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Buyer - Supplier Relationships Management Strategies and the Link with Procurement Performance of Large Scale Manufacturing Firms: Perspectives from Kenya

Author

Listed:
  • Alvin Boye. Dolo

    (University of Nairobi, Department of Management Science Nairobi, Kenya)

  • Peterson Obara Magutu

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

  • Lilian Kemunto Mogikoyo

    (Author-Workplace-Name: University of Nairobi, Department of Management Science Nairobi, Kenya)

Abstract

The main aim of this study is to establish buyer-supplier relationships management strategies and procurement performance of large scale manufacturing firm in Kenya. The study was guided by specific objectives that included; to establish the buyer - supplier relationships management strategies commonly used by large scale manufacturing firm and to determine the relationship between buyer - supplier relationships management and procurement performance of large scale manufacturing firm. The study used cross-sectional survey research design. The population of interest in this study consisted of large manufacturing companies that are members of KAM (Kenya association of manufactures) in Nairobi. The population of this study was 1500 firms. The 10% of the target population of 1500 respondents made a sample size of 150 manufacturing firms. The  study  used both primary and secondary data  which  was  largely  quantitative  and  descriptive  in nature. Mean and standard deviations was used as measures of central tendencies and dispersion respectively. Regression and correlation analysis was used to assess the strength of the relationships between the specified variables. From the findings indicated that communication among the supply chain partner is related to the degree of critical and proprietary information shared among each other’s. Information sharing involved information related to logistics, customer orders, forecasts, schedules, market and so on. Strategic partnerships with buyer and suppliers enable organizations to work more effectively with a few important suppliers who are willing to share responsibility for the success of the products. Recommendations were made that large manufacturing firms in Nairobi County and outside Nairobi should be advised to embrace the concept so that they can be able to reap the benefits of adopting these strategies. Large manufacturing firms are also advised to adopt the practices that are currently adopted at a very small extent because they can significantly improve organization performance from the current position.

Suggested Citation

  • 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.
  • Handle: RePEc:nap:nijefr:2018:p:20-30
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    References listed on IDEAS

    as
    1. 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.
    2. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    3. Nyaoga, Richard Bitange & Magutu, Peterson Obara & Aduba, Josiah, 2015. "Is there a Link between Supply Chain Strategies and Firm Performance?Evidence from Large-Scale Manufacturing Firms in Kenya," Journal of Operations and Supply Chain Management (JOSCM), Fundação Getulio Vargas, Escola de Administração de Empresas de São Paulo (FGV EAESP), vol. 8(2), December.
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