Green Product Practices and Performance of Food and Beverage Manufacturing Firms in Kenya

This study examines the effect of green product practices on the performance of food and beverage manufacturing firms in Kenya. The study was anchored on the Natural Resource-Based View and the Stakeholder Theory. The theoretical framework explains the relationship between green product practices and firm performance. The target population was 192 food and beverage manufacturing firms registered by the Kenya Association of Manufacturers. A census was conducted since the target population was relatively small. A cross-sectional survey design was adopted, and data were collected using structured questionnaires from heads of marketing as the respondents in the respective firms. The study response rate was 164 food and beverage manufacturing firms in Kenya, representing 85.4%. Data were analysed using descriptive and inferential statistical techniques. The null hypotheses tested were rejected since the p-value was less than the 5% significance level. The findings showed that green product practices had a positive and significant effect on the financial and non-financial performance of the firms. The study concluded that green product practices are a significant determinant of financial and non-financial performance. This signifies green product practices as eco-friendly initiatives with economic gains. The study provides new empirical findings that can add value to the body of knowledge. The study recommendations urge marketing managers of listed firms to build a strong case for sustainability, where the green products strategy is incorporated into the main business strategy of the firms for financial and non-financial benefits associated with the green product strategy. Further, the study recommends that policymakers provide incentives to support the implementation of green product practices across the manufacturing sector.