Department of Business and Economics

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    RELATIONSHIP BETWEEN GREEN SUPPLY CHAIN PRACTICES AND SUSTAINABILITY OF TEA FACTORIES IN NYERI COUNTY, KENYA
    (KARATINA UNIVERSITY, 2024-09) THIRO, ELIZABETH WANGARE
    ABSTRACT The adoption of green supply chain management system is becoming more acceptable in most of the organizations. Despite the large number of businesses that understand the importance of Green Supply Chain Management in the wake of increasing environmental pollution, the number of firms that actually engage in such practices is significantly lower than expected and its sustainability is low. Many organizations have realized the benefit of sustainability in the management practices. This has led to the endeavors in innovative strategies such as the procurement procedures. Previous interventions have not helped organizations to reap the benefits of sustainability in their supply chain practices. The study target population was tea factories in Nyeri county. To achieve sustainability, green supply chain practices have been introduced as key activities targeting an enhancement to the procurement of their tea factories. This study’s main objective was to establish the relationship between green supply chain practices and sustainability of tea factories in Nyeri County, Kenya. The study specifically aimed to: determine the influence of reverse logistics on sustainability, establish the influence of green procurement on sustainability, to examine the influence of green packaging on sustainability and to establish the influence of waste management system on sustainability in tea factories in Kenya. This study was based on two theories; Supply Chain Management Theory and Logistics Management Theory. The study adopted a descriptive research design and the target population was a total of 65 management staff working in 5 Tea factories in Nyeri County, Kenya. The study applied purposive sampling technique to select; 1 functional manager, 6 supervisors, 5 sectional heads and 1 management trainee per each factory. The main data collection instruments were the questionnaires containing both open ended and close ended questions with the quantitative section of the instrument utilizing both a nominal and a Likert-type scale format. The study used primary and secondary data. A pilot study was carried out to test the reliability and validity of the questionnaires using Cronbach Alpha. Descriptive statistics data analysis method, inferential statistical tools such as correlation and linear regression was used to determine and explain variable relationship using Statically Package for Social Sciences version 23. The study findings are expected that it helped the management of tea factories, county government and the agriculture ministry in improving the sustainability in the tea industry in Kenya. The study findings revealed that the factories are using green packaging practices, factories use eco-designs packaging materials for the products it produces and tea factory obverses packaging re-cycle after procuring goods. The tea factory observes packaging re-use after procuring and they are using materials that can be recycled after use. However, company does not use materials that can be recycled and factories may be using some approved while others are using unproved materials. The waste management system affects sustainability, the factories have adopted alternative sources of transport apart from those that pollute the environment. There is need for the factories to recycle some products to reduce wastage and environment is clean. The study recommends that there is need to ensure that factories uses green procurement selection. There is need to use materials that not harmful to the environment. The factories should collaborate with suppliers to meet the environmental problems. There is need for the factories to use approved materials in their factories and they should materials that can be recycled later to avoid environment harm. The factories should adopt green packaging practices and also factories should use eco-designs packaging materials for the products it produces. There is need for the tea factories to put a system in place to treat hazardous wastes from tea factories such as electronics.
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    Influence of Youth Enterprise Development Fund Efficacy on the Financial Performance of Youth-Owned Enterprises in Kirinyaga County
    (Karatina University, 2018-10) Maina, Runyora Jackson
    Youth development funds play a great role in availing resources to the youth so that they can start their own enterprises with an aim of being self-reliant. The government of Kenya through the youth Enterprise Fund finances viable youth enterprises in the country. Despite the effort made by the government in provision of funds, the youth owned enterprises continue to perform poorly. The main objective of this study was to evaluate the influence of Youth Enterprise Development Fund efficacy on financial performance of youth owned enterprises in Kirinyaga County. Specific objectives were to determine how the, access to credit, loan repayments conditions, and financial literacy, financial planning relates to profitability of youth-initiated enterprises. The significance of the study is to generate knowledge and data on the influence of youth enterprise development, assist the policy makers and program implementers, useful to students in this field of business as the findings will form bankable empirical literature and also bring to the surface the efficacy of YEDF on enhancing performance of youth owned enterprises. Two main theories were used as a base for this study: permanent income theory and portfolio theory. The target population was 525, a sample size of 227 was chosen. Stratified sampling method was used to achieve a representative sample from the chosen geographical areas of the study. Data was analyzed on the SPSS software for both descriptive and inferential statistics. The chisquare test was done at 95% level of confidence and a significance level of 0.005. The findings showed a p-value of 0.11 for variable credit access; for the loan repayment was 0.134 the financial literacy variable had a p-value of 0.0185 and financial planning had a p-value of 0.0165. This indicated a significant association between all the independent and dependent variable. Data presentation was done using charts and tables. The recommendations are that there is need to enhance access to credit by the youth owned enterprises so there is enhanced efficacy on the financial performance of youth enterprises.
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    Influence of Youth Enterprise Development Fund Efficacy on the Financial Performance of Youth-Owned Enterprises in Kirinyaga County
    (Karatina University, 2018-10) Maina, Runyora Jackson
    Youth development funds play a great role in availing resources to the youth so that they can start their own enterprises with an aim of being self-reliant. The government of Kenya through the youth Enterprise Fund finances viable youth enterprises in the country. Despite the effort made by the government in provision of funds, the youth owned enterprises continue to perform poorly. The main objective of this study was to evaluate the influence of Youth Enterprise Development Fund efficacy on financial performance of youth owned enterprises in Kirinyaga County. Specific objectives were to determine how the, access to credit, loan repayments conditions, and financial literacy, financial planning relates to profitability of youth-initiated enterprises. The significance of the study is to generate knowledge and data on the influence of youth enterprise development, assist the policy makers and program implementers, useful to students in this field of business as the findings will form bankable empirical literature and also bring to the surface the efficacy of YEDF on enhancing performance of youth owned enterprises. Two main theories were used as a base for this study: permanent income theory and portfolio theory. The target population was 525, a sample size of 227 was chosen. Stratified sampling method was used to achieve a representative sample from the chosen geographical areas of the study. Data was analyzed on the SPSS software for both descriptive and inferential statistics. The chisquare test was done at 95% level of confidence and a significance level of 0.005. The findings showed a p-value of 0.11 for variable credit access; for the loan repayment was 0.134 the financial literacy variable had a p-value of 0.0185 and financial planning had a p-value of 0.0165. This indicated a significant association between all the independent and dependent variable. Data presentation was done using charts and tables. The recommendations are that there is need to enhance access to credit by the youth owned enterprises so there is enhanced efficacy on the financial performance of youth enterprises.
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    Influence of Non-Conventional Reporting on Sustainability Accounting in the Tea Sector in Mount Kenya Region
    (Karatina University, 2018-10) Sylvester, Onyango
    Conventional Accounting has continued to dominate the field of accounting among theorists, ideologists and practitioners for as long as the age of accounting. Emphasis has been laid in reporting of high profits that befit suppliers of capital and the shareholders of the organization. The focus on high profit means more scarce resources are drawn from the environment without due regard on social and environmental aspect of accounting except on economical aspect alone. Sustainable Development Goals and Kenya’s Vision 2030 advocate for concern to the environment. Some researchers have endeavored to demonstrate how accountancy need to respond to the social and environmental concerns beyond its traditional goal of profit maximization that singles out shareholders from the many stakeholders. However, these studies have been deficient in addressing the sustainability accounting from the point of stakeholder interests on social and environmental accounting and reporting supported by going concern concept and IAS1, 8, 16, 36 and 37. This study therefore aimed at establishing the influence of social reporting and environmental reporting on sustainability accounting in the tea sector in Kenya. Study objectives included establishing the relationship between methods of reporting; stakeholder interests in social accounting; stakeholder interests in environmental accounting; on sustainability accounting as moderated by the stakeholder knowledge on social and environmental accounting and reporting. These objectives built a conceptual model that was guided by shareholder theory, stakeholder theory and legitimacy theory on sustainable borrow-use-return model. The study adopted Mixed Methods Research of survey design. The target population comprised of the factory unit managers and accountants as the key informants, drawn from tea factories of Mount Kenya region. The sample was obtained by simple random and stratified sampling techniques. Questionnaire was the main data collection instrument which was tested in pilot study for reliability using Cronbach’s alpha and for validity using adjusted Kappa index. Other research instruments included interview schedule and observation list. Data analysis entailed simple binary and hierarchical multiple logistic regression analysis using SPSS. Study results was presented in frequencies, percentages and skewness for descriptive and binomial regression output for inferential statistic. The study found out that tea factories practice social activities and environmental activities that they incur costs which were treated as overhead costs and benefits were derived by tea factory in terms long term financial gains and by stakeholder in terms of social and environmental gains. The study also found that there was a statistically significant influence of methods of reporting, social reporting and environmental reporting, both individually and simultaneously, on sustainability accounting; but which was insignificantly moderated by stakeholder knowledge. The study findings were of significance to organizations’ strategies to respond to externalities which in accounting terms affect the organizations profits in the long run; also, expanding knowledge of social and environmental accounting. The study recommends tea factories adopt an integration of social reporting, environmental reporting and financial reporting with minimal focus on stakeholder knowledge while the academic field incorporate such reporting in scholarly research in order to strengthen sustainability accounting.
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    Determinants of Choice of Sustainability Strategies Adopted by Group Ranches in Samburu County, Kenya
    (Karatina University, 2018-10) Kithumbu, Eustace Njagi
    The purpose of this study was to identify, analyze and document determinants of the choice of sustainability strategies adopted by group ranches in Samburu County, Kenya. The concept of group ranches was introduced in Kenya to promote commercial ranching and to recognize, protect and register communal land rights. About five hundred, thirty nine group ranches were established. However, most of them dissolved and subdivided into individual land holdings within a short period.Numerous studies have been conducted on the establishment of group ranches, their dissolution and coping strategies. However, the aspect of sustainability and the choice of sustainability strategies adopted by group ranches have received little attention in these studies. This study visualized environmental, organizational, management and societal characteristics as the independent variables while the choice of sustainability strategies was the dependent variable. The general objective of the study was to examine determinants of the choice of sustainability strategies adopted by the group ranches in Samburu County, Kenya. The specific objectives were to: establish environmental characteristics determining the choice of sustainability strategies adopted by group ranches in Samburu County; assess organizational characteristics determining the choice of sustainability strategies adopted by the group ranches in Samburu County; identify societal characteristics determining the choice of sustainability strategies adopted by the group ranches in Samburu County and to find out management characteristics determining the choice of sustainability strategies adopted by the group ranches in Samburu County. The study adopted a descriptive survey research design employing the use of questionnaires, key informant interviews, focus group discussions and observation as primary data collection methods. The target population for the study was the 16,611 registered members in the 38 group ranches spread out in the County. The study sampled twelve group ranches with approximately 5,643 members from which 374 respondents were systematically sampled. Purposive sampling was used to select key informants and participants in the focus group discussions. The study adopted the multi-linear regression model to establish the relationship between variables. The study was guided by three theories: the Tragedy of the Commons Theory, Resource-Based View Theory and the Theory of Sustainable Livelihood. The research procedure began with a pilot study that was conducted to test the validity and reliability of the research instruments. Adjustments and recommendations from the pilot study were incorporated into the research instruments. The study found out that environmental, organizational, management and societal characteristics influenced the choice of sustainability strategies adopted by the group ranches in Samburu County to a great extent. The study established that the past experiences were the most significant factor influencing the choice of sustainability strategies, with a regression coefficient of 0.432. The Analysis of Variance (ANOVA) was used to test the hypotheses and p-values of 0.000 were obtained. The study concludes that environmental, organizational, societal and management factors determine the choice of sustainability strategies adopted by the group ranches in Samburu County. The study recommends consideration and integration of environmental, organizational, societal and management factors when formulating policies affecting the group ranches. The study also recommends change in the policy to allow individual land ownership within a group ranch without necessarily dissolving the group ranches.
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