Ecological Design Practice and Sustainable Performance of Multinational Tea Firms in Kenya

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.