Role of Supplier Selections on Performance of Manufacturing Firms
Journal Title: International Journal of Academic Research in Business and Social Sciences - Year 2019, Vol 8, Issue 9
Abstract
Across the globe, organizations have realized the importance of procurement performance in establishing and maintaining their competitive advantage. Supplier’s development was considered as one of the aspect that can enhance organization competitive advantage which would eventually result to effective organization performance. The study determined the effect of supplier selections on organizational performance in manufacturing firms in Kenya. The study adopted mixed research approach with both exploratory and descriptive survey design. The target population of this study was 151 SMEs in food and beverage industry which operated in Nairobi and practiced supplier development management practices. Stratified random sampling was employed to select a sample size of 399 respondents. The study used primary data which was collected using questionnaire. The collected data was coded through statistical analysis tool using SPSS version 21 to test for content, construct, and criterion-related validity, as well as reliability analyses. Further, a structural equation model was developed to test the relationships between the variables. In addition, regression analyses and ANOVA was performed to analyses the effects of various relationships at the sub-construct level as well at item level. The study concluded that food and beverage firms in Kenya employ several criteria in supplier development processes. These majorly included selection based on the following criteria; quality standards of products of the supplier, financial position of the supplier, flexibility of the supplier, supplier efficiency in service delivery, supplier charges, good market reputation of the supplier and increase in cost of operation. The study recommended that the food and beverage firms should train their supplier selection committees or procurement managers on how best to select the suppliers. This enabled the firms to get the right suppliers who will lead to harnessing the benefits associated with the practice that is shortened lead times, customer satisfaction and higher profit margins
Authors and Affiliations
Duncan Nyakundi Nyaberi, Mike Amuaya Iravo, Maurice Sakwa
Keywords
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- EP ID EP566269
- DOI 10.6007/IJARBSS/v8-i9/4539
- Views 57
- Downloads 0
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