SUPPLY CHAIN RESILIENCE AND PERFORMANCE OF MANUFACTURING FIRMS IN NAIROBI CITY COUNTY, KENYA

Roseline Saile, Dr. Noor Ismail Shale

Abstract


Manufacturing firms in Kenya face increasing exposure to supply chain disruptions driven by global shocks such as the COVID-19 pandemic, infrastructural limitations, market volatility, and policy inconsistencies. These challenges have adversely impacted operational continuity, delivery efficiency, and overall firm performance. Despite growing global interest in supply chain resilience strategies, there remains limited empirical evidence on how specific resilience capabilities influence performance outcomes within Kenya’s manufacturing sector. This study sought to fill this gap by examining the effect of supply chain resilience capabilities operational flexibility and supply chain re-engineering on the performance of manufacturing firms in Nairobi City County, Kenya. The study was grounded in a multi-theoretical framework, drawing from Dynamic Capabilities Theory and Systems Theory. A pilot study involving 14 participants was first conducted to validate the research instrument. The main study adopted a descriptive cross-sectional design. Data were collected through structured, closed-ended questionnaires administered to supply chain managers from 138 manufacturing firms registered with the Kenya Association of Manufacturers (KAM), selected from a population of 210 using the Krejcie and Morgan sampling formula. Analysis was conducted using SPSS version 28, involving both descriptive and multiple regression techniques. Results showed that all four resilience capabilities had a statistically significant and positive effect on firm performance. Specifically, a unit increase in supply chain re-engineering led to a 0.306 unit increase in performance, followed by operational flexibility (B = 0.271). The study concludes that building supply chain resilience through continuous process redesign, agile operations, proactive risk management, and strategic supplier engagement is essential for enhancing firm performance. It recommends targeted investments in digital transformation, supplier diversification, employee training, and internal operational agility to foster adaptive and competitive supply chains. This study contributes both academically and practically by offering context-specific insights into how resilience-building strategies influence manufacturing performance in emerging economies. It provides actionable guidance for supply chain managers, policymakers, and institutions such as KAM, while supporting regional integration efforts like the African Continental Free Trade Area (AfCFTA). The findings are also valuable to scholars and practitioners seeking to enhance organizational agility, responsiveness, and competitiveness in the post-pandemic era.

Key Words: Supply Chain Resilience Capabilities, Operational Flexibility, Supply Chain Re-Engineering, Performance of Manufacturing Firms


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