An Assessment Of The Effects Of Reverse Logistics Practices On Competitiveness Of Plastic Packaging Manufacturing Firms In Nairobi County, Kenya

Abstract

Development of the practice of reverse logistics in Kenya is relatively low with only limited number of industries having tried it, but with increased global warming and environmental degradation, it has caused concerns for governments, societies and business organizations all over the world. The competitive business environments have led to short product life cycle for many consumer goods. This has led to complex environmental challenges especially in developing countries. Business organizations, governments, regulatory bodies, and researchers alike have become increasingly interested on how business operations are impacting on the environment, on the society and on the economy in general. Stringent packaging and environmental regulations forced firms to be more responsible and accountable for environmental impacts resulting from their day to day operations even after product sale. Managers including those in the plastic packaging sector firms in Kenya have begun to realize the need to be environmentally accountable for their activities. The main purpose of this study therefore was to assess the relationship between reverse logistics practices and competitiveness of firms in the plastic packaging sector in Nairobi County in Kenya. The specific objectives of the study were to; determine the effects of re manufacturing on competitiveness of firms in the plastic packaging sector in Nairobi County, to examine the effects of sustainable packaging on competitiveness of firms in the plastic packaging sector in Nairobi County, and lastly investigate the effects of recycling on competitiveness of firms in the plastic packaging industry in Nairobi County. This study was guided by three theories; Resource-Based view theory, Institutional theory, and Systems theory. The study adopted a descriptive research design. 180 managers and assistant managers of the main departments in all the 22companies involved in the manufacture and sale of plastic packaging in Nairobi County and registered by Kenya Association of Manufacturers (KAM) formed the target population of the study. The study employed census because the number of managers and assistant mangers (180 respondents) was considered too small to be sampled. The study used primary data collected by administering a self-structured questionnaire. To analyze the data, descriptive statistics of mean and standard deviation was used to establish patterns and trends, and a multiple regression model was established predict the relationship between the independent and dependent variables. The study found that reverse logistics practices have a significant impact on the competitiveness of plastic packaging manufacturing companies. An effective and standardized reverse logistics process can give a firm the necessary competitive advantage to move above peers and competitors, and possibly capture larger market share within their industry in which they operate because of their superior process and being able to meet the ever changing demands of their customers. All the three variables were found to be significantly influencing the competitiveness of the firms. The study recommended that the management of various plastic packaging manufacturing firms should improve on adoption of reverse logistics practices.