INFLUENCE OF SUPPLY CHAIN MANAGEMENT PRACTICES ON THE PERFORMANCE OF FAST MOVING MANUFACTURING FIRMS IN NAIROBI CITY COUNTY, KENYA
Abstract
This study sought to identify the influence of supply chain management practices on the performance of fast moving goods manufacturers in Nairobi County, Kenya. Additionally, the study aimed to identify the influence of supply chain elements such as purchasing, distribution, operation, and integration on the performance of fast moving manufacturing firms. The study used descriptive survey design and the target population was 51 fast moving goods manufacturers in Nairobi County, Kenya. Primary data was collected by use of structured questionnaires through drop and pick method. The research instrument generated quantitative data, which was analyzed by the use of descriptive and inferential statistics. Purchasing had a positive influence on the performance of fast moving goods manufacturers in Nairobi County (β1=0.521, p-value=0.000). Secondly, distribution had a positive influence with (β2=0.345, p-value=0.001). Additionally, operation indicated a (β3=0.260, p- value=0.004). Finally, the model indicated that integration had a weak positive influence on the performance of fast moving goods manufacturers (β3=0.123, p- value=0.019). The r-squared in this study was 0.767, which implied that the four independent variables explained up to 76.7% of the dependent variable. F-critical was (2.606). The study concluded that fast moving manufacturing companies in Nairobi County were using supply chains management practices such as purchasing, distribution, operations, and integration. The study also concluded that supply chain management practices had a significant influence on the performance of manufacturers in Nairobi County. The study found that fast-moving manufacturers companies did not exchange information that helped establish business planning and did not share proprietary information with suppliers through an effective integration system. In addition, fast moving goods manufacturing companies did not achieve effective purchasing practices due to lack of evaluating their suppliers frequently and had no compatible communication and information system with their supplier.
Key Words: purchasing, distribution, operation, integration, manufacturing firms
CITATION: Njuguna, P., & Moronge, M. (2019). Influence of supply chain management practices on the performance of fast moving manufacturing firms in Nairobi City County, Kenya. The Strategic Journal of Business & Change Management, 6 (3), 679 – 693.
Full Text:
PDFReferences
Al-abdallah, g. M., Abdallah, A. B., & Hamdan, K. B. (2014). The impact of supplier relationship management on the competitive performance of manufacturing firms. International Journal of Business and Management, 9(2), 192.
Amarnath, S. (2013). Financing the agricultural value chain basic experiences. Retrieved on October 9, 2018, from http://www.ruralfinanceandinvestment.org
Apte, a. (2010). Humanitarian logistics: A new field of research and action. Foundations and trends (r) in Technology, Information and Operations Management. New York: now published inc.
Bag, s. (2012). World-class procurement practices and its impact on firm performance: A selected case study of an indian manufacturing firm. Journal of Supply Chain Management Systems, 1(3), 27.
Barna, I., & Peto, a. (2015). Research methodology. In political justice in budapest after world war II (pp. 27-44). Central European University Press. Retrieved on January 22, 2019, from http://www.jstor.org/stable/10.7829/j.ctt14qrxwt.7
Beamon, B. M. & Kotleba, S. A. (2017). Inventory modeling for complex emergencies in humanitarian relief operations. International Journal Of Logistics: Research and Applications, 9, 1-18.
Beamon, B. M. (2014): Measuring supply chain performance. International journal of operations & production management, 19(3), 275–292.
Bhattacherjee, A. (2012). Social science research: principles, methods, and practices. New York: Free Press.
Brierley, s. (2012). The advertising handbook, 2nd Ed. New delhi: routledge publishers bryman, a. (2003). Integrating quantitative and qualitative research: how is it done?‟ qualitative california: university of california press. Retrieved on 21 july, 2018 from
Casciaro, T., & Piskorski, M. (2014). Power imbalance, mutual dependence, and constraint absorption: a closer look at resource dependence theory. Administrative Science Quarterly, 50(2), 167-199. Retrieved on january 21, 2019, from http://www.jstor.org/stable/30037190
Chimwani, B. I., Iravo, M. A., & Tirimba, O. I. (2014). Factors influencing procurement performance in the Kenyan public sector: case study of the state law office. International Journal of Innovation and Applied Studies, 9(4), 1626.
Cochran, d. (2016). The production system design and deployment framework. Sae transactions, 108, 980-988. Retrieved on January 21, 2019, from http://www.jstor.org/stable/44650707
Cooper, d. R., & schindler, P. S. (2016). Business research methods. New delhi: Tata Mcgraw Hill.
Creswell, j.w. (2014). Research design. Qualitative, quantitative, and mixed methods approaches. Thousand oaks CA: Sage.
Dahiya, D., Gupta, M., & Jain, P. (2012). Enterprise knowledge management system: a multi-agent perspective. Information Systems, Technology, and Management, 285(4), 271-281.
Darian-smith, e., & mccarty, p. (2017). Global research design. In the global turn:
Gok. (2011). Agricultural sector development support program. Government of Kenya, Ministry of Agriculture. Nairobi: Published by ministry of agriculture.
Haddad, w., chellaboina, v., & nersesov, s. (2012). Dynamical system theory. In thermodynamics: a dynamical systems approach (pp. 17-44). Princeton university press. Retrieved on January 21, 2019, from http://www.jstor.org/stable/j.ctt7s1k3.5
Heinze, U. (2013). System theory as global sociology-Japanese ramifications of parsonian and luhmannian thought. The American sociologist, 44(1), 54-75. Retrieved on January 21, 2019, from http://www.jstor.org/stable/42635347
Kemunto, D. (2014). Influence of strategic buyer supplier alliance on procurement performance in private manufacturing organization: a case of glaxo smithkline. European journal of business management, 2(1), 336-341.
Kepher, A, B., Shalle, I. N., & Oduma, E. (2015). Role of supplier management on procurement performance in the manufacturing sector in Kenya: a case of east African breweries, Kenya. International journal of social science and humanities research, 3(4), 540-555.
Kirande, J. (2014). Determinants affecting public procurement performance in Kenyan universities: a case of the co-operative university college of Kenya. International Academic Journals, 1(1), 104-123.
Kitheka, s. M. (2013). The effect of supplier quality management on organizational performance: a survey of supermarkets in Kakamega town. International Journal of Business and Commerce, 3(1), 71-82.
Kulzy, w., & Fricker, R. (2015). The survey process: with an emphasis on survey data
Lai, r. (2013). Assessing lean management. In operations forensics: business performance analysis using operations measures and tools (pp. 123-136). Mit press. Retrieved on January 21, 2019, from http://www.jstor.org/stable/j.ctt5hhcd8.14
Lambert, D. (2016). Supply chain management. Processes, partnerships, performance (3rd ed.). Usa: the hartley press inc.
Macharia, P. N., & Ochiri, g. (2014). Effect of e-procurement implementation on the performance of hospitality training institution in Kenya: case of Kenya Utalii College. Nairobi County. European Journal of Business Management, 2(1), 336-341.
Mungai, P. M. (2014). Influence of supplier appraisal on procurement performance in the real estate industry in Kenya: a case study of international house ltd. International journal of operations and logistics management, 3(3), 250-262.
Mutai, k., & Okello, B. (2016). Effects of supplier evaluation on procurement performance of public universities in Kenya. International journal of economics, finance and management sciences, 4(3): 98-106. New York: free press.
Nienhüser, W. (2015). Resource dependence theory - how well does it explain behavior of organizations? Management revue, 19 (1/2), 9-32. Retrieved on January 21, 2019, from http://www.jstor.org/stable/41783569
Porter, m. (2010). Competitive strategy: techniques for analyzing industries and competitor.
Price, g. (2012). The theory of integration. Transactions of the American mathematical society, 47(1), 1-50.
Rots, v. (2010). Research methodology. In prehension and hafting traces on flint tools: a methodology (pp. 7-36). Leuven university press. Retrieved on January 22, 2019, from http://www.jstor.org/stable/j.ctt9qf05s.9
Shapiro, j. (2015). Modeling the supply chain (2nd ed.). Cengage, USA: Cengage learning.
Sharma, a. & arya, v. (2016). Inventory management in manufacturing industry. International Journal of Advanced Engineering and Global Technology, 4(3), 2012-2021.
Shaw, l. (2011). System theory. Science, 149(3687), 1005-1005. Retrieved on January 21, 2019, from http://www.jstor.org/stable/1716634
Silver, E. (2017). Inventory management: a tutorial, Canadian publications, practical applications and suggestions for future research. Retrieved on January 21, 2019, from http://www.ucalgary.ca/files/haskaynefaculty/2007-03.pdf
Theories, research designs, and methods for global studies (pp. 76-128). Oakland,
Wang, E., Tai, J., & Wei, H. (2016). A virtual integration theory of improved supply-chain performance. Journal of management information systems, 23(2), 41-64. Retrieved on January 21, 2019, from http://www.jstor.org/stable/40398841
DOI: http://dx.doi.org/10.61426/sjbcm.v6i3.1349
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.