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The Link between Supplier Evaluation Attributes and Supply Chain Performance of Government Owned Entities: Perspectives from Commercial State Corporations in Kenya

Author

Listed:
  • Lilian Kemunto Mogikoyo

    (Postgraduate Student - MBA, University of Nairobi, Department of Management Science:Nairobi, Kenya)

  • Peterson Obara Magutu

    (Lecturer, University of Nairobi, School of Business - Department of Management Science:Nairobi, Kenya)

  • Alvin B. Dolo

    (Postgraduate Student - MBA, University of Nairobi, Department of Management Science:Nairobi, Kenya)

Abstract

The study set out to establish the relationship between supplier evaluation attributes and supply chain performance. The researchers adopted both qualitative and quantitative research designs. The two employees were selected on equal proportions from 20 commercial state corporations, giving a total of forty respondents. The information from primary data source will be collected using mainly questionnaires.  Stepwise regression analysis (OLS) was utilized to find the relationship between supplier evaluations attributes and supply chain performance. The response rate was 90% an indication that all commercial state corporations were well represented in this study.  The respondents who participated in this study were knowledgeable to understand and synthesize the issues of supplier evaluation attributes and supply chain performance. On the supplier evaluation attributes, commercial state corporations in addition to financial healthy they equally consider financial dependency, turnover and profitability levels when evaluating their suppliers. On the relationship between suppliers evaluation attributes and supply chain using stepwise regression analysis established that 55.6 % of the variations in supply chain performance can be explained by variations in supplier evaluation attributes. This implies that the supplier evaluation attributes explain 55.6 % of the performances of the firm’s supply chain. It was concluded that commercial state corporations pay a lot of attention to the suppliers’ financial health and autonomy, the supplier’s physical security and the supplier’s supply chain experience, a perfect cultural fit, training programs and the quality of the human resource management policies, and beneficial supplier-relationships and cost efficiency in an effort to improve their supply chain performance. Lastly, it was established the supplier evaluation attributes explain 55.6 % of the changes in the firm’s supply chain performance. There is need to explore other supplier evaluation attributes like the suppliers’ automation attributes and service delivery attributes and how they can influence supply chain performance. There is to conduct the same study in other sectors like manufacturing and service sector industries and firms.

Suggested Citation

  • Lilian Kemunto Mogikoyo & Peterson Obara Magutu & Alvin B. Dolo, 2017. "The Link between Supplier Evaluation Attributes and Supply Chain Performance of Government Owned Entities: Perspectives from Commercial State Corporations in Kenya," Noble International Journal of Economics and Financial Research, Noble Academic Publsiher, vol. 2(1), pages 1-20, January.
  • Handle: RePEc:nap:nijefr:2017:p:1-20
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    References listed on IDEAS

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    1. Stern, Philip J., 2011. "The Company-State: Corporate Sovereignty and the Early Modern Foundations of the British Empire in India," OUP Catalogue, Oxford University Press, number 9780195393736.
    2. Ambuj Khare & Anurag Saxsena & Peeyush Teewari, 2012. "Supply Chain Performance Measures for gaining Competitive Advantage: A Review," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 3(2), pages 25-32, April.
    3. Peter Mwangi Waithaka & Esther Waiganjo, 2015. "Role of Buyer Supplier Relationship on Supply Chain Performance in Kenya’s State Corporations: A Case Study of Kenya Tea Development Agency," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(4), pages 104-121, April.
    4. Gunasekaran, A. & Patel, C. & McGaughey, Ronald E., 2004. "A framework for supply chain performance measurement," International Journal of Production Economics, Elsevier, vol. 87(3), pages 333-347, February.
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    Citations

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    Cited by:

    1. Hellen Nzuki & Charles Ombuki & Robert Arasa, 2017. "Challenges Affecting Implementation of Strategic Plan in Kenya Health Sector; A Case of Public Hospitals in Machakaos County," Noble International Journal of Social Sciences Research, Noble Academic Publsiher, vol. 2(10), pages 95-107, October.
    2. Alvin Boye. Dolo & Peterson Obara Magutu & Lilian Kemunto Mogikoyo, 2018. "Buyer - Supplier Relationships Management Strategies and the Link with Procurement Performance of Large Scale Manufacturing Firms: Perspectives from Kenya," Noble International Journal of Economics and Financial Research, Noble Academic Publsiher, vol. 3(2), pages 20-30, February.

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