Circular Returns Management and Performance of Manufacturing Companies in Kenya

Agnes Ayako Athiambo, Dr. Jane Omwenga, Dr. Eric Namusonge

Abstract


This study evaluated the influence of circular returns management on the performance of manufacturing companies in Kenya. The research was guided by the specific objectives: to determine the effect of circular returns management on performance of manufacturing companies in Kenya and to assess the moderating effect of circular supply chain reconfiguration on the relationship between circular returns management and performance of manufacturing companies in Kenya. The theoretical framework was underpinned by Behavioural Reasoning Theory and Strategic choice theory. Employing a cross-sectional survey design, the study targeted 795 manufacturing companies in Kenya, excluding the service sector, as per the 2023 KAM directory. A sample of 266 companies was drawn using Slovin's formula and stratified sampling technique. Data was collected using questionnaires. Quantitative data was analyzed using both descriptive and inferential statistics and with the help of SPSS version 27. Regression analysis were used to show the relationship between the dependent variable and the independent variables and the study employed multiple linear regression analysis to test the hypotheses. Key findings revealed that circular returns management had significant positive effects on company performance and supply chain reconfiguration demonstrated a significant moderating effect on the relationship between circular returns management and company performance. These findings contribute to understanding circular economy principles in the Kenyan manufacturing context and provide valuable insights for practitioners and policymakers in implementing circular supply chain management practices. Thus, the study recommends that manufacturing firms should put into consideration circular returns management practices to improve performance in market share, sales volume and return on investment levels. Future research directions include a longitudinal study to examine the long-term effects of circular returns management practices on manufacturing performance and a comparative study of circular returns management practices across different industries in Kenya to identify sector-specific challenges and opportunities

Keywords: Circular Returns Management, Supply Chain Practices, Performance, Manufacturing Companies, Kenya


Full Text:

PDF

References


Abong, G. O., Elmah, G., & Gekonge, D. O. (2021). Consumer awareness, practices, and purchasing behaviour towards green consumerism in Kenya. East African Journal of Science, Technology and Innovation, 2(Special Issue), 2.

Bernon, J., Cullen, J., & Gors, J. (2016). Online retail returns management: Integration within an omni-channel distribution context. International Journal of Physical Distribution & Logistics Management, 46(6/7), 584-605. https://doi.org/10.1108/IJPDLM-11-2015-0277

Biswas, P. (2017). Modeling reconfigurability in supply chains using total interpretive structural modeling. Journal of Advances in Management Research, 14(2), 194-221. https://doi.org/10.1108/JAMR-09-2016-0101

Byrne, G., Damm, O., Monostori, L., Teti, R., van Houten, F., Wegener, K., … & Sammler, F. (2020). Towards high performance living manufacturing systems: A new approach. CIRP Journal of Manufacturing Science and Technology, 1-16. https://doi.org/10.1016/j.cirpj.2020.12.002

Choudhary, D., Qaiser, F. H., Choudhary, A., & Fernandes, K. (2022). A model for managing returns in a circular economy context: A case study from the Indian electronics industry. International Journal of Production Economics, 249, 108505. https://doi.org/10.1016/j.ijpe.2022.108505

Circle Economy. (2021). The Circularity Gap Report. https://www.circularity-gap.world/2021

Cooper, D. R., & Schindler, P. S. (2018). Business research methods (13th ed.). McGraw-Hill/Irwin.

Creswell, J., & Guetterman, T. (2018). Educational research: Planning, conducting, and evaluating quantitative and qualitative research (6th ed.). Pearson.

Dhir, A., Koshta, N., Goyal, R. K., Sakashita, M., & Almotairi, M. (2021). Behavioural reasoning theory (BRT) perspectives on E-waste recycling management. Journal of Cleaner Production, 1-13. https://doi.org/10.1016/j.jclepro.2021.128257

Dolgui, A., Ivanov, D., & Sokolov, B. (2020). Reconfigurable supply chain: The X-network. International Journal of Production Research, 58(13), 4124-4139. https://doi.org/10.1080/00207543.2019.1702251

Ganguly, R. (2016). E-waste management in India: An overview. International Journal of Earth Sciences and Engineering, 9(2), 574-588.

Geissdoerfer, M., Morioka, S. N., de Carvalho, M. M., & Evans, S. (2018). Business models and supply chains for the circular economy. Journal of Cleaner Production, 190, 712-721. https://doi.org/10.1016/j.jclepro.2018.04.127

Giudice, M. D., Chierici, R., Mazzucchelli, A., & Fiano, F. (2021). Supply chain management in the era of circular economy: The moderating effect of big data. The International Journal of Logistics Management, 32(2), 337-356. https://doi.org/10.1108/IJLM-02-2020-0101

Harney, B. (2016). Strategic choice. In An encyclopedia of human resource management (pp. 414-415). SAGE Publications.

Hazen, B. T., Russo, I., Confente, I., & Pellathy, D. (2020). Supply chain management for circular economy: Conceptual framework and research agenda. The International Journal of Logistics Management, 32(2), 510-537. https://doi.org/10.1108/IJLM-12-2019-0367

Jabbour, C. J. C., Jabbour, A. B. L. de S., Sarkis, J., & Filho, M. G. (2019). Unlocking the circular economy through new business models based on large-scale data: An integrative framework and research agenda. Technological Forecasting and Social Change, 144(C), 546-552. https://doi.org/10.1016/j.techfore.2017.09.010

Kenya Association of Manufacturers (KAM). (2023). Investing in circular economy is a sure way for sustainable growth. https://kam.co.ke/investing-in-circular-economy-is-a-sure-way-for-sustainable-growth

Kenya Association of Manufacturers KAM. (2024). MANUFACTURING PRIORITY AGENDA (MPA) Steering economic growth through the manufacturing sector for common good. Nairobi: Kenya Association of Manufacturers.

Karlsson, S., Oghazi, P., Hellstrom, D., Patel, P. C., Papadopoulou, C., & Hjort, K. (2023). Retail returns management strategy: An alignment perspective. Journal of Innovation & Knowledge, 8(4), 100420. https://doi.org/10.1016/j.jik.2023.100420

Kim, M. J., Lee, C. K., Petrick, J. F., & Hahn, S. (2018). Factors affecting international event visitors’ behavioural intentions: The moderating role of attachment avoidance. Journal of Travel & Tourism Marketing. https://doi.org/10.1080/10548408.2018.1439351

Kenya National Bureau of Statistics (KNBS). (2021). Leading economic indicators. Kenya National Bureau of Statistics. 44.

Kothari, C. R. (2019). Research methodology: Methods and techniques (4th ed.). New Age International Publishers.

Kamel, S. (2018). ICT4D: Case of the information society in Africa. A proposed article submitted for review for possible publication. Encyclopedia of Information Science and Technology Kenya. International Journal of Human Resource and Procurement, 4(4), 13–25.

Kumar, S., Talwar, S., Murphy, M., Kaur, P., & Dhir, A. (2021). A behavioural reasoning perspective on the consumption of local food: A study on REKO, a social media-based local food distribution system. Food Quality and Preference. https://doi.org/10.1016/j.foodqual.2021.104174

Laurin, F., & Fantazy, K. (2017). Sustainable supply chain management: A case study at IKEA. Transnational Corporations Review. https://doi.org/10.1080/19186444.2017.1401208

Macrotrends. (2022). Kenya manufacturing output 1960-2022. Retrieved from https://www.macrotrends.net/countries/KEN/kenya/manufacturing-output

Mor, R. S., Sangwan, K. S., Singh, S., Singh, A., & Kharub, M. (2021). E-waste management for environmental sustainability: An exploratory study. In 28th CIRP Conference on Life Cycle Engineering (pp. 193-198).

Mugenda, O., & Mugenda, A. (2016). Research methods. ACTS Press.

Musau, E. M. (2021). Effect of green manufacturing on operational performance of manufacturing firms in Mombasa County, Kenya. European Scientific Journal, 17(23), 323.

Omai, K. M., Ngugi, P. K., & Kiarie, D. M. (2018). Effect of supply chain practices on sustainable supply chain performance in the Kenyan textile and apparel industry. International Journal of Economics, Commerce and Management, 6(8).

Padhy, R. K., Sahu, A. K., & Dhir, A. (2020). Envisioning the future of behavioural decision- making: A systematic literature review of behavioural reasoning theory. Australasian Marketing Journal. https://doi.org/10.1016/j.ausmj.2020.03.003

Rosebell. (2017). Kenyan companies that are going green. Nairobi, Kenya.

Shikokoti, Okoth and Abungana, (2024). Research Methods in Education. Aura publishers.

ISBN: 978-9914-AB-K-20.

Tian, Q., & Guo, W. (2019). Reconfiguration of manufacturing supply chains considering outsourcing decisions and supply chain risks. Journal of Manufacturing Systems, 52(Part B), 217-226. https://doi.org/10.1016/j.jmsy.2019.06.008

Thomas, L. (2022, July 21). Cross-sectional study | Definition, uses & examples. Scribbr. https://www.scribbr.com/methodology/cross-sectional-study/

Trochim, W. M. K. (2016). Descriptive statistics. Research Methods Knowledge Base. https://www.socialresearchmethods.net/kb/statdesc.php

Trong, T. L. (2016). From cultural intelligence to supply chain performance. The International Journal of Logistics Management, 27(1), 95-121. https://doi.org/10.1108/IJLM-03- 2014-0040

Tu, Q., Vonderembse, M. A., Nathan, T. R., & Nathan, B. R. (2004). Measuring modularity- based manufacturing practices and their impact on mass customization capability: A customer-driven perspective. Wiley Online Library, 35(2), 147-168. https://doi.org/10.1002/jor.20011

United Nations Environment Programme (UNEP). (2019). UN calls for urgent rethink as resource use skyrockets. Retrieved from World Business Council for Sustainable Development: https://www.unep.org/news-and-stories/press-release/un-calls-urgent- rethink-resource-use-skyrockets

Vantarakis, A., Detorakis, I., Paparrodopoulos, S., Kokkinos, P., Vantarakis, G., & Fragou, K. (2016). Impact on the quality of life when living close to a municipal wastewater treatment plant. Journal of Environmental and Public Health, 2016, 8467023. https://doi.org/10.1155/2016/8467023

Vision2030. (2019). Vision 2030 Delivery Secretariat. Retrieved from https://vision2030.go.ke

Were, A. (2016). Manufacturing in Kenya: Features, challenges, and opportunities. Supporting Economic Transformation, 45.

Zhang, C., Hu, M., Di Maio, F., Sprecher, B., Yang, X., & Tukker, A. (2018). An overview of the waste hierarchy framework for analyzing the circularity in construction and demolition waste management in Europe. Science of the Total Environment. https://doi.org/10.1016/j.scitotenv.2018.01.010

Zhu, Z. (2012). Decision-making, decision theory, decision-making software: Strategic choice theory. Strategic Management Journal.

Zidi, S., Hamani, N., & Kermad, L. (2022). Antecedents and enablers of supply chain reconfigurability and their effects on performance. The International Journal of Advanced Manufacturing Technology, 120, 3027-3043. https://doi.org/10.1007/s00170-022-08853-7


Refbacks

  • There are currently no refbacks.