Effect of Supply Chain Agility on Supply Chain Performance of Manufacturing Firms in Mombasa County, Kenya

William Wambua Ali; Mary Penninah Ibua; Fred Ondisa

doi:10.61250/ssmj/v1.i2.4

Authors

William Wambua Ali School of Business, Technical University of Mombasa Author
DR. MARY IBUA, PhD School of Business, Technical University of Mombasa Author https://orcid.org/0000-0002-6553-2484
DR. FRED ONGISA, PhD, CP3P Kenya Institute of Supplies Examination Board (KISEB) Author

DOI:

https://doi.org/10.61250/ssmj/v1.i2.4

Keywords:

Supply chain management, Supply chain Agility, Organizational performance, Procurement range, Sourcing adaptability, Manufacturing firms

Abstract

Given the unpredictable fluctuations prevalent across various business sectors, the imperative of supply chain agility has emerged. Companies must harness agility within their supply chain domain to enhance operational performance and meet the dynamic demands of the market. This research, conducted within the manufacturing sector of Mombasa County, endeavors to ascertain the influence of supply chain agility on organizational performance. The investigation was guided by specific objectives, namely, examining the impact of procurement range and evaluating the effect of sourcing adaptability in agile supply chains on the performance of the manufacturing industry. The theoretical frameworks underpinning this study encompass the Resource-Based View theory and Contingency theory. The research design employed was descriptive, and the population under consideration is the manufacturing firms within Mombasa County, with a focus on senior personnel engaged in the supply chain systems. The study's population is 100 manufacturing firms, and a census approach was adopted, involving 100 supply chain managers as the targeted audience. Challenges encountered during the research process include reluctance among respondents to participate due to concerns about the potential exposure of confidential data to competitors, time constraints faced by respondents, and a cautious approach when interacting with the broader public. Survey results indicate that respondents, on average, agree that procurement range significantly reduces manufacturing lead time with a mean of 3.84. Additionally, a substantial majority (80%) strongly agrees that sourcing adaptability enhances flexibility within supplier contracts with a mean of 4.7. Conclusively, it was determined that procurement range positively impacts customer service, boosts customization levels, and improves delivery reliability. Sourcing adaptability, on the other hand, contributes to high flexibility in supplier contracts, stimulates the frequency of new products, and facilitates the organization's ability to sustain long-term relationships with suppliers. In light of these findings, the study recommends that procurement firms within supply chain networks focus on developing procurement range and sourcing adaptability.

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