EFFECT OF STRATEGIC SOURCING ON PERFORMANCE OF RETAIL FIRMS IN NAIROBI CITY COUNTY, KENYA

Irene Jepkogei Kibet, Dr. Shale Noor

Abstract


The Kenyan retail industry is facing major disruption due to increase in globalization, high competition, technological advancement and uncertainty such as COVID-19 pandemic contributing to reduced profitability, market share and customer satisfaction. Hence, firms should adopt strategic sourcing strategies to improve performance. Recent data shows that leading retail chain stores including Tuskys, Uchumi and Nakumatt have recorded declined performance leading to a closure of a number of their stores. The general objective of the study was to investigate the influence of strategic sourcing on performance of retail firms in Nairobi City County. The specific objectives of the study were to evaluate the effect of supplier market assessment on performance of retail firms in Nairobi City County, and to establish the role of supplier relationship management on performance of retail firms in Nairobi City County. The target population for study was drawn from the 116 retail firms in Nairobi City County registered under Retail Trade Association of Kenya. The study employed correlational research design. The unit of analysis included 116 retail firms within Nairobi City County. The research used census method; thus 116 supply chain managers formed the unit of observation.  The data obtained was analysed using qualitative data analysis & quantitative data analysis and presented in terms of tables and figures to summarize responses for further analysis and facilitate comparison. The study concluded that an improvement in strategic sourcing practises results to a significant improvement in performance of retail firms in Nairobi City County, Kenya.

Key Words: Strategic Sourcing, Performance, Retail Firms, Supplier Market Assessment, Supplier Relationship Management 


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References


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