POSTPONEMENT SUPPLY CHAIN STRATEGY AND PERFORMANCE OF MANUFACTURING FIRMS IN KENYA
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Abstract
The objective of this study was to establish the moderating effect of environmental uncertainties on the relationship between performance of manufacturing firms in Kenya and postponement supply chain strategy. The study used a descriptive research survey and further used both qualitative and quantitative approaches. The target population was 829 respondents from manufacturing firms around the country. The study used stratified random sampling in data collection. A sample of 270 respondents was randomly selected to participate in this study. Primary data was used for the study. The data was collected open and close ended questionnaires. A pilot test of 10% was done to test reliability and validity of the research instrument. Multiple regression model and correlation analysis was applied to examine the relationship between the study variables. Data analysis methods consisted of qualitative and quantitative techniques. The findings indicated that postponement supply chain strategy had a positive and significant effect on performance of manufacturing firms. Further, the results indicated that environmental uncertainties have a significantly negative moderating effect on the relationship between postponement supply chain strategy and performance of manufacturing firms. The study concluded that postponement supply chain strategy are significant contributors of manufacturing firms’ performance. The study recommends that manufacturing firms should delay buying, manufacturing and delivery in order to take advantage of economies of scale in consolidation.
Key Words: Environmental Uncertainties, Performance, Manufacturing firms, Postponement Supply Chain Strategy
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