SUPPLY CHAIN VISIBILITY AND PERFORMANCE OF COMMERCIAL STATE CORPORATIONS IN KENYA
Keywords:
Supply Chain Visibility, Commercial State Corporations, General Systems TheoryAbstract
Kenya loses a lot of taxpayers’ money to improper supply chain practices, specifically because of poor SC management practices. This is common in state corporations and some of the causes include corruption, litigations, contract cancellations and substandard service or product delivery. Confirmed data shows that the Government of Kenya uses between 10% to 30% of the gross domestic product on acquisition of goods and services. Out of this 5% goes to waste due to lack of proper administration of the procurement contracts. The main objective of this study is to establish the effect of supply chain visibility on performance of commercial state corporations. This study adopted a descriptive research design for the purpose of accessing the study’s general intent. The unit of analysis for this study was 46 commercial state corporations in Kenya while the unit of observation was 340 management employees working with the commercial state corporations. The study used Yamane formulae (Yamane 1967) to determine the appropriate sample size for this study. The 184 respondents were chosen with the help of stratified random sampling technique. The study used primary and secondary data. Secondary data was obtained from online sources through desktop review. The study used self-administered questionnaires to collect primary data. Mixed methods data analysis techniques were employed in this study incorporating both descriptive and inferential data analysis. To analyse quantitative data, descriptive statistics was analysed via Statistical Package for Social Sciences (SPSS); these statistics include means, percentages, frequencies and standard deviations. Content analysis was used to analyses qualitative data. Pearson R correlation was used to measure strength and the direction of linear relationship between variables. Correlation analysis is usually used as a statistical tool that determines the association level between two variables. Multiple regression models were fitted to the data in order to test how far the independent variables affect the dependent variable. The study further used hierarchical multiple regression models to measure the effect of supply chain visibility on the on performance of commercial state corporations in Kenya. The study found that supply chain visibility is statistically significant in explaining performance of commercial state corporations in Kenya. The influence was found to be positive. This means that unit improvement in supply chain visibility would lead to an increase in performance of commercial state corporations in Kenya’. Based on the findings, the study concluded that supply chain visibility positively and significantly influences performance of commercial state corporations in Kenya. The study recommends that the management of commercial state corporations in Kenya should implement advanced supply chain management systems and technologies that offer real-time tracking, monitoring, and reporting capabilities.
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