Supplier Visibility in Supply Chain Network and Firm Performance: A Study in Kenya’s Manufacturing Sector

https://doi.org/10.51867/ajernet.5.4.75

Authors

  • Douglas Isaaka Mose Jomo Kenyatta University of Agriculture and Technology (JKUAT), Kenya
  • Dr. Anthony Osoro (Ph.D) Jomo Kenyatta University of Agriculture and Technology (JKUAT), Kenya
  • Dr. Samson Nyang’au (Ph.D) Jomo Kenyatta University of Agriculture and Technology (JKUAT), Kenya

Keywords:

Manufacturing Sector, Organizational Performance, Supplier Visibility, Supply Chain Visibility

Abstract

The aim of this study was to establish the effect of supplier visibility on the performance of manufacturing firms in Kenya. The study was anchored on supply chain planning theory. The study utilized a cross-sectional research design. The target population was 561 respondents drawn from the 187 large manufacturing firms in Kenya. Using a stratified random sampling, a sample of 228 respondents was selected. A questionnaire was used to collect data for the study. The data was analyzed using SPSS version 27. The findings revealed that supplier visibility was not effectively embraced among the manufacturing firms in Kenya. The results further revealed that supplier visibility had a significant relationship with performance of manufacturing firms in Kenya (β=0.769; P<0.05). The study concluded that manufacturing firms were declining in performance as a result of inefficient supply chain process and failure to enhance supplier visibility. The study recommended that there is need for managers in supply chain among the manufacturing firms to enhance supplier visibility by incorporating suppliers in their supply chain network planning for them to meet customer needs and promote their performance.

Dimensions

Agrawal, T. K., Kalaiarasan, R., Olhager, J., & Wiktorsson, M. (2024). Supply chain visibility: A Delphi study on managerial perspectives and priorities. International Journal of Production Research, 62(8), 2927-2942. https://doi.org/10.1080/00207543.2022.2098873 DOI: https://doi.org/10.1080/00207543.2022.2098873

Asamoah, K., Asare-Bediako, E., & Jacqueline, A. P. (2023). Effects of Supply Chain Visibility on Supply Chain Performance in Ghana Health Service: The Case of Kumasi Metro Health Directorate. Open Journal of Business and Management, 11(2), 437-463. https://doi.org/10.4236/ojbm.2023.112024 DOI: https://doi.org/10.4236/ojbm.2023.112024

Baah, C., Acquah, I. S. K., & Ofori, D. (2021). Exploring the influence of supply chain collaboration on supply chain visibility, stakeholder trust, environmental and financial performances: a partial least square approach. Benchmarking: An International Journal, 29(1), 172-193.

https://doi.org/10.1108/BIJ-10-2020-0519 DOI: https://doi.org/10.1108/BIJ-10-2020-0519

Bako, H. K., Dandago, M. A., & Nassarawa, S. S. (2019). Food traceability system: Current state and future needs of the Nigerian poultry and poultry product supply chain. Chem. Biomol. Eng., 4(3), 40-44. https://doi.org/10.11648/j.cbe.20190403.11 DOI: https://doi.org/10.11648/j.cbe.20190403.11

Barratt, M., & Oke, A. (2017). Antecedents of supply chain visibility in retail supply chains: A resource-based theory perspective. Journal of Operations Management, 25(6), 1217-1233, http://doi.org/10.1016/j.jom.2017.01.003 DOI: https://doi.org/10.1016/j.jom.2007.01.003

Berndt, A. E. (2020). Sampling methods. Journal of Human Lactation, 36(2), 224-226. https://doi.org/10.1177/0890334420906850 DOI: https://doi.org/10.1177/0890334420906850

Biswas, K., Muthukkumarasamy, V. & Tan, W.L. (2017), Blockchain based wine supply chain traceability, Future Technologies Conference. Vancouver: The Science and Information (SAI) Organization, pp. 56-62.

Bowen, F., & Siegler, J. (2024). The role of visibility in supply chain resiliency: Applying the Nexus supplier index to unveil hidden critical suppliers in deep supply networks. Decision Support Systems, 176, 114063. https://doi.org/10.1016/j.dss.2023.114063 DOI: https://doi.org/10.1016/j.dss.2023.114063

Brun, A., Karasosman, H., & Barresi, T., (2020). Supply chain collaboration for transparency. Sustainability, 12 (11), 4429. https://doi.org/10.3390/su12114429. DOI: https://doi.org/10.3390/su12114429

Cao, S., Bryceson, K., & Hine, D. (2020, January). Improving supply chain risk visibility and communication with a multi-view risk ontology. In Supply Chain Forum: An International Journal (Vol. 21, No. 1, pp. 1-15). Taylor & Francis. https://doi.org/10.1080/16258312.2020.1717990 DOI: https://doi.org/10.1080/16258312.2020.1717990

Chen, I. J. & Paulraj, A. (2004). Towards a theory of supply chain management: the constructs and measurements. Journal of Operations Management, 22(2), 119-51. https://doi.org/10.1016/j.jom.2003.12.007 DOI: https://doi.org/10.1016/j.jom.2003.12.007

Cho, B., Ryoo, S.Y., & Kim, K.K. (2017). Interorganizational dependence, information transparency in interorganizational information systems, and supply chain performance. Eur. J. Inf. Syst. 26(4), 185-205. https://doi.org/10.1057/s41303-017-0038-1 DOI: https://doi.org/10.1057/s41303-017-0038-1

Cole, R., Stevenson, M. & Aitken, J. (2019). Blockchain technology: implications for operations and supply chain management. Supply Chain Management: An International Journal, Vol. 24 No. 4, pp. 1-34. https://doi.org/10.1108/SCM-09-2018-0309 DOI: https://doi.org/10.1108/SCM-09-2018-0309

Dehkhoda, K., Bélanger, V., & Cousineau, M. (2023). The Effect of Visibility on Forecast and Inventory Management Performance During the COVID- Pandemic. Bureau de Montreal, Université de Montreal. https://doi.org/10.1080/00207543.2024.2414380 DOI: https://doi.org/10.1080/00207543.2024.2414380

Doetzer, M. (2020). The role of national culture on supply chain visibility: Lessons from Germany, Japan, and the USA. International Journal of Production Economics, 230(4), 107-109. https://doi.org/10.1016/j.ijpe.2020.107829 DOI: https://doi.org/10.1016/j.ijpe.2020.107829

Dubey, R., Gunasekaran, A., Childe, S. J., Papadopoulos, T., Luo, Z., & Roubaud, D. (2020). Upstream supply chain visibility and complexity effect on focal company's sustainable performance: Indian manufacturers' perspective. Annals of Operations Research, 290(3), 343-367.

https://doi.org/10.1007/s10479-017-2544-x DOI: https://doi.org/10.1007/s10479-017-2544-x

Durach, C., Wieland, A., & Machuca, J., (2015). Antecedents and dimensions of supply chain robustness: a systematic literature review. International Journal of Physical Distribution & Logistics Management, 45 (1/2), 118-137. https://doi.org/10.1108/IJPDLM-05-2013-0133 DOI: https://doi.org/10.1108/IJPDLM-05-2013-0133

Eckstein, D., Goellner M., Blome, C., & Henke, M., (2015). The performance impact of supply chain agility and supply chain adaptability: the moderating effect of product complexity. International Journal of Production Research 53,(10), 3028- 3046. https://doi.org/10.1080/00207543.2014.970707 DOI: https://doi.org/10.1080/00207543.2014.970707

Ellram, L., & Tate, W. L. (2015). Redefining supply management׳s contribution in services sourcing. Journal of Purchasing and Supply Management, 21(1), 64-78. https://doi.org/10.1016/j.pursup.2014.10.001 DOI: https://doi.org/10.1016/j.pursup.2014.10.001

Etikan, I., & Bala, K. (2017). Sampling and sampling methods. Biometrics & Biostatistics International Journal, 5(6), 141-149.

https://doi.org/10.15406/bbij.2017.05.00149 DOI: https://doi.org/10.15406/bbij.2017.05.00149

Ghasemy, Y. R., & Goh, M. (2021). Procurement, production, and price planning under visibility and risk: a generalised Benders decomposition method. International Journal of Production Research, 59(18), 5626-5646. https://doi.org/10.1080/00207543.2020.1788735 DOI: https://doi.org/10.1080/00207543.2020.1788735

Hackius, N. & Petersen, M. (2017), Blockchain in logistics and supply chain: trick or treat?, in Kersten, W., Blecker, T. and Ringle, C.M. (Eds), Proceedings of the Hamburg International Conference of Logistics (HICL), Digitization in Supply Chain Logistics, Hamburg, pp. 3-18.

Hobbs, J.E. (2020), Food supply chains during the COVID-19 pandemic, Canadian Journal of Agricultural Economics/Revue canadienne dagroeconomie, 68(2), 171-176. https://doi.org/10.1111/cjag.12237 DOI: https://doi.org/10.1111/cjag.12237

Holcomb, M. C., Ponomarov, S. Y., & Manrodt, K. B. (2011). The Relationship of Supply Chain Visibility to Firm Performance. An International Journal, 12(2), 56-59. https://doi.org/10.1080/16258312.2011.11517258 DOI: https://doi.org/10.1080/16258312.2011.11517258

Islami, X. (2023). Lean manufacturing and firms' financial performance: The role of strategic supplier partnership and information sharing. Benchmarking: An International Journal, 30(9), 2809-2831. https://doi.org/10.1108/BIJ-02-2022-0084 DOI: https://doi.org/10.1108/BIJ-02-2022-0084

Jermsittiparsert, K., & Srisawat, S. (2019). The role of supply chain visibility in enhancing supply chain agility. International Journal of Innovation, Creativity and Change, 5(2), 485-501.

Jonsson, P., & Holmström, J. (2016). Future of supply chain planning: closing the gaps between practice and promise. International Journal of Physical Distribution & Logistics Management, 46(1), 62-81. https://doi.org/10.1108/IJPDLM-05-2015-0137 DOI: https://doi.org/10.1108/IJPDLM-05-2015-0137

Kansson, H. & Persson, G. (2004). Supply chain management: the logic of supply chains and networks. The International Journal of Logistics Management, 15(1), 11-23. https://doi.org/10.1108/09574090410700202 DOI: https://doi.org/10.1108/09574090410700202

Karatzas, A., Johnson, M., & Bastl, M. (2017). Manufacturer-supplier relationships and service performance in service triads. International Journal of Operations & Production Management, 37(7), 950-969. https://doi.org/10.1108/IJOPM-11-2015-0719 DOI: https://doi.org/10.1108/IJOPM-11-2015-0719

Kenya Association of Manufacturers - KAM. (2020). Food and Beverage Manufacturing entities. Kenya Association of Manufacturers, Nairobi.

Kenya Association of Manufacturers, (2019). Kenya manufacturers & Exporters Directory. (11th ed.). Nairobi: Kenya Association of Manufacturers.

Kenya National Bureau of Statistics - KNBS. (2018). The Kenyan Manufacturing sector Survey Report. Kenya National Bureau of Statistics.

Kharlamov, A. & Parry, G. (2018), Advanced supply chains: Visibility, blockchain and human behaviour, in Moreira, A.C., Ferreira, L.M.D.F. and Zimmermann, R.A. (Eds), Innovation and Supply Chain Management, Springer, Cham, pp. 321-343. https://doi.org/10.1007/978-3-319-74304-2_15 DOI: https://doi.org/10.1007/978-3-319-74304-2_15

Kim, N. L. T., Duvernay, D., & Thanh, L. H. (2021). Determinants of financial performance of listed firms manufacturing food products in Vietnam: regression analysis and Blinder-Oaxaca decomposition analysis. Journal of Economics and Development, 14(9), 109-128.

Kimwaki, B. M. (2023). Role of Inventory Visibility on Performance of Manufacturing Sector in Sub-Saharan Africa: A Study in Kenya. Economit Journal: Scientific Journal of Accountancy, Management and Finance, 3(3), 174-186. https://doi.org/10.33258/economit.v3i3.1004 DOI: https://doi.org/10.33258/economit.v3i3.1004

Kothari, C. (2017). Research methodology methods and techniques by CR Kothari. Published by New Age International (P) Ltd, Publishers, 91.

Kwon, I. W. & Kim, S. H. (2018), Framework for successful supply chain implementation in healthcare area from providers perspective. Asia Pacific Journal of Innovation and Entrepreneurship, 12(2), 135-145. https://doi.org/10.1108/APJIE-04-2018-0024 DOI: https://doi.org/10.1108/APJIE-04-2018-0024

Leu, J. D., Krischke, A., Lee, Y. P., Lee, L. J. H., & Huang, Y. W. (2018). An ERP-based solution for the supply chain planning of medium-sized global manufacturing company. In 2018 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM) (pp. 1201-1205). IEEE. https://doi.org/10.1109/IEEM.2018.8607321 DOI: https://doi.org/10.1109/IEEM.2018.8607321

Li, X., Olorunniwo, F., Fan, C., & Jolayemi, J. (2016). Improving performance in supplier relationship management with lower-tier supplier visibility and management. Annals of Management Science, 5(1), 19. https://doi.org/10.24048/ams5.no1.2016-19 DOI: https://doi.org/10.24048/ams5.no1.2016-19

McIntire, J. (2016). Supply chain visibility: From theory to practice. Routledge. https://doi.org/10.4324/9781315611341 DOI: https://doi.org/10.4324/9781315611341

Muteshi, D. C., Awino, Z. B., Kitiabi, R. K., & Pokhariyal, G. P. (2018). Firm-Level Strategy, Capabilities and Performance of large food and beverage manufacturing firms in Kenya. International Review of Business Research Papers, 14(1), 19-29. https://doi.org/10.21102/irbrp.2018.03.141.02 DOI: https://doi.org/10.21102/irbrp.2018.03.141.02

Muthoni, J. P. & Mose, T. (2020). Influence of supply chain management practices on performance of large food and beverage manufacturing firms in Kenya. International Academic Journal of Procurement and Supply Chain Management, 3(2), 45-62

Nguyen, H. V., Nguyen, H. T., Deligonul, S., & Cavusgil, S. T. (2017). Developing visibility to mitigate supplier risk: the role of power-dependence structure. Asia-Pacific Journal of Business Administration, 9(1), 69-82. https://doi.org/10.1108/APJBA-05-2016-0052 DOI: https://doi.org/10.1108/APJBA-05-2016-0052

Nzewi, H. N. (2023). Supply Chain Disruption And Performance Of Plastic Manufacturing Firms In Anambra State, Nigeria. Journal of the Management Sciences, 60(3), 45-48.

OECD. (2022). Africas Development Dynamics 2022: Regional Value Chains for a Sustainable Recovery. Retrieved from: https://www.o ecd.org/dev/Africa -s-development-dynamics-3290877b-en.htm

Olorunniwo, F. O., Jolayemi, J. K., & Fan, C. (2015). Supplier Selection: Impact of Multi-Tier Supplier Visibility. Annals of Management Science, 4(2), 23-27. https://doi.org/10.24048/ams4.no2.2015-67 DOI: https://doi.org/10.24048/ams4.no2.2015-67

Orji, I. J., U-Dominic, C. M., & Okwara, U. K. (2022). Exploring the determinants in circular supply chain implementation in the Nigerian manufacturing industry. Sustainable Production and Consumption, 29(6), 761-776. https://doi.org/10.1016/j.spc.2021.11.023 DOI: https://doi.org/10.1016/j.spc.2021.11.023

Porter, M.E. (1985). Competitive advantage, Creating and sustaining superior performance, Free Press, New York.

Purwanto, A., & Juliana, J. (2022). The effect of supplier performance and transformational supply chain leadership style on supply chain performance in manufacturing companies. Uncertain Supply Chain Management, 10(2), 511-516. https://doi.org/10.5267/j.uscm.2021.12.001 DOI: https://doi.org/10.5267/j.uscm.2021.12.001

Ralston, P. M., Blackhurst, J., Cantor, D. E., & Crum, M. R. (2015). A Structure-conductPerformance perspective of How Strategic Supply Chain Visibility Affects Firm Performance. Journal of Supply Chain Management, 51(2), 47-64. https://doi.org/10.1111/jscm.12064 DOI: https://doi.org/10.1111/jscm.12064

Singagerda, F., Fauzan, A., & Desfiandi, A. (2022). The role of supply chain visibility, supply chain flexibility, supplier development on business performance of logistics companies. Uncertain Supply Chain Management, 10(2), 463-470. https://doi.org/10.5267/j.uscm.2021.12.005 DOI: https://doi.org/10.5267/j.uscm.2021.12.005

Singh, R. K. (2015). Modelling of Critical Factors for Responsiveness in Supply Chains. Journal of Manufacturing Technology Management Vol 26 Iss 6, 868-888. https://doi.org/10.1108/JMTM-04-2014-0042 DOI: https://doi.org/10.1108/JMTM-04-2014-0042

Skjoett-Larsen, T. (1999). Supply chain management: a new challenge for researchers and managers in logistics. International Journal of Logistics Management, 10(2), 41-53. https://doi.org/10.1108/09574099910805987 DOI: https://doi.org/10.1108/09574099910805987

Somapa, S., Cools, M., & Dullaert, W. (2018). Characterizing supply chain visibility-a literature review. The International Journal of Logistics Management, 29(1), 308-339. https://doi.org/10.1108/IJLM-06-2016-0150 DOI: https://doi.org/10.1108/IJLM-06-2016-0150

Swift, C., Guide Jr, V. D. R., & Muthulingam, S. (2019). Does supply chain visibility affect operating performance? Evidence from conflict minerals disclosures. Journal of Operations Management, 65(5), 406-429. https://doi.org/10.1002/joom.1021 DOI: https://doi.org/10.1002/joom.1021

Taherdoost, H. (2016). Sampling methods in research methodology; how to choose a sampling technique for research. How to choose a sampling technique for research (April 10, 2016). https://doi.org/10.2139/ssrn.3205035

Urbaniak, M., Zimon, D., & Madzik, P. (2023). Expectations of manufacturing companies for suppliers regarding the improvement of their processes. Archives of Transport, 68(4), 157-174. https://doi.org/10.61089/aot2023.vf1jsa33 DOI: https://doi.org/10.61089/aot2023.vf1jsa33

Wang, M., Wang, B., & Abareshi, A., (2020). Blockchain technology and its role in enhancing supply chain visibility capability and reducing carbon emission: a conceptual framework. Sustainability 12 (24), 10550. https://doi.org/10.3390/ su122410550. DOI: https://doi.org/10.3390/su122410550

Wang, Y., Singgih, M., Wang, J. and Rit, M. (2019), Making sense of blockchain technology: how will it transform supply chains?, International Journal of Production Economics, Vol. 211, pp. 221-236. https://doi.org/10.1016/j.ijpe.2019.02.002 DOI: https://doi.org/10.1016/j.ijpe.2019.02.002

Wang, Y., Wallace, S. W., Shen, B., & Choi, T.-M. (2015). Service supply chain management: A review of operational models. European Journal of Operational Research, 247(3), 685-698. doi:10.1016/j.ejor.2015.05.053 DOI: https://doi.org/10.1016/j.ejor.2015.05.053

Wanja, I. N., & Achuora, J. (2020). Sustainable procurement practices and performance of procurement in food and beverages manufacturing firms in Kenya. Global Scientific Journals, 8(3), 1637 - 1656.

Wibowo, A., Tjahjono, B., & Tomiyama, T. (2017). Designing Contracts for Aero-engine MRO Service Providers: Models and Simulation. Procedia CIRP, 59(8), 246-251. https://doi.org/10.1016/j.procir.2016.10.124 DOI: https://doi.org/10.1016/j.procir.2016.10.124

Xiaokun, W., Lei, W., & Hanyan, W. (2019). Mode of Freight Rolling and Collecting and Distributing Based on Cloud Logistics Platform. Journal of Physics: Conference Series, 1187(5), 052024. doi:10.1088/1742-6596/1187/5/052024 DOI: https://doi.org/10.1088/1742-6596/1187/5/052024

Yu, M. C., & Goh, M. (2014). A multi-objective approach to supply chain visibility and risk. European Journal of Operational Research, 233(1), 125-130. https://doi.org/10.1016/j.ejor.2013.08.037 DOI: https://doi.org/10.1016/j.ejor.2013.08.037

Published

2024-11-12

How to Cite

Mose, D. I., Osoro, A., & Nyang’au, S. (2024). Supplier Visibility in Supply Chain Network and Firm Performance: A Study in Kenya’s Manufacturing Sector. African Journal of Empirical Research, 5(4), 923–933. https://doi.org/10.51867/ajernet.5.4.75

Issue

Vol. 5 No. 4 (2024): Oct-Dec 2024

Section

Articles
Copyright & Licensing

Copyright (c) 2024 Douglas Isaaka Mose, Dr. Anthony Osoro (Ph.D), Dr. Samson Nyang’au (Ph.D)

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Crossref
Scopus
Google Scholar
Europe PMC