Adoption of Green Energy and Performance of Butali Sugar Company in Kakamega County, Kenya
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Date
2020
Authors
Makanga, Ishmael Maina
Kavindah, Lucy
Journal Title
Journal ISSN
Volume Title
Publisher
International Academic Journals
Abstract
There is increased number of sugar
companies that have failed despite advance
increase in strategic management best
practice. Several studies on organisational
performance have revealed that in Kenya,
performance is nonlinear despite numerous
initiatives. A few studies have tried to
account for the mixed performance
especially in the context of cost cutting
approach in understanding the effect of
adoption of green energy on performance.
Successful green practices helps firms to
achieve greater efficiency, establish and
strengthen their core competencies,
enhance their green image, all of these may
eventually combine to contribute to firm
profitability. Environmental sustainability
in any given production is very important.
The low adoption of green energy has led to
high charges on electric units especially
during low rainy seasons, and high prices of
petroleum and electricity in operations of
the company which accounts for poor
performance that has necessitated closure
of many sugar companies. The study sought
to bridge the gap by establishing the effect
of green energy adoption on the
performance of Butali Sugar Company in
Kakamega County, Kenya. The specific
objectives were to establish the effect of
pollution reduction, cost of production,
organizational policy and organizational
capacity on the performance of Butali
Sugar Company in Kakamega County,
Kenya. The study was anchored on three
theories which include green economic
theory, resourced based view theory and the
Innovation Diffusion theory. The study
used descriptive research design. The target
population was 204 respondents. The
sample size was 134 which was developed
using Yamane’s formula. A semistructured questionnaire was used. After
data collection, data will be edited,
referenced coded to facilitate statistical
analysis. Data collected was analyzed using
both qualitative and quantitative methods.
Data was analyzed using Statistical
Package for Social Sciences (SPSS version
21). The data was analyzed using both
descriptive and inferential statistics and
presented using tables, charts, frequencies,
percentages and graphs. The study
established that green energy adoption had
a positive and significant effect on the
performance of Butali Sugar Company. It
was concluded that the firm had
significantly reduced emissions to the
atmosphere by adopting green energy,
enhanced use of renewable energy,
improved environmental conservation,
recycles wastes, embraces environmental
friendly waste disposal and collaborates
with other firms on waste management. It
was further concluded that green energy
adoption had significantly reduced the cost
of production in the firm despite their being
inadequate finances for the project, cost of
transportation being slightly higher and the
price of license to produce power being
moderately higher. The study concluded
that the firm has a clear policy guideline on
green energy adoption, complies with
government policy and regulations
governing the project. The study
recommends that the management of the
Butali Sugar Company Limited should
ensure that the production of green energy
is maximized to economically viable levels
to improve firm returns. The firm also
needs to enhance human resource,
technological and infrastructure capacity to facilitate the green energy adoption process
and effectiveness.
Description
A paper published in International Academic Journal of Information Sciences and Project Management
Keywords
Green energy, Performance, Butali Sugar Company, Kakamega County, Kenya
Citation
Makanga, I. M. & Kavindah, L. (2020). Adoption of green energy and performance of Butali Sugar Company in Kakamega County, Kenya. International Academic Journal of Information Sciences and Project Management, 3(6), 199-221