Supply chain strategy and organizational performance of Kenya Power

Abstract

Supply chain is increasingly becoming vital for the organizational growth and survival thus effective and efficient management of supply chain activities creates competitive edge. Therefore, this study had two main objectives that include; first, to establish supply chain strategy adopted by Kenya Power and second, to evaluate the effect of supply chain strategy on organizational performance of Kenya Power. The study adopted a longitudinal research design. Longitudinal research design was appropriate for since it allowed researcher to gather data over a period of three years on quarterly basis since the Kenya Power strategic plan was launched. Data was collected from secondary sources only using the secondary data capture form. The findings showed that lean supply chain strategy is most frequently employed by Kenya Power compared to other two supply chain strategies studied- Agile and hybrid supply chain strategies. Regression analysis results indicated R square value of .215 which suggest the extent to which lean supply chain strategy and agile supply chain strategy predict the organizational performance of Kenya Power. The study concluded that all the three variables, which include lean, agile and hybrid supply chain strategies had been practiced at some point by Kenya Power in its effort to improve both financial performance and operations efficiency. The study recommends that Kenya Power should aim to efficiently and effectively implement hybrid supply chain strategy where both lean supply chain strategy and agile supply chain strategy are applied concurrently.