Supply Chain Management Practices and Organizational Performance of Large Manufacturing Firms in Nairobi, Kenya

Abstract

This study was carried out to determine the effect of supply chain management practices on organizational performance among large manufacturing firms in Kenya. The study had two objectives, to establish supply chain management practices adopted by large manufacturing firms in Kenya, and to determine the effect of supply chain management practices on organizational performance of large manufacturing firms in Kenya. The research design involved a cross sectional survey of 46 large manufacturing companies in Nairobi, Kenya. Data was collected using a questionnaire that was administered through “drop and pick” method. Mean and standard deviation were used to analyze objective one whereas regression analysis was used to analyze the effect of supply chain management practices and organizational performance among large manufacturing firms in Kenya. The findings are presented in tables. It is clear that there is a significant relationship between supply chain management practices and organizational performance explained by the seven independent variables strategic supplier partnership, customer relationship, level of information sharing, quality of information, extent of outsourcing, lean practices and postponement. The study only focused on the large manufacturing companies in Nairobi. Therefore, the researcher recommends further research on other firms that are not located in Nairobi and are not in the manufacturing industry. The researcher has also recommended that future research to expand on the domain of SCM practices by considering additional dimensions and also seek to utilize multiple respondents to enhance research findings