Effects of Supplier Relationship Management Practices on Operational Performance Amongst Beach Hotels in Mombasa County During Covid-19 Period

Abstract

The objective of the research was to investigate how supplier relationship management affect the extent to which beach hotels in Mombasa County perform operationally during the covid-19 pandemic period. The study also involved an assessment of the challenges of implementing supplier relationship management practices among beach hotels in Mombasa County during Covid-9 period. The research employed a census survey targeting 36 beach hotels operating in Mombasa County according to Kenya Association of Hotelkeepers and Caterers (2021). The research involved the use of primary data gathered using questionnaires. The gathered data underwent screening to edit inconsistencies. From there, it was exported to SPSS tool where averages and measures of variations were generated to ascertain the extent of adoption of supplier relationship management practices. In determining how SRM practices affect operational performance, multiple regression was employed. It was found that improved implementation of the practices reliably predicted the operational performance of beach hotels in Mombasa County. It was also found that supplier development had a moderately strong and positively affected operational performance indicated by r= .638, p<0.05. Supplier collaboration was found to positively and significantly affect on operational performance indicated by r= .495, p<0.05. Supplier evaluation was equally found to have moderately positive and significant effect on operational performance at the level of 0.05 given r= .454, p<0.05. Finally, information sharing had a moderate but positive and significant effect on operational performance. The finding of R = 0.679 implied that SRM practices and operational performance were positively correlated. The adjusted R2 of 0.378 meant that only 37.8% of changes in operational performance was due to the combined effects of the practices studied. This implied that, there were other factors causing 62.2% variations in operational performance that were not studied in the current research. Regarding challenges facing implementation of supplier relationship management practices in their firms, it was established that existence of financial constraint, lack of capacity building regarding SRM practices, high level of insecurity in the firm’s operation and inefficient communication were the key challenges. The study concluded that supplier management practices lead to improved operational performance among beach hotels in Mombasa County. Further, the challenges in the implementation of supplier management practices, included financial constraint, lack of proper training of the stakeholders, high insecurity levels and lack of efficient communication. Based on the conclusion, management of beach hotels in Mombasa County should find other ways of improving operational performance, over and above the use of supplier management practices. They should also find ways of handling the challenges. This would involve adequate empowerment of the stakeholders and proposals for sufficient funding for effective performance.