INFLUENCE OF ENVIRONMENTALLY SUSTAINABLE SUPPLY CHAIN PRACTICE ON OPERATIONAL PERFORMANCE OF HOTELS IN KENYA:A CASE OF FIVE-STAR HOTELS IN NAIROBI COUNTY
Abstract
Purpose: This study examined the influence of environmentally sustainable supply chain practice on the operational performance of five-star hotels in Nairobi County, Kenya.
Problem Statement: Environmental sustainability has become a strategic priority in the hospitality industry due to increasing regulatory pressures and heightened environmental awareness. Hotels are increasingly compelled to integrate sustainable practices within their supply chains to reduce environmental impacts, enhance efficiency, and support long-term competitiveness.
Methodology: The study adopted a descriptive-survey research design. The target population consisted of procurement and supply chain professionals and employees from hotel operations departments drawn from 21 five-star hotels in Nairobi County, giving a total target population of 84 respondents. Census sampling was adopted, and primary data were collected using structured questionnaires administered through a drop-and-pick method. Instrument reliability was assessed using Cronbach’s alpha, while face validity was established through expert review. Data were analyzed using descriptive and inferential statistics with the aid of Statistical Package for Social Sciences (SPSS) version 31. Diagnostic tests confirmed that the assumptions of linear regression were satisfied, including linearity, normality, and absence of multicollinearity.
Results: A response rate of 71.42% was achieved. Descriptive results indicated moderate adoption of environmentally sustainable supply chain practice (M = 3.51, SD = 0.70). Pearson correlation analysis revealed a moderate and statistically significant positive relationship between environmentally sustainable supply chain practice and operational performance (r = .522, p < .001). Regression analysis further demonstrated that environmentally sustainable supply chain practice significantly predicted operational performance (β = .522, p < .001). The regression model explained 27.3% of the variance in operational performance (R² = .273). The findings suggest that practices such as green procurement, sustainable packaging, waste reduction, resource conservation, and environmentally responsible supply chain activities are associated with improved operational outcomes.
Conclusion: The study concludes that environmental sustainability practices such as green procurement, waste reduction, energy efficiency, environmentally friendly packaging, and compliance with environmental regulations positively contribute to operational efficiency, effectiveness, and productivity in five-star hotels.
Recommendations: The study recommends that hotel management strengthen environmental sustainability initiatives through enhanced green procurement policies, supplier environmental compliance assessment, and investment in sustainable operational technologies.
Keywords: Environmental Sustainability, Environmentally Sustainable Supply Chain Practice, Operational Performance, Five-star hotels, Nairobi County
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