Green Process Innovation Strategies and Environmental Sustainability among Manufacturing Firms: The Mediating Role of Green Supply Chain Management

Abstract

Environmental sustainability has become a critical concern for manufacturing firms due to increasing pressure to reduce carbon emissions, industrial waste, and inefficient resource utilization. In Kenya's South Rift region, manufacturing industries play a significant role in economic development but continue to contribute substantially to environmental degradation. Despite growing regulatory requirements and stakeholder expectations, empirical evidence on how green process innovation enhances environmental sustainability remains limited, particularly regarding the role of green supply chain management. This study examined the mediating effect of green supply chain management on the relationship between green process innovation and environmental sustainability among manufacturing firms in the South Rift region of Kenya. Guided by Innovation Theory of Diffusion. The study adopted a positivist philosophy and a cross-sectional causal research design. Data were collected using structured questionnaires from 162 senior managers drawn from 81 registered manufacturing firms. The data were analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings indicate that green process innovation significantly improves environmental sustainability through enhanced resource efficiency, waste reduction, and emission control. Furthermore, green supply chain management significantly strengthens the relationship between green process innovation and environmental sustainability (β = 0.224, p < 0.05), suggesting that cleaner production technologies generate stronger environmental outcomes when integrated with environmentally responsible procurement, manufacturing, and logistics practices. The study concludes that manufacturing firms can achieve superior environmental performance by aligning internal green process innovations with supply chain sustainability initiatives. The study recommends that managers invest in cleaner production technologies and integrate green supply chain practices to accelerate sustainable industrial development.