INFLUENCE OF SUPPLIER RELATIONSHIP MANAGEMENT ON SUPPLY CHAIN PERFORMANCE IN THE COUNTY ASSEMBLY OF VIHIGA, KENYA
Abstract
This study sought to establish the effect of supply chain collaboration, supplier development, supplier selection and evaluation on supply chain performance in the County Assembly of Vihiga, Kenya. The grey theory, agency theory and network were used to support the inquiry. With adoption of descriptive design, the study targeted 82 respondents comprising of supply chain officers, accountants and finance officers from County Assembly of Vihiga. Census sampling was used and thus 82 respondents were included in the study. The views of the respondents were gathered with aid of the questionnaire that was close-ended. There was piloting of the questionnaire prior to actual data collection to ensure that it was valid and reliable. It was SPSS tool that helped in processing the gathered views from the respondents with aid of means, standard deviation, correlation and regression analysis. Both figures and tables helped in presentation of the finding. Descriptive results indicated supplier sourcing, supplier development and supplier segmentation were moderately practiced in the County Assembly of Vihiga. Inferential analysis revealed that supplier relationship management significantly explained more than half of the variation in supply chain performance. Supplier sourcing has the greatest positive significant influence on supply chain performance, followed by supplier development and lastly supplier segmentation had the least significant influence on supply chain performance of the County Assembly of Vihiga. The study concluded that supplier relationship management significantly influenced supply chain performance in the County Assembly of Vihiga. The study recommended that when making supplier relationship management decisions aimed at optimizing supply chain performance, the supply chain managers should place more emphasis on segmenting of suppliers on the basis of a distinct set of criteria to understand their expertise, strength and flexibility. The study also study recommended that the supply chain managers and the procurement managers in the County Assembly should optimize and improve on their supplier sourcing criteria so as to maximize their supply chain performance. The criteria to be considered include pricing structure, certification and necessary approvals.
Key Words: Supply Chain Collaboration, Supplier Development, Supplier Selection, Evaluation
CITATION: Ojiambo, G. N., Miroga, J., & Otinga, H. (2021). Influence of supplier relationship management on supply chain performance in the county assembly of Vihiga, Kenya. The Strategic Journal of Business & Change Management, 8 (1), 674 – 691.
Full Text:
PDFReferences
Agyei-Owusu, B., Asamoah, D., Andoh-Baidoo, F., & Akaribo, J. (2016). Impact of supply chain collaboration on logistics performance: evidence from a Sub- Saharan Nation’s petroleum downstream.
Al-Doori, J. A. (2019). The impact of supply chain collaboration on performance in automotive industry: Empirical evidence. Journal of Industrial Engineering and Management, 12(2), 241-253.
Ali, A., Bentley, Y., & Cao, G. (2016). The influence of supplier collaboration on green supply chain management practices and sustainable firm performance in UK food supply chain SMEs.
Balfaqih, H., Nopiah, Z. M., Saibani, N., & Al-Nory, M. T. (2016). Review of supply chain performance measurement systems: 1998–2015. Computers in Industry, 82, 135-150.
Botes, A., Niemann, W., & Kotzé, T. (2017). Buyer-supplier collaboration and supply chain resilience: A case study in the petrochemical industry. South African Journal of Industrial Engineering, 28(4), 183-199.
Chardine-Baumann, E., & Botta-Genoulaz, V. (2014). A framework for sustainable performance assessment of supply chain management practices. Computers & Industrial Engineering, 76, 138-147.
Cheboss, J. M., Namusonge, G., & Nambuswa, E. (2017). Effects of Supplier Development on Procurement Performance in Bungoma County: A Case of Nzoia Sugar Company. International Journal of Management and Commerce Innovations, 4(2), 339-345.
Chemjor, R. K. (2015). Supplier evaluation criteria and procurement performance in parastatals in Kenya (Doctoral dissertation, University of Nairobi).
Chen, L., Ellis, S. C., Suresh, N., Brown, S., & Hill, A. (2016). A supplier development adoption framework using expectancy theory. International Journal of Operations & Production Management.
Chen, L., Zhao, X., Tang, O., Price, L., Zhang, S., & Zhu, W. (2017). Supply chain collaboration for sustainability: A literature review and future research agenda. International Journal of Production Economics, 194, 73-87.
Chepkorir, L. (2017). an assessment of the effect of supplier relationship management strategies on procurement performance: a case study of almasi beverages limited.
Chin, T. A., Tat, H. H., & Sulaiman, Z. (2015). Green supply chain management, environmental collaboration and sustainability performance. Procedia Cirp, 26, 695-699.
Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications.
Doganay, A., & Ergun, S. (2017). The Effect of Supply Chain Collaboration on Supply Chain Performance. Journal of Management Marketing and Logistics, 4(1), 30-39.
Forkmann, S., Henneberg, S. C., Naude, P., & Mitrega, M. (2016). Supplier relationship management capability: a qualification and extension. Industrial Marketing Management, 57, 185-200.
Forslund, H. (2015). Performance management process integration in retail supply chains. International Journal of Retail & Distribution Management, 43(7), 652-670.
Galankashi, M. R., Helmi, S. A., & Hashemzahi, P. (2016). Supplier selection in automobile industry: A mixed balanced scorecard–fuzzy AHP approach. Alexandria Engineering Journal, 55(1), 93-100.
Govindan, K., Azevedo, S. G., Carvalho, H., & Cruz-Machado, V. (2014). Impact of supply chain management practices on sustainability. Journal of Cleaner Production, 85, 212-225.
Herczeg, G., Akkerman, R., & Hauschild, M. Z. (2018). Supply chain collaboration in industrial symbiosis networks. Journal of cleaner production, 171, 1058-1067.
Ho, A. D., & Yu, C. C. (2015). Descriptive statistics for modern test score distributions: Skewness, kurtosis, discreteness, and ceiling effects. Educational and Psychological Measurement, 75(3), 365-388.
Hohenstein, N. O., Feisel, E., & Hartmann, E. (2014). Human resource management issues in supply chain management research: a systematic literature review from 1998 to 2014. International Journal of Physical Distribution & Logistics Management, 44(6), 434-463.
Hong, J., Zhang, Y., & Ding, M. (2018). Sustainable supply chain management practices, supply chain dynamic capabilities, and enterprise performance. Journal of Cleaner Production, 172, 3508-3519.
Humphreys, P., Cadden, T., Wen-Li, L., & McHugh, M. (2011). An investigation into supplier development activities and their influence on performance in the Chinese electronics industry. Production Planning and Control, 22(2), 137- 156.
Kamath, G., Barkur, G., & Naik, R. (2018). Does supplier evaluation impact process improvement?. arXiv preprint arXiv:1806.03251.
KhanMohammadi, E., Talaie, H., Safari, H., & Salehzadeh, R. (2018). Supplier evaluation and selection for sustainable supply chain management under uncertainty conditions. International Journal of Sustainable Engineering, 11(6), 382-396.
kiarie, j. w. (2017). the influence of supplier relationship management practices on operational performance of large manufacturing organizations in Kenya (Doctoral dissertation, Strathmore University).
Kosgei, R. C., & Gitau, R. (2016). Effect of supplier relationship management on organizational performance: A case study of Kenya Airways Limited. International Academic Journal of Procurement and Supply Chain Management, 2(2), 134-148.
Liao, S. H., Hu, D. C., & Ding, L. W. (2017). Assessing the influence of supply chain collaboration value innovation, supply chain capability and competitive advantage in Taiwan's networking communication industry. International Journal of Production Economics, 191, 143-153.
Liu, W., Yan, X., Si, C., Xie, D., & Wang, J. (2020). Effect of buyer-supplier supply chain strategic collaboration on operating performance: evidence from Chinese companies. Supply Chain Management: An International Journal.
Luthra, S., Govindan, K., Kannan, D., Mangla, S. K., & Garg, C. P. (2017). An integrated framework for sustainable supplier sourcing in supply chains. Journal of Cleaner Production, 140, 1686-1698.
Maestrini, V., Luzzini, D., Maccarrone, P., & Caniato, F. (2017). Supply chain performance measurement systems: A systematic review and research agenda. International Journal of Production Economics, 183, 299-315.
Magut, F. J. (2019). Influence of Supplier Relationship on Performance of Procurement Function at MOI Teaching and Referral Hospital, Kenya.
Mani, V., Gunasekaran, A., & Delgado, C. (2018). Enhancing supply chain performance through supplier social sustainability: An emerging economy perspective. International Journal of Production Economics, 195, 259-272.
Manyega, V. B., & Okibo, W. (2015). Effects Of Supplier Selection On Procurement Performance Of Public Institutions. International Journal of Economics, Commerce and Management.
Mertler, C. A., & Reinhart, R. V. (2016). Advanced and multivariate statistical methods: Practical application and interpretation. Routledge.
Mitra, S., & Datta, P. P. (2014). Adoption of green supply chain management practices and their impact on performance: an exploratory study of Indian manufacturing firms. International Journal of Production Research, 52(7), 2085-2107.
Musyoki, K. B., & Ngugi, E. (2017). Effects of supplier development practices on performance of pharmaceutical suppliers for hospitals in Nairobi City County. International Journal of Supply Chain Management, 2(1), 32-56.
Mutai, J. 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.
Mweresa, J. O., & Mwangangi, P. (2019). Role of supplier relationship on the performance of the ministry of East African Affairs, Commerce and Tourism, Kenya. The Strategic Journal of Business & Change Management, 6 (2), 1508 –1523
Mwesigwa, F. M., & Nondi, R. (2018). Effects of supplier development on procurement performance of World Food Programme. The Strategic Journal of Business and Change Management, 5 (2), 1184, 1205.
Ndinda, d. R., & Moronge, M. (2017). the influence of supplier relationship management on supply chain sustainability among food manufacturing companies in kenya. a case of bidco africa ltd.
Nyamasege, O. J., & Biraori, O. E. (2015). Effect of supplier relationship management on the effectiveness of supply chain management in the Kenya public sector. International Journal of Managing Value and Supply Chains, 6(1), 25.
Obinda, R. A., & Gichure, J. M. (2017). Effects of Supplier Selection on Supply Chain Performance; Case of Nairobi City County
Obinda, R. A., & Gichure, J. M. Effects Of Supplier Selection On Supply Chain Performance; Case Of Nairobi City County.
Oghazi, P., Rad, F. F., Zaefarian, G., Beheshti, H. M., & Mortazavi, S. (2016). Unity is strength: A study of supplier relationship management integration. Journal of Business Research, 69(11), 4804-4810.
Oromo, F. A., & Mwangangi, P. (2017). Effect of supplier development on procurement performance in public sector in Kenya: A case of Kenya electricity generating company limited (kengen). International journal of supply chain management, 2(2), 42-59.
Oromo, F. A., & Mwangangi, P. (2017). Effect of supplier development on procurement performance in public sector in Kenya: A case of Kenya electricity generating company limited (kengen). International journal of supply chain management, 2(2), 42-59.
Panahifar, F., Byrne, P. J., Salam, M. A., & Heavey, C. (2018). Supply chain collaboration and firm’s performance. Journal of Enterprise Information Management.
Pradabwong, J., Braziotis, C., Tannock, J. D., & Pawar, K. S. (2017). Business process management and supply chain collaboration: effects on performance and competitiveness. Supply Chain Management: An International Journal.
Rezaei, J., Wang, J., & Tavasszy, L. (2015). Linking supplier development to supplier segmentation using Best Worst Method. Expert Systems with Applications, 42(23), 9152-9164.
Satyendra, K. S., & Bhat, A. (2014). Supply chain risk management dimensions in Indian automobile industry: A cluster analysis approach. Benchmarking: An International Journal, 21(6), 1023-1040.
Sigala, M. (2018). Implementing social customer relationship management. International Journal of Contemporary Hospitality Management.
Singhry, H. B., & Abd Rahman, A. (2019). Enhancing supply chain performance through collaborative planning, forecasting, and replenishment. Business Process Management Journal.
Taber, K. S. (2018). The use of Cronbach’s alpha when developing and reporting research instruments in science education. Research in Science Education, 48(6), 1273-1296.
Tefferi, A., Lasho, T. L., Begna, K. H., Patnaik, M. M., Zblewski, D. L., Finke, C. M.,
Teller, C., Kotzab, H., Grant, D. B., & Holweg, C. (2016). The importance of key supplier relationship management in supply chains. International Journal of Retail & Distribution Management, 44(2), 109-123
Um, K. H., & Kim, S. M. (2019). The effects of supply chain collaboration on performance and transaction cost advantage: The moderation and nonlinea effects of governance mechanisms. International Journal of Production Economics, 217, 97-111.
Veal, A. J. (2017). Research methods for leisure and tourism. Pearson UK.
Wachiuri, E. W., Waiganjo, E., & Oballah, D. (2015). Role of supplier development on organizational performance of manufacturing industry in Kenya; a case of EastAfrica Breweries Limited. Int. J. Educ. Res, 3(3), 683-694.
Wambani, W. A. (2017). Supplier Relationship Management and Operational Performance of Sugar Manufacturing Firms in Kakamega County in Kenya. Unpublished MBA Project, University of Nairobi.
Yegon, J., Kosgei, D. K., & Lagat, C. (2015). Effect of supplier development on buyer performance: A survey of sugar milling firms in Western Region of Kenya. European Journal of Logistics, Purchasing and Supply Chain Management, 3(3), 35-54.
Yin, R. K. (2017). Case study research and applications: Design and methods. Sage publications.
Zhang, Q., & Cao, M. (2018). Exploring antecedents of supply chain collaboration: Effects of culture and interorganizational system appropriation. International journal of Production economics, 195, 146-157.
DOI: http://dx.doi.org/10.61426/sjbcm.v8i1.1941
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.