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Management Challenges in Different Types of African FirmsSupply Chain Management Practices and Operational Performance of SMEs in Nairobi County, Kenya

Management Challenges in Different Types of African Firms: Supply Chain Management Practices and... [Small and medium-sized enterprisesSmall and medium-sized enterprises (SMEs) are a major contributor to economic growth in the largest economy in the East African region, Kenya. The purpose of this study was to determine the effects of supply chain management (SCM)Supply chain management (SCM) practices on the operational performanceOperational performance of small and medium-sized enterprises (SMEs)Small and medium-sized enterprises (SMEs) in Nairobi County, Kenya. Due to the role that SMEs play in economic development, an integrated supply chain managementSupply chain management (SCM) approach is required for attaining desired levels of operational performanceOperational performance based on cost, flexibility, and delivery speed. In addition, the study also identifies the best in class supply chain management practices that SMEsSmall and medium-sized enterprises (SMEs) use as a benchmark against set standards. This study adopts a descriptive research design. The target population is SMEs in Nairobi County where a sample of 45 firms was drawn using stratified sampling. The enterprises are represented by the subsectors of trade and information technology. Data was collected using questionnaires administered by the researcher and analyzed using descriptive statistics of percentages and inferential statistics of a regression analysis. The research findings show that supply chain managementSupply chain management (SCM) practices positively impact the operational performanceOperational performanceof SMEsSmall and medium-sized enterprises (SMEs) across the sectors of trade and information technology. SMEs are of the opinion that supply chain practicesSupply chain practices of purchasing, logistics, and customer services are significant for business operations and hence an opportunity to outdo competition. The study concludes that SMEs should adopt SCM as part of their business strategies to enhance their operational performance. The study recommends that awareness about SCM should be raised for SMEs to align them with their business strategies.] http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png

Management Challenges in Different Types of African FirmsSupply Chain Management Practices and Operational Performance of SMEs in Nairobi County, Kenya

Part of the Frontiers in African Business Research Book Series
Editors: Achtenhagen, Leona; Brundin, Ethel
Nehemiah, Wanjau
Management Challenges in Different Types of African Firms — May 20, 2017
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Publisher
Springer Singapore
Copyright
© Springer Nature Singapore Pte Ltd. 2017
ISBN
978-981-10-4535-6
Pages
95 –111
DOI
10.1007/978-981-10-4536-3_6
Publisher site
See Chapter on Publisher Site

Abstract

[Small and medium-sized enterprisesSmall and medium-sized enterprises (SMEs) are a major contributor to economic growth in the largest economy in the East African region, Kenya. The purpose of this study was to determine the effects of supply chain management (SCM)Supply chain management (SCM) practices on the operational performanceOperational performance of small and medium-sized enterprises (SMEs)Small and medium-sized enterprises (SMEs) in Nairobi County, Kenya. Due to the role that SMEs play in economic development, an integrated supply chain managementSupply chain management (SCM) approach is required for attaining desired levels of operational performanceOperational performance based on cost, flexibility, and delivery speed. In addition, the study also identifies the best in class supply chain management practices that SMEsSmall and medium-sized enterprises (SMEs) use as a benchmark against set standards. This study adopts a descriptive research design. The target population is SMEs in Nairobi County where a sample of 45 firms was drawn using stratified sampling. The enterprises are represented by the subsectors of trade and information technology. Data was collected using questionnaires administered by the researcher and analyzed using descriptive statistics of percentages and inferential statistics of a regression analysis. The research findings show that supply chain managementSupply chain management (SCM) practices positively impact the operational performanceOperational performanceof SMEsSmall and medium-sized enterprises (SMEs) across the sectors of trade and information technology. SMEs are of the opinion that supply chain practicesSupply chain practices of purchasing, logistics, and customer services are significant for business operations and hence an opportunity to outdo competition. The study concludes that SMEs should adopt SCM as part of their business strategies to enhance their operational performance. The study recommends that awareness about SCM should be raised for SMEs to align them with their business strategies.]

Published: May 20, 2017

Keywords: Benchmarking; Operational performance; SMEs; Supply chain management; Supply chain practices; L25; M110

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