Supplier Relationship Management and Supply Chain Performance of Flour Milling Companies in Nairobi County, Kenya
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Date
2025-08
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Kenyatta University
Abstract
Over time, supply chain performances and managements evolved as a critical business feature which enhances survival in a dynamic business environment. Flour milling company’s supply chain performances has been declining as reported by UN reports. The core of the investigation is to ascertain effects of supplier relationship managements on Kenya’s Nairobi County’s supply chains performances of flour milling businesses. Determining effects of supplier collaboration, trust-based relationship, supplier quality and information sharing on Kenya’s Nairobi County’s supply chains performances of flour milling firms, were the specific goals. Resource-based view theory, Transaction cost economics theory, social capital Theory, and alongside other relevant literature, served as study's pillars. 16 sampled flour milling businesses in Nairobi County, Kenya, was the population of interest for investigation. This study used a descriptive research approach. Respondents were selected using census sampling technique and consisted of 96 employees of 16 flour milling companies consisting of quality control manager, supply chain manager, supply chain supervisors, and sales manager therefore census approach was utilized. Questionnaires were utilized in collecting quantitative primary data and its validity was ascertained using content and construct validity tests while its reliability was ascertained using pilot study and Cronbach-Alpha internal consistency test. Analysis was done utilizing multiple regression analyses and descriptive statistics (mean, frequency, and standard deviation), with tables and graphs displaying the outcomes. Diagnostic tests comprising of normality test, multicollinearity tests, heteroskedastic test and linearity test were conducted on the study variables. Findings unveiled that the effect of the management of trust-based relationship on the supply chain performance was both insignificant (ρ = 0.372) and inverse (β= -0.037). The survey concludes that trust-based relationship management insignificantly affects the supply chain performance of the firms. The government should encourage flour milling companies in Kenya to shift towards performance-based contracts with their suppliers and other supply chain partners. Supplier collaboration exhibited a positive (β= 0.215) effect on the supply chain performance, albeit without significance (ρ = 0.190). The survey uncovered that collaboration with suppliers is not a primary factor influencing the supply chain performance of these companies. It is therefore recommended that the government of Kenya implement initiatives to improve transparency, visibility, and information sharing among flour milling firms in Kenya. Output detected a positive effect (β = 0.777) and a significant impact (ρ = 0.000) of information sharing on the supply chain performance. A positive (β= 0.156) but insignificant (ρ = 0.324) effect of supplier quality on the supply chain performance of flour milling companies was uncovered. Regarding this, the survey concludes that supplier quality holds insignificant effect on these firms supply chain performance. The government should encourage flour milling companies in Kenya to enhance their supplier evaluation and selection processes.
Description
A Project Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirement for the Award of the Degree of Master of Business Administration (Procurement and Supply Chain Management), Kenyatta University. August, 2025
Supervisor
Wambui Chege