Is there a Link between Supply Chain Strategies and Performance of Large-Scale Manufacturing Firms in Kenya?

Abstract

Both supply chain strategies and supply chain performance are
evolving areas of research. Most research findings on the relationship
between supply chain strategies and supply chain performance have
been contradicting but no attempt to clear the contradictions. The
purpose of this paper is to establish the relationship between supply
chain strategies and supply chain performance outcome among largescale manufacturing firms in Kenya. This was at firm level as the
unit of analysis, using the Resource Based View theoretical
un
derpinning.   

A sample of one hundred and thirty eight (138) firms was drawn
using proportionate sampling from a total population of six hundred
and twenty seven (627) large scale manufacturing firms in Kenya.
The response rate was seventy five percent. Descriptive statistics,
reliability and validity tests of the constructs, correlation analysis, factor
analysis and regression analysis models were used to test the
hypotheses. Preliminary tests employed Kaiser Mayer-Olkim (KMO)
and Barlett’s test. The study’s KMO measure is 0.849, a value
indicating sampling adequacy as the Barlett’s test of sphericity is
significant with its associated probability is less than 0.00.
The findings indicated that there is a strong and significant relationship
between supply chain strategy and the firm’s supply chain
performance, where supply chain strategies alone are able to explain
51.3 percent of variance in the firm’s supply chain performance.
The study suggested on future research considerations for additional
variables, external validity and qualitative research approach aimed
at extending the research.

Keywords: Supply chain management, supply chain strategies and
supply chain performance