SUPPLY CHAIN MANAGEMENT PRACTICES ON PERFORMANCE OF TEXTILE MANUFACTURING FIRMS IN KIAMBU COUNTY, KENYA

Abstract

The manufacturing sector is a significant contributor to Kenya’s economy resulting in a 10% Gross Domestic Product, 12.5% exports and a 13% formal employment. Despite its importance, the manufacturing industry in Kenya has been experiencing a lot of turbulence in the recent past including a drop in the GDP, an increasing imbalance of trade and the exiting of large multinationals. The main focus of this study was to assess the influence of supply chain management on performance of textile manufacturing firms in Kiambu County, Kenya. Specifically, the study sought to determine the effect of material management on performance of textile manufacturing firms in Kiambu County, Kenya, and to establish the effect of inventory management on performance of textile manufacturing firms in Kiambu County, Kenya. The study was guided by Queuing Theory and Systems Theory. This study used a descriptive research design. The research focused on garment/textile manufacturers in Kiambu County, Kenya. There are 67 textile/garment manufacturers listed currently in Kiambu County which are registered members of the Kenya Association of Manufacturers (KAM) as of 6th March 2024 (KAM, 2024). The unit of observation of this study was 635 managerial employees working in the 67 textile manufacturing firms in Kiambu County, Kenya. The study’s sample size was reached at using Krejcie and Morgan sample size determination formula (Russell, 2018). Using this formula, a representative sample was obtained. The 270 respondents were chosen with the help of stratified random sampling technique. This study used primary data collected using a semi-structured questionnaire. Statistical Package for Social Sciences (SPSS) was used to analyze the data. Descriptive and inferential statistics were computed and findings presented in tables and figures. The regression analysis showed that Inventory Management had the strongest impact (B = 0.412, p = 0.000), followed by Material Management (B = 0.305, p = 0.000). The model was statistically significant (F = 107.842, p = 0.000), confirming that efficient supply chain practices drive firm performance. The study concludes that proper material sourcing and optimized inventory control significantly enhance efficiency, profitability, and competitiveness. Firms should invest in automated procurement and inventory systems, improve logistics and distribution networks to ensure supply chain stability and market sustainability.

Key Words: Supply Chain Management, Inventory Management, Material Imanagement, Performance of Textile Manufacturing Firms