Supply Chain Integration and Performance of Manufacturing Firms in Nairobi, Kenya

Abstract

The general aim of the study was to investigate the impact of supply chain integration on manufacturing firms’ performance in Kenya. The specific objectives guiding the study were to establish the supply chain integration approaches adopted by manufacturing firms in Kenya. The study further pursued to establish the impact of supply chain integration approaches on performance of manufacturing firms in Kenya. The study utilized descriptive research to collect quantitative and qualitative data. The target population constituted of heads of departments in supply chain, finance, IT and sales departments in manufacturing firms in Nairobi County. The population included 40 supply chain heads of departments in manufacturing firms in Nairobi randomly selected on stratified sampling basis from 836 manufacturing companies registered with KAM in 2020, where 142 were registered in Nairobi. Primary data was collected using both open and close-ended questions administered to 40 respondents of the study. For descriptive statistics, mean, Coefficient of variation, and standard deviation were used. Frequencies and percentages were employed in determining the features of the data and to summarize. To assess the relationship and impact of the three independent and the dependent variables, correlation analysis and regression were used. The findings showed that the components of supply chain integration significantly predicted manufacturing firms’ performance in Kenya. Consequently, regression analysis on customer integration implied an existence of a positive relationship and significant on firm’s performance, while supplier integration had a positive and not significant relationship to firm’s performance and internal integration had a negative and non-significant relationship with performance of manufacturing firms in Kenya. The study concluded that manufacturing firms evidently utilize the supply chain integration approaches to boost performance.