Supply Chain Scalability and Performance of Food and Beverage Manufacturing Firms in Kenya

Abstract

Sustainably high-performing firms create superior customer value while maintaining low operational costs. Achieving this requires continuous innovation and a deep understanding of internal business systems to navigate dynamic operating environments. Despite the apparent link between supply chain scalability and firm performance, limited empirical research has examined this relationship. Therefore, this study sought to investigate this critical connection. Thus, the main objective of the study was moderating effect of supplier capability on relationship between supply chain scalability and performance of food and beverage manufacturing firms in Kenya. This study specifically determined the effects of supply chain agility on performance of food and beverage manufacturing firms in Kenya, determine the effect of supply chain integration on performance of food and beverage manufacturing firms in Kenya, determine the effect value chain mapping on performance of food and beverage manufacturing firms in Kenya, analyse the effect of supply chain automation on performance of food and beverage manufacturing firms in Kenya and determine the moderating effect supplier capability on relationship supply chain scalability on performance of food and beverage manufacturing firms in Kenya. The study was guided by Adaptive Structuration Theory, Information processing theory, Systems Theory, Theory of Technology Acceptance Model (TAM) and Dynamic Capabilities Theory. This study adopted positivism research philosophy, descriptive survey design and explanatory research design. The target population for this study comprised 544 heads and assistant heads from four key departments, supply chain and logistics, quality assurance and quality control, production/operations, and sales and marketing, across 68 food and beverage manufacturing firms in Kenya. Stratified random sampling technique was used to obtain 228 respondents from the food and beverage manufacturing firms in Kenya for the study. This study collected mainly primary data using a semi-structured questionnaire. Cronbach’s Alpha was used to assess the reliability of the research instruments, while face validity, content validity, and construct validity were employed to establish the validity of the measurement scales. Data was analysed using both descriptive and inferential statistics with the aid of SPSS version 28. Descriptive statistics included mean, standard deviation, frequencies and percentages. Inferential statistics comprised of multiple regression model and hierarchical regression model. The study found that supply chain agility has a positive and significant effect on the performance of food and beverage manufacturing firms in Kenya (β=0.433, p-value= 0.000). In addition, the findings indicated that supply chain integration has a positive and significant effect on the performance of food and beverage manufacturing firms in Kenya (β=0.497, p-value= 0.000). Moreover, the study found that value chain mapping has a strong positive and significant relationship with performance of food and beverage manufacturing firms in Kenya (β=0.469, p-value= 0.000). Further, the study found that supply chain automation has a positive and significant relationship with performance of food and beverage manufacturing firms in Kenya (β=0.411, p-value= 0.000). Also, the study found that supplier capability has a moderating effect on the relationship between supply chain scalability and performance of food and beverage manufacturing firms in Kenya (β=0.283, p-value= 0.000). The study recommends that food and beverage manufacturing firms in Kenya enhance supply chain agility, integration, automation, and value chain mapping while developing strong supplier capabilities through strategic partnerships, digital integration, and knowledge sharing to improve operational efficiency, responsiveness, and overall firm performance.