Association Between Reverse Logistics and Performance of General Plastics Limited in Kenya
Abstract/ Overview
Reverse logistics is imperative for this industry for Plastics are not easy to decompose.
Arguments and studies done in the field of reverse logistics and its association with
organizational performance on the subject of reverse logistics focused more on the developed
countries and those done in Kenya looked at other aspects of performance like supply chain
performance, organizational effectiveness, ignoring the organizational performance in plastic
industry. Such studies are however deficient and fail to address comprehensively how reverse
logistics specifically reuse, remanufacturing and recycling directly impact on performance of the
General Plastic industry. The purpose of this study was to examine the association between
reverse logistics and organizational performance. The study sought to establish the association
between remanufacturing and organizational performance, to examine the association between
recycling and organizational performance and to determine association between reuse and
organizational performance at General Plastics Limited. The study was guided by a conceptual
framework with independent variable as reverse logistics and dependent variable as
organizational performance. The target population for the study was 900 and sample size of 269
employees. Stratified random sampling was used to draw respondents in the sample. Descriptive
statistics and correlation models were used to analyse data. The study revealed a positive and
significant association between remanufacturing and organizations performance with the highest
significant association existing between training of employees with a correlation coefficient of
(r=.755, P=.002<.05). The study further revealed a positive and significant association between
recycling and performance with the highest association existing between ensuring used goods
and packages are returned to the suppliers and performance with a correlation coefficient of
(r=.770, P=O.OOI<.05). :rhe study moreover revealed a positive and significant association
between reuse and organizations performance with the highest significant association existing
between designing products that can be put into reuse and performance with a correlation
coefficient of (r=.942, P=0.002<.05). The study therefore concluded that reverse logistics
practises all have positive and significant association with performance although at differing
extents. The study recommends that the firm should train its employees more on reverse logistics
practices, ensure used goods and packages are returned to the supplier and design product that
can be put into reuse after their first use to improve its performance.