GREEN LOGISTICS PRACTICES AND FIRM PERFORMANCE: THE MEDIATING EFFECT OF ENVIRONMENTAL PERFORMANCE AMONG LOGISTICS FIRMS IN KENYA

Objective: The objective of this study was to determine the effect of green logistics practices on performance and mediating effect of environmental performance on this relationship in logistics companies in Kenya. Theoretical Framework: This study is anchored on the resource-based view and the natural resource-based view. Method: The study employs cross-sectional survey research design. A structured questionnaire is used to collect data from a sample of 300 firms which is analyzed using CB-SEM. Results and Discussion: Study establishes a significant positive relationship between green logistics practices and performance which is in line with the argument of the natural resource-based view. Secondly, the mediating effect of environmental performance on the relationship between green logistics practices and firm performance is found to be non-significant. Research Implications: The study recommends that logistics firms should implement environment-friendly practices of green packaging, route optimization, fuel efficiency, carbon emission measurement and reverse logistics. The expenses associated with implementing these practices impede the firm’s ability to improve performance in the context of a developing country. The findings provide a basis for the development regulatory framework in pursuit of environmental sustainability. Originality/Value: Research on ecological sustainability has mainly concentrated on the entire supply chain. This study concentrates on the logistics aspect which is responsible for a quarter of emissions of Green House Gases (CHGs). The research employs a measurement model of green logistics practices construct in the service sector hence moving away from the manufacturing organizations.