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

Ehud Kipkoech Kigen, Dr. Charles Ndeto

Abstract


The retail industry is registering a significant contribution to the Kenyan economy, accounting for about 10% of the gross domestic product and employing over 2 million people. However, the sector faces intense competition from both local and foreign players, as well as challenges such as high operational costs, low customer loyalty and poor quality of products and services. The general objective of this study was to investigate the relationship between collaborative SRM and the performance of retail firms in Nairobi City County, Kenya. Specifically, the study sought to investigate the relationship between supplier engagement and the performance of retail firms in Nairobi City County and to examine the relationship between supplier alignment and the performance of retail firms in Nairobi City County. For this study, a descriptive cross-sectional research design was used. The study targeted 232 respondents; 2 from each of the 116 registered retail outlets in Nairobi City County, Kenya that comprises hypermarkets/ supermarkets/ superstores, convenience stores, grocery stores and clothing outlets. The study used Yamane’s (1967) formula to calculate the sample size of 147 respondents. Simple random sampling method was used to select 150 respondents from the target population. This research used a questionnaire to collect primary data. Fourteen questionnaires were piloted that represented above 10% of the target population. The study collected quantitative data which was analyzed using descriptive and inferential statistics using the Statistical Package for Social Sciences (SPSS) version 27. Multivariate linear regression was used to determine the relationship between the dependent and independent variables. The study concludes that supplier engagement has a positive and strong relationship with the performance of retail firms in Nairobi City County, Kenya. In addition, the study concludes that there is a strong relationship between supplier alignment and the performance of retail firms in Nairobi City County, Kenya. Based on the findings, the study recommends that the management of retail firms should implement a comprehensive supplier development program. This program should focus on building strong, collaborative relationships with key suppliers through regular communication, joint problem-solving, and shared strategic goals. Further, the study recommends that the management of retail firms should create a formal partnership framework that includes joint business planning and shared strategic goals. This framework should involve collaborative activities such as co-developing new products, sharing market insights, and coordinating promotional efforts.

Key Words: Supplier Engagement, Supplier Alignment, Performance of Retail Firms, Collaborative Supplier Relationship Management


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