Green Innovation Strategy and Performance Sustainability of ISO 14001 Certified Manufacturing Firms in Nairobi City County, Kenya
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Date
2023
Authors
Nzomo, James Kimuli
Journal Title
Journal ISSN
Volume Title
Publisher
kenyatta university
Abstract
Performance sustainability has been a major concern for most firms operating in manufacturing sector in Kenya. There has been an increase in environmental crisis related to pollution and unmanaged waste disposal in the industrial sector. Most firms in the manufacturing sector have witnessed a declined profit and 55% of firms having high impact on the environment. Despite clear regulatory framework and increased ISO 14001 certification of firms which is critical as firms go green, challenges relating to performance sustainability of manufacturing firms are still high. This study investigated effect of GIS on the performance sustainability of ISO 14001 certified manufacturing firms in Nairobi City County, Kenya. The specific objectives of the study were to determine effect of green product innovation strategy, green process innovation strategy, green marketing innovation strategy and green organizational innovation strategy on the performance sustainability of ISO 14001 certified firms in manufacturing sector in Nairobi, Kenya. The study further established the mediating effect of competitive advantage and the moderating effect of regulatory framework on the relationship between green innovation strategy and performance sustainability of ISO 14001 certified firms in Nairobi, Kenya. The study was guided by triple bottom line theory, green business model innovation, resource-based view theory, institutional theory and stakeholder’s theory. Positivism philosophy was adopted in this study involving descriptive and explanatory research design. The target population was 60 ISO 14001 certified manufacturing firms in Nairobi, Kenya. Census of the 60 ISO 14001 certified firms was done where the unit of observation was 300 respondents obtained from the heads of finance, human resource, marketing, ICT and operations departments. To collect data, semi-structured questionnaires were used which were administered through mail survey and drop and pick methods. Face, content and construct validity were used to analyse validity of the tools while reliability was analysed using Cronbach’s Alpha coefficient whose threshold was coefficient above 0.7. The response rate was seventy six percent which was sufficient for making inferences and drawing conclusion. Descriptive statistics was summarized using frequencies, percentage, mean and standard deviations. Multiple regression analysis was used for inferential statistics to test hypotheses. Inferential statistics was reported using adjusted coefficient of determination (R2), F statistics (ANOVA), unstandardized coefficients (beta values) and p values at 0.05 level of significance. The quantitative data was presented inform of figures and tables while qualitative data was presented in narrative form. The findings indicated that GIS had significant positive effect on the performance sustainability of ISO 14001 certified firms. Moreover, green product, green process, green marketing and green organizational innovation strategy were found to be statistically significant and had effect on the performance sustainability. Competitive advantage partially mediated the relationship between GIS and performance sustainability. Lastly, regulatory framework had negative moderating effect on the relationship between GIS and performance sustainability of ISO 14001 certified manufacturing firms in Nairobi City County in Kenya. The study recommends that the management of manufacturing firms need to come up with green practices which enhances all aspects GIS in order to improve performance sustainability of manufacturing firms. Management of manufacturing firms going green need to leverage on aspects that aids firm to gain competitive advantage like green automation to promote performance sustainability of firms. The government and other stakeholders in manufacturing are advised to come up with flexible regulatory framework which encourages firms to adopt green innovation and at same time attain performance sustainability for manufacturing firms.
Description
A Thesis Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirement for the Award of Degree of Doctor of Philosophy in Business Administration (Strategic Management) of Kenyatta University
Keywords
Green Innovation Strategy, Performance Sustainability, Manufacturing Firms, Nairobi City County, Kenya