Influence of Green Product Selection Practice on Organizational Performance of Manufacturing Firms in Nairobi County

Abstract

Manufacturing firms in Nairobi County would operate with a strong organizational performance achieving high productivity, efficiency, profitability, and quality standards through green product selection practices. A strong organizational culture supports these practices, fostering employee engagement, innovation, and environmental sustainability. However, the sector faces challenges such as limited technical efficiency, declining GDP contribution, and reduced market share. Despite contributing 17.30% of total tax revenue, the sector's technical efficiency is lower. Therefore, the main objective of this study was to establish the influence of green product selection practice on organizational performance of manufacturing firms in Nairobi County. This study was guided by Ecological Modernization theory. This study utilized an explanatory research design. The study targeted 554 procurement managers of all manufacturing companies in Nairobi County. The researcher obtained sample size of 232 respondents using Yamane formulae. The study used stratified random sampling technique to select respondents from manufacturing companies. These research study used structured questionnaires to collect data. Pre-testing of research instruments was achieved through pilot study in manufacturing companies in Nakuru County which have similar characteristics as manufacturing companies in Nairobi County. This assisted in testing for reliability and validity of the research instruments. Collected data was analysed using both descriptive and inferential statistics with the aid of Statistical Package for Social Science (SPSS) version 25. Descriptive statistics included frequency, means, minimum, maximum and standard deviation. Inferential statistics included correlation and regressions models. The study findings revealed that green product selection practice (β1=0.165, p=0.002) had a positive and significant effect on organizational performance of manufacturing firms in Nairobi County. The study concluded that integrating green product selection, enhances manufacturing firms’ performance, cost-effectiveness, and market competitiveness while advancing their environmental and social responsibilities. The study recommends that firms develop a strong sustainability-focused culture, integrate green product, engage with environmental policies and certifications to maximize sustainability performance.