Risk Management Strategy and Supply Chain Perfomance Among Manufacturing Companies In Kenya

Abstract

The purpose of this study was to determine risk management strategy and supply chain performance among manufacturing companies in Kenya The study adopted a cross-section survey of descriptive nature. The target population comprised of the 412 manufacturing companies within Nairobi County that were registered members of KAM. The fisher et al formula for calculating the sample size was used to yield a sample size of199. Data was collected using questionnaires and analysed using statistical package of social sciences (SPSS) version 21 as a tool of analysis. In trying to explain the relationship between different variables in the study, Odd ratio regression was adopted as an appropriate method of analysing the relationship between multiple variables requiring simultaneous comparison. The study findings revealed that the constructs of risk identification management strategy combined together influenced supply chain performance as supported by a p value of 0.000.Further, most of the companies had risk analysis and evaluation management strategy in place. The study also concluded that the odds of observing better lead time and odds of improved quality were higher for those companies that conducted whole life costing of suppliers (p value- 0.023) and internal controls of suppliers (p value- 0.049)

Policy recommendation: the study recommended that manufacturing companies should put in place a risk analysis and evaluation management strategy to enhance supply chain performance. In particular, companies should consider conducting whole life costing of suppliers and also internal quality of suppliers.