Supply Chain Risk Management and Organizational Performance of Logistics Firms in Kenya

Abstract

The study aimed at investigating the impact of Supply Chain risk management and organizational performance of logistics firms in Kenya. The objectives were to find out the adoption extents of supply chain risk management by logistics firms in Kenya and to ascertain the association amongst Supply Chain risk management and organizational performance of Kenyan logistics firms. Descriptive design was the research design adopted and the research used the Random Sampling without replacement technique on the 2021 Kenya Revenue Authority’s list of the AEO firms. A sample size of 65 Authorized Economic operators was obtained through Random Sampling technique and it formed the population of the study. Primary data was acquired via questionnaires (administered via electronic mails). Descriptive statistics was used to analyse objective one which had to ascertain the adoption level of Supply Chain risk management of Kenyan logistics firms. Regression analysis was used to analyse objective two which sought to analyze the correlation between Supply Chain risk management and organizational performance of logistics firms in Kenya. On the 1st objective which was to establish the adoption extent of Supply Chain risk management by Kenyan logistics firms, it was affirmed that Risk mitigation policy and culture as well as transferring risk through insurance were adopted to a large extent while strategic sourcing, Agility, Contingency planning and Collaboration with SC partners were moderately adopted by the Kenyan logistics firms. Objective two determined that Strategic sourcing, Agility, Contingency planning and Transferring risk through insurance have a relationship and influences organizational performance of Kenyan logistics firms. Collaboration and risk mitigation policy and culture were found to have no relationship and did not impact organizational performance of Kenyan logistics firms. Specifically, Supply Chain risk management largely influenced organizational performance. It is suggested that Strategic sourcing, Agility, Contingency planning and Transferring risk through insurance be adopted to a large extent as they have been established to influence organizational performance of Kenyan logistics firms. Forthcoming studies may focus on Supply Chain risk management and organizational performance in a different context