Supplier Development Management Practices and Organizational Performance of Manufacturing Firms in Kenya

Abstract

Over the globe, the effect of supplier development management practices on organizational performance of manufacturing firms has been evolving. The specific objectives of this study were. Supplier selection, technical capabilities, information exchange and supplier evaluation.This study used descriptive research design, where both qualitative and quantitative research was applied, This type of research design was good, since they use both numerical and words. When both are applied they support each other, hence they describe the phenomena clearly. The target population of this study was 500 respondents from the following departments; procurement, finance and production respectively, these were senior officers from manufacturing industries in Kenya. A stratified random sampling technique was used to get a sample size of 399 respondents. This study used structured and semi structured questionnaires to collect data from the sampled respondents. The assistant researcher officers assisted the researcher to drop questionnaires to the respondents and they picked the same after two weeks, and where there was need an extension was given to allow the respondents to fill the questionnaires. A pilot test of 10% was done to confirm reliability and validity of the instruments prior to the actual collection of data. Where there was need adjustment was done for the purpose of clarity. The collected data was analyzed with the help of Statistical Package for Social Science version 24 and has been presented with the help of, figures, tables and histograms. The study concludes that supplier development can be enhanced by supplier selection, technical capability, and information exchange and supplier evaluation. The four variables can now contribute 65.3% of the overall performance of organizational development if it is implemented. The study recommends that the organizational performance of manufacturing firms should embrace supplier selection, technical capability, and information exchange and supplier evaluation towards the supplier development. This has enabled manufacturing firms to get the right suppliers who has led to harnessing the benefits associated with the practice that must shorten lead times towards supplier development in the manufacturing firms in Kenya