Abstract
The food and beverage manufacturing industry plays a vital role in promoting food security, value addition, employment creation, and economic growth. However, the sector continues to face increasing challenges associated with waste generation, disposal of end-of-life products, and environmental sustainability. Reverse logistics has emerged as an important strategy for improving resource utilization and enhancing organizational performance through sustainable waste management practices. This study examined the effect of reverse logistics practices on the performance of food and beverage manufacturing firms in Nairobi City County, Kenya, with particular focus on recycling practices and disposal management. Specifically, the study assessed the effect of recycling practices and disposal management on firm performance. The study was anchored on the Closed-Loop Supply Chain Theory and Transaction Cost Economics Theory. The study adopted a descriptive research design. The unit of analysis comprised food and beverage manufacturing firms operating in Nairobi City County, while the unit of observation consisted of heads of supply chain, logistics, and procurement departments. A sample of 144 respondents was selected using stratified random sampling. Both primary and secondary data were collected. Primary data were obtained using semi-structured questionnaires, whereas secondary data were sourced from company reports and relevant industry publications. Qualitative data were analyzed using thematic analysis, while quantitative data were analyzed using descriptive and inferential statistics with the aid of Statistical Package for the Social Sciences (SPSS) Version 28. The findings revealed that recycling practices have a positive and statistically significant effect on the performance of food and beverage manufacturing firms. Similarly, disposal management was found to have a positive and significant influence on firm performance. The study concludes that effective implementation of recycling and environmentally responsible disposal management practices enhances operational efficiency, environmental sustainability, and overall organizational performance. The study recommends that food and beverage manufacturing firms strengthen recycling initiatives by investing in waste segregation, material recovery, and resource reuse systems. In addition, firms should adopt environmentally sustainable disposal management practices that minimize landfill disposal, promote compliance with environmental regulations, and improve long-term organizational performance.
Keywords: Reverse logistics, recycling practices, disposal management, firm performance, food and beverage manufacturing firms, Nairobi City County, Kenya.