Effect of Circular Supply Chain Practices on Organizational Performance of the Dairy Manufacturing Sector in Kiambu County: A Case of Githunguri Dairy Farmers’ Cooperative Society, Kenya

Purpose: With a focus on waste management, product lifecycle management, and sustainable practices, this study examines how organizational performance is affected by circular supply chain activities in the dairy manufacturing sector. This study aims to provide empirical evidence on how these environmentally driven strategies influence cost/finance efficiency, market competitiveness, and environmental compliance since these are the leading performance indicators. Methodology: The research adopted a descriptive survey design targeting senior management personnel, including managers, assistant managers, and senior supervisors. A census approach was used to target all 91 senior employees for data collection. Both descriptive and inferential statistics were used to analyze the data. Results: The result showed that circular supply chain practices significantly affected the performance of dairy manufacturing organizations in Kiambu County. The regression model showed organizational performance increased by 7.6% when waste management practices increased, 21.8% with a unit increase in product lifecycle management practices and 18.5% with a unit increase in eco-friendly products and practices. The models yielded an R² of 54.3%, indicating that circular supply chain practices collectively explain 54.3% of the variation in organizational performance. Among the independent variables, product lifecycle management contributed the most (21.8% impact), followed by eco-friendly practices (18.5%) and waste management (7.6%). Unique Contribution to Theory and Practice: This research has a unique contribution to practice as it provides an empirical link between circular waste management, product lifecycle management and eco-friendly practices to performance. The findings extend Zero Waste Theory, Cradle-to-Cradle Theory, and Eco-Design Theory, demonstrating that structured circular practices have a significant effect on financial and market success. At the policy level, there is evidence based on research advocating for environmental standards at an industrial level, regulatory-based incentives such as tax breaks, and circular sustainability funds grants for expedited implementation of circular supply chains. The findings offer a data-driven roadmap for manufacturers, emphasizing the business case infusing circularity into their supply chain operations. The study offers a novel contribution to circular supply chain research by linking circular waste management, product lifecycle optimization and eco-friendly practices directly to business performance outcomes. Its findings offer a sound theoretical foundation for subsequent research, unambiguous policy directions for building circularity, and actionable strategies for supply chain managers who are ready to inject circularity into their supply chains and manufacturing operations. Originality/Value: This study bridges the gap between circular practices and business performance results by adding to the little corpus of empirical research on circular supply chains in Kenya's dairy manufacturing industry.