ROLE OF SUPPLY CHAIN RISK MANAGEMENT TECHNIQUES ON THE PERFORMANCE OF MANUFACTURING FIRMS IN KENYA. A CASE OF UNGA GROUP LIMITED

CHARLES MBOGO NYAGA, DR. MAKORI MORONGE

Abstract


The main objective of this study was to establish the role of supply chain risk management techniques on the performance of manufacturing firms in Kenya. A Case of Unga Group Ltd. Particularly, the study sought to find out the role of lean management technique on the performance of manufacturing firms in Kenya; to establish the role of just-in-time delivery technique on the performance of manufacturing firms in Kenya; to determine the role that single sourcing technique has on the performance of manufacturing firms in Kenya; and to ascertain the role of supplier rating technique on the performance of manufacturing firms in Kenya. The study adopted descriptive research design and targeted employees at Unga Group Ltd, with a base sample size of 124 respondents. Further, the study used structured questionnaires as the main instruments for collecting primary data from respondents. Data collected was first edited, formatted and organized for coding into the Statistical Package for Social Sciences (SPSS Version 25) Program. Based on the statistical findings the researcher was able to draw conclusions from the responses. From the findings, 61.1% (R Square = .611) of the total variability in the dependent variable (Performance) could be explained by Lean Management Technique, Just-In-Time Technique, Single Sourcing Technique, and Supplier Rating Technique. However, Supplier Rating Technique was found to be statistically insignificant meaning. The implication was that Lean Management Technique, Just-In-Time Technique, and Single Sourcing Technique play major roles as supply chain risk management techniques and as such they have an impact on the performance of manufacturing firms in Kenya. This study therefore recommended that policy makers and other major actors in the manufacturing sector employ these techniques in their day to day operations so as to increase the performance of manufacturing firms in Kenya.

Key Words: Lean Management, Just-In-Time, Single Sourcing, Supplier Rating, Manufacturing Firms in Kenya


Full Text:

PDF

References


Aboutalebi, R. (2016). Strategies for effective worldwide supply chains. Handbook of research on global supply chain management, 1-14.

Agus, A., & Shukri Hajinoor, M. (2012). Lean production supply chain management as driver towards enhancing product quality and business performance: Case study of manufacturing companies in Malaysia. International Journal of Quality & Reliability Management, 29(1), 92-121.

Ahmad, M. S. (2012). Impact of organizational culture on performance management practices in Pakistan. Business Intelligence Journal, 5(1), 50-55.

Ahmadi, H. B., Petrudi, S. H. H., & Wang, X. (2017). Integrating sustainability into supplier selection with analytical hierarchy process and improved grey relational analysis: a case of telecom industry. The International Journal of Advanced Manufacturing Technology, 90(9-12), 2413-2427.

Ahtonen, A. K., & Virolainen, V. M. (2009). Supply strategy in the food industry–value net perspective. International Journal of Logistics: Research and Applications, 12(4), 263-279.

Anholon, R., & Sano, A. T. (2016). Analysis of critical processes in the implementation of lean manufacturing projects using project management guidelines. The International Journal of Advanced Manufacturing Technology, 84(9-12), 2247-2256.

Aqlan, F., & Lam, S. S. (2015). A fuzzy-based integrated framework for supply chain risk assessment. International Journal of Production Economics, 161, 54-63.

Arena, M., & Arnaboldi, M. (2014). Risk and performance management: are they easy partners?. Management Research Review, 37(2), 152-166.

Arena, M., Azzone, G., & Bengo, I. (2015). Performance measurement for social enterprises. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 26(2), 649-672.

Aven, T. (2016). Risk assessment and risk management: Review of recent advances on their foundation. European Journal of Operational Research, 253(1), 1-13.

Baghalian, A., Rezapour, S., & Farahani, R. Z. (2013). Robust supply chain network design with service level against disruptions and demand uncertainties: A real-life case. European Journal of Operational Research, 227(1), 199-215.

Baghalian, A., Rezapour, S., & Farahani, R. Z. (2013). Robust supply chain network design with service level against disruptions and demand uncertainties: A real-life case. European Journal of Operational Research, 227(1), 199-215.

Bandaly, D., Satir, A., & Shanker, L. (2014). Integrated supply chain risk management via operational methods and financial instruments. International Journal of Production Research, 52(7), 2007-2025.

Bashir, M., Afzal, M. T., & Azeem, M. (2008). Reliability and validity of qualitative and operational research paradigm. Pakistan journal of statistics and operation research, 4(1).

Beamon, B. M., & Balcik, B. (2008). Performance measurement in humanitarian relief chains. International Journal of Public Sector Management, 21(1), 4-25.

Belzer, M. H., & Swan, P. F. (2011). Supply chain security: Agency theory and port drayage drivers. The Economic and Labour Relations Review, 22(1), 41-63.

Bhagat, S., & Bolton, B. (2008). Corporate governance and firm performance. Journal of corporate finance, 14(3), 257-273.

Bigliardi, B., & Bottani, E. (2014). Supply chain performance measurement: a literature review and pilot study among Italian manufacturing companies. International Journal of Engineering, Science and Technology, 6(3), 1-16.

Bititci, U., Garengo, P., Dörfler, V., & Nudurupati, S. (2012). Performance measurement: challenges for tomorrow. International journal of management reviews, 14(3), 305-327.

Blackhurst, J., Rungtusanatham, M. J., Scheibe, K., & Ambulkar, S. (2017). Supply chain vulnerability assessment: A network based visualization and clustering analysis approach. Journal of Purchasing and Supply Management.

Blome, C., Schoenherr, T., & Eckstein, D. (2014). The impact of knowledge transfer and complexity on supply chain flexibility: A knowledge-based view. International Journal of Production Economics, 147, 307-316.

Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.

Brenner, V. (2015). Causes of Supply Chain Disruptions: An Empirical Analysis in Cold Chains for Food and Pharmaceuticals. Springer.

Cevik, V., & Varan, S. (2015, April). Supply Chain Performance and Sustainability Reporting: An Analysis from an Emerging Country. In International OFEL Conference on Governance, Management and Entrepreneurship (p. 578). Centar za istrazivanje i razvoj upravljanja doo.

Chang, W., Ellinger, A. E., & Blackhurst, J. (2015). A contextual approach to supply chain risk mitigation. The International Journal of Logistics Management, 26(3), 642-656.

Chaudhari, S. N., & Patel, A. J. (2015). JIT Implements in manufacturing industry–A Review. Inter-national Journal of Engineering Research and General Science, 3(4), 706-709.

Christopher, M., Mena, C., Khan, O., & Yurt, O. (2011). Approaches to managing global sourcing risk. Supply Chain Management: An International Journal, 16(2), 67-81.

Cohen, J., Cohen, P., West, S. G., & Aiken, L. S. (2013). Applied multiple regression/correlation analysis for the behavioral sciences. Routledge.

Cousins, P., Lamming, R., Lawson, B., & Squire, B. (2008). Strategic supply management: principles, theories and practice. Pearson Education.

Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications.

Danese, P., Romano, P., & Bortolotti, T. (2012). JIT production, JIT supply and performance: investigating the moderating effects. Industrial Management & Data Systems, 112(3), 441-465.

Dillman, D. A., Smyth, J. D., & Christian, L. M. (2014). Internet, phone, mail, and mixed-mode surveys: the tailored design method. John Wiley & Sons.

Duhamel, F., Carbone, V., & Moatti, V. (2016). The impact of internal and external collaboration on the performance of supply chain risk management. International Journal of Logistics Systems and Management, 23(4), 534-557.

Eltantawy, R., Giunipero, L., & Handfield, R. (2014). Strategic sourcing management’s mindset: strategic sourcing orientation and its implications. International Journal of Physical Distribution & Logistics Management, 44(10), 768-795.

Fayezi, S., O'Loughlin, A., & Zutshi, A. (2012). Agency theory and supply chain management: a structured literature review. Supply chain management: an international journal, 17(5), 556-570.

Fincham, J. E. (2008). Response rates and responsiveness for surveys, standards, and the Journal. American journal of pharmaceutical education, 72(2), 43.

Furlan, A., Dal Pont, G., & Vinelli, A. (2011). On the complementarity between internal and external just-in-time bundles to build and sustain high performance manufacturing. International Journal of Production Economics, 133(2), 489-495.

Gall, M. D., Gall, J. P., & Borg, W. R. (2007). Collecting research data with questionnaires and interviews. Educational research: An introduction, 227-261.

Garson, G. D. (2012). Testing statistical assumptions. Asheboro, NC: Statistical Associates Publishing.

Ghadge, A., Dani, S., & Kalawsky, R. (2012). Supply chain risk management: present and future scope. The international journal of logistics management, 23(3), 313-339.

Ghasemi, A., & Zahediasl, S. (2012). Normality tests for statistical analysis: a guide for non-statisticians. International journal of endocrinology and metabolism, 10(2), 486.

Giannakis, M., & Papadopoulos, T. (2016). Supply chain sustainability: A risk management approach. International Journal of Production Economics, 171, 455-470.

Grewal, C. (2008). An initiative to implement lean manufacturing using value stream mapping in a small company. International Journal of Manufacturing Technology and Management, 15(3-4), 404-417.

Hargie, O., & Tourish, D. (Eds.). (2009). Auditing organizational communication: A handbook of research, theory and practice. Routledge.

Heckmann, I., Comes, T., & Nickel, S. (2015). A critical review on supply chain risk–Definition, measure and modeling. Omega, 52, 119-132.

Heckmann, I., Comes, T., & Nickel, S. (2015). A critical review on supply chain risk–Definition, measure and modeling. Omega, 52, 119-132.

Holbrook, A., Krosnick, J. A., & Pfent, A. (2007). The causes and consequences of response rates in surveys by the news media and government contractor survey research firms. Advances in telephone survey methodology, 499-528.

Holl, A., Pardo, R., & Rama, R. (2010). Just-in-time manufacturing systems, subcontracting and geographic proximity. Regional Studies, 44(5), 519-533.

Hoyt, R. E., & Liebenberg, A. P. (2011). The value of enterprise risk management. Journal of risk and insurance, 78(4), 795-822.

Khanlari, A. (Ed.). (2015). Strategic customer relationship management in the age of social media. IGI Global.

Kim, Y., Chen, Y. S., & Linderman, K. (2015). Supply network disruption and resilience: A network structural perspective. Journal of operations Management, 33, 43-59.

Kotula, M., Ho, W., Dey, P. K., & Lee, C. K. M. (2015). Strategic sourcing supplier selection misalignment with critical success factors: Findings from multiple case studies in Germany and the United Kingdom. International Journal of Production Economics, 166, 238-247.

Kroes, J. R., & Ghosh, S. (2010). Outsourcing congruence with competitive priorities: Impact on supply chain and firm performance. Journal of operations management, 28(2), 124-143.

Lai, K. H., & Cheng, T. E. (2016). Just-in-time logistics. Routledge.

Le, H. Q., Arch-Int, S., Nguyen, H. X., & Arch-Int, N. (2013). Association rule hiding in risk management for retail supply chain collaboration. Computers in Industry, 64(7), 776-784.

Levy, P. S., & Lemeshow, S. (2013). Sampling of populations: methods and applications. John Wiley & Sons.

Li, G., Fan, H., Lee, P. K., & Cheng, T. C. E. (2015). Joint supply chain risk management: an agency and collaboration perspective. International Journal of Production Economics, 164, 83-94.

Lockett, A., Thompson, S., & Morgenstern, U. (2009). The development of the resource‐based view of the firm: A critical appraisal. International journal of management reviews, 11(1), 9-28.

Lysons, K., & Farrington, B. (2016). Procurement and supply chain management. Pearson Higher Ed.

Mackelprang, A. W., & Nair, A. (2010). Relationship between just-in-time manufacturing practices and performance: A meta-analytic investigation. Journal of Operations Management, 28(4), 283-302.

Magutu, P. O., Aduda, J., & Nyaoga, R. B. (2015). Does Supply Chain Technology Moderate the Relationship between Supply Chain Strategies and Firm Performance? Evidence from Large-Scale Manufacturing Firms in Kenya. International Strategic Management Review, 3(1-2), 43-65.

Manuj, I., & Mentzer, J. T. (2008). Global supply chain risk management strategies. International Journal of Physical Distribution & Logistics Management, 38(3), 192-223.

Manuj, I., & Mentzer, J. T. (2008). Global supply chain risk management. Journal of business logistics, 29(1), 133-155.

Martínez-Jurado, P. J., & Moyano-Fuentes, J. (2014). Lean management, supply chain management and sustainability: a literature review. Journal of Cleaner Production, 85, 134-150.

McIvor, R. (2008). What is the right outsourcing strategy for your process?. European management journal, 26(1), 24-34.

Melnyk, S. A., Bititci, U., Platts, K., Tobias, J., & Andersen, B. (2014). Is performance measurement and management fit for the future?. Management Accounting Research, 25(2), 173-186.

Memia, F. K., Odhiambo, R., & Ngugi, K. (2018). Influence of green supply chain on performance of manufacturing firms in Kenya. International Journal of Economics and Finance (IJEF), 4, 1-23.

Misra, V., Khan, M. I., & Singh, U. K. (2010). Supply chain management systems: architecture, design and vision. Journal of Strategic Innovation and Sustainability, 6(4), 102.

Mollenkopf, D., Stolze, H., Tate, W. L., & Ueltschy, M. (2010). Green, lean, and global supply chains. International Journal of Physical Distribution & Logistics Management, 40(1/2), 14-41.

Monden, Y. (2011). Toyota production system: an integrated approach to just-in-time. CRC Press.

Mugenda, A. G. (2008). Social science research: Theory and Practice. Nairobi: Applied Research and Training Services.

Mugenda, O. M., & Mugenda, A. G. (2012). Research methods dictionary.

Mukherjee, K. (2016). Supplier selection criteria and methods: past, present and future. International Journal of Operational Research, 27(1-2), 356-373.

Myerson, P. (2012). Lean supply chain and logistics management. New York: McGraw-Hill.

Nudurupati, S. S., Bititci, U. S., Kumar, V., & Chan, F. T. (2011). State of the art literature review on performance measurement. Computers & Industrial Engineering, 60(2), 279-290.

Nyang’au, F. O. (2016). Influence of Supply Chain Risk Control Strategies on Performance of Food and Beverage Manufacturing Firms in Kenya. Quest Journal of Research in Business and Management, 4(3), 1-9.

Olugu, E. U., Wong, K. Y., & Shaharoun, A. M. (2011). Development of key performance measures for the automobile green supply chain. Resources, conservation and recycling, 55(6), 567-579.

Packowski, J. (2013). LEAN Supply Chain Planning: The New Supply Chain Management Paradigm for Process Industries to Master Today's VUCA World. CRC Press.

Panizzolo, R., Garengo, P., Sharma, M. K., & Gore, A. (2012). Lean manufacturing in developing countries: evidence from Indian SMEs. Production Planning & Control, 23(10-11), 769-788.

Parmenter, D. (2015). Key performance indicators: developing, implementing, and using winning KPIs. John Wiley & Sons.

Peng Wong, W., & Yew Wong, K. (2008). A review on benchmarking of supply chain performance measures. Benchmarking: An international journal, 15(1), 25-51.

Pheng, L. S., & Shang, G. (2011). The application of the just-in-time philosophy in the Chinese construction industry. Journal of construction in developing countries, 16(1), 91-111.

Politis, S., Klumpp, M., & Celebi, D. (2010). Analytical hierarchy process in supplier evaluation. In Proceedings of the 16th International Working Seminar on Production Economics, 3(4), 411-424.

Raafat, F., Judge, R., & Shrimali, L. (2012). Analysis of success factors in supplier development. International Journal of Logistics Economics and Globalisation, 4(4), 289-308.

Rajesh, R., & Ravi, V. (2015). Supplier selection in resilient supply chains: a grey relational analysis approach. Journal of Cleaner Production, 86, 343-359.

Rangel, D. A., de Oliveira, T. K., & Leite, M. S. A. (2015). Supply chain risk classification: discussion and proposal. International Journal of Production Research, 53(22), 6868-6887.

Rea, L. M., & Parker, R. A. (2014). Designing and conducting survey research: A comprehensive guide. John Wiley & Sons.

Republic of Kenya. (2014). Economic survey. Nairobi: Government Printer.

Revilla, M. A., Saris, W. E., & Krosnick, J. A. (2014). Choosing the number of categories in agree–disagree scales. Sociological Methods & Research, 43(1), 73-97.

Rezaei, J., Fahim, P. B., & Tavasszy, L. (2014). Supplier selection in the airline retail industry using a funnel methodology: Conjunctive screening method and fuzzy AHP. Expert Systems with Applications, 41(18), 8165-8179.

Scheibe, K. P., & Blackhurst, J. (2018). Supply chain disruption propagation: a systemic risk and normal accident theory perspective. International Journal of Production Research, 56(1-2), 43-59.

Scholten, K., & Fynes, B. (2017). Risk and uncertainty management for sustainable supply chains. In Sustainable supply chains (pp. 413-436). Springer, Cham.

Sezen, B., & Erdogan, S. (2009). Lean philosophy in strategic supply chain management and value creating. Journal of Global Strategic Management, 3(1), 68-73.

Shepherd, C., & Günter, H. (2010). Measuring supply chain performance: current research and future directions. In Behavioral Operations in Planning and Scheduling (pp. 105-121). Springer, Berlin, Heidelberg.

Singh, B., Garg, S. K., Sharma, S. K., & Grewal, C. (2010). Lean implementation and its benefits to production industry. International journal of lean six sigma, 1(2), 157-168.

Slack, N., Chambers, S., & Johnston, R. (2010). Operations management. Pearson education.

Sodhi, M. S., & Tang, C. S. (2012). Strategic approaches for mitigating supply chain risks. In Managing supply chain risk (pp. 95-108). Springer, Boston, MA.

Stadtler, H. (2015). Supply chain management: An overview. In Supply chain management and advanced planning (pp. 3-28). Springer, Berlin, Heidelberg.

Stentoft Arlbjørn, J., Vagn Freytag, P., & de Haas, H. (2011). Service supply chain management: A survey of lean application in the municipal sector. International Journal of Physical Distribution & Logistics Management, 41(3), 277-295.

Sturgeon, T. J., & Gereffi, G. (2009). Measuring success in the global economy: International trade, industrial upgrading and business function outsourcing in global value chains. Transnational Corporations, 18(2), 1.

Tate, W. L., Ellram, L. M., Bals, L., Hartmann, E., & Van der Valk, W. (2010). An agency theory perspective on the purchase of marketing services. Industrial Marketing Management, 39(5), 806-819.

Thapa, G. (2015). Optimization of just-in-time sequencing problems and supply chain logistics (Doctoral dissertation, Mälardalen University).

Tseng, F. M., Chiu, Y. J., & Chen, J. S. (2009). Measuring business performance in the high-tech manufacturing industry: A case study of Taiwan's large-sized TFT-LCD panel companies. Omega, 37(3), 686-697.

Vamsi Krishna Jasti, N., & Sharma, A. (2014). Lean manufacturing implementation using value stream mapping as a tool: A case study from auto components industry. International Journal of Lean Six Sigma, 5(1), 89-116.

Van Weele, A. J. (2010). Purchasing and supply chain management: Analysis, strategy, planning and practice. Cengage Learning EMEA.

Vanany, I., Zailani, S., & Pujawan, N. (2009). Supply chain risk management: literature review and future research. IGI Global, 16-33.

Venkatesh, V. G., Rathi, S., & Patwa, S. (2015). Analysis on supply chain risks in Indian apparel retail chains and proposal of risk prioritization model using Interpretive structural modeling. Journal of Retailing and Consumer Services, 26, 153-167.

Victoria, M., Nyamwange, O., & Harley, M. (2017). Sustainable Supply Chain Management Practices and Performance of United Nations Agencies in Nairobi, Kenya. ORSEA JOURNAL, 5(2).

Vilko, J. P., & Hallikas, J. M. (2012). Risk assessment in multimodal supply chains. International Journal of Production Economics, 140(2), 586-595.

Vilko, J., Ritala, P., & Hallikas, J. (2016). Risk management abilities in multimodal maritime supply chains: Visibility and control perspectives. Accident Analysis & Prevention.

Wernerfelt, B. (2011). Invited editorial: The use of resources in resource acquisition. Journal of Management, 37(5), 1369-1373.

Wernerfelt, B. (2014). On the role of the RBV in marketing. Journal of the Academy of Marketing Science, 42(1), 22-23.

Yu, H., Zeng, A. Z., & Zhao, L. (2009). Single or dual sourcing: decision-making in the presence of supply chain disruption risks. Omega, 37(4), 788-800.

Zu, X., & Kaynak, H. (2012). An agency theory perspective on supply chain quality management. International Journal of Operations & Production Management, 32(4), 423-446.




DOI: http://dx.doi.org/10.61426/sjbcm.v5i3.819

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

PAST ISSUES:
20242023202220212020201920182017201620152014
Vol 11, No 2 [2024]Vol 10, No 4 [2023]Vol 9, No 4 [2022]Vol 8, No 4 [2021]Vol 7, No 4 [2020]Vol 6, No 4 [2019]Vol 5, No 4 [2018]Vol 4, No 4 [2017]Vol 3, No 4 [2016]Vol 2, No 2 [2015]Vol 1, No 2 [2014]
 Vol 11, No 1 [2024] Vol 10, No 3 [2023] Vol 9, No 3 [2022]Vol 8, No 3 [2021]Vol 7, No 3 [2020]Vol 6, No 3 [2019]Vol 5, No 3 [2019]Vol 4, No 3 [2017]Vol 3, No 3 [2016]Vol 2, No 1 [2015]Vol 1, No 1 [2014]
  Vol 10, No 2 [2023] Vol 9, No 2 [2022]Vol 8, No 2 [2021]Vol 7, No 2 [2020]Vol 6, No 2 [2019]Vol 5, No 2 [2018]Vol 4, No 2 [2017]Vol 3, No 2 [2016]  
  Vol 10, No 1 [2023] Vol 9, No 1 [2022]  Vol 8, No 1 [2021]Vol 7, No 1 [2020]Vol 6, No 1 [2019]Vol 5, No 1 [2018]Vol 4, No 1 [2017]Vol 3, No 1 [2016]   


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.