SUPPLY CHAIN SUSTAINABILITY AND PERFORMANCE OF ALCOHOL MANUFACTURING FIRMS IN KENYA
Keywords:
Supply Chain Sustainability, Environmental Sustainability, Economic Sustainability, Performance of Alcohol Manufacturing FirmsAbstract
Alcohol manufacturing firms play a significant role in Kenya’s economy, contributing to employment, tax revenues, and export earnings. The sector provides direct and indirect employment opportunities, from production to distribution, benefiting thousands of individuals. The general objective of the study is to assess the influence of supply chain sustainability on performance of alcohol manufacturing firms in Kenya. Specifically, the study sought to to establish the influence of environmental sustainability on performance of alcohol manufacturing firms in Kenya and to determine the effect of economic sustainability on performance of alcohol manufacturing firms in Kenya. This study was guided by: Resource-Based View (RBV) Theory and Innovation Diffusion Theory. The study used a descriptive research design. According to KAM (2023) report, there are 52 registered alcohol manufacturing firms in Kenya. This study therefore targeted 312 management employees working in the 52 registered alcohol manufacturing firms in Kenya. The Yamane formula was adopted to calculate the study sample size. Therefore, the study sample size was 175 respondents. Data collection was done through use of questionnaires. The study carried out a pilot study to pretest and validate the questionnaire. Cronbach’s alpha methodology, which measures internal consistency, was used. The study used a total of 18 individuals in the pilot test which represent 10% of target population. Data analysis was done through use of descriptive and inferential statistics. Inferential data analysis was conducted by use of Pearson correlation coefficient, and multiple regression analysis. Inferential statistic is used to make judgments about the probability that an observation is dependable or one that happened by chance in the study. The relationship between the study variables was tested using multivariate regression models. The study results were presented through use of tables and figures. The study concluded that environmental sustainability has a positive and significant influence on performance of alcohol manufacturing firms in Kenya. Further, the study concluded that economic sustainability has a positive and significant influence on performance of alcohol manufacturing firms in Kenya. Based on the findings, the study recommends that the management of alcohol manufacturing firms in Kenya should prioritize economic sustainability as a cornerstone of their business strategy to enhance both profitability and long-term competitiveness. By focusing on efficient resource utilization, cost optimization, strategic investments, and sound financial management, firms can ensure stable growth, reduce operational risks, and maintain profitability even in fluctuating market conditions.
Key Words: Supply Chain Sustainability, Environmental Sustainability, Economic Sustainability, Performance of Alcohol Manufacturing Firms
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