Effects of Sustainable Logistics Practices on Operational Performance of Public Sugar Manufacturing Companies in Western and Nyanza Regions

The operational performance of public-owned sugar manufacturing companies in Kenya remains critically low despite recent improvements in overall national sugar production. The sugar industry in Western and Nyanza Regions faces several performance issues that hinder its efficiency and profitability. Operational, logistical and financial challenges are the major performance issues that have been identified. This has been accentuated by the fact that the government has imported sugar to bridge the deficit that was being experienced there by affecting operational performance of the companies. The broad objective of the study was to evaluate the effect of sustainable logistic practices on operational performance of sugar manufacturing companies in Western and Nyanza Regions, Kenya. Specific objectives were: to determine the effect of efficient warehousing on operational performance of public sugar manufacturing companies in Western and Nyanza Regions; to evaluate the effect of supply chain optimization on operational performance of public sugar manufacturing companies in Western and Nyanza Regions; to determine the effect of technology innovation on operational performance of public sugar manufacturing companies in Western and Nyanza Regions; and to determine the moderating effect of institutional factors on the relationship between sustainable logistic practices and operational performance of sugar manufacturing companies in Western and Nyanza Regions, Kenya. The study was anchored on institutional theory, stakeholder theory and systems theory. Explanatory research design was applied. From a population of 379 and using stratified sampling techniques the study arrived at 194 as the sample size using Yamane formula. Structured questionnaires were used since it provides quantitative data. Piloting study was done in Miwani Sugar Company and it was not considered for final data collection. Quantitative analysis included descriptive statistics (frequency, percentages, mean, and standard deviation) and inferential statistics which were correlational analysis and regression analysis. Ethical considerations were done. The research was valuable to the researchers, sugar companies, government bodies and policymakers. Efficient warehousing emerged to be statistically significant and that it predicts operational performance. Efficient warehousing significantly improves operational performance through optimized space utilization, inventory management, and continuous improvement initiatives. Findings showed that supply chain optimization positively influences operational performance by enhancing procurement planning, vendor relationships, and inventory tracking. Results revealed that technology innovation significantly boosts operational performance by increasing automation, digital inventory systems, and real-time tracking. Results showed that institutional factors such as leadership, budget alignment, and human resource practices significantly moderate and amplify the impact of sustainable logistics practices on operational performance. Results indicated that operational performance is strengthened by effective cost management, production efficiency, quality control and customer satisfaction initiatives. The study concluded that efficient warehousing, supply chain optimization and technology innovation has statistically significant effect on operational performance of public sugar manufacturing companies in Western and Nyanza Regions. Equally, the study concluded that institutional factors have statistically significant moderating effect on the relationship between sustainable logistics practices and operational performance of sugar manufacturing firms in Western and Nyanza Regions. The study recommends improvement in warehousing, supply chain optimization and technology innovation across the sugar manufacturing industry.