Supply Chain Determinants of Organizational Performance among Textile Manufacturing Firms in Kenya.The Moderating Effect of Background Characteristics

Abstract

The purpose of the study was to analyze supply chain determinants of organizational performance in terms of profitability reliability and responsivenes among textile manufacturing firms in Kenya.Moreover the study investigates the moderating effect of background characteristics on the relationship between supply chain determinants and organizational performance.The study was guided by the following specific objectives; to determine the effect of supply chain information systems on organizational performance among textile manufacturing firms in Kenya, to examine the effect of inventory management on organizational performance among textile manufacturing firms in Kenya, to evaluate the effect of buyer supplier relationship management on organizational performance among textile manufacturing firms in Kenya, to determine the effect of transport management on organizational performance among textile manufacturing firms in Kenya and to assess the effect of warehouse management on organizational performance among textile manufacturing firms in Kenya. The study was informed by a number of theories that included; game theory, relational exchange theory, Supply chain network theory and lean theory. The study adopted the convergent parallel design and targeted a total of 1082 employees, and 104 departmental heads drawn from various departments of the respective textile manufacturing industries operating in Nairobi City County.Two stage sampling method was used to select a sample size of 290 which is a total of employees and heads of departmental units. Questionnaires and interview schedules were used to gather both quantitative and qualitative data commensurate with the needs of the mixed methods design. The statistical package for social sciences (SPSS Version 22) was used to analyze quantitative data both descriptively and inferentially. Hierarchical multiple regression was used to test the effect of the supply chain determinants on organizational performance.Qualitative analysis was used to identify recurring themes in the qualitative data. The results indicates that supply chain information systems, inventory management, buyer-supplier relationship, transport management, and warehouse management positively and signicantly affect organizational performance.Background characteristics do not moderates the relationship between each of independent variables and organizational xxiii performance.Qualitative data analysis results revealed some challenges associated with supply chains in the textile firms. Distrust as a result of lack of transparency in operations, delayed supplier payments, contractual conflicts, automation of warehouses, poor mechanisms of vehicle scheduling and tracking, inefficient modern inventory management practises and warehouse layout were reported. The study therefore recommends that management needs to address challenges experienced in automation and layout of warehouses.The study further recommends that trust be build in the customer-supplier network by sticking to agreed payment modes and contractual obligations,introduction of modern inventory systems and automation,hiring of experts to consolidate ICT infrastructure and adoption of vehile scheduling.Policy makers both in public and private entities should establish relationship to ensure policies which govern manufacturing sector are utilized harmoniously.The study concludes that there was a strong positive correlation between supply chain determinants and organizational performance among the textile manufacturing firms.