ISSN: 2222-6990
Open access
The purpose of the study was to determine the influence of supplier sustainability on organizational performance in food and beverage manufacturing companies in Kenya. Supplier sustainability is part of emerging issues in the dynamic business world as it is part of the Triple Bottom Line approach that wants businesses to not only focus on their profitability and the planet, but is also in the people aspect-which in this study is the supplier in their business operations. Sustainability philosophy points at the importance of not only doing business now and succeeding, but also ensuring the business continues into the distant future. Supplier sustainability in the food and beverage manufacturing arena is important since most industries depend on the contracted farmers, in this study, the supplier for their input materials. The study employed a descriptive research design. The study used systems theory. The target population was 534 respondents comprising of 217 procurement managers and 217 procurement officers from 217 food and beverage manufacturing companies. Using Yamane’s formula, a sample size of 230 respondents comprising of 115 managers and 115 procurement officers was selected from 115 food and beverage manufacturing companies in Kenya. Simple random sampling was used to get the sample for the study. Purposive sampling was used to get top procurement personnel in the food and beverage manufacturing firms. Primary data was collected by the use of a questionnaire. Analysis of data was done using descriptive and regression analysis. From the model, (R2 = .490) shows that supplier sustainability accounts for 49% variation in organizational performance in food and beverage manufacturing companies in Kenya. There was a significant influence of supplier sustainability (?=.520) on performance of food and beverage manufacturing companies. The study concluded that supplier sustainability influences the performance of food and beverage manufacturing companies. The study recommends that Food and Beverage Manufacturing Industry in Kenya and also organizations that are non-manufacturing should ensure that their suppliers are sustainable and have an environmental management system that both buyer and supplier understand. The study proposes further research in other manufacturing sectors and also proposes that data is collected from the supplier side to corroborate research in this area.
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In-Text Citation: (Chebichii et al., 2022)
To Cite this Article: Chebichii, B. D., Namusonge, G. S., & Makokha, E. N. (2022). Influence of Supplier sustainability on Organizational Performance in Food and Beverage Manufacturing Companies in Kenya. International Journal of Academic Research in Business and Social Sciences, 12(1), 2326– 2343.
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