INFLUENCE OF SUPPLIER EVALUATION CRITERIA ON PERFORMANCE OF METALS AND ALLIED FIRMS IN KENYA
DOI:
https://doi.org/10.47941/ijscl.255Keywords:
Financial Capability, Regulatory Compliance, Technical Capability, Level Of Human Resource Competence And Performance Of Metal And Allied Firms.Abstract
Purpose: This study aimed at examining the influence of supplier evaluation on performance of metal and allied firms in Kenya by focusing on supplier’s financial capability, supplier’s regulatory compliance, supplier’s technical capability and supplier’s level of human resource competency. The study was guided by Lean Supplier Competence Model, Institutional Theory, Resource Based Theory and Social Exchange Theory.
Methodology: The population target of the study comprised of 213 respondents drawn from managerial, supervisory and junior positions in procurement departments in all 71 metal and allied firms in Kenya. The study adopted a census method where it included all members of the target population. Questionnaires and data collection sheets were used to collect primary and secondary data respectively. The collected data was coded and analyzed qualitatively and quantitatively through Statistical Package for Social Sciences (SPSS) version 21. Data was analyzed using both descriptive and inferential statistics where regression analysis was used to establish the effect of independent variables on the dependent variable. Descriptive and inferential results were presented in form of tables and figures. Pilot study was conducted prior data collection to test reliability and validity of data collection instruments.
Results: The findings of the study revealed that supplier’s financial capability, supplier’s regulatory compliance, supplier’s technical capability and supplier’s level of human resource competence have a positive and significant influence on performance of metal and allied firms in Kenya.
Recommendations: The study recommends that metal and allied firms should focus on supplier’s financial capability, supplier’s regulatory compliance, supplier’s technical capability and supplier’s level of human resource competence when conducting supplier’s evaluation since the practices have a positive and significant influence on performance of metal and allied firms.
Downloads
References
Arsan (2011) Performance Measurement and Metrics: An Analysis of Supplier Evaluation retrieved from www.scm.ncsm.edu/scm-articles on 03th June 2018
Aseka, J. (2010). Supplier selection criteria and performance of manufacturing firms listed in the Nairobi Stock Exchange. Nairobi, Kenya: (Unpublished MBA project, University of Nairobi).
Awino Z. B. & Gituro W. (2011). An Empirical Investigation of Supply Chain Management Best
Darren, F. (2006). Appraisal and monitoring of suppliers. UK: Chartered Institute of Purchasing and Supply.
Gordon, S. R. (2006). Supplier Evaluation: Benefits, Barriers and Best Practices. 91st Annual International Supply Management Conference. Emptoris, Inc.
Emerson, R. (1976). Social Exchange Theory. Annual Review Of Sociology, 2(1), 335-362.
Hald, K. S., &Ellegaard, C. (2011). Supplier Evaluation Processes: the Shaping `and Reshaping of Supplier Performance. International Journal of Operations & Production Management, 31( 8), 888 - 910.
Isobe, T., Makino, S., & Montgomery, D. (2008). Technological capabilities and firm performance: The case of small manufacturing firms in Japan. Asia Pacific Journal Of Management, 25(3), 413-428.
Jack. A. (2011). Financial Analysis of Suppliers. Knowledge to Knowledge.
Jens, E. &. (2014). Strategic Supplier Evaluation Considering environmental aspects. Department of Management and Engineering Logistics Management, Linköping University
Kenya Association of Manufacturers (2018). Facts and Figures
Kiprotich Mutai, J. (2016). Effects of Supplier Evaluation on Procurement Performance of Public Universities in Kenya. International Journal Of Economics, Finance And Management Sciences, 4(3), 98-116
Kitheka, S. (2015). The Effect of Supplier Quality Management on Organizational Performance: A Survey of Supermarkets in Kakamega Town. (Masters dissertation, school of business, University of Nairobi
Krause, D., & Scannell, T. (2012). Supplier Development Practices: Product- and Service-Based Industry Comparisons. The Journal Of Supply Chain Management, 38(2), 13-21.
Kivite, J. (2015). Supplier Development And Operational Performance Of Manufacturing Firms In Nairobi City County (Masters). University Of Nairobi.
Mogikoyo, L. (2016). Supplier Evaluation Attributes and Supply Chain Performance Of Commercial State Corporations In Kenya (Masters Dissertation, School Of Business, University Of Nairobi)
Mungai, P. M. (2014). Influence of Supplier Evaluation on Procurement Performance in the Real Estate Industry in Kenya: A Case Study of International House Ltd. International Journal of Operations and Logistics Management, 3(3), 250-262.
Okello, J. O. & Were, S. (2014). Influence of supply chain management practices on performance of the Nairobi Securities Exchange’s listed, food manufacturing companies in Nairobi. International Journal of Social Sciences and Entrepreneurship, 1 (11), 107- 128.
Omanga, A . N. O (2017). Influence of Supplier Evaluation on Performance of Manufacturing Firms in Kenya: A Case of Tata Chemicals Magadi (Jomo Kenyatta University of Science and Technology)
Simons, G., Brandow, R., & Chank, M. (2007). Technology transfer in supplier-development programs. The Journal Of Technology Transfer, 16(4), 23-28.
Sundtoft Hald, K., & Ellegaard, C. (2011). Supplier evaluation processes: the shaping and reshaping of supplier performance. International Journal Of Operations & Production Management, 31(8), 888-910.
Tahriri, F., Rasid, M. R., Ali, A., & Mohd Yusuff, R. (2008). A review of supplier selection methods in manufacturing industries. Suramaree Journal of Science Technology, 15(3): 201-208.
Vonderembse, M., & Tracey, M. (2009). The Impact of Supplier Selection Criteria and Supplier Involvement on Manufacturing Performance. The Journal Of Supply Chain Management, 35(3), 33-39.
Wong, C. W., Lai, K.-H. & Ngai, E. W., 2009. The role of supplier operational adaptation on the performance of IT-enabled transport logistics under environmental uncertainty. International Journal of Production Economics, 12(2), 47-55
Downloads
Published
How to Cite
Issue
Section
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.
