Supply Chain Resilience And Performance Of Supermarkets In Nairobi County, Kenya

Abstract

The purpose of the study was to study the effect of supply chain resilience practices on the performance of small and medium supermarkets in Nairobi city, Kenya. The study was guided by the following specific objectives; to determine the supply chain resilience practices adopted by small and medium supermarkets in Nairobi County, Kenya, to determine the effect of supply chain resilience practices on the performance of small and medium supermarkets in Nairobi city, Kenya. The study relied on three theories that included the dynamic capability theory, strategic choice theory and resource-based theory. A descriptive research design was used as the study targeted all the 53 small and medium retail supermarkets in Nairobi County. The study adopted the census method and questionnaires were used to collect primary data. Data analysis was undertaken by use of SPSS and findings presented by the use of figures and tables. The first objective was realised as the study determined that the most significantly used supply chain resilience practice by supermarkets was strategic collaboration(33.3%) as it was adopted to a high extent followed by agile practice (28.9%), supply chain reengineering(22.2%) and lastly was the risk management culture(15.6%). The second objective was realised as the study determined supply chain reengineering (β=0.91, P=0.047 ˂0.05), Agile (β=0.173, P=0.016 ˂0.05), Risk management culture (β=0.620, P=0.003 ˂0.05) and Strategic collaboration (β=0.225, P=0.002 ˂0.05) have a positive impact on the supermarkets' supply chain performance. The study recommended the strategic and middle-level managers to increase their investments in the supply chain resilience practices to be able to influence their supply chain performance positively. The research was restricted to small and medium supermarkets in Nairobi, Kenya as a result of lean resources. The researchers are to consider the adoption of supply chain resilience practices in other sectors during the crisis period and not the retail industry in their research. There exist other supply chain resilience practices apart from the four that the study is based on and further research should make considerations for them to be studied.