GREEN INNOVATION AND ENVIRONMENTAL PERFORMANCE IN PLASTIC RECYCLING: EVIDENCE FROM ECOPOST LTD, NAIROBI, KENYA
Abstract
Purpose of the study: To examine whether cleaner production technologies significantly influence the Recycling and Reuse Rate (%) at Eco Post Ltd, a plastic recycling MSME in Nairobi, Kenya, while assessing the moderating role of policy and regulatory support.
Short introduction of problem statement: The increasing accumulation of plastic waste has intensified the need for firms to integrate sustainability into their operations. However, despite growing theoretical evidence linking green innovation to environmental performance, there is limited firm-level empirical evidence on this relationship, particularly among micro, small, and medium enterprises (MSMEs) in developing economies.
Method/methodology: The study adopted a quantitative explanatory research design grounded in the Natural Resource-Based View (NRBV) and the Porter Hypothesis. Data were collected using structured questionnaires and 12 months of operational production records from a purposively sampled population of 60 respondents at Eco Post Ltd. Pearson correlation, multiple regression, and moderated regression analyses were used to test the study hypotheses.
Results of the study: The findings revealed that cleaner production technologies have a statistically significant positive effect on recycling and reuse performance (β = 0.31, p = 0.002). Waste management practices and eco-design also demonstrated strong positive effects on recycling performance. Additionally, policy and regulatory support significantly moderated the relationship between green innovation practices and recycling performance.
Conclusion and policy recommendation: The study concludes that cleaner production technologies and other green innovation practices significantly enhance recycling performance in plastic recycling MSMEs. The findings support both the Natural Resource-Based View and the Porter Hypothesis within a developing economy context. The study recommends that managers invest in cleaner production technologies and eco-innovation initiatives, while policymakers strengthen supportive environmental policies and regulatory frameworks to accelerate the transition toward a circular economy and improve sustainable waste management practices in sub-Saharan Africa.
Keywords: Cleaner production technologies, Green innovation, Recycling and reuse rate, MSMEs, circular economy, Natural Resource-Based View, Porter Hypothesis
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