Abstract:
Performance of firms has remained a global issue based on changes in climate and global warming
among others. This issue has forced countries to adopt green strategies so as to reduce the effect of climate
change on business sustainability. Climate change affect agricultural-processing firms directly leading to poor
performance. Environmental regulation is one of the green supply chain practices introduced to businesses as a
measure to solving problem of sustainable performance. This study aimed at determining the relationship
between environmental regulation and sustainable performance of multinational tea firms in Kenya.The study
was anchored on sustainable and institutional theories. Correlational and cross-sectional research design was
adopted. A sample of 225 managers were selected using 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. Content, face, criterion and construct validity of the instrument was
achieved through interrogation of instrument by supervisors and experts. Reliability was examined using
Cronbach Alpha coefficient where a score of 0.801 was realised. Linear regression and correlation analysis were
used in establish coefficient of determination and correlation coefficient. The R squared value showed that
environmental regulation had no impact on sustainable firm performance (R2
= 0.000, F=.034; p>0.05), this
indicates that sustainable firm performance was not attributable to environmental regulation. Implying that
whenever multinational tea firms invested on environmental regulation as a green supply chain practice there
was no impact on their sustainable performance. The study recommends that multinational tea firms in Kenya
should establish why this practice is not impacting on performance as expected. The findings may be beneficial
to the tea industry players, policy makers, scholars, the general public as well as the county and national
governments as it will give them necessary information that may assist in developing sustainable performance
strategies in the tea sector.
