Influence of Green Procurement Practices in Supply Chain Management and Leadership on Performance of Parastatals in Kenya; A case of Kenya Airways and Kenya Pipeline
Government parastatals experience major challenges in the execution of procurement efficiency. In Kenya, parastatals procurement consumes huge figure national budget. The inefficiency and ineptness of overall procurement efficiency in many government parastatals hinders performance. The study empirically determines the influence of green procurement practices in supply chain management and leadership on performance of Kenya Airways and Kenya pipeline. A critical review of empirical literature is conducted to identify main thematic concepts of the paper. It was established that green procurement practices improves overall performance of a firm. Reverse logistics, green distribution, green purchasing, supply selection and green marketing have a significant effect on overall performance of government parastatals. It is concluded that reverse logistics influences the organizational performance through controlling of environmental risks, proper utilization of materials by customers, results to customer satisfaction and ensures recycling of materials. Green procurement affects the supply chain performance by ensuring production with low environmental impacts, products which are using environmental friendly processes, environmental collaboration with the suppliers, eco-labeled products and adoption of environmental criteria into the supplier assessment systems. It is also concluded that green packaging influences supply chain performance through reducing environmental impact by products within the supply chain, proper use of products by consumers, appropriate product design to minimize consumption of materials and energy, facilitates reuse, recycle and recovery of component materials. Waste management systems affects supply chain performance through recycling and re-using waste created, treating and controlling post combustion emissions, use of alternative fuels and encourages implementation of waste to energy process. The study recommends that the Kenya Airways and Kenya pipeline should encourage proper utilization of materials and recycling of materials. The study recommends that Kenya Airways and Kenya pipeline should integrate green procurement process in all its purchasing processes since it’s characterized by a low environmental impact that is products environmentally friendly in nature and produced using environmentally friendly processes. The study recommends that the management of Kenya Airways and Kenya pipeline should purchase products from manufacturers whose design products minimize consumption of materials and energy, that facilitate the reuse, recycle and recovery of component materials. The study recommends that the Kenya Airways and Kenya pipeline should invest more in waste management systems.
Key words: Green Procurement Practices, Supply Chain Management, leadership, Performance, Parastatals
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