Effects of Reverse Logistics Practices on the Performance of 4 and 5 Star-Rated Hotels in Nairobi County, Kenya
Keywords:
Reverse logistics, Reuse, Recycle, Remanufacturing, Performance, Green Supply Chain PracticesAbstract
Performance is key to hospitality firms. Reverse logistics practices can contribute to firm performance. However, empirical evidence regarding the effects of the reverse logistics on organizational performance in the hospitality industry is limited especially in developing economies such as Kenya. This study therefore examined the effect of reverse logistics practices on the performance of 4 and 5 star rated hotels in Nairobi County. The study was anchored by natural resource-based view theory and the balanced score card model. The study adopted a pragmatic research paradigm and employed a convergent mixed-methods design. The sample size was 273 respondents. Reliability and validity were confirmed, with all constructs recording Cronbach’s alpha values above 0.8 and Average Variance Extracted (AVE) values above 0.5. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to analyze both formative and reflective constructs. Reverse logistics practices showed a positive and statistically significant effect on performance (β = 0.22, p < 0.001). The qualitative findings showed that hotels actively integrated reverse logistics and circular economy principles into their operations The study concluded that reverse logistics practices contributed to the performance outcomes of hospitality firms. The study recommends that hospitality organizations need to put in place policies and practices that promote reverse logistics practices so as to realize positive performance outcomes. The study contributes to the NRBV theory by demonstrating that reverse logistics practices can function as an organizational capability that enables hotels to convert environmental resources and waste streams into performance enhancing outcomes.
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