Augustine Abade, Dr. Ismail Shale Noor, Dr. Erick Namusonge, Dr. Elizabeth Wachiuri


Firms with sustainable high performance are those that can develop and deliver more value to their clients while maintaining lower operational costs. While increasing innovation is critical to attaining sustainable and unique firm performance because it increases a firm’s ability and capacity to overcome the challenges in the operating environments, businesses also have to increase their understanding of their business system. This study specifically analysed 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 between supply chain automation on performance of food and beverage manufacturing firms in Kenya. The study was guided by Theory of Technology Acceptance Model (TAM). This study adopted descriptive survey design to explain and follow positivism approach.  The population for the study constituted five hundred and forty-four respondents (544) derived from four departments (procurement department, inventory department, sale management and finance department) from 68 food and beverage manufacturing firms in Kenya. This study collected mainly primary data using a structured questionnaire. Simple random sampling technique was used to obtain 227 respondents from the food and beverage manufacturing firms in Kenya for the study. Cronbach alpha was used to test reliability of research instruments. Explanatory factor analysis was used to test construct validity. Data was analysed using both descriptive and inferential statistics with the aid of SPSS version 25. Hypotheses was tested using multiple regression model and hierarchical regression model at .05 level of significance. The study found that supply chain automation (3.761) has the highest effect. The findings also showed that supplier capabilities (3.721) have a positive moderating effect on the relationship between supply chain automation and performance of food and beverage manufacturing firms in Kenya. Based on the findings, the study concluded that supply chain automation positively and significantly influences performance of food and beverage manufacturing firms in Kenya. The study also concludes that there is significant moderating effect of supplier capability on relationship between supply chain automation and performance of food and beverage manufacturing firms in Kenya. From the findings, the study recommends that the management of food and beverage manufacturing firms in Kenya should give priority to supply chain automation.

Key Words: Supply Chain Automation, Food and Beverage Manufacturing Firms, Supplier Capability

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