Michael Kariuki Nderitu
Jomo Kenyatta University of Agriculture and Technology
KENYA    
Dr. Karanja Ngugi
Kenyatta University Department of Accounting and Finance
KENYA

CITATION: Nderitu, K. M & Ngugi, K. (2014). Effects Of Green Procurement Practices On An Organization Performance In Manufacturing Industry: Case Study Of East African Breweries Limited. European Journal of Business Management, 2 (1), 341-352.

ABSTRACT

Green Procurement also known as sustainable procurement (SP) is one of the emerging issues in procurement. It entails taking social and environmental factors into consideration alongside financial factors in making procurement decisions. Green procurement involves looking beyond the traditional economic parameters and making decisions based on the whole life cost, the associated risks, measures of success and implications on society and the environment. This study seeks to establish the contribution of green procurement concepts to performance of the East African Breweries Limited (EABL). The variables studied are staff competence on green procurement concepts, role of ICT infrastructure, supplier participation in green procurement and capital expenditure on green procurement contribution to performance. The study adopted Descriptive Research Design. The target population was 122 employees of the EABL while the sample size considered was 37 which represented 30% of the target population. The researcher utilized both primary and secondary data. Data was analysed using both descriptive and inferential statistics where regression analysis was used to establish the effect of independent variables on the dependent variable. The findings revealed that Performance of manufacturing industry is a contribution of more than one factor. Green procurement attributes contributes to performance excellence. Competence of the staff members on green procurement concepts was essential contributor to the effects of green procurement to performance. EABL as an organization with already laid down ICT infrastructure and with a system that allows Supplier participation had increased contribution of green procurement to 29% of organizational performance. However due to high costs it was noted that the capital expenditure on green procurement was yet to make a high impact to EABL. The study recommends that organizations should have competent professional workforce, extensive investment in Information and Communication Technology (ICT) infrastructure, systems of supplier management and strategic investment approach to Green Procurement in order to realize the positive effects of green procurement.

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