ENVIRONMENTAL AWARENESS AND PERFORMANCE OF LARGE MANUFACTURING FIRMS IN KENYA
Abstract
Statement of the Problem: Large manufacturing firms are critical to economic development but have recently recorded declining performance in Kenya.
Purpose of the Study: The specific objective of the study was to evaluate how environmental awareness influences firm performance, anchored in need chain theory which emphasizes the interconnection between organizational, societal, and individual needs.
Research Methodology: The study applied a mixed research design combining qualitative and quantitative approaches. The target population comprised 499 large manufacturing firms from the Kenya Association of Manufacturers directory. Proportionate and stratified random sampling was used to select 84 manufacturing firms, from which 336 managers were drawn as respondents. Data analysis employed SPSS version 28 for descriptive and inferential statistics including correlation and regression analysis.
Findings: The study found a strong positive relationship between environmental awareness and firm performance (r = .702, p = 0.000), with environmental awareness explaining 49.3% of the variation in performance. The regression coefficient (β = 0.751, p = 0.000) indicated that for every one-unit increase in environmental awareness activities, performance increases by 0.751 units. Environmental awareness positively influences performance by improving stakeholder relationships, market positioning, reducing information asymmetry, and enhancing operational efficiencies through training programs, stakeholder education, and environmental information disclosure.
Conclusion: The study concluded that environmental awareness serves as a strategic tool for competitive advantage creation in manufacturing contexts.
Recommendations: The study recommends that large manufacturing firms should implement comprehensive environmental awareness practices including employee training programs, stakeholder education initiatives, and systematic information disclosure mechanisms. Policymakers should cement environmental awareness practices in formal policy frameworks and establish mandatory training requirements and disclosure standards for consistent sector-wide implementation. Further research should explore these relationships across different industrial contexts, firm sizes, and investigate additional moderating variables such as technological capability and management commitment.
Keywords: Environmental awareness, performance, manufacturing firms, Kenya
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