Supply chain strategies and performance of motor assembling Firms in Kenya

Abstract

A strong vehicle assembly industry enhances local manufacturing, reduces reliance on imports, and promotes the development of related industries, such as parts manufacturing and logistics. However, Kenyan motor vehicle assembly sector is characterized by low capacity utilization, declining market share, high operational costs, and policy uncertainties. Thus, this study aimed to analyze the effect of supply chain strategies on the performance of motor assembling firms in Kenya. The specific objectives were; leagile, digital, resilient, and sustainable supply chain strategies impact the performance of these firms. The study was anchored on several key theories, including the hybrid supply chain theory, diffusion of innovation theory, dynamic capabilities theory, and stakeholder theory. A descriptive research design was employed, with a target population of staff from 13 motor vehicle assembling firms in Kenya. The census was used, targeting a sample size of 130 individuals. Data was collected using standardized closed-ended questionnaires, with the drop-and-pick-later method employed for data collection. Both descriptive and inferential data analysis techniques was used, with the results presented in frequency tables and pie charts for clear and accessible visual representation. The findings show that leagile strategies boost efficiency and adaptability in motor assembling firms. Digital strategies improve coordination, forecasting, and real-time monitoring. Resilient strategies enhance risk management and operational continuity. Sustainable strategies promote environmental responsibility and ethical practices, strengthening overall performance. The study concluded that leagile strategies improve efficiency, customer satisfaction, and adaptability in motor assembling firms. Digital strategies strengthen coordination, forecasting, and real-time responsiveness. Resilient strategies boost resilience, risk management, and operational continuity. Sustainable strategies enhance environmental responsibility, ethical practices, and resource efficiency. Together, these approaches drive strong performance, but variations in implementation show the need for more consistent practices across the industry. The study recommends adopting standardized best practices to strengthen leagile, digital, resilient, and sustainable supply chain strategies. Firms should invest in advanced technologies, training, and collaboration systems to boost efficiency and responsiveness. Risk management, ethical practices, and environmental initiatives should be applied consistently across the industry. These measures together can enhance resilience, competitiveness, and long-term performance.