Procurement and Logistics

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Browsing Procurement and Logistics by Subject "Kenya"

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    Effect of outsourcing on supply chain performance of state corporations in Nairobi city county, Kenya
    (Chuka University, 2024) Mnangat Edward
    State corporations have been characterized by the acquisition and provision of lowquality products and services, inefficiency, and enormous financial losses. An analysis of state corporations in the country revealed that they are experiencing dismal performance. This jeopardizes the capacity of state corporations to contribute to the GDP and the nation's economic development. 52 percent of business executives interviewed across a variety of worldwide industries believed that outsourcing could enhance performance. Hence, the study sought to determine the extent to which outsourcing would affect the supply chain performance of state corporations in Nairobi City County. It focused on the following objectives; examining the effect of SCIT outsourcing, logistics outsourcing, and human resource outsourcing on supply chain performance and determined the moderating effect of management support on the relationship between outsourcing and supply chain performance, and assessed the combined effect of outsourcing on supply chain performance. The core competency theory, resource-based view, and transaction cost theory guided the study. A descriptive research design targeted a sample size of 80 state corporations in Nairobi County was adopted. Procurement officers for the various state corporations were the respondents. Questionnaires were used to gather primary data. Descriptive statistics was adopted to describe the basic characteristics of the data. Pearson product-moment correlation coefficient was used to establish the correlation between the variables. Regression model was used to determine the effect of outsourcing on supply chain performance with the aid of SPSS version 28. At a 5% level of significance, the T- statistic was employed to evaluate the significance of the hypothesis while the F ratio was applied to assess overall significance. R squared was used to show the proportion of the variance for a dependent variable that is explained by the independent variables in the regression analysis. Findings of this study were that SCIT outsourcing does not affect performance ((t-statistic was 0.822, P-value 0.414> 0.05) while logistics and HR outsourcing affects performance of State corporations with ((t-statistic was 4.876, Pvalue 0.000< 0.05; (t-statistic was 4.469, P-value 0.000< 0.05). Management support has a negative moderating effect on the relationship between outsourcing and performance of state corporations ((t=-0.127, P-value=0.029<0.05). The results of the study will provide insight to the government, managers of corporations, and scholars. The government can use study findings in formulating regulations concerning SCIT, logistics and HR outsourcing in state corporations. Managers in various state corporations may be guided in formulating informed policy decisions on what to outsource in terms of SCIT, logistics and Human resource. Additionally, the investigation will contribute to the body of knowledge by providing both theoretical insights and empirical evidence on outsourcing and supply chain performance. The study recommends that organizations should approach SCIT outsourcing with caution, ensuring that it aligns with their strategic objectives and operational needs to maximize potential benefits. Additionally, organizations should consider logistics and HR outsourcing as a strategy to enhance their overall supply chain performance.
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    Supply chain capabilities and firm performance of Epz agro-processing firms in Nairobi metropolitan region, Kenya
    (Chuka University, 2025) Mwangi Esther Muthoni
    Agro-processing firms in Kenya, particularly those operating within the Export Processing Zones (EPZs), are strategically positioned to drive economic transformation through industrialization and value addition. To achieve this role, firms rely heavily on diverse supply chain capabilities that support efficiency and competitiveness. However, the interplay of supply chain visibility, logistics management, relational capability and supplier diversification often presents a dilemma in sustaining and advancing their competitive position. The study therefore examined the relationship between supply chain capabilities and firm performance of EPZ Agro-Processing firms in Nairobi Metropolitan, Kenya. Specifically, the research focused on determining the effects of supply chain visibility, logistics management capability and relational capability on firm performance, as well as the moderating effect of supplier diversification on the relationship between supply chain capabilities and firm performance. The study was anchored on the Transaction Cost Theory, Theory of Constraints and Social Exchange Theory. A descriptive cross sectional research design was adopted. The target population comprised 31 EPZ Agro-Processing firms located in Nairobi Metropolitan, and a census approach was used. Piloting was conducted on three firms selected randomly in Rift Valley region to test the validity of the instrument. Reliability was confirmed through Cronbach’s alpha coefficients. Data was collected using structured questionnaires with closed-ended questions measured on a five-point Likert scale. A total of 27 questionnaires were completed. Data analysis was conducted using the Statistical Package for Social Sciences (SPSS) Version 28, employing descriptive and inferential statistics, and hypothesis testing at a 5% significance level. Ordinary Least Squares (OLS) regression was used to test the direct relationships, while stepwise regression was applied to examine the moderating effect of supplier diversification. Descriptive statistics show that firms had relatively efficient supply chains which strengthen their competitive position. They were fairly effective in tracking goods in real time and maintaining better logistics practices through optimized delivery routes. The firms also sustained reasonably positive relationships with partners and had a fairly broad supplier base. In Inferential analysis, results show that supply chain visibility, logistics management and relational capability enhanced firm performance through efficiency, responsiveness and collaboration. Supplier diversification, however, did not significantly moderate these relationships, suggesting that firm performance is largely driven by supply chain capabilities rather than supplier base expansion. The study was limited by its cross-sectional design, which captured data at a single point in time and did not account for dynamic changes in supply chain capabilities and firm performance. The study recommends managers to strengthen visibility systems, invest in logistics infrastructure and foster long-term collaborative supplier relationships. Policymakers can amend and implement policies that support digital tracking technologies, logistics networks and collaborative platforms to enhance competitiveness in the EPZ Agroprocessing sector. For scholars, the study contributes empirical evidence and extends theoretical perspectives by linking supply chain capabilities to supplier diversification and firm performance in EPZ industry.