SUPPLY CHAIN RESILIENCE STRATEGIES AND PERFORMANCE OF FOOD AND BEVERAGE MANUFACTURING FIRMS IN KENYA

Jama Hashi Mohamed, Dr. Duncan Ndung’u Nderui

Abstract


The main objective of this study was to establish the effect of supply chain resilience on performance of food and beverage manufacturing firms in Kenya. Specifically, the study sought to determine the effect of supply chain visibility on performance of food and beverage manufacturing firms in Kenya, and to find out the effect of supply risk management on performance of food and beverage manufacturing firms in Kenya. Descriptive research design was employed. This study targeted 187 food and beverage manufacturing firms in Kenya, where supply chain managers in these companies were the units of observation. Using a sampling formula by Nassiuma, a sample size of 103 respondents was identified, and the respondents were picked using simple random sampling. This study also used questionnaire to collect data relevant to this study. The questionnaire was pilot tested to assess its validity and reliability. The reliability was assessed using Cronbach’s alpha where 0.70 was used as the threshold. Content validity, face validity and construct validity were tested to ensure the questions on the questionnaire were clear, understandable and addressing the thematic areas of the study. Quantitative data collected was analyzed using descriptive statistical techniques which included percentages, mean, and standard deviation. Inferential statistics which include Pearson correlation and the Regression Analysis Model were used to test the relationship between study variables. The significance of the model was tested at 5% level of significance. Data was analysed using Statistical Package for Social Sciences (SPSS) version 25 software. The study results were presented through use of tables and figures. The findings revealed that supply chain visibility had a significant effect on performance of food and beverage manufacturing firms in Kenya (β = 0.249; P=0.000<0.05). Lastly, supply risk management was found to significantly influence performance of food and beverage manufacturing firms in Kenya (β = 0.228; P=0.000<0.05). The study concluded that the declining performance of food and beverage manufacturing firms in Kenya was significantly attributed to ineffective embrace of supply chain resilience strategies including supply chain visibility and supply risk management. It is therefore recommended that there is need for supply chain managers at the food and beverage manufacturing firms in Kenya to spearhead supply chain resilience strategies to ensure the firms are capable of maintaining an effect supply chain process even during disruptions.

Key Words: Supply Chain Resilience, Food and Beverage Manufacturing Firms, Supply Chain Visibility, Supply Risk Management 


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