SUPPLIER RELATIONSHIP MANAGEMENT AND PERFORMANCE OF MANUFACTURING FIRMS IN NAIROBI CITY COUNTY, KENYA

Lyndah Chepkonya Kiboi, Dr. Thomas Mose

Abstract


This study sought to establish the influence of supplier relationship management on performance of manufacturing firms in Nairobi City County, Kenya. Specifically, the study sought to assess the influence of supplier selection on performance of manufacturing firms in Nairobi City County, Kenya, and to assess the influence of supplier appraisal on performance of manufacturing firms in Nairobi City County, Kenya. Descriptive research design was employed. According to KAM (2018), the total number of manufacturing firms is 105. This study therefore targeted senior management employees (1 top management employee, 2 middle level management employees and 3 lower management employees) in all the 105 firms. The total target population was therefore 630 employees. The study’s sample size was reached at using Krejcie and Morgan sample size determination formula. The 239 respondents were chosen with the help of stratified random sampling technique. Stratified random sampling technique was used since the population of interest is not homogeneous and could be sub-divided into groups or strata to obtain a representative sample. This study relied on both primary and secondary data. Primary data was collected through use of semi structured questionnaires. The study also conducted pilot test to test the validity and the reliability of the data collection instrument. The data collection instrument generated both qualitative and quantitative data. The study used both descriptive and inferential statistics for data analysis with the aid of Statistical Package for Social Sciences (SPSS version 25). Descriptive statistics such as mean, standard deviation, frequency and percentages were used in this study. In relation to inferential statistics, the study used correlation analysis. This was used to establish the relationship between the independent and the dependent variables. The study concludes that supplier selection has a positive and significant effect on performance of manufacturing firms in Nairobi City County, Kenya. The study also concludes that supplier appraisal has a positive and significant effect on performance of manufacturing firms in Nairobi City County, Kenya. Based on the findings, the study recommends that the management of manufacturing firms in Kenya should invest in developing a robust supplier evaluation and selection process. This process should include thorough assessments of suppliers' capabilities, reliability, quality standards, delivery performance, and cost-effectiveness. In addition, the management of manufacturing firms should establish collaborative programs aimed at enhancing the capabilities and capacities of key suppliers.

Key Words: Supplier Relationship Management, Supplier Selection, Supplier Appraisal, Performance, Manufacturing Firms

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