MODERATING INFLUENCE OF FIRM CHARACTERISTICS ON THE RELATIONSHIP BETWEEN CORPORATE ENVIRONMENTAL RESPONSIBILITY AND PERFORMANCE OF LARGE MANUFACTURING FIRMS IN KENYA
Abstract
Statement of the Problem: Large Manufacturing firms are critical to the economic development of a nation and the wellbeing of its citizens. Most of the large manufacturing firms in Kenya have recently recorded a decline in performance.
Purpose of the Study: The purpose of this study was to determine the moderating influence of firm characteristics on the relationship between corporate environmental responsibility and performance of large manufacturing firms in Kenya.
Research Methodology: The target population was 499 large manufacturing firms in Kenya. Proportionate and stratified random sampling was used to select 84 manufacturing firms, from which 336 respondents were drawn. The study used descriptive and inferential statistics to analyze the results with help of SPSS version 28.
Findings: The results revealed that firm characteristics moderated the relationship between corporate environmental responsibility and the performance of large manufacturing firms, theoretically extending our understanding of how organizational attributes influence the environmental responsibility-performance relationship in developing economies.
Recommendations: The study recommends that large manufacturing firms in Kenya should adopt differentiated corporate environmental responsibility strategies based on their specific firm characteristics, as the research demonstrates that organizational attributes such as size, age, employee numbers, liquidity levels, and asset base fundamentally moderate the relationship between environmental practices and performance outcomes. Firms should conduct comprehensive assessments of their internal capabilities and resources before implementing environmental responsibility initiatives, recognizing that larger and older firms may have different implementation advantages and challenges compared to smaller or newer organizations in areas such as energy efficiency investments, environmental impact assessments, and regulatory compliance systems.
Keywords: Firm characteristics, corporate environmental responsibility, performance, manufacturing firms, Kenya
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