Cynthia Kabue, Dr. Charles Ndeto


Automotive firms in Nairobi have had a decline in sales of new vehicles and new genuine spare parts thus unable to achieve a balance between responsiveness and efficiency hence, affecting their profitability. The main objective of this study was to establish the relationship between inventory management practices and performance of automotive firms in Nairobi City County. The study was guided by the following objectives; to assess the relationship between stock control practices and performance of automotive firms in Nairobi City County; and to assess the relationship between material acquisition practices and performance of automotive firms in Nairobi City County. The study adopted a descriptive research design. A census technique was employed thus, all 175 members of the target population were studied due to the small number of the target population. To determine the validity and reliability of data collection instruments, a pilot study was conducted on 18 respondents which was 10% of the sample size.  The questionnaire was found to be valid and reliable and was used for final study. The research findings indicate a significant impact of material acquisition practices on the performance of automotive firms (β1=0.643, p value= 0.000). Additionally, the study reveals that stock control practices significantly influence the performance of automotive firms (β2=0.725, p value= 0.000). Based on these results, it is recommended that management of automotive firms in Nairobi city county, Kenya should prioritize the adoption of robust material acquisition practices, ensuring due diligence in sourcing all parts and vehicle consumables to reduce time wasted on returns.

Key Words: Inventory Management Practices, Performance, Automotive Firms, Stock Control Practices, Material Acquisition Practices 

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