Effect Of Supply Chain Risks On Performance Of Large Scale Manufacturing Firms In Kenya
Journal Title: International Journal of Business and Management Invention - Year 2018, Vol 7, Issue 11
Abstract
Supply chain risks is a growing global threat to manybusinesses.A survey done by Business Continuity Institute established that 85% of firms experienced at least three supply chain disruptions annually resulting in less revenues, declining customers and damaged reputations. The manufacturing industryemploys13% of the country’s labour force and is regarded as the country’s economy driver to global competitiveness by 2030. It has howeverbeen distressed with supply chain disruptionsleading to downsizing and closure of some firms,subsequently resulting toloss of jobs. Empirical studies reviewedonly focused on the dimension of supply demand risksignoringdemand variability risk. Consequently,information on the application of the two variables together islacking.Thestudy soughtto establish the relationship between supply chain risks and performance of large scale manufacturing firms in Kenyaguided by Resource Based View framework and acorrelationalsurvey design.The study targeted473 Officers of the manufacturingfirms in Nairobiout of which a sample of 403 was obtained after engaging 70 officers randomly selected in a pilot study.Pilot results revealed 34 item instrument reliability of 0.8999.Experts review, Barlett’sSphericity test of α = 0.000<0.05and factor scores correlation matrix of 0.586(SC Risk) and 0.191(Performance)<0.7 ascertained validity.The study establisheda significant effect of SC Risks on performance (F=2.596, α=0.051, p<0.005).The findings abetthe theoretical position that firms should avert all SC Risks as they can potential jeopardize their operations. The study recommends that all SC Risks be avertedand in particular product quality failure, physical products flow disruption and profit margin erosion. These findings will act as a preamble for further research in Supply Chain.
Authors and Affiliations
Albert Washington Ochung Tambo, Johnmarkobura .
Keywords
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