SUPPLY CHAIN COMPLEXITIES AND PERFORMANCE OF FLOWERS EXPORTING FIRMS IN NAKURU COUNTY, KENYA
Abstract
Managing the supply chain (SC) is a critical issue in any kind of business domain, as the success or failure of an organization is highly dependent on the capacity and capability to manage its SC network. In the era of technological revolution, global companies are working in a distributed business environment, where they need to keep an eye on every aspect of their supply networks. Despite the significance of the floriculture sector in the economic growth, the sector performance has been declining. The general objective of the study was to assess effect of supply chain complexities on performance of flowers exporting firms in Nakuru County, Kenya. The specific objectives were to examine effect of operational complexities, and external complexities on performance of flowers exporting firms in Nakuru County, Kenya. The study was guided by four theories; Resource-based theory and prospect theory. This adopted a descriptive research design. The targeted 76 flower firms in Nakuru County. The unit of observation was 76 supply chain, 76 finance, 76 administration and 76 operations managers hence a target of 304 respondents. Taro Yamane's 1967 sampling formula was used to sample 172 respondents. Stratified sampling technique was used to sample the respondents. The study used close ended questionnaires to collect data. A pilot test was conducted with 17 managers. The study used content and construct validity. Reliability was measured using Cronbach alpha. Data was coded and keyed into SPSS version 28. Results were tabulated. The study investigated the influence of operational complexities on firm performance. The findings show that respondents recognized the challenges posed by factors such as managing multiple plants, diverse product ranges, and quality management. The study finally investigated the influence of external complexities on firm performance. The findings reveal that respondents recognized the challenges posed by economic downturns, market uncertainties, and export regulations. In light of the findings on operational complexities, it is recommended that flowers exporting firms in Nakuru County, Kenya, streamline their operational processes to improve efficiency and scalability. In response to the findings on external complexities, it is recommended that flowers exporting firms in Nakuru County, Kenya, adopt a proactive approach to managing external risks and uncertainties.
Key Words: Supply Chain Complexities, Operational Complexities, External Complexities and Performance of Flowers Exporting Firms
Full Text:
PDFReferences
Abbasi, M. (2022). Steering supply chains from a complex systems perspective. European Journal of Management Studies , 27(1) 5-38.
Agburum, O. & Adiele, K. (2022) Experiential Exploration of Supplier Evaluation and Supply Chain Performance of Shipping firms in Rivers State, Nigeria. International Journal of Multidisciplinary Research and Growth Evaluation, 3 (1), 445-454.
Alkan, B. (2018). A complexities modelling approach to support early life-cycle phases of assembly automation systems (Unpublished doctoral dissertation). University of Warwic
Arani, W., Mukulu, E. & Waiganjo, E. (2016). Influence of Supply Chain Re-Engineering on Supply Chain Resilience In Manufacturing Firms In Kenya. International Journal of Management and Commerce Innovations, 4(1) 720-731
Ateş, M., Suurmond, R. & Luzzini, D. (2021). Order from Chaos: A Meta‐analysis of Supply Chain Complexities and Firm Performance. Journal of Supply Chain Management. 58(6). 10.
Chae, S., Mena, C., Polyviou, M., Rogers, Z. S., & Wiedmer, R. (2019). The effects of tariff increases on supply base complexities: A conceptual framework. Journal of Purchasing and Supply Management, 25(4), 100556.
Chang, W., & Taylor, S. A. (2017). The effectiveness of customer participation in new product development: A meta-analysis. Journal of Marketing, 80, 47–64.
Chen, H. L. (2018). Supply chain risk’s impact on corporate financial performance. International Journal of Operations & Production Management, 38, 713–731
Chhetri, P., Hashemi, A. & Lau, K.(2022). Aligning supply chain complexities with product demand and design characteristics. International Journal of Logistics Research and Applications,
Chinyelu, A. (2020). Competitive Aggressiveness and Business Performance of Event Management Firms in Port Harcourt, Nigeria. International Journal of Business & Law Research 8(1)99-108
Dong, Y., Skowronski, K., Song, S., Venkataraman, S., & Zou, F. (2020). Supply base innovation and firm financial performance. Journal of Operations Management, 66(7–8), 768–796.
Ekinci, A. (2016). The effect of credit and market risk on bank performance: evidence from Turkey. International Journal of economics and Financial Issues, 6(2), 427 – 434
Ekiyor, A., Amino, M. & Altan, F.(2019). The Effect of Supplier Selection on Operational Performance in Pharmacies. SSRG International Journal of Economics and Management Studies, 6(12)190-196.
Hakami, Y. (2016). Analysing and Managing Upstream Manufacturing Supply Complexities. Unpublished Masters Thesis, RMIT University
Ihsan, H., Rashid, A., & Naz, A. (2018). Exchange rate exposure and firm value: An assessment of domestic versus multinational firms. The Lahore Journal of Economics, 23(1), 51-77
Jæger, B., Menebo, M.M. & Upadhyay, A. (2021). "Identification of environmental supply chain bottlenecks: a case study of the Ethiopian healthcare supply chain", Management of Environmental Quality, 32(6 ) 1233-1254
Malina, S. (2019). Supply Chain Complexities: A Case Study in the Drive and Control Industry. Otto Beisheim School of Management
Memiş, (2019). The Impact of Supply Base Complexities On Firm Performance. Unpublished Thesis, Middle East Technical University
Mohamed, E. & Hassan, A. (2019). How Does Complexities Affect the Relationship Between Supply Chain Integration and Firm Performance?: A Conceptual Framework. International Journal of Service Science, Management, Engineering, and Technology, 10(2) 22-37
Muricho, W. (2021). Influence of Supply Chain Resilience Practices On thePerformance ofFood andBeverages Manufacturing Firms in Kenya:A Survey of Nairobi City County. International Journal of Business and Social Research, 11(1)36-55
Muriithi, J.G., Muturi, W.M., & Waweru, K.M. (2016). The effect of market risk in financial performance of commercial banks in Kenya. Journal of Finance and Accounting, 4(4), 225 – 233.
Odubuasi, A. & Uduak, O. (2020). Effect of Market Risks on the Financial Performance of Firms in Nigeria. European Journal of Accounting, Auditing and Finance Research, 8(6) 28-45
Ogendo, A.A. (2018). Effect of Supplier Selection Criteria on Organizational Performance of the County Government of Kisumu. Unpublished Master’s Thesis. Maseno University.
Piya, S., Shamsuzzoha, A., & Khadem, M., (2019). An approach for analysing supply chain complexities drivers through interpretive structural modelling. International journal of logistics: research and applications.
Pushpendu, C., Jitesh, J. & Thakka, K. (2018). Analysis of supply chain complexities drivers for Indian mining equipment manufacturing companies combining SAP-LAP and AHP, Resources Policy, 59(1)
Raina, S. & Zheng, K. (2021). The Effect of Competition in Upstream and Downstream Industries on Firm Boundaries.
Roh J., Tokar T., Swink M., Williams B. (2022). Supply chain resilience to low-/high-impact disruptions: The influence of absorptive capacity. The International Journal of Logistics Management, 33(1), 214–238.
Sharma, A., Kumar, V., Yan, J., Borah, S. B., & Adhikary, A. (2019). Understanding the structural characteristics of a firm’s whole buyer–supplier network and its impact on international business performance. Journal of International Business Studies, 50(3), 365–392.
Sreejith, B., & Vinaya, S., (2017). Influence of Suppler Evaluation on Procurement Performance: An empirical Investigation on the Construction Sector. An International Journal, 22(1), 58-81.
Turner, N., Aitken, J. a& Bozarth, C. (2018), "A framework for understanding managerial responses to supply chain complexities", International Journal of Operations & Production Management, 38(6) 1433-1466
Vachon, S., Halley, A., & Beaulieu, M. (2015). Aligning competitive priorities in the supply chain: the role of interactions with suppliers. International Journal of Operations & Production Management, 29(4), 322-340
Westhuizen, J. & Ntshingila , L. (2020). The Effect of Supplier Selection, Supplier Development and Information Sharing on SME’s Business Performance in Sedibeng. International Journal of Economics and Finance Studies, 12 (2)290-304.
Refbacks
- There are currently no refbacks.