Effect of Supply Chain Risk Management on Operational Performance of Oil Marketing Companies in Kenya
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Date
2018Author
Mutimbia, Janette D
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Supply chain risk management is the implementation of strategies for managing risks
along the supply chain together with continuous risk assessment with the aim of reducing
exposure and vulnerability thereby ensuring continuity of the enterprises. Managing risks
in the supply chain is becoming an important avenue for harnessing competitiveness due
to the increasing vulnerability of the supply chains. The main objective of the study was
to determine the effect of supply chain risk management on operational performance of
oil marketing companies in Kenya. The study was anchored using the resource based
theory and the agency theory which support the fact that information on and the planning
of supply risk management can improve the company’s competitive position. The
research adopted a correlational survey research design. Data was collected using a
questionnaire which was administered to the supervisors or the heads of department. The
population of this study comprised of all Eighty Five (85) Oil Marketing Companies in
Kenya and a total of fifty four (54) questionnaires were completed satisfactorily and
returned. From the findings it was deduced that oil marketing firms have some
mechanism for risk management in their supply chain. The regression analysis indicates
that operational performance is present to some extent without the risk management
element. The regression model developed was Y1=0.661 + 0.198X1 + 0.0738X2 - 0.153X3
+ 0.09X4 + 0.199.The resulting equation shows there is a linear relationship between
variables X1 (Supply Risk Management), X2 (Demand Risk management) and X4
(Political Risk Management) and the operational performance of oil marketing companies
however there’s a negative relationship between Operational Risk management(X3) with
operational performance of oil marketing firms. The researcher concluded that
management of risk in the supply chain is an important tool for the improvement of
operational performance of a company as the consumers will be served better if risks
were mitigated to avoid supply chain disruptions. The study recommends that managers
should have an understanding of the risks in the supply chain as this is important for
survival in the marketplace. Another recommendation from the researcher is that
companies should have a risk mitigation plan, this will help organization to manage and
close the gaps within their supply chain.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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