Strategic Supply Chain Practices and Performance of Maize Milling Companies in Nairobi City County, Kenya
DOI:
https://doi.org/10.47941/jbsm.3970Keywords:
Strategic Supplier Relationship Management, Supply Chain Integration, Strategic Inventory Management, Logistics Distribution Strategy and Organizational PerformanceAbstract
Purpose: The study analyzed how strategic supply chain practices affect maize milling companies' performance in Nairobi City County, Kenya. In particular, the study focused on how strategic supplier relationship management, supply chain integration, strategic inventory management, and logistics distribution strategy affect organizational performance.
Methodology: The method used was quantitative, descriptive, and cross-sectional correlational research within a positivist paradigm. A total of 140 respondents were selected from ten large-scale maize milling companies within five functional departments, determined by proportionate stratified sampling from the directory of the Kenya Association of Manufacturers (KAM). A structured Likert-scale questionnaire with 53 items was used to collect primary data. Descriptive statistics were computed, and multiple linear regression analysis was conducted using SPSS Version 26. All test statistics required for the suitability of the data for regression analysis were calculated: normality, multicollinearity, homoscedasticity, and autocorrelation.
Findings: All four strategic supply chain practices were positively and significantly related to performance, with the four variables jointly accounting for 65.9% of the observed variation in the composite performance score (R² = 0.659, F(4, 131) = 63.328, p < 0.001). Supply chain integration was the strongest predictor (β = 0.311; p < 0.001), followed by strategic supplier relationship management (β = 0.272; p = 0.001), logistics distribution strategy (β = 0.270; p < 0.001), and strategic inventory management (β = 0.214; p = 0.003). The study found that coordinated strategic supply chain practices play a significant role in the organizational performance of maize milling companies in Nairobi City County.
Unique Contribution to Theory Practice and Policy: It recommended improved supply chain integration, supplier relationship management, logistics distribution systems, and strategic inventory management to enhance performance and competitiveness in the maize milling industry.
Downloads
References
Barasa, L. (2024). Research methodology and scale reliability in Kenyan business studies. African Journal of Business Research Methods, *5*(1), 33-48.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, *17*(1), 99-120.
Chege, P. (2019). Supply chain management practices in developing economies: A review. African Journal of Business and Economics, *7*(2), 112-128.
Chenangat, J., & Chege, P. (2025). Information sharing and supply chain performance of flour milling companies in Nairobi County, Kenya. Journal of Supply Chain Management, *12*(1), 34-52.
Christopher, M. (2022). Logistics and supply chain management (6th ed.). Pearson.
Ekwe, K., Okafor, C., & Uzochukwu, A. (2022). Maize value chain assessment in Nigeria and Rwanda: Production practices and policy implications. African Journal of Agricultural Economics, *15*(3), 78-96.
Falodun, A. J., & Abiri, O. T. (2025). Supply chain practices and organizational performance in agro-processing firms. Journal of Supply Chain and Operations Management, *13*(1), 56-74.
Gray, M. (2025). Regional maize market dynamics and supply chain resilience in Tanzania. East African Journal of Agricultural Economics, *10*(1), 45-63.
Kenya Association of Manufacturers (KAM). (2022). Manufacturing sector performance report. KAM.
Kenya Association of Manufacturers (KAM). (2023). Annual manufacturing report 2023. KAM.
Kenya Association of Manufacturers (KAM). (2025). Directory of manufacturing firms in Kenya. KAM.
Kenya National Bureau of Statistics (KNBS). (2024). Economic survey 2024. Government Printer.
Kenya National Bureau of Statistics (KNBS). (2025). Economic survey 2025. Government Printer.
Kipchumba, S., & Chepkwony, J. (2022). Financial performance metrics in Kenyan manufacturing firms. East African Journal of Business and Economics, *5*(1), 45-62.
Likando, M. (2026). Supply chain resilience strategies in Zambia's national milling sector. Southern African Journal of Supply Chain Management, *8*(2), 22-41.
Mangan, J., & Lalwani, C. (2021). Global logistics and supply chain management (4th ed.). Wiley.
Milling Middle East and Africa (MEA). (2024). Post-harvest losses in East Africa grain sector report. MEA Publications.
Mogikoyo, E., Otieno, R., & Wanjiru, M. (2023). Enterprise resource planning adoption in African agri-processing firms. International Journal of Information Systems in Manufacturing, *11*(4), 156-174.
Mwangi, P., & Otieno, R. (2023). Performance measurement in emerging economies. Journal of African Business Studies, *14*(2), 78-95.
National Chamber of Milling of South Africa. (2024). Annual report 2024. National Chamber of Milling.
Nzaka, J., Mwangi, P., & Odhiambo, T. (2024a). Maize sourcing decisions and supply fluctuations in commercial milling companies in Kenya. African Journal of Food Science, *18*(1), 12-28.
Odhiambo, T., & Wanyoike, D. (2023). The structure and performance of Kenya's maize milling industry. East African Journal of Agriculture, *9*(2), 112-128.
Penrose, E. T. (1959). The theory of the growth of the firm. Oxford University Press.
Porter, M. E. (1980). Competitive strategy: Techniques for analyzing industries and competitors. Free Press.
Ross, S. A. (1973). The economic theory of agency: The principal's problem. American Economic Review, *63*(2), 134-139.
Salarzadeh Jenatabadi, H., Chegeni, A., & Khalily, M. (2013). The role of ERP systems in enhancing supply chain performance in manufacturing firms. Journal of Enterprise Information Systems, *27*(3), 245-268.
Siagian, H., Tarigan, Z. J. H., & Jie, F. (2021). Supply chain integration and firm performance during COVID-19 pandemic. International Journal of Logistics Management, *32*(3), 1021-1045.
United Nations Conference on Trade and Development (UNCTAD). (2023). Economic development in Africa report 2023. United Nations.
United States Department of Agriculture Foreign Agricultural Service (USDA FAS). (2024). Kenya grain and feed annual report. USDA.
Xu, L., & Zhao, Y. (2022). Supply chain management practices and firm performance: Evidence from China. Journal of Manufacturing Technology Management, *33*(5), 789-807.
Yamane, T. (1967). Statistics: An introductory analysis (2nd ed.). Harper and Row.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Dennis Kipyator Kapto, Dr. Rahab Lanoi, Prof. Allan Kihara
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
