INFLUENCE OF PRODUCT UPSTREAM MOVEMENT ON PERFORMANCE OF FOOD AND BEVERAGE MANUFACTURING FIRMS IN KENYA

Rahab Warukira Maina, Dr. Nelson Lambaino

Abstract


The purpose of the study was to assess the influence of product upstream movement on performance of food and beverage manufacturing firms in Kenya with an aim of making recommendations on proper use of product upstream movement management practices in manufacturing companies. The study aimed to establish how product returns management, recycling management, influence performance of food and beverage manufacturing firms. To achieve this, the researcher reviewed both theoretical and empirical literature and then proposed the research methodology that addressed the gaps identified in literature as well as answer the stipulated research questions. This research study adopted a descriptive research design approach. The researcher preferred this method because it allowed an in-depth study of the subject. The target population was heads of procurement in the food and beverage manufacturing firms in Kenya. Using Crochan’s formula a sample of 132 food and beverage manufacturing firms was arrived at out of a total of 197 food and beverage manufacturing firms. This study used probability sampling since the population and location of food and beverage manufacturing firms is known. Specifically, the study used stratified random sampling in order to account for the uneven distribution of firms in various towns. Based on distribution of firms in the 10 towns the study used proportions calculated in the population distribution to come up with a representative sample distribution. The proportions calculated give the number of firms to be included in the sample for each segment. Thereafter simple random sampling was used to select the names of food and beverage manufacturing firms in which data is to be collected. The study combined two methods in its data collection that is, questionnaires and key informant interviews. After data collection, quantitative data was coded using Statistical Package for Social Science (SPSS) version 20. Data was analyzed through descriptive statistical methods such as means, standard deviation, frequencies and percentage. Inferential analyses were used in relation to correlation analysis and regression analysis to test the relationship between the four explanatory variables and the explained variable. The response rate of the study was 92%. The findings of the study indicated that product returns management, recycling management, have a positive relationship with performance of food and beverage manufacturing firms in Kenya. Finally, the study recommended that food and beverage manufacturing firms should embrace product upstream movement so as to improve performance and further researches should to be carried out in other sectors to find out if the same results can be obtained..

 

Keywords

Product upstream movement, product returns management, recycling management

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