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

Abstract

Government parastatals experience major challenges in the execution of procurement efficiency. In Kenya, parastatals procurement consumes a huge figure of the national budget. The inefficiency and ineptness of overall procurement efficiency in many government parastatals hinder performance. The study empirically determines the influence of green procurement practices in supply chain management and leadership on the performance of Kenya Airways and the Kenya pipeline. A critical review of the empirical literature is conducted to identify the main thematic concepts of the paper. It was established that green procurement practices improve the overall performance of a firm. Reverse logistics, green distribution, green purchasing, supply selection and green marketing have a significant effect on the overall performance of government parastatals. It is concluded that reverse logistics influence organizational performance through controlling environmental risks, proper utilization of materials by customers results in 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 environmentally friendly processes, environmental collaboration with the suppliers, eco-labelled products and adoption of environmental criteria into the supplier assessment systems. It is also concluded that green packaging influences supply chain performance by reducing the environmental impact of by-products within the supply chain, proper use of products by consumers, appropriate product design to minimize consumption of materials and energy, and facilitating reuse, recycling and recovery of components materials. Waste management systems affect supply chain performance through recycling and re-using waste created, treating and controlling post-combustion emissions, use of alternative fuels and encouraging the implementation of the waste energy processes. 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 the green procurement process in all its purchasing processes since its 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 the consumption of materials and energy, that facilitate the reuse, recycling and recovery of component materials. The study recommends that Kenya Airways and Kenya pipeline should invest more in waste management systems.

Keywords: Green Procurement Practices, Supply Chain Management, leadership, Performance, Parastatals