Supply chain technology adoption and large manufacturing firms performance in Nairobi

Abstract

The purpose of this study was to establish the drivers of supply chain technology adoption, the level of supply chain adoption and the relationship between extent of supply chain technology adoption and performance of manufacturing organizations. This study adopted an exploratory research design. The target population comprised of all 656 manufacturing firms operating in Nairobi as listed in the KAM directory of manufacturers and exporters 2013. Stratified sampling was applied to pick 66 respondents. A structured questionnaire was used to collect data. The quantitative data was analyzed using descriptive statistics. The study used simple linear regression to analyze the relationship between extent of supply chain technology adoption and performance of manufacturing organizations. From the findings, the study concludes that supply chain technology as a tool does not only improve the effectiveness and efficiencies of the operations but also act as a competitive weapon to the organization strategy. The study further concludes that supply chain technology adoption improved communication and productivity between the organization and suppliers and led to the reduction in costs it also increased efficiency across the extended supply chain and enhanced network relationships. The study recommends that to enhance supply chain effectiveness, the management should organize for staff training both internal and external through seminars and workshop which will go a long way in enhancing ownership of the process by employees. The organizations should enhance these practices as maintenance has to provide the required reliability, availability, efficiency and capability of production system in accordance to the need of these characteristics.