Relationship between Dynamic Supply Chain Capabilities and Resilience of Retail Chain of Stores in Kenya

Abstract

Retail chains are undoubtedly susceptible to a castellation of turbulences such as cash crunch, ineffective distribution flows downstream, perishability of merchandise, and inadequate capacities for storage areas, among other turbulences that, more often than not, precipitate non-resilience of these chains. For these reasons and others, the chains need to adapt to several situations by exhibiting readiness, response, and recovery capability, which brings about resilience in a retail chain. On the flip side, more empirical research on resilience in the retail sector needs to be done. It is against this brief outline that the study focused on providing granular insights into the relationship between dynamic supply chain capabilities and resilience in retail chains of stores in Kenya. Five specific objectives guided the study. The predictor variables under assessment in the study are dynamic SC agility capability, SC analytics capability, SC innovation capability, and SC alignment capability. The criterion variable under study was resilience in the retail sector. The study also adopted supply chain configuration as the moderator variable. Further, the researcher situated this study on Resource orchestration theory, supply chain network theory, and structural dynamics theory. A diagrammatic conceptual framework was drawn to contend the relationship of the variables under study. Operationalization of study variables was done. More so, an empirical review of study variables was exhaustively done, to the best ability of the researcher, precipitating a critique and identification of research gaps manifested by extant research. In research methodology, the study accentuated positivist epistemology and stance. Additionally, the study adopted an ex-post facto, cross-sectional survey research design. The study population was the retail chain of stores in Kenya, and the target population was listed retail chains in Nairobi City County. The study adopted two-stage sampling that yielded a sample size of 318 respondents. The primary data collection instrument for the study was a structured questionnaire. After seeking the relevant approvals and research permits, questionnaires were self-administered with the research assistants' help. The pilot study was conducted in Kiambu County as it exhibited homogeneous characteristics as the target population. Before data analysis, the psychometric properties of the data collection instruments were tested through reliability and validity. The study adhered to content validity, construct validity, and face validity. Both descriptive statistics and inferential statistics analyzed quantitative data. The hypotheses test was done using SEM. These analyses were done with the help of IBM SPSS software, IBM-AMOS version 22. Qualitative data analysis was done through content analysis. Given the high response rate, non-response bias was not an issue. Exploratory factor analysis was conducted to establish the interrelationships among set variables, and it also facilitated the reduction of a large number of factors to a more manageable number. Before conducting EFA, Kaiser-Meyer-Olkin (KMO), the test was conducted to test the suitability of data for factor analysis. The KMO values for the variables were all above 0.7, indicating sampling adequacy. KMO was supplemented by Bartlett's Test of Sampling adequacy, reaffirming the correlation matrix's factorability. Principle Component Analysis was used to extract factors. The study adopted the Varimax technique of orthogonal rotation, which resulted in a reduced number of factors. Confirmatory Factor Analysis was used to establish convergent validity and unidimensionality of constructs. CFA was performed separately for the variables under study. The results indicated that the model was a good fit. The study conducted hypothesis testing that rejected the null hypothesis H01-H05. The study established that SCC needs to moderate the relationship between dynamic SC capabilities and resilience in the retail sector. The study concluded logically and recommended that retail chains focus more on flexibility and swiftness. It will enable them to exhibit ambidexterity ex-ante and ex-post disruptions. The study also suggested areas for further research.