Effects Of Supplier Relationship Management On Sustainable Supply Chain Management Performance Of Large Essential Goods Manufacturing Firms In Kenya.

Abstract

The purpose of the study was to examine if the three constructs of Supplier Relationship Management (SRM) are adopted by large essential goods manufacturing firms in Kenya and how these constructs contributed to Sustainable Supply Chain Management Performance (SSCMP) of these firms. The study was necessitated by lack of adequate research on the effects of SRM on SSCMP of large essential goods manufacturing firms in Kenya and the insights from the study would be useful to policy makers, procurement leads and management of manufacturing firms. To achieve the study objectives, the researcher sought to determine the effect of Supplier Appraisal Criteria, Supplier Collaboration, and Supplier Development on Sustainable Supply Chain Management performance of large essential goods manufacturing firms in Kenya. This research project relied on three theories: stakeholder theory, resource dependency theory and institutional theory to explain the linkage between SRM and SSCMP. By first examining past research in the field of SRM constructs and SSCMP, the study addressed research gaps identified through literature review. The study adopted a descriptive research design and used a target population of 462 procurement officers of the selected manufacturing firms. A sample of 118 staff was identified through stratified random sampling and issued with structured questionnaires. The study used regression coefficients and equations to explain the relationship between supplier appraisal criteria, supplier collaboration, supplier development and sustainable supply chain management performance of large essential goods manufacturing firms in Kenya. Concerning the first research objective, the results established that, the extent of use of supplier appraisal criteria had increased SSCM performance in the targeted manufacturing firms in Kenya. In relation to the second objective, the results showed that the degree of implementation of supplier collaboration activities by manufacturing firms in Kenya had led to improved SSCM performance. For the third objective, the results showed that the level of supplier development initiatives in the manufacturing firms in Kenya had led to improved SSCM performance. The conclusive study results revealed a very strong positive relationship between Supplier Relationship Management elements of Supplier Appraisal Criteria, Supplier Collaboration, and Supplier Development and SSCM performance. The study finally recommended to policy makers and regulators to demand that management of manufacturing firms in Kenya incorporate sustainability issues in their supply chain management goals. By managing and seeking to improve environmental, social and economic performance throughout supply chains, manufacturing firms act in their own interests, the interests of their stakeholders and the interests of society.