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Understanding the Effect of Subcontracting Practices among Manufacturing Firms in a Developing Economy: Lessons from Kenya

Author

Listed:
  • Nyabundi, Sheila Atieno

  • Dr. Renson W. Wanyonyi, PhD.

  • Dr. Caroline A. Oloo, PhD.

Abstract

Purpose: The current paper seeks to understand the effect of subcontracting practices among manufacturing firms in Kenya. Methodology: In a correlational survey design of 596 firms, the paper employs Kreycie & Morgan sample tables to select a sample of 234 firms. Primary data were collected sing a structured questionnaire from the heads of procurement departments who make up the unit of analysis. Descriptive statistics and linear regressions guide analysis process. Findings: Results indicate that subcontracting practices has a positive significant effect among manufacturing firms and accounts for 39% variance in performance (R2 =.390, β=.625, p<.05), providing evidence that unit adoption use of the practices improves performance by 0.625 units. Unique Contribution to Theory, Policy and Practice: Study supports knowledge in the systems theory, that subcontracting is an important sub system for alleviating firm performance. The study concludes that improvements in adoption-use of subcontracting practices improves performance in the manufacturing firms. The paper provides interesting discussions that supply chains in business firms can be agents of value creation through there sub-contracting practices, but then recognize that such efforts can only bear fruits if such firms effectively and religiously implement such practices.

Suggested Citation

  • Nyabundi, Sheila Atieno & Dr. Renson W. Wanyonyi, PhD. & Dr. Caroline A. Oloo, PhD., 2025. "Understanding the Effect of Subcontracting Practices among Manufacturing Firms in a Developing Economy: Lessons from Kenya," International Journal of Supply Chain and Logistics, CARI Journals Limited, vol. 9(7), pages 53-72.
    • Handle: RePEc:bhx:oijscl:v:9:y:2025:i:7:p:53-72:id:3142
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    References listed on IDEAS

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    1. Joep van den Bogaert & Willem van Jaarsveld, 2022. "Vendor-managed inventory in practice: understanding and mitigating the impact of supplier heterogeneity," International Journal of Production Research, Taylor & Francis Journals, vol. 60(20), pages 6087-6103, October.
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