Determinants of Supply Chain Resilience Among Food Processing Firms in Nairobi County, Kenya

Abstract

The COVID-19 pandemic caused huge disruptions in global and domestic business as countries and borders were closed to contain the spread of the virus. This means companies’ supply chain resilience was tested. Hence, this study looked into determinants of supply chain resilience among food processing firms in Nairobi County, Kenya. Out of this topic, three independent variables were identified: absorptive capability, innovation capability, and adaptive capability on SCR. The theoretical framework was based on the dynamic capabilities view and relational view of the firm. A descriptive research design was adopted from which a target population of 102 food processing firms was identified. Out of this population, the sample size was determined as 192 managers from each of the firms using stratified random sampling. The regression analysis indicated that innovative capability, absorptive capability, and adaptive capability had a positive and significant effect on SCR in that order. The study recommends that food processing firms to provide continuous training to their staff on risk management so as to promote a culture in which risks are anticipated and strategies for responding to these risks can be proposed from the staff so as to enhance the organizations’ supply chain resilience. Secondly, there is need for food processing firms to motivate staff to share knowledge within the organisation on risk management so as to promote knowledge sharing during supply chain disruptions and thereby enhance the capacity of the supply chain to be resilient during any future operational crisis that may arise.