RISK MANAGEMENT STRATEGY AND SUPPLY CHAIN PERFORMANCE AMONG MANUFACTURING COMPANIES IN KENYA
DOI:
https://doi.org/10.47941/ijscl.81Abstract
Purpose: The purpose of this study was to determine risk management strategy and supply chain performance among manufacturing companies in Kenya
Methodology: The study adopted a cross-section survey of descriptive nature. The target population comprised of the 412 manufacturing companies within Nairobi County that were registered members of KAM. The fisher et al formula for calculating the sample size was used to yield a sample size of199. Data was collected using questionnaires and analyzed using statistical package of social sciences (SPSS) version 21 as a tool of analysis. In trying to explain the relationship between different variables in the study, Odd ratio regression was adopted as an appropriate method of analyzing the relationship between multiple variables requiring simultaneous comparison.
Results: The study findings revealed that the constructs of risk identification management strategy combined together influenced supply chain performance as supported by a p value of 0.000.Further, most of the companies had risk analysis and evaluation management strategy in place. The study also concluded that the odds of observing better lead time and odds of improved quality were higher for those companies that conducted whole life costing of suppliers (p value- 0.023) and internal controls of suppliers (p value- 0.049)
Policy recommendation: the study recommended that manufacturing companies should put in place a risk analysis and evaluation management strategy to enhance supply chain performance. In particular, companies should consider conducting whole life costing of suppliers and also internal quality of suppliers.
Downloads
References
Allayannis, G., G. W. Brown, & L. F. Klapper, 2001, Exchange Rate Risk Management: Evidence from East Asia. University of Virginia Working Paper, Nov/19/2000, Darden School of Business, USA
Allen, Norman, & Robert L. 2004.Categorization of Supply Chain Risk and Risk Management, in Supply Chain Risk.Edited by C. Brindley. London: Ashgate Publishers.
Ambira, C.M. &Kemoni, H., (2011), "˜Records management and risk management at Kenya Commercial Bank Limited, Nairobi', SA Journalof Information Management 13(1), 475-488
Awino, Z.B &Gituro, W. (2011), An Empirical Investigation of Supply Chain Management Best Practices in Large Private Manufacturing Firms in Kenya.Prime Journal of Business Administration and Management (BAM).1(12):26-31.
Beth, E, Bertok, J & Vergez, C (2007), Integrity in Public Procurement: Good Practice From A To Z, Paris, OECD Publishing
Blos, M., Quaddus, M., Wee, H. & Watanabe, K. (2009), Supply chain risk management: a case study of automotive and electronic industries in Brazil, Supply Chain Management: An International Journal, 14(4), 247-252
Chan, H., Wang, W., Luong, L.& Chan, F. (2009), "Flexibility and adaptability in supply chains: a lesson learned from practitioners", Supply Chain Management: An International Journal, 14(6), 407-410
Chen, H.X., Amodeo, L., Chu, F. &Labadi, K. (2005), "Modelling the performance evaluation of supply chains using batch deterministic and stochastic Petri nets", IEEE Transactions on Automated Science and Engineering, 2(2), 78-85
Performance, 3rd ed., Supply Chain Management Institute, Sarasota, FL
Leo O. O., (2009) "˜Kenya is likely to lose billions in erratic tendering system' African Press International
Li, G., Yan, H., Wang, S.Y. & Xia, Y.S. (2005), Comparative analysis on value of information sharing in supply chains, Supply Chain Management: An International Journal, 10(1), 34-46
Lowe, A. & Jones, A. (2004), Emergent strategy and the measurement of performance: the formulation of performance indicators at the micro level, Organization Studies, 25(8), 1313-1337
Lysons, K., Farrington, B. (2006), Purchasing and Supply Chain Management, 7th ed., FT, Prentice-Hall, Pearson Education Ltd, Upper Saddle River, NJ, .
Mugenda&Mugenda (2003), Research methods: qualitative and quantitative approaches.
N.J.: Lawrence Erlbaum Associates
Natarajarathinam, M., Capar, I. & Narayanan, A. (2009), Managing supply chains in times of crisis: a review of literature and insights, International Journal of Physical Distribution &Logistics Management, 39(7), 535-573
Neely, A., Mills, J., Platts, K., Richards, H., Gregory, M., Bourne, M. &Kennerley, M. (2000), "Performance measurement system design: developing and testing a process-based approach", International Journal of Operations & Production Management, 20(4), 640-661.
Orodho J.A, &Kombo K (2004), Techniques of writing research proposal and reports in education and social sciences, Nairobi, Masola Publisher
Patrick A. (2009), Procurement challenges in public sector organizations. Journal of management, 11(2), 157-166
Peck, H. (2005), Drivers of supply chain vulnerability: an integrated framework, International Journal of Physical Distribution & Logistics Management, 35(4), 210-232
Richard H., John F., (2012) Sustainable SME practice: A reflection on supply- chain environmental management intervention, Management of Environmental Quality: An International Journal, 23(6), 673-685
Richard L. Draft, Martyn K., & Natalia V., (2008); Management: International Edition, 8thEdn, Boston USA, Nelson education ltd (Cengage Learning)
Ritchie, B. &Brindley, C. (2007), Supply chain risk management and performance, A guiding framework for future development, International Journal of Operations & Production Management, 27(3), 303-322
Rudberg, M., &Olhager, J. (2003), Manufacturing networks and supply chains: an operations strategy perspective
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.
