SUPPLY CHAIN SCALABILITY AND PERFORMANCE OF DISTRIBUTION FIRMS IN NAIROBI CITY COUNTY, KENYA

Abstract

In Kenya, distribution firms play a pivotal role in driving the economy by facilitating the movement of goods and services across various regions, ensuring that products reach both urban and rural markets. However, distribution firms in Nairobi City County, Kenya face several challenges that can impact their operations. The general objective of the study was to determine the influence of supply chain scalability on performance of distribution firms in Nairobi City County, Kenya. Specifically, the study sought to determine the influence of flexible warehouse design on performance of distribution firms in Nairobi City County, Kenya and to determine the influence of supplier network on performance of distribution firms in Nairobi City County, Kenya. The study was guided by Contingency Theory and Resource-Based View (RBV). This study used of a descriptive research design. The unit of analysis was the distribution companies and the population of 108 registered firms in Kenya. The target respondents were employees in distribution individual firms with experience in the supply chain and logistics responsibilities. This study therefore targeted supply chain managers and logistics managers. The total target population was therefore 216 respondents. The study’s sample size was reached at using Krejcie and Morgan sample size determination formula. The 139 respondents were chosen with the help of stratified random sampling technique. The study’s primary data will be obtained using semi-structured questionnaires. The pretesting sample was made of 14 respondents, representing 10% of the sample size. The results from the pilot test were not used in the main study. In addition, the respondents used in the pilot test were excluded from the final study. Descriptive statistics such as frequency distribution, mean (measure of dispersion), standard deviation, and percentages were used. Inferential data analysis was conducted by use of Pearson correlation coefficient, and multiple regression analysis. Inferential statistic was used to make judgments about the probability that an observation was dependable or one that happened by chance in the study. The study results were presented through use of tables and figures. The study concluded that flexible warehouse design has a positive and significant effect on performance of distribution firms in Nairobi City County, Kenya. In addition, the study concluded that supplier network has a positive and significant effect on performance of distribution firms in Nairobi City County, Kenya. Based on the findings, the study recommends that the management of distribution firms in Nairobi City County, Kenya should invest in modular and reconfigurable warehouse infrastructure that allows for quick adaptation to changes in inventory volume, product types, and delivery schedules.

Key Words: Supply Chain Scalability, Flexible Warehouse Design, Supplier Network, Performance of Distribution Firms