chains International Journal of Physical Distribution & Logistics Management, 40(1), 124-147.
Harrison, J., & Freeman, J. (2015). New CEOs pursue their own self-interests by sacrificing stakeholder values. Journal of Business Ethics, 1(9), 301-308.
Helen, W., & Stephen, B. (2010). Sustainable Procurement in South African Public Sector. University of Bath, School of Management Working Paper Series.
Henriques, I., & Sadorsky, P. (2015). The relationship between environmental commitment and managerial perceptions of stakeholder importance. Academy of Management Journal, 42(1), 87-99.
Hoffman, A. J. (2011). Institutional evolution and change: Environmentalism and the US chemical industry. Academy of management journal, 42(4), 351-371.
Islam, M. A. (2014). Social compliance accounting: Managing legitimacy in global supply chains.
Jha, R. (2010). Customer focused collaborative demand planning in Hi-Tech Industry, Massachusetts Institute of Technology, USA.
Kitheka, S. (2012). Inventory management automation and the performance of supermarkets in western Kenya, Unpublished MBA Project, University of Nairobi, Nairobi.
Lehtonen, M. (2014). "The environmental social interface of sustainable development: capabilities, social capital, institutions "Ecological Economics, 49(2), 199-214.
Mugenda, O., & Mugenda, A. (2014). Research methods quantitative and qualitative approaches. Nairobi: Acts Press.
Noor, R. (2011). Supply chain management practices in Malaysia oil and gas industry: A case of Murphy Sarawak Oil Company Ltd.
Orodho, A. J. (2014). Research Methods. Nairobi: Kenyatta University Institute of Open Learning.
Reinhardt, F. (2015). Market failure and the environmental policies of firms: Economic rationales for "beyond compliance" behavior. Journal of Industrial Ecology, 3(1), 9-21.
Samuelson, O. (2013). The IT-Barometer-A Decade's Development of its Use in The Swedish Construction Sector. Journal of Information Technology in Construction, 13 (5), 1-19.
Sarkis, J. (2012). "A boundaries and flows perspective of green supply chain management", Supply Chain Management, 1(7), 202-216.
Shirima, D. L. (2013). Value for Money Through Reduced Procurement Transaction Costs and Improved Efficiency. Tanzania Procurement Journal , 1(1), 44-52.
Spence, L., & Bourlakis, M. (2015). "The evolution from corporate social responsibility to supply chain responsibility: the case of Waitrose", Supply Chain Management: An International Journal, 14(4), 291-302.
Stephen, B., & Helen, W., (2012). Sustainable Procurement Practice in the Public Sector: An International Comparative Study, University of Bath, School of Management. Working Paper Series.
Swalehe, S., & Odock, S. (2015). Effect of Eco-design practices on the performance of manufacturing firms in Mombasa county Kenya, University of Nairobi. Unpublished.
USAID (2014). Selecting and implementing green supply chains systems for oil sector supply chain: Deliver Project, USAID.
World Bank (2014). World Bank Procurement Reform: New Direction Endorsed. Press Release No: 2014/057/OPCS.
Downloads
Published
How to Cite
Issue
Section
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.
