Abstract:
The performance of firms has remained a global issue based on climate
change that has caused global warming. Most countries have adopted green
strategies so as to reduce the effects of climate change on business
sustainability. Climate change affects agricultural-processing firms directly,
leading to poor performance. Ecological design is one of the concepts
introduced by businesses as a measure of solving the problem of sustainable
performance. This study aimed to determine the relationship between green
ecological design and the sustainable performance of multinational tea firms
in Kenya. The study was anchored on ecological, sustainable, and
institutional theories. Correlational and cross-sectional research designs were
adopted. A sample of 225 managers was selected using a stratified sampling
technique from a target population of 512 from the three multinational tea
firms of James Finlay, George Williamson and Ekaterra with primary data
being collected using a questionnaire. The content, face, criterion, and
construct validity of the instrument were achieved through interrogation of
the instrument by supervisors and experts. Reliability was examined using
the Cronbach Alpha coefficient, where a score of 0.801 was realised. Linear
regression and correlation analysis were used to establish the coefficient of
determination and correlation coefficient. The results of the study established
that there was a significant but weak (R2 = 0.034, F = 7.411; p<0.05)
relationship between eco-design and sustainable performance, implying that
whenever multinational tea firms invested in eco-design as a green supply
chain practice, there was adequate improvement on their sustainable
performance. The study recommends that multinational tea firms in Kenya
should put resources into the development of eco-design methods. The
findings of this study are expected to baseline information that may assist in
developing sustainable performance strategies in the tea sector.